Crash Course Test- 1


30 Questions MCQ Test Crash Course for UPSC aspirants | Crash Course Test- 1


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Attempt Crash Course Test- 1 | 30 questions in 30 minutes | Mock test for UPSC preparation | Free important questions MCQ to study Crash Course for UPSC aspirants for UPSC Exam | Download free PDF with solutions
QUESTION: 1

Consider the following statements about Operation Twist recently conducted by RBI :
(1) RBI aims to bring down the yield on 10 year government bonds through this operation
(2) Operation Twist aims to bring down the yield on short term bonds
Which of the above statements is/are true?

Solution:

At present, the 10-year bond yield is trading around 6 per cent, as the yield curve is steep over five years. The risk premium demanded by investors to buy 10-year over 5-year has increased to 90 basis points. In the past, RBI has been doing open market operations (OMOs) to bring down the long end of the yield lower.

QUESTION: 2

Consider the following statements :
(1) The majority of world’s volcanoes are located in the “Ring of Fire”
(2) The “Ring of Fire” is only situated in the North Pacific Ocean
Which of the statements given above is/are correct?

Solution:

The Ring of Fire, also referred to as the Circum-Pacific Belt, is a path along the Pacific Ocean characterized by active volcanoes and frequent earthquakes. The majority of Earth's volcanoes and earthquakes take place along the Ring of Fire.

QUESTION: 3

Which of the following can be considered as sources of information about the interior of earth?
(1) Metamorphic rocks
(2) Volcanic Lava
(3) Meteors
(4) Magnetic Field
(5) Gravity
Select the correct answer using the code given below:

Solution:

The correct answer is D. Sources of information about the interior include both direct and indirect sources. The direct sources include rock materials and molten magma from volcanic eruptions. The indirect sources include seismic activity, meteors arriving at earth, magnetic field and gravity. For instance, seismic activity help in identifying the different layers where as the sources like magnetic field and gravity helps in determining the presence of Iron and also factors like density and mass.
 

QUESTION: 4

During a period of recession and low inflation, what Monetary Policy Stance can one expectfrom Monetary Policy Committee(MPC) ?

Solution:

The Monetary Policy Committee (MPC) of the Reserve Bank of India is expected to keep its policy stance accommodative when it announces the decisions of the panel on Thursday. A majority of the respondents polled by Mint, however, expect RBI to do a total of 50 basis points rate cut before the end of the financial year.

QUESTION: 5

Consider the following statements with respect to Producer Price Index(PPI) to be introduced in India :
(1) Government had set up B.N Goldar panel to make recommendations on the introduction of PPI in India
(2) PPI is a price index for goods only(services excluded)
​(3) PPI would include indirect taxes like GST
Which of the above statements is/are true?

Solution:

The correct option is C.
The government had in 2014 constituted a committee under Professor BN Goldar to devise a PPI after the Reserve Bank of India began considering consumer price inflation as a better gauge of inflation than WPI.
The Producer Price Index (PPI) measures the average change in prices U.S. producers receive for the sale of their products. Since tariffs and taxes are not retained by producers as revenue, they are explicitly excluded from the PPI.

QUESTION: 6

Which of the following can be considered as evidence(s) to support the theory of “Continental Drift” ?
(1) The shore lines of the continents of Africa and South America have a jig-saw fit.
(2) The earliest marine deposits along the coastline of South America and Africa are of Jurassic Age.
(3) The glacial Tillite in India resembles the Tillite found in Africa, Antarctica and Australia.
Select the Correct answer using the code below:

Solution:

The correct answer is D as all the statements given  s can be considered as evidence(s) to support the theory of “Continental Drift

QUESTION: 7

Consider the following statements :
(1) A‘ Lapolith’ is a saucer shaped intrusive body formed due to solidifying of lava within the earth’s crust.
(2) ‘Sills’ are horizontal deposits of intrusive igneous rocks.
(3) A‘ Phacolith’ is a wavy mass of intrusive rocks found at the base of synclines or on top of anticlines.
Which of the statements given above is/are correct?

Solution:
QUESTION: 8

Consider the following pairs of Rocks and their process of formation
(1) Igneous Rocks : Solidification of magma
(2) Sedimentary Rocks : Pressure and Temperature changes
(3) Metamorphic Rocks : Lithification
Which of the above pairs is/are correctly matched?

Solution:

Igneous rocks form when magma (molten rock) cools and crystallizes, either at volcanoes on the surface of the Earth or while the melted rock is still inside the crust. All magma develops underground, in the lower crust or upper mantle, because of the intense heat there.
Metamorphic rocks form from heat and pressure changing the original or parent rock into a completely new rock.
Lithification, complex process whereby freshly deposited loose grains of sediment are converted into rock.

QUESTION: 9

With reference to seismic activity in the interior of the earth, consider the following
statements :
(1) P-Waves and S-Waves are types of ‘body waves’.
(2) P-Waves can travel only through solid material, whereas S-Waves travel only through semi-
liquid or molten materials.
(3) Areas where no waves are reported is called “Shadow Zone”
Which of the above statements is/are correct?

