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Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Kerala PSC KAS MCQ


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30 Questions MCQ Test Kerala PSC KAS Mock Test Series 2024 - Kerala PSC KAS Prelims Paper 2 Mock Test - 7

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 for Kerala PSC KAS 2024 is part of Kerala PSC KAS Mock Test Series 2024 preparation. The Kerala PSC KAS Prelims Paper 2 Mock Test - 7 questions and answers have been prepared according to the Kerala PSC KAS exam syllabus.The Kerala PSC KAS Prelims Paper 2 Mock Test - 7 MCQs are made for Kerala PSC KAS 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 below.
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Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 1

Gross National Product is obtained from the Gross Domestic Product by adjusting it for

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 1
Gross National Product (GNP) is the total value of all finished goods and services produced by a country's citizens in a given financial year, irrespective of their location.

It is defined as follows:

  • GNP = GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.

  • Hence, GNP = GDP + Net factor income from abroad (Net factor income from abroad = Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy).

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 2

Which one of the following statements correctly explains Yotta D1?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 2
Yotta D1, built at a cost of Rs 5,000 crore, is the country’s biggest and UP’s first data centre. It is north India’s first hyperscale data centre. The data centre will increase data storage capacity of the country, which until now stood at 2% only despite the fact that 20% of the world’s data is consumed by Indians. Hence, Option D is correct.
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Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 3

With reference to 'Medicines Patent Pool', consider the following statements:

  1. It is a United Nations backed public health organisation.

  2. It works to increase access and facilitate development of life-saving medicines for low and middle-income countries.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 3
  • The Medicines Patent Pool (MPP) is a United Nations-backed public health organisation working to increase access to, and facilitate the development of, life-saving medicines for low- and middle- income countries.

  • Through its innovative business model, MPP partners with civil society, governments, international organisations, industry, patient groups and other stakeholders, to prioritise and license needed medicines and pool intellectual property to encourage generic manufacture and the development of new formulations.

  • It has facilitated the development of generic drugs for HIV, tuberculosis, and hepatitis C, allowing them to be sold at an affordable price.

  • To date, MPP has signed agreements with ten patent holders for thirteen HIV antiretrovirals, one HIV technology platform, three hepatitis C direct-acting antivirals and a tuberculosis treatment. MPP was founded by Unitaid, which serves as sole funder for MPP’s activities in HIV, hepatitis C and tuberculosis.

Hence both the statements are correct.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 4

With reference to e-National Agricultural Market (NAM), consider the following statements:

  1. It is a pan-India electronic trading portal to integrate the existing Agricultural Produce Market Committees (APMCs) mandis.

  2. It is implemented as a Central Sector Scheme through Agri-Tech Infrastructure Fund (ATIF).

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 4
  • The e-National Agriculture Market (NAM) is envisaged as a pan-India electronic trading portal which seeks to network the existing Agricultural Produce Market Committees (APMCs) mandis and other market yards to create a unified national market for agricultural commodities. NAM is a “virtual” market but it has a physical market (mandi) at the back end. Hence, statement 1 is correct.

  • NAM will be implemented as a Central Sector Scheme through Agri-Tech Infrastructure Fund (ATIF). Hence, statement 2 is correct.

  • The Department of Agriculture & Cooperation (DAC), Ministry of Agriculture will set it up through the Small Farmers Agribusiness Consortium (SFAC).

  • The Scheme is applicable on All-India basis. There is no State-wise allocation under the Scheme. However, desirous States would be required to meet the pre-requisites in terms of carrying out necessary agri-marketing reforms. For integration with the e-platform, the States/UTs will need to undertake prior reforms in respect of

    • a single license to be valid across the State

    • single point levy of market fee and

    • provision for electronic auction as a mode for price discovery.

  • Benefits of NAM:

    • For the farmers, NAM promises more options for sale. It would increase his access to markets through warehouse based sales and thus obviate the need to transport his produce to the mandi.

    • The gradual integration of all the major mandis in the States into NAM will ensure common procedures for issue of licences, levy of fee and movement of produce.

    • The farmer may choose to accept either the local offer or the online offer. In either case the transaction will be on the books of the local mandi and they will continue to earn the market fee.

    • For the local trader in the mandi/market, NAM offers the opportunity to access a larger national market for secondary trading.

    • Bulk buyers, processors, exporters etc. benefit from being able to participate directly in trading at the local mandi/market level through the NAM platform, thereby reducing their intermediation costs.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 5

Casualisation of workforce refers to:

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 5
  • The process of moving from self-employment and regular salaried employment to casual wage work is called as casualization of the workforce. Casual workers are defined as those who work for others in farm or non-farm enterprises and are paid wages that are daily or periodic in nature. All daily wage-earning employees and some categories of contract employees are casual labourers. Hence, option (b) is correct.

