Kerala PSC KAS Prelims Paper 2 Mock Test - 3 - Kerala PSC KAS MCQ

Monetary Policy Committee of India is constituted under 45ZB of the RBI Act, 1934 by notification in Official Gazette by Central Government.

• The Monetary Policy Committee of India is responsible for fixing the benchmark interest rate in India. The meetings of the Monetary Policy Committee are held at least 4 times a year and it publishes its decisions after each such meeting.

• The quorum for a meeting of the Monetary Policy Committee shall be four members, at least one of whom shall be the Governor and in his absence, the Deputy Governor who is the Member of the Monetary Policy Committee.

• The committee comprises six members - three officials of the Reserve Bank of India and three external members nominated by the Government of India, which are nominated for 4 years and not eligible for re-appointment and shall not have completed 70 years of age.

• The Members of the Monetary Policy Committee shall be appointed by the Central Government on the recommendations made by Search-cum-Selection Committee consisting of the following members, namely:–– (a) Cabinet Secretary— Chairperson; (b) Governor of the Reserve Bank of India— member; (c) Secretary, Department of Economic Affairs— member; (d) three experts in the field of economics or banking or finance or Monetary policy to be nominated by the Central Government— members.

• They need to observe a "silent period" seven days before and after the rate decision for "utmost confidentiality".

• The Governor of Reserve Bank of India is the ex officio chairperson of the committee. Hence, statement 2 is correct.

• Decisions are taken by the majority with the Governor having the casting vote in case of a tie.

• The Bank shall appoint a Secretary to the Monetary Policy Committee to provide secretariat support to the said Committee.

• The Secretary shall perform such functions and in such manner as may be specified by the regulations made by the Central Board.

Vijay Jain, the Managing Director of Star Estate, was recognized with the Times Power Icon 2024 Award for his contributions to the real estate sector. The award demonstrates his leadership and the growth of Star Estate since its founding in 2012.

Michel Talagrand was awarded the 2024 Abel Prize, often referred to as the Nobel Prize of mathematics, for his significant research in probability theory and the study of randomness. This prize highlights his impactful work over a four-decade career at the French National Centre for Scientific Research.

The film "Bharat Maro Desh Che," which addresses issues faced by nomadic tribes in India, won 6 awards at the Gujarat State Awards, showcasing its impact and the important message it conveys about dignity and social acceptance.

Bina Agarwal and James K. Boyce were jointly awarded the inaugural Global Inequality Research Awards (GiRA) for their significant contributions to understanding gender inequalities and the environmental implications of social inequality.

PM Modi was honored with Bhutan's highest civilian award, the Order of the Druk Gyalpo, during his visit to Bhutan, marking a significant recognition of his contributions to strengthening India-Bhutan relations.

Hindustan Shipyard Ltd (HSL) received three awards at the Governance Now 10th PSU Awards, reflecting its excellence in the maritime industry and recognition for its achievements under the leadership of its Director, Cmde Kunjumon E Mathew.

The Raksha Mantri Trophy is awarded to recognize excellence in healthcare services delivered by Armed Forces Hospitals, aiming to acknowledge the crucial role of medical facilities in serving military personnel and their families.

Prabha Varma, a Kerala poet and litterateur, won the Saraswati Samman 2023 for his work 'Roudra Sathwikam.' This award recognizes outstanding literary achievements in Indian literature and is conferred by the KK Birla Foundation.

Uday Bhatia and Manasi Gupta were honored with the Diana Memorial Award, recognizing their impactful contributions in their respective fields—Uday for his innovations in technology and Manasi for her advocacy in mental health.

Tata AIA was recognized as the Kincentric Best Employer for the eighth consecutive year, reflecting its commitment to employee engagement and organizational excellence in the insurance sector.

T.M. Krishna was conferred with the Sangita Kalanidhi award, one of the highest honors in Carnatic music, recognizing his contributions to the art form and his efforts in promoting it globally.

Kempegowda International Airport was recognized for its excellence in passenger services, showcasing India's commitment to enhancing travel experiences and airport operations.