Solution:

The correct option is B.
 As statement 2 is wrong. Primary waves (P-waves) are compressional waves that are longitudinal in nature. P-waves are pressure waves that travel faster than other waves through the earth to arrive at seismograph stations first, hence the name "Primary". These waves can travel through any type of material, including fluids, and can travel nearly 1.7 times faster than the S-waves. In air, they take the form of sound waves, hence they travel at the speed of sound. Typical speeds are 330 m/s in air, 1450 m/s in water and about 5000 m/s in granite.

QUESTION: 10

Which of the following is included in GDP estimation ?

Solution:

The correct answer is A RESIDENTIA; CONSTRUCTION as is included in GDP estimation

QUESTION: 11

Consider the following statements with respect to Domestic - Systemically Important Banks?
(1) These are identified by RBI
(2) Banks in bucket 3 have to keep 0.6% of Risk Weighted Assets in Common Equity
Which of the above statements is/are correct?

Solution:
QUESTION: 12

Consider the following statements regarding earthquake waves :
(1) All earthquakes take place in Asthenosphere
(2) Body waves are faster than surface waves and arrive first at the surface, hence they are more damaging than surface waves
(3) S-Wave propagation reveals that the outer core of the earth is in liquid form
(4) P-Wave propagate longitudinally, while S-Wave transversely.
Which of the above statements is/are incorrect?

Solution:

Below the tectonic plates, lies the Earth's asthenosphere. The asthenosphere behaves like a fluid over very long time scales. At the boundaries between the plates, where they are moving together, apart or past each other, tremendous stresses build up, and are where most earthquakes occur.
Body waves travel through the interior of the Earth. Surface waves travel across the surface. Particle motion of surface waves is larger than that of body waves, so surface waves tend to cause more damage.

A disturbance like an earthquake at any point on the Earth will produce energetic waves called seismic waves.  For seismic waves through the bulk material the longitudinal or compressional waves are called P waves (for "primary" waves) whereas the transverse waves are callled S waves ("secondary" waves).

QUESTION: 13

Which of the following is the reason for NBFC liquidity crisis ?

Solution:

The correct answer is D as all the given reasons are true for NBFC liquidity crisis

QUESTION: 14

Which of the following is not a component of GDP in India ?

Solution:

The correct option is D.
One of the important sources of saving is the private corporate sector, the data for which is provided mainly by the Reserve Bank. This is largely reflective of the retained profits of corporate entities.

QUESTION: 15

Which of the following is a flow variable ?

Solution:

all other economic variables which have time dimension, i.e., whose magnitude can be measured over a period of time are called flow variables. ... Likewise, investment (i.e., addition to the stock of capital) is a flow as it pertains to a period of time.

QUESTION: 16

Consider the following statements with respect to RBI :
(1) RBI acts as a debt manager to the government
(2) General Superintendence and direction of RBI’s affairs is under RBI Governor
(3) Under Section 7 of RBI Act, RBI Governor can give directions to the local boards.
Which of the above statements is/are correct?

Solution:

The correct option is A.

  1. The Reserve Bank manages public debt on behalf of the Central and the State Governments. It involves issue of new rupee loans, payment of interest and repayment of these loans and other operational matters such as debt certificates and their registration.
  2. The general superintendence and direction of the RBI is entrusted with the 21-member central board of directors: the governor; four deputy governors; two finance ministry representatives (usually the Economic Affairs Secretary and the Financial Services Secretary).
  3. "The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest," says Section 7(1) of the RBI Act, 1934.
QUESTION: 17

Which of the following conditions correctly differentiates between Terrestrial and Jovian planets?
(1) Jovian planets were formed in the close vicinity of the parent star whereas terrestrial planets were formed at quite a distant location
(2) Terrestrial planets are bigger than Jovian planets
Select the correct answer using the code given below:

Solution:

The correct answer is D as none of the conditions given are  correctly differentiated between Terrestrial and Jovian planets . therefore option D

QUESTION: 18

Consider the following statements regarding the Continental Drift theory given by Alfred Wegener :
(1) He named the super-continent Pangea, which meant all Earth
(2) Pangea broke into 3 large continental masses as Laurasia, Gondwanaland and Panthalassa.
Which of the above statements is/are correct ?

Solution:
QUESTION: 19

With regard to Earth’s crust, consider the following statements :
(1) Continental Crust is denser than Oceanic crust
(2) Continental crust is basaltic in nature
(3) Oceanic crust subducts under the continental crust during the collision of the plates.
Which of the above statements is/are correct?

Solution:

The correct answer is C as the  statement about the earth crust that Oceanic crust subducts under the continental crust during the collision of the plates. Is the only correct statement while others are false

QUESTION: 20

Which of the following statements is/are true regarding convectional current theory?
(1) The forces responsible for formation of continents are generated due to the radioactive elements causing thermal differences in the core portion.
(2) The convectional currents are present in the entire mantle and core portion
Select the correct code given below :

Solution:

The correct answer is D as neither 1 nor 2 is a correct statement both are false regarding the conventional theory.