  • The wage-paid labour is largely non-unionised due to casual and seasonal nature of employment and the scattered location of enterprises. This sector is marked by low incomes, unstable and irregular employment, and lack of protection either from legislation or trade unions.

  • Formalisation of workforce refers to the situation wherein there is a continuous increase in the percentage of the workforce in the formal sector and a simultaneous decline in the percentage of the workforce in the informal sector. Around 90 per cent workforce in India is in the ―unregulated informal sector.

  • The feminization of work refers to the processes through which the composition of occupation changes such that the proportion of women exceeds the proportion of men.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 6

Consider the following statements in the context of derivatives:

  1. Derivatives are securities that derive their value from an underlying asset or benchmark.

  2. Derivatives in India are regulated both by the Reserve Bank of India and the Securities and Exchange Board of India (SEBI).

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 6
  • A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. Hence, statement 1 is correct.

  • The framework for regulating derivative transactions is provided in the various Acts of Government of India such as Securities Contracts (Regulation) Act, 1956, Reserve Bank of India Act, 1934, Forward Contracts (Regulation) Act 1952.

  • Derivatives instruments in India are regulated by the Reserve Bank of India, Securities, and Exchange Board of India (SEBI) and Forward Markets Commission (FMC). Subsequent to the passing of the Finance Act 2015, FMC was merged with SEBI with effect from 29 September 2015. Hence, statement 2 is correct.

  • Broadly, RBI is empowered to regulate the interest rate derivatives, foreign currency derivatives and credit derivatives. While SEBI regulates other derivatives of equity, commodity and stock indexes.

  • The derivatives can be Forwards or Futures or Options or Warrants:

    • Forward & Future Contract: A forward contract is a customized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today. Futures contracts are special types of forwarding contracts in the sense that they are standardized exchange-traded contracts, such as futures of the Nifty index.

    • Options: An Option is a contract which gives the right, but not an obligation, to buy or sell the underlying at a stated date and at a stated price. While a buyer of an option pays the premium and buys the right to exercise his option, the writer of an option is the one who receives the option premium and therefore obliged to sell/buy the asset if the buyer exercises it on him.

    • Options are of two types – Calls and Puts options.

      • ‘Calls’ give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date.

      • ‘Puts’ give the buyer the right, but not the obligation to sell a given quantity of an underlying asset at a given price on or before a given future date.

  • Options generally have maturity of up to one year. The majority of options traded on exchanges have a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 7

When the government increases spending by borrowing today, which will be repaid by taxes in the future, it will have the same impact on the economy as an increase in government expenditure that is financed by a tax increase today. Effectively, taxation and borrowing are equivalent means of financing the expenditure of the government.

Which of the following is best described in the passage given above?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 7
  • Option (d) is the correct answer: Ricardian equivalence was a theory put forward by David Ricardo in the early 19th century and later was elaborated upon by Harvard professor Robert Barro. For this reason, Ricardian equivalence is also known as the Barro-Ricardo equivalence proposition.

  • It is an economic theory that argues that attempts to stimulate an economy by increasing debt- financed government spending are doomed to fail because the demand remains unchanged.

  • This is because consumers anticipate the future so if they receive a tax cut financed by government borrowing they anticipate future taxes will rise. Therefore, their lifetime income remains unchanged and so consumer spending remains unchanged.

  • It is called ‘equivalence’ because it argues that taxation and borrowing are equivalent means of financing expenditure. When the government increases spending by borrowing today, which will be repaid by taxes in the future, it will have the same impact on the economy as an increase in government expenditure that is financed by a tax increase today.

  • The paradox of thrift: It is an economic theory which stipulates that personal savings are a net drag on the economy during a recession. It assumes that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving.

  • The Solow Growth Model is an exogenous model of economic growth that analyzes changes in the level of output in an economy over time as a result of changes in the population growth rate, the savings rate, and the rate of technological progress.

  • Kuznets' inverted-U hypothesis implies that economic growth worsens income inequality first and improves it later at a higher stage of economic development.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 8

Consider the following statements about ‘red herrings’:

  1. A red herring is something that confuses or diverts attention away from a relevant or crucial subject by use of social media.

  2. The Election Commission has the authority to control the media in terms of red herrings.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 8
  • The content moderation-driven approach to disinformation by all major social media platforms is a red herring designed to distract from the far larger problem of amplified distribution of disinformation as part of business models. Hence, statement 1 is correct.