Ratan Tata was honored with the PV Narsimha Rao Memorial Award for his significant contributions to philanthropy and social welfare, reflecting his commitment to improving society through various initiatives.

• Demand-pull inflation is when there is an increase in aggregate demand, and the supply remains the same or decreases. When supply cannot meet growing demand, prices for goods and services are pulled higher. Demand-pull inflation can be caused by an expanding economy, increased government spending, or overseas growth. An increase in government spending means the government opens up more money in the economy, and consumers have access to more money to buy goods and services. Due to the sufficiency of money, demand gradually begins to outweigh supply. So, Statement 1 is correct. 
• When the economy is booming, the unemployment rate is low. Consumers tend to earn more income and spend more money, which drives up levels of aggregate demand. Therefore, with an increase in the unemployment rate, there is less disposable income in the hands of people, and this causes aggregate demand to fall. So, Statement 2 is not correct. 
• Increasing the price of crude oil would increase the cost of producing goods. This price rise would finally be passed on to consumers resulting in inflation. Higher oil prices contribute to inflation directly by increasing the cost of inputs. High oil prices decrease purchasing power. As a result, households may demand higher wages, raising cost-push inflation as firms pass this cost to selling prices. So, Statement 3 is not correct.

Statement 1 is correct: Recognizing the necessity for a leading maritime nation such as India to have its own classification society, the Government of India constituted the Mudaliar Committee whose recommendation for formation of an Indian classification society was accepted by the Government of India in 1974. 

• Thus, Indian Register of Shipping was established in March 1975 as a public limited company under the Indian Companies Act, 1956 with no share capital, no shareholders and distributing no dividends.

Statement 2 is correct: Indian Register of Shipping is an international ship classification society providing ship classification and certification as well as technical inspection services.

In News : The Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Generation India Foundation (GIF) and Amazon Web Services India Private Limited (AWS India) is providing ‘cloud’ skills training to 1,500 learners and connecting them to employment opportunities, under project AMBER (co-funded by MSDE under the SANKALP programme). 
Statements 1 and 2 are not correct : SANKALP is a Centrally sponsored scheme of Ministry of Skill Development and Entrepreneurship (MSDE) with loan assistance from the World Bank 

• It was launched on 19th January 2018 
• It aims to improve short term skill training qualitatively and quantitatively through strengthening institutions, bring in better market connectivity and inclusion of marginalised sections of the society.

In News 

• The Government of India, in association with State Governments, is launching an ‘Invoice incentive Scheme’ by the name ‘Mera Bill Mera Adhikaar’. 
• About :Objective: To encourage the culture of customers asking for invoices/bills for all purchases. 
• Aim: To bring a cultural and behavioural change in the general public to ‘Ask for a Bill’ as their right and entitlement.

The Directorate General of Foreign Trade (DGFT): 

• It is an agency of the Union Ministry of Commerce and Industry, established in 1991 and is responsible for implementing the country’s foreign trade policy. 
• Headquarters: New Delhi with 38 regional offices 
• The Appointments Committee of Cabinet (ACC) appoints the DGFT. 
• It is responsible for administering laws regarding foreign trade and foreign investment in India and for the execution of India’s import and export Policy. 
• It offers facilitation to exporters in connection with developments in international trade such as WTO Agreements, Rules of Origin etc.

WPI and CPI inflation rates 

• Consumer Price Index (CPI): 
  • It is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services used by consumers. 
  • CPI is also called a market basket, it is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc. Hence statement 2 is correct. 
  • The base Year for CPI is 2012. 
• The Wholesale Price Index(WPI): 
  • The new series of Wholesale Price Index(WPI) with base 2011-12 is effective from April 2017. 
  • WPI captures the average movement of wholesale prices of goods and is primarily used as a GDP deflator. Hence statement 1 is incorrect. 
  • WPI(2011-12) reckons only basic prices and does not include taxes, rebate/trade discounts, transport and other charges. 
  • WPI-based inflation data is put together by the Department for Promotion of Industry and Internal Trade (or DPIIT)

• Lending by a commercial bank for certain sectors which are identified as “priority sector” by the central bank (Reserve Bank of India) is called as priority sector lending.

