Kerala PSC KAS Prelims Paper 2 Mock Test - 6 - Kerala PSC KAS MCQ

Therefore, ‘Fiscal policy ’denotes the use of taxes and government expenditures.It is formulated by the Ministry of Finance (Central Government).

Statement 1 is incorrect. The short-term financial market is known as the money market, while the long-term financial market is known as the capital market.

Statement 2 is incorrect- The short-term financial market i.e. the money market fulfils the requirements of funds for a period up to 364 days while long-term financial marketi.e.the capital market does the same for the period above 364 days.

• It is Fund-term market funds.

• It’s maturity period of up to one year.

• It trades with assets that can be transformed into cash easily.

• All transactions take place through phone, email, text, etc.

• Broker not required for the Transaction

• The components of a money market are the Commercial Banks,Non- banking financial companies,and CentralBanketc.

  Important features of the capital market are:

• Unites entrepreneurial borrowers and savers

• Deals long-term investments.

• Agents are required.

• It is controlled by government rules and regulations.

• Deals in both commercial and non-commercial securities.

• Foreign Investors.

• The InvIT is designed as a tiered structure with Sponsor setting up the InvIT which in turn invests into the eligible infrastructure projects either directly or via special purpose vehicles (SPVs).

• The InvITs are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

• After the markets regulator Securities and Exchange Board of India (Sebi) introduced InvITs in 2014, markets witnessed the listing of two public InvITs in 2017 (IRB InvIT Fund and India Grid Trust).

• The India Grid Trust (IndiGrid), sponsored by Sterlite Power Grid Ventures Limited, one of India’s leading private power transmission companies, was created in 2016 to acquire operating power transmission assets. India's first infrastructure investment trust in the power sector, IndiGrid provides investors with an opportunity to invest directly in operating power transmission assets.

Money Supply in the system will change if the value of any of its components such as currency, demand deposits or time deposits changes. Various actions of the monetary authority, RBI and commercial banks are responsible for changes in values of these items. Money supply can be influenced by the following:

1. Currency Deposit Ratio (CDR) - The ratio of money held by the public in currency to that they hold in bank deposits. It reflects people’s preference for liquidity. CDR increases during the festive season as people convert deposits to cash balance for meeting extra expenditure during such periods.

2. Reserve Deposit ratio -Reserve money kept in the bank which consists of the vault cash in banks and deposits of commercial banks with RBI. RBI uses various policy instruments to bring forth a healthy rdr in commercial banks. These instruments include Cash Reserve Ratio and Statutory Liquidity Ratio.

3. High powered money - The total liability of the RBI is called monetary base or high-powered money. It includes currency (notes and coins) and deposits of commercial banks and the government of India held by RBI.

4. Statement 1 is correct - As the festive season approaches, CDR increases and people convert their deposits to cash balance to meet extra expenditure.

5. Statement 2 is incorrect - As interest rates rise, it will become difficult for people to take loans from the banks and thus reduce the money supply in the system. Or it can also encourage people to keep more money in their accounts as they will receive higher returns on their savings account.

6. Statement 3 is correct-Injection of high-powered money will lead to an increase in money supply in the system depending on the money multiplier.

7. Statement 4 is correct - A decrease in interest rates will encourage borrowing and thus lead to a higher supply of money in the economy.

• The tax-to-GDP ratio is a ratio of a nation's tax revenue relative to its gross domestic product (GDP), or the market value of goods and services a country produces. According to the Economic Survey, the gross tax to GDP ratio declined to 10.9 per cent in 2018-19.

• Statement 1 is incorrect: Lowering of the income tax limit will lead to an increase in the number of taxpayers but will put an unfair burden on those who have meagre earnings. Thus, not the most prudent way to increase tax-GDP ratio.

• Statement 2 is incorrect: This is not a prudent way to increase tax-GDP ratio as excise duty on crude oil is a form of indirect tax and thus will be applicable to everyone equally irrespective of their earnings. It will be a regressive measure.

• Statement 3 is correct: Formalisation of the labour market will lead to the creation of a valid database of people’s earnings and thus will make the formation of taxation laws easier and effective. This will increase the tax-GDP ratio in a fair and equitable manner.

• Statement 4 is correct: Introduction of a Direct