  • Social media platforms are increasingly becoming the primary ground for public discourse over which a handful of individuals have inordinate control. The Election Commission does not regulate the media. It has, however, the responsibility to enforce the provisions of law or Court directions, which might have linkages with media or certain aspects of media functioning. Hence, statement 2 is not correct.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 9

Which of the following is/are the features of Hydrocarbon Exploration and Licensing Policy (HELP)?

  1. The provision of separate licenses for each kind of hydrocarbons.

  2. Profit-sharing between the Government and the contractor after recovery of cost.

  3. Freedom to select exploration blocks throughout the year.

Select the correct answer using the code given below.

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 9
  • Hydrocarbon Exploration and Licensing Policy (HELP) is a new policy adopted for the award of hydrocarbon acreages towards exploration and production (E&P). It was done to enhance domestic oil and gas production, enhance transparency, bring substantial investment and to reduce administrative discretion.

  • HELP replaces the present policy regime for the exploration and production of oil and gas, known as the New Exploration Licensing Policy (NELP), which has been in existence for 18 years.

  • Four main aspects of HELP are:

    • Uniform License: It provides for a uniform licensing system to cover all hydrocarbons such as oil, gas, coal bed methane etc. under a single licensing framework, instead of the present system of issuing separate licenses for each kind of hydrocarbons. Hence option 1 is not correct.

    • Open Acreages: It gives the option to a hydrocarbon company to select the exploration blocks throughout the year without waiting for the formal bid round from the Government. Hence option 3 is correct.

    • Revenue Sharing Model: Present fiscal system of production sharing contract (PSC) is replaced by an easy to administer “revenue sharing model”. The earlier contracts were based on the concept of profit sharing where profits are shared between the Government and the contractor after recovery of cost. Under the new regime, the Government will not be concerned with the cost incurred and will receive a share of the gross revenue from the sale of oil, gas etc.

    • Bidders will be required to quote revenue share in their bids and this will be a key parameter for selecting the winning bid. They will quote a different share at two levels of revenue called “lower revenue point” and “higher revenue point”. Revenue share for intermediate points will be calculated by linear interpolation. The bidder giving the highest net present value of revenue share to the Government, as per transparent methodology, will get the maximum marks under this parameter. Hence option 2 is not correct.

      • Marketing and Pricing Freedom has been granted, subject to a ceiling price limit, for new gas production from Deepwater, Ultra-Deepwater and High Pressure-High Temperature Areas.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 10

In the context of budgetary deficits, consider the following statements with reference to Primary Deficit:

  1. Primary Deficit is the total government borrowings available to utilise after interest payments.

  2. Primary Deficit in India is always higher than the Fiscal Deficit.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 10
In order to meet the extra expenditure beyond the income, government may resort to borrowings:
  • Borrowing requirement of the government includes interest obligations on the accumulated debt.

  • To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to deduct these interest obligations on accumulated debt from the total deficit of the government, which gives the Primary deficit of the government. Primary deficit is measured to know the amount of borrowing that the government can utilize, excluding the interest payments. Hence, statement 1 is correct.

  • It is simply the fiscal deficit minus the interest payments. Hence statement 2 is not correct.

  • Primary deficit = Fiscal deficit – net interest liabilities.

  • Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.

  • A decrease in primary deficit shows progress towards fiscal health. Hence, when the primary deficit is zero, the fiscal deficit becomes equal to the interest payment. This means that the government has resorted to borrowings just to pay off the interest payments. Further, nothing is added to the existing loan.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 11

In the context of macroeconomics, 'Transfer Payments' refers to:

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 11
  • In macroeconomics and finance, a transfer payment is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.

  • Transfer payments are receipts which the residents of a country receive ‘for free’, without having to make any present or future payments in return. They consist of remittances, gifts and grants. They could be official or private. Hence option (a) is the correct answer.

  • Allowances, pensions etc to people such as pensioners, widows, sick or unemployed people are examples of transfer payments.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 12

Consider the following:

  1. Disinvestment

  2. Reducing expenditures

  3. Raising tax rates

  4. Rationalizing subsidies

Which of the actions mentioned above if adopted by Government would reduce its deficit?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 12
  • A deficit is an amount by which the expenditures in a budget exceed the income. A Government Deficit is the amount of money in the set budget by which the government expenditure exceeds the government income amount. This deficit provides an indication of the financial health of the economy. To reduce the deficit or the gap between the expenditures and income, the government may take several steps.