• Priority sector lending (PSL) should constitute 40 per cent of Adjusted Net Bank Credit ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

• To the extent of shortfall in the achievement of target, banks may be required to invest in Rural Infrastructure Development Fund (RIDF) established with National Bank for Agriculture and Rural Development (NABARD) and other Funds with NABARD or National Housing Bank (NHB) or Small Industries Development Bank of India (SIDBI) or Micro Units Development Refinance Agency Bank (MUDRA Ltd)., as decided by the Reserve Bank from time to time, or purchase priority sector lending certificates (PSLC).

• It is applicable on Domestic Scheduled Banks excluding Small Finance Banks and Regional Rural Banks, and also to Foreign Banks with more than 20 branches.

• Priority Sector includes the following categories:

  (i) Agriculture

  (ii) Micro, Small and Medium Enterprises

  (iii) Export Credit

  (iv) Education

  (v) Housing

  (vi) Social Infrastructure

  (vii) Renewable Energy

  (viii) Others

• Examples of Loans under PSL:

  • Farm Credit which will include short-term crop loans and medium/long-term credit to farmers, agriculture Infrastructure and ancillary activities etc., loans to distressed farmers, loans under Kisan Credit Card Scheme.

  • Loans to corporate farmers, farmers' producer organizations/companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in agriculture and allied activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture up to an aggregate limit of ₹ 2 crores per borrower etc.

  • Loans to Khadi and Village industries, outstanding deposits with Small Industries Development Bank of India (SIDBI) and Micro Units Development Refinance Agency Bank (MUDRA Ltd.) on account of priority sector shortfall etc.

  • Loans for export subject to a sanctioned limit of up to ₹ 25 crores per borrower to units having turnover of up to ₹ 100 crores.

  • Loans to individuals up to Rs. 10 lakh for Education. o Loans to individuals up to ₹ 28 lakh in metropolitan centres (with a population of ten lakh and above) and loans up to ₹ 20 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at other centres should not exceed ₹ 35 lakh and ₹ 25 lakh respectively, loans for repairs to the house, bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of ₹ 10 lakh per dwelling unit etc.

  • Bank credit to Micro Finance Institutions (MFIs) extended for on-lending to individuals and also to members of Self Help Group (SHGs)/joint Liability Groups (JLGs) for water and sanitation facilities etc.

  • Loans to minorities, women, scheduled caste and scheduled tribes, small and marginal farmers, self-help groups, cottage industries etc. Overdrafts upto ₹ 5,000/- under Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts, provided the borrower’s household annual income does not exceed ₹ 100,000/- for rural areas and ₹ 1,60,000/- for non-rural areas.

• Core industries can be defined as main or key industries of the economy. These industries are considered as the backbone of all other industries and are likely to impact on general economic activities as well as industrial activities.

• There are a total of 8 core industries classified in India. The monthly Index of Eight Core Industries (ICI) is a production volume index. ICI measures the collective and individual performance of production in selected eight core industries.

  • Coal – Coal Production excluding Coking coal.

  • Crude Oil – Total Crude Oil Production.

  • Natural Gas – Total Natural Gas Production.

  • Refinery Products – Total Refinery Production (in terms of Crude Throughput).

  • Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).

  • Steel – Production of Alloy and Non-Alloy Steel only.

  • Cement – Production of Large Plants and Mini Plants.

  • Electricity – Actual Electricity Generation of Thermal, Nuclear, Hydro, imports from Bhutan.

• The Index is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India.

• Up to 3rd Five Year Plan (FYP) [1961-66] and during Plan Holiday (1966-69), allocation of Central Plan Assistance to states was schematic and no formula was in use.

• The Gadgil Formula was adopted during 4th FYP (1969-74) and used in 5th FYP (1974-78).

• It comprised of:

  (i) Population [60%]

  (ii) Per Capita Income (PCI) [10%]

  (iii) Tax Effort [10%]

  (iv) On- going Irrigation & Power Projects [10%] and

  (v) Special Problems [10%].