(1) The convectional current theory are generated due to radioactive elements causing thermal differences in the mantle portion.

(2) Holmes argued that there exists a system of such currents in the entire mantle portion. This was an attempt to provide an explanation to the issue of force, on the basis of which contemporary scientists discarded the continental drift theory.

QUESTION: 21

Which one of the following facts was not considered by those while discussing the concept ofsea floor spreading?

Solution:
QUESTION: 22

Consider the following statements :
(1) Monetary policy transmission is not up to the mark in recent times
(2) RBI has introduced external benchmarking of interest rates to improve monetary policy transmission.
Which of the above statements is/are correct ?

Solution:
QUESTION: 23

Which of the following is not calculated by NSO ?

Solution:

WHO calculates WPI?

WPI basket does not cover services. In India WPI is also known as the headline inflation rate . In India, Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry calculates the WPI.1

QUESTION: 24

Consider the following statements :
(1) India’s Nominal GDP in US dollars has declined recently
(2) India’s Real GDP growth rate is now showing an upward trend
Which of the above statements is/are true ?

Solution:

The correct option is D.
India’s nominal GDP is inclining as in the US dollar.
GDP Growth Rate in India is expected to be 3.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. ... In the long-term, the India GDP Growth Rate is projected to trend around 2.20 percent in 2021 and 1.00 percent in 2022, according to our econometric models.

QUESTION: 25

Which of the following is not a Cost-Push factor of Inflation ?

Solution:

Correct Answer :- none of these

Explanation:- Higher Price of Commodities. A rise in the price of oil would lead to higher petrol prices and higher transport costs. ...

  • Imported Inflation. A devaluation will increase the domestic price of imports. ...

  • Higher Wages. Wages are one of the main costs facing firms. ...

  • Higher Taxes. ...

  • Profit-push inflation. ...

  • Higher Food Prices.

All options that are given are the factors of cost push inflation.

QUESTION: 26

With respect to plate tectonics theory which of the following statements are correct.
(1) According to the theory, Convergent plate margins are characterised by Folding, faulting, Earthquakes and vulcanism.
(2) Divergent margins are sites of Fissure vulcanism and formation of new Oceanic crust.
(3) Circum-Pacific belt represents zone of convergence between tectonic plates and is marked by a series of trenches.
(4) East African Rift Valley has been formed as a result of transform faulting.
Select the correct option below :

Solution:

The correct option is Option D.
A convergent boundary, or destructive boundary, is where two plates are moving towards each other and colliding. The pressure and friction is great enough at these boundaries that the material in the Earth's mantle can melt, and both earthquakes and volcanoes happen nearby.
A tectonic boundary where two plates are moving away from each other and new crust forms from magma that rises to the Earth's surface between the two plates. The middle of the Red Sea and the mid-ocean ridge (running the length of the Atlantic Ocean) are divergent plate boundaries.
The Ring of Fire, also referred to as the Circum-Pacific Belt, is a path along the Pacific Ocean characterized by active volcanoes and frequent earthquakes. The majority of Earth’s volcanoes and earthquakes take place along the Ring of Fire.
 

QUESTION: 27

Consider the following pairs of Original Rock : Metamorphic Rock
(1) Sandstone : Schist
(2) Limestone : Marble
(3) Granite : Gneiss
(4) Shale : Slate
Which of the above are correctly matched:

Solution:
QUESTION: 28

With regard to interior of the Earth, consider the following statements:
(1) The density of continental crust is more than that of oceanic crust.
(2) Guttenberg discontinuity exists between the crust and the mantle.
Which of the above statement(s) is/are correct?

Solution:

The correct option is Option D.
The continental crust is less dense than oceanic crust because it floats higher on the mantle, just like a piece of Styrofoam floats higher on water than a piece of wood does. The mantle, oceanic crust and continental crust have different densities because they are made of different kinds of rock with different densities.
Gutenberg discontinuity is the seismic-velocity discontinuity between the Earth's mantle and core. The boundary is at a depth of about 2 600 km and is thought to have surface irregularities of a few kilometres.
 

QUESTION: 29

With reference to Tsunami, consider the following statements:
(1) Tsunamis are only generated by undersea earthquakes and volcanic eruptions.
(2) As it approaches the shore, its velocity increases.
(3) The 2004 Tsunami was caused by an undersea earthquake off the coast of Sumatra.
Which of the above statement(s) is/are correct?

Solution:
QUESTION: 30

Consider the statements regarding different types of plates in Plate Tectonic Theory
(1) Destructive plate boundary is one in which continuous upwelling of molten material i.e. lava takes place.
(2) Divergent plate boundary is one which two plates slide past one another thus neither creating nor destroying continental landmass.
(3) Convergent plate boundary is one in which one plate overrides the other plate.
Select the correct answer using the code(s) given below:

Solution:

The correct option is C.
Subduction zones exist at convergent plate boundaries where one plate of oceanic lithosphere converges with another plate. The descending slab, the subducting plate, is overridden by the leading edge of the other plate. The slab sinks at an angle of approximately twenty-five to forty-five degrees to Earth's surface.

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