  • Steps to reduce deficits of government include raising taxes to increase the tax revenues, divesting from nonessential services, disinvestment in public sector enterprise, rationalizing subsidies to reduce expenditures, etc., Hence option(c) is the correct answer.

  • The government may also resort to borrowings to finance its deficits.

  • Deficit financing is defined as “borrowings from the Reserve Bank of India against the issue of Treasury Bills and running down of accumulated cash balances”. When the government borrows from the Reserve Bank of India, it merely transfers its securities to the Bank. On the basis of these securities the bank issues more currency and puts them into circulation on behalf of the government. This amounts to the creation of money. The rationale for Deficit Financing is that sometimes the government fails to mobilize adequate resources. In this situation, the option of deficit financing is required to meet fiscal deficit targets. If the option of deficit financing is not utilized the government ends up compromising on growth targets. So, it is a way of financing the deficit, not reducing the deficit.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 13

Consider the following statements with reference to 'New Space India Limited', recently seen in the news:

  1. It is set up as a Public-Private Partnership company for easy access and transfer of technical knowledge among participating members.

  2. It will replace Antrix Corporation Ltd., the marketing arm of the Indian Space Research Organisation (ISRO).

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 13
  • The Government of India under Aatma Nirbhar Bharat Abhiyaan recently announced the role for the private sector in India’s space programme, including in satellite launches and space-based services.

  • New Space India Limited (NSIL): It is the commercial arm of ISRO with the primary responsibility of enabling Indian industries to take up high technology space-related activities.

  • It is a wholly-owned Government of India company, under the administrative control of Department of Space (DOS). Hence statement 1 is not correct.

  • NSIL is not going to replace ANTRIX which still exists and has similar functions. Hence statement 2 is not correct. o Antrix was incorporated as a private limited company owned by Government of India in 1992 as a Marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by Indian Space Research Organisation (ISRO).

  • NSIL will work with IN-SPACe and enable industry consortia to take on some of the activities of ISRO.

    • IN-SPACe (Indian Space Promotion and Authorisation Centre) is a new organisation to ensure greater private participation in India’s space activities under the administrative control of the Department of Space.

    • It will assess the needs and demands of private players, including educational and research institutions, and, explore ways to accommodate these requirements in consultation with ISRO.

  • Major business areas of NSIL are Launch vehicle production, Production and marketing of space-based services, Building satellites, Transfer of technology etc.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 14

Consider the following statements regarding Viability Gap Funding:

  1. It is a financial grant to support infrastructure projects that are economically justified but fall short of financial viability.

  2. Funding is subject to a maximum of 50% of the total project cost.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 14
  • Viability Gap Funding (VGF) means a grant one-time or deferred, provided to support infrastructure projects that are economically justified but fall short of financial viability. Hence statement 1 is correct.

  • The lack of financial viability usually arises from long gestation periods and the inability to increase user charges to commercial levels. Infrastructure projects also involve externalities that are not adequately captured in the direct financial returns to the project sponsor.

  • Viability Gap Funding is provided to infrastructure projects that are to be undertaken through Public-Private Partnerships.

  • It is administered by the Ministry of Finance with suitable budgetary provisions.

  • The quantum of VGF provided under this scheme is in the form of a capital grant at the stage of project construction. The amount of VGF will be equivalent to the lowest bid for a capital subsidy, but subject to a maximum of 20% of the total project cost. In case the sponsoring Ministry/State Government/ statutory entity proposes to provide any assistance over and above the said VGF, it will be restricted to a further 20% of the total project cost. Hence statement 2 is not correct. Social infrastructure projects suffer from poor viability and that the government will enhance the quantum of VGF up to 30 percent each of the total project cost.

  • Support under this scheme is available only for infrastructure projects where private sector sponsors are selected through a process of competitive bidding.

  • The lead financial institution for the project is responsible for regular monitoring and periodic evaluation of project compliance with agreed milestones and performance levels, particularly for the purpose of grant disbursement.

  • VGF is disbursed only after the private sector company has subscribed and expended the equity contribution required for the project.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 15

Consider the following statements regarding Glyphosate:

  1. It is a key herbicide used in sugarcane and maize.

  2. In India, its consumption is highest in the state of Maharashtra.

  3. Recently, India has become the first country to ban Glyphosate.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 15
  • Glyphosate is an Herbicide, developed in 1970. Its scientific name is N-(phosphonomethyl) glycine under the International Union of Pure and Applied Chemistry (IUPAC) system of nomenclature. Glyphosate was highly accepted by the tea planters in the past two decades. It has a very good market size in the tea sector of West Bengal and Assam. Presently, its consumption is highest in Maharashtra as it is becoming a key herbicide in sugarcane, maize and many fruit crops. Hence, both statement 1 and statement 2 are correct.