However, item (iv) was perceived as being weighted in favour of rich states, the formula was modified by raising the weightage of PCI to 20%.

• The National Development Council (NDC) approved the modified Gadgil formula in August 1980. It formed the basis of allocation during 6th FYP (1980-85), 7th FYP (1985-90) and Annual Plan (AP) 1990- 91.

• Following suggestions from State Governments, the modified Gadgil Formula was revised to Population (55%), PCI [25% {20% by deviation method and 5% by distance method}], Fiscal Management (5%) and Special Development Problems (15%). However, it was used only during Annual Plan 1991-92.

• Due to reservations of State Governments on revision, a Committee under Shri Pranab Mukherjee, then Deputy Chairman, Planning Commission was constituted to evolve a suitable formula. The suggestions made by the Committee were considered by NDC in December 1991, where following a consensus, the Gadgil-Mukherjee Formula was adopted. It was made the basis for allocation during 8th FYP (1992-97) and it has since been in used in five-year plans.

• An inflationary gap is a macroeconomic concept that measures the difference between the current level of real GDP and the gross domestic product (GDP) that would exist if an economy was operating at full employment. Hence, statement 1 is correct.

• The inflationary gap exists when the demand for goods and services exceeds production due to factors such as higher levels of overall employment, increased trade activities or increased government expenditure. Inflationary gap is thus the result of excess demand. It may be defined as the excess of planned levels of expenditure over the available output at base prices. Hence, statement 2 is not correct.

• This can lead to the real GDP exceeding the potential GDP, resulting in an inflationary gap. The inflationary gap is so named because the relative increase in real GDP causes an economy to increase its consumption, which causes prices to rise in the long run.

• Deflationary gap is the difference between potential output at full level of employment and the actual level of output of the economy. For deflationary gap all the resources of the economy are not being used to the optimum level and some are idle. This comes with unemployment and low levels of output.

Option (d) is the correct answer. To address the need of menstrual hygiene among adolescent girls residing primarily in rural areas, the Ministry of Health and Family Welfare is supporting the Menstrual Hygiene Scheme, under which funds are provided to States/UTs through ‘National Health Mission’ for decentralized procurement of sanitary napkins packs primarily for rural adolescent girls at subsidized rates as per proposals received from the States and UTs in their Programme Implementation Plans. This scheme contains provisions for increasing awareness among adolescent girls on menstrual hygiene, improving access to and use of high-quality sanitary napkins by adolescent girls in rural areas, ensuring safe disposal of sanitary napkins in an environmentally friendly manner and provision of funds to ASHAs to hold monthly meetings with adolescent girls to discuss issues related to menstrual hygiene. Statement 1 is correct. The scheme aims to improve access to and use of high-quality sanitary napkins by adolescent girls in rural areas. Statement 2 is correct. Under the scheme funds will be provided to ASHAs to hold monthly meetings to discuss about the menstrual health and hygiene. Statement 3 is also correct. The scheme contains provision for educating adolescent girls for safe and environmentally friendly disposal of the used sanitary napkins.

Option (d) is the correct answer

Pair 1 is correctly matched. Beresheet was Israel's first lunar mission and the first attempt by a private company to land on the Moon. The mission achieved lunar orbit, but was lost during an April 2019 landing attempt.

Pair 2 is correctly matched. China's Chang'e 4 was the first mission to land on the far side of the Moon. The lander and rover communicate with Earth via the Queqiao relay satellite. The lander and rover touched down in Von Karman crater on January 3, 2019.

Pair 3 is correctly matched. Chandrayaan-1 was India's first deep space mission. India's Chandrayaan-1 played a crucial role in the discovery of water molecules on the Moon.

Pair 4 is also Correctly matched. Apollo 11 was the 1st Mission to land humans on the surface of the Moon. It was the mission of the United States of America.

Option (b) is the correct answer.

Statement 1 is correct. The human skeleton is composed of around 305 bones at birth. The number of bones in the skeleton changes with age.It deceases to 206 bones by adulthood after some bones have fused together.