  • Health impacts of glyphosate range from cancer, reproductive and developmental toxicity to neurotoxicity and immunotoxicity. Symptoms include irritation, swelling, burning of the skin, oral and nasal discomfort, unpleasant taste and blurred vision.

  • Some 35 countries have banned or restricted the use of glyphosate: These include Sri Lanka, Netherlands, France, Colombia, Canada, Israel and Argentina. The Ministry of Agriculture and Farmers Welfare has also recently restricted the use of glyphosate, a widely used herbicide, citing health hazards for humans and animals. Hence, statement 3 is not correct.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 16

Consider the following statements regarding India Brand Equity Foundation (IBEF):

  1. It is an Investment Promotion Agency to create awareness about the Made in India label in overseas markets.

  2. IBEF is fully funded, owned, and controlled by the Union Government.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 16
  • India Brand Equity Foundation (IBEF) is a Trust established in 1996 by the Department of Commerce, Ministry of Commerce and Industry, Government of India as an Investment Promotion Agency for creating the “brand India”.

  • IBEF's primary objective is to promote and create international awareness about the Made in India label in overseas markets and to facilitate dissemination of knowledge of Indian products and services. Hence, statement 1 is correct.

  • IBEF is fully funded, owned, and controlled by the Union Government, unlike Invest India which is a private company. Hence, statement 2 is correct.

  • IBEF collects, collates, and disseminates comprehensive information on India. It has been developed as a single-window resource for in-depth information and insight on India. It also produces a wide range of well-researched publications focused on India's economic and business advantages.

  • Thus it is basically a knowledge center for global investors, international policy-makers, and world media who seek updated, accurate and comprehensive information on the Indian economy, states, and sectors. IBEF regularly tracks government announcements in policy, foreign investment, macroeconomic indicators, and business trends.

  • IBEF works with a network of stakeholders – domestic and international – to promote Brand India.

  • IBEF is registered as the Investment Promotion Agency of India with the World Association of Investment Promotion Agencies (WAIPA).

  • However, IBEF functions more like a trade promotion body as it is more focused on the trade side rather than on the investment side. As understood, the actual investment advice and consultancy are provided through Invest India.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 17

If inflation in country A is higher than in country B, and the exchange rate between the two countries is fixed, which of the following is likely to happen to the trade balance between the two countries assuming the initial prices of the basket is same in both the countries?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 17
  • Inflation is the rise in the general level of prices where a unit of currency effectively buys less than it did in prior periods. Thus it indicates a decrease in the purchasing power of a nation’s currency.

  • As inflation in country A is greater than country B, the purchasing power of the currency of country A is less than that of country B.

  • Initially we assumed that the prices of basket is same in both the countries. But as inflation in country A is greater than country B, the price of basket in country A would become greater than country B. Therefore, prices of goods and services of country A tends to be higher than that of country B.

  • In this situation, the exports from country B to country A will go up resulting in improvement or surplus trade balance for B. But due to higher price in country A, its imports will increase from country B and it will lead to a deficit in the trade balance for country A.

Hence, option (b) is correct.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 18

With reference to the management of the exchange rate system in India, consider the following statements:

  1. Post-independence the Indian rupee was pegged to the pound sterling due to its historical links with the Britain.

  2. At present, the dirty floating exchange rate system is being followed in India.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 18
  • Statement 1 is correct: India’s exchange rate policy has evolved in line with international and domestic developments. Post-independence, in view of the prevailing Bretton Woods system, the Indian rupee was pegged to the pound sterling due to its historic links with Britain. A major development was the devaluation of the rupee by 36.5 per cent in June, 1966. With the breakdown of the Bretton Woods system, and also the declining share of UK in India’s trade, the rupee was delinked from the pound sterling in September 1975. During the period between 1975 to 1992, the exchange rate of the rupee was officially determined by the Reserve Bank within a nominal band of plus or minus 5 per cent of the weighted basket of currencies of India’s major trading partners.

  •  Statement 2 is correct: At present, India follows a managed floating exchange rate system, also known as a dirty floating system, where the central bank allows the exchange rate to be determined by market forces but intervenes occasionally to influence the rate. This system is a combination of a flexible exchange rate (the floating part) and fixed rate elements (the managed part). Under this system, the Reserve Bank of India intervenes in the foreign exchange market to moderate exchange rate fluctuations as deemed necessary. Since 1993, India has been adhering to this managed floating exchange rate system.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 19

Consider the following statements:

  1. Fungi lives in symbiosis with the plant and passes phosphorus from the soil to the plant.

  2. Azotobacter and Azospirillum are free-living bacteria that fix atmospheric nitrogen in the soil.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 19
Option c is correct.
  • Statement 1 is correct: Fungi are known to form symbiotic associations with plants (mycorrhiza) where the fungi absorbs phosphorus from soil and passes it to the plant. Plants having such associations show other benefits also, such as resistance to root-borne pathogens, tolerance to salinity and drought, and an overall increase in plant growth and development.