Statement 2 is correct. Fingers, palm and wrist are made up of several small bones called Carpels. Statement 3 is correct. Some of our important internal parts are protected by the chest bone and backbone together, it is called Rib cage.

Option (a) is the correct answer. Sewage is treated in sewage treatment plants (STPs) to make it less polluting. Treatment

of waste water is done by the heterotrophic microbes naturally present in the sewage. This treatment is carried out in two stages: Primary treatment; Secondary treatment or Biological treatment. Primary treatment : These treatment steps basically involve physical removal of particles – large and small – from the sewage through filtration and sedimentation. These are removed in stages; initially, floating debris is removed by sequential filtration. All solids that settle form the primary sludge, and the supernatant forms the effluent. The effluent from the primary settling tank is taken for secondary treatment.

The primary effluent is passed into large aeration tanks where it is constantly agitated mechanically and air is pumped into it. associated with fungal filaments to form mesh like structures). While growing, these microbes consume the major part of the organic matter in the effluent.

Statement 2 is incorrect. This significantly reduces the BOD (biochemical oxygen demand) of the effluent. BOD refers to the amount of oxygen that would be consumed if all the organic matter in one liter of water were oxidised by bacteria. The sewage water is treated until the BOD is reduced. Statement 3 is incorrect. Once the BOD of sewage or wastewater is reduced significantly, the effluent is then passed into a settling tank where the bacterial ‘flocs’ are allowed to sediment. This sediment is called activated sludge.

A small part of the activated sludge is pumped back into the aeration tank to serve as the inoculum. The remaining major part of the sludge is pumped into large tanks called anaerobic sludge digesters. Here, other kinds of bacteria, which grow anaerobically, digest the bacteria and fungi in the sludge. During this digestion, bacteria produce a mixture of gases such as methane, hydrogen sulphide and carbon dioxide. These gases form biogas and can be used as a source of energy as it is inflammable. The effluent from the secondary treatment plant is generally released into natural water bodies like rivers and streams.

Option (d) is the correct answer. Transformation of normal cells into cancerous cells may be induced by physical, chemical or biological agents. These agents are called carcinogens. Ionizing radiations like X-rays and gamma rays (option 1) and non-ionizing radiation like UV (option 2) cause DNA damage leading to neoplastic transformation. Cancer causing viruses called oncogenic viruses have genes called viral oncogenes. Some viruses when causing infection spread their DNA, affecting healthy cells' genetic makeup and potentially causing them to turn into cancer. HPV infections, for instance, cause the virus' DNA to combine with the host's DNA, thereby disrupting the normal function of the cells.

Option (c) is the correct answer. Plasma: The liquid component of blood is called plasma, a mixture of water, sugar, fat, protein, and salts. The main job of the plasma is to transport blood cells throughout your body along with nutrients, waste products, antibodies, clotting proteins, chemical messengers such as hormones, and proteins that help maintain the body's fluid balance. White blood cells, or leukocytes, are one of the body’s defenses against disease: some destroy bacteria and others create antibodies against bacteria and viruses or fight malignant disease. But while our own white cells help us stay healthy, they can be dangerous to someone who receives donated blood.

That’s because leukocytes may carry viruses that cause immune suppression and release toxic substances in the recipient. To avoid these negative reactions, leukocytes are often removed from transfusable blood components, a process called leuko-reduction. Platelets (also called thrombocytes): Unlike red and white blood cells, platelets are not actually cells but rather small fragments of cells. Platelets help the blood clotting process (or coagulation) by gathering at the site of an injury, sticking to the lining of the injured blood vessel, and forming a platform on which blood coagulation can occur.

This results in the formation of a fibrin clot, which covers the wound and prevents blood from leaking out. Fibrin also forms the initial scaffolding upon which new tissue forms, thus promoting healing. Hemoglobin: Red cells contain a special protein called haemoglobin, which helps carry oxygen from the lungs to the rest of the body and then returns carbon dioxide from the body to the lungs so it can be exhaled. Blood appears red because of the large number of red blood cells, which get their colour from the haemoglobin.