  • Statement 2 is correct: In addition to nitrogen-fixing bacteria like Rhizobium that live in the plant roots, there are some free-living bacteria in the soil like Azospirillum and Azotobacter that fix atmospheric nitrogen in the soil. These bacteria fix atmospheric nitrogen into organic forms, which is used by the plant as nutrient.

    • Biofertilisers are organisms that enrich the nutrient quality of the soil. The main sources of biofertilisers are bacteria, fungi and cyanobacteria.

    • Cyanobacteria are autotrophic microbes widely distributed in aquatic and terrestrial environments many of which can fix atmospheric nitrogen, e.g. Anabaena, Nostoc, Oscillatoria, etc. In paddy fields, cyanobacteria serve as an important biofertiliser. Blue green algae also add organic matter to the soil and increase its fertility.

    • Currently, in our country, a number of biofertilisers are available commercially in the market and farmers use these regularly in their fields to replenish soil nutrients and to reduce dependence on chemical fertilisers.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 20

Consider the following statements:

  1. The Unique Identification Authority of India (UIDAI) was established following the provisions of the Aadhaar Act 2016.

  2. The UIDAI functions under the Ministry of Home Affairs.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 20
  • Unique Identification Authority of India (UIDAI) The UIDAI is a statutory authority established on 12th July 2016 by the Government of India under the jurisdiction of the Ministry of Electronics and Information Technology, following the provisions of the Aadhaar Act 2016. Hence, statement 2 is not correct.

  • The UIDAI was initially set up by the Government of India in January 2009, as an attached office under the aegis of the Planning Commission. Hence, statement 1 is not correct.

  • The UIDAI is mandated to assign a 12-digit unique identification (UID) number (Aadhaar) to all the residents of India. The overall Aadhaar saturation level in the country has crossed 93%, and in the case of the adult population it is nearly 100%.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 21

Which of the following is provided to plants by their roots?

  1. Nitrogen

  2. Water

  3. Sulphur

  4. Potassium

Select the correct answer using the code given below:

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 21
Option a is correct.

Plants rely on their roots for uptake of water and minerals like nitrogen, phosphorus, potassium, sulphur, etc. Water and minerals are transported to the leaves by the vessels which run like pipes throughout the root, the stem, the branches and the leaves. They form a continuous path or passage for the nutrients to reach the leaf. They are called vessels. Plants also take carbon dioxide from the atmosphere through the stomata present in their leaves.

  • Plants synthesis carbohydrates and other components of food such as proteins and fats. Carbohydrates are made of carbon, hydrogen and oxygen through the process of photosynthesis where carbon dioxide reacts with water in the presence of energy absorbed from sunlight by the plants. Carbon dioxide is taken by plants in the gaseous form from the atmosphere, while water is taken up by the roots from the soil.

  • Carbohydrates are made of carbon, hydrogen and oxygen. These are used to synthesise other components of food such as proteins and fats. But proteins are nitrogenous substances which contain nitrogen. Though nitrogen is present in abundance in gaseous form in the air, plants cannot absorb nitrogen in this form.

  • Soil has certain bacteria that convert gaseous nitrogen into a usable form and release it into the soil. These are absorbed by the plants along with water. Also, farmers add fertilisers rich in nitrogen to the soil. In this way the plants fulfil their requirements of nitrogen along with the other constituents. Plants can then synthesise proteins and vitamins.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 22

Which of the following are autosomal genetic disorders?

  1. Sickle cell anaemia

  2. Colour blindness

  3. Thalassemia

  4. Haemophilia

Select the correct answer using the code given below:

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 22
Option b is correct.
  • "Autosomal" genetic disorder means that the gene in question is located on one of the numbered, or non-sex, chromosomes.

  • Statement 1 is correct: Sickle cell Anaemia is an autosomal genetic disorder. Sickle-cell anaemia - This is an autosome linked recessive trait that can be transmitted from parents to the offspring when both the partners are carrier for the gene (or heterozygous).

  • Statement 2 is incorrect: Colour blindness is sex-linked genetic disorder. Colour blindness - It is a sex-linked recessive disorder due to defect in either red or green cone of eye resulting in failure to discriminate between red and green colour. This defect is due to mutation in certain genes present in the X chromosome. It occurs in about 8 per cent of males and only about 0.4 per cent of females.

  • Statement 3 is correct: Thalassemia is an autosomal genetic disorder. Thalassemia - This is an autosome-linked recessive blood disease transmitted from parents to the offspring when both the partners are unaffected carrier for the gene (or heterozygous).

  • Statement 4 is incorrect: Haemophilia is sex-linked genetic disorder. Haemophilia - It is a sex-linked recessive disease, which shows its transmission from unaffected carrier female to some of the male progeny. In this disease, a single protein that is a part of the cascade of proteins involved in the clotting of blood is affected. Due to this, in an affected individual a simple cut will result in non-stop bleeding. The heterozygous female (carrier) for haemophilia may transmit the disease to sons. The possibility of a female becoming a haemophilic is extremely rare because mother of such a female has to be at least carrier and the father should be haemophilic (unviable in the later stage of life).

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 23

Consider the following statements:

  1. DNA and RNA are nucleic acids found in living organisms.

  2. RNA acts as a genetic material in some viruses.

  3. DNA has the ability to mutate faster than RNA.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 23
Option a is correct.
  • Statement 1 is correct: Deoxyribonucleic acid (DNA) and ribonucleic acid (RNA) are the two types of nucleic acids found in living organisms.

  • Statement 2 is correct: DNA acts as the genetic material in most of the organisms. RNA acts as a genetic material in some viruses (for example, Tobacco Mosaic viruses, etc.).

  • Statement 3 is incorrect: Both DNA and RNA are able to mutate. RNA is unstable and mutate at a faster rate than DNA. Consequently, viruses having RNA genome and having shorter life span mutate and evolve faster.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 24

Arrange the following organisms chronologically in terms of their evolutionary periods:

  1. Fishes

  2. Birds

  3. Corals

  4. Flowering plants

Select the correct answer using the code given below.

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 24
Option a is correct.
  • Chronologically, the following organisms evolved in the sequence given below:

1) Corals

2) Fishes

3) Birds

4) Flowering plants

  • Evolution of life on Earth:

    • Unicellular and multicellular organisms

    • Age of Marine Invertebrates (early shelled organisms, Corals, first land plants, etc.)

    • Fishes (First forests, first amphibians, etc.)

    • Age of Amphibians (First reptiles, sharks, coal forming swamps, etc.)

    • Age of Reptiles (Dinosaurs abundant, early flowering plants, placental mammals, etc.)

    • Age of Mammals (spread of grassy ecosystems, modern humans, extinction of large mammals and birds during Ice age glaciations, glacial outburst floods, etc.)

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 25

Consider the following statements regarding Central Pollution Control Board (CPCB):

  1. It is a statutory organisation established under the Air (Prevention and Control of Pollution) Act, 1981.

  2. It was entrusted to promote the cleanliness of streams and wells in different areas of the States.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 25
  • Central Pollution Control Board (CPCB): CPCB is a statutory organisation which was constituted in September, 1974 under the Water (Prevention and Control of Pollution) Act, 1974. Hence, statement 1 is not correct. It was also entrusted with the powers and functions under the Air (Prevention and Control of Pollution) Act, 1981. It serves as a field formation and also provides technical services to the Ministry of Environment, Forest and Climate Change of the provisions of the Environment (Protection) Act, 1986.

  • Principal Functions of the CPCB: To promote cleanliness of streams and wells in different areas of the States by prevention, control and abatement of water pollution. Hence, statement 2 is correct. To improve the quality of air and to prevent, control or abate air pollution in the country.

  • State Pollution Control Board (SPCB): They supplement the CPCB as they are a statutory organization entrusted to implement Environmental Laws and rules within the jurisdiction of a state.

  • Pollution control committees (PCC): They perform similar functions to SPCB. The difference between the two is that PCC belongs to Union territories.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 26

Consider the following statements regarding Bleaching powder.

  1. It is used for disinfecting water.

  2. It is also known as sodium bicarbonate.

  3. It acts as a reducing agent in many chemical industries.

Select the incorrect answer using the code given below.

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 26
Option b is incorrect.
  • Statement 1 is correct: Bleaching powder is used as a disinfectant and germicide. It liberates Chlorine on exposure to the atmosphere which destroys the germs.

  • Statement 2 is incorrect: Bleaching powder is chemically calcium oxychloride (CaOCl2). Bleaching powder is manufactured using Backmann’s plant. Slaked lime and Chlorine are used in this process to produce bleaching Powder. Hence, it is also known as chlorinated lime. Baking soda is the common name of sodium bicarbonate. The chemical formula of baking soda is NaHCO3.

  • Statement 3 is incorrect: Bleaching powder is little acidic and also produces oxygen when it is added. Thus, it acts as an oxidizing (not reducing) and a bleaching agent in many chemical industries.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 27

Consider the following statements:

  1. Chromosomal disorders are caused by absence of one or more chromosomes.

  2. Down’s syndrome and Turner’s syndrome are examples of chromosomal disorders.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 27
Option c is correct.
  • Statement 1 is correct: Chromosomal disorders are caused due to absence or excess or abnormal arrangement of one or more chromosomes.

  • Statement 2 is correct: Chromosomal Disorders - Sometimes, either an additional copy of a chromosome may be included in an individual or an individual may lack one of any one pair of chromosomes. These situations are known as trisomy or monosomy of a chromosome, respectively. Down’s syndrome, Turner’s syndrome, Klinefelter’s syndrome are common examples of chromosomal disorders. In the Down’s syndrome, a person has an additional copy of chromosome number 21. In the Turner’s syndrome, a person has an absence of one of the X chromosomes. In Klinefelter’s syndrome, a person has an additional copy of X chromosome.

  • Many types of chromosomal abnormalities exist, but they can be categorized as either numerical or structural. Numerical abnormalities are whole chromosomes either missing from or extra to the normal pair. Structural abnormalities are when part of an individual chromosome is missing, extra, switched to another chromosome, or turned upside down.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 28

Which of the following statements is/are correct with reference to No Money for Terror Conference?

  1. It is an initiative of the French government focused on limiting terrorist funding by cooperating between countries.

  2. India never hosted this conference.

Choose the correct answer using the codes given below:

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 28
  • The “No Money for Terror” conference was started in 2018, as an initiative of the French government, to specifically focus on cooperation between countries to choke terror funding. Hence, statement 1 is correct.

  • In 2019, the conference was held in Australia. It was to be held in India in 2020 but was postponed due to the Covid-19 pandemic. Recently, third 'No Money for Terror' (NMFT) Ministerial Conference of 2022 on CounterTerrorism Financing was held in New Delhi, India. Hence, statement 2 is not correct.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 29

Consider the following statements:

  1. 22 out of 23 pairs chromosomes in the humans are exactly same between males and females.

  2. XY pair of chromosomes is found in females and XX pair of chromosomes is found in males.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 29
Option a is correct.
  • Statement 1 is correct: The total number of chromosomes in a normal human cell is 46 (23 pairs). Out of these 22 pairs are autosomes and one pair of chromosomes are sex chromosome. The autosomes are exactly the same between males and females in the humans.

  • Statement 2 is incorrect: XX pair of chromosomes are found in the females and XY chromosomes are found in the males.

Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 30

Consider the following statements with regard to the Human Genome Project:

  1. It was aimed at identifying all the genes in human DNA.

  2. It can help in diagnosis, treatment and prevention of genetic disorders in human beings.

Which of the statements given above is/are correct?

Detailed Solution for Kerala PSC KAS Prelims Paper 2 Mock Test - 7 - Question 30
Option c is correct.
  • Statement 1 is correct: The Human Genome Project was a 13-year project coordinated by the U.S. Department of Energy and the National Institute of Health. During the early years of the HGP, the Welcome Trust (U.K.) became a major partner; additional contributions came from Japan, France, Germany, China and others. The project was completed in 2003.

  • Some of the important goals of Human Genome Project were as follows:

    • Identify all the approximately 20,000-25,000 genes in human DNA;

    • Determine the sequences of the 3 billion chemical base pairs that make up human DNA;

    • Store this information in databases;

    • Improve tools for data analysis;

    • Transfer related technologies to other sectors, such as industries;

    • Address the ethical, legal, and social issues (ELSI) that may arise from the project.

  • Statement 2 is correct: Knowledge about the effects of DNA variations among individuals from the Human Genome Project can lead to revolutionary new ways to diagnose, treat and prevent the thousands of disorders that affect human beings.

    • Besides providing clues to understanding human biology, learning about non-human organism’s DNA sequences can lead to an understanding of their natural capabilities that can be applied toward solving challenges in health care, agriculture, energy production, environmental remediation.

    • Many non-human model organisms, such as bacteria, yeast, Caenorhabditis elegans (a free-living non-pathogenic nematode), Drosophila (the fruit fly), plants (rice and Arabidopsis), etc., have also been sequenced.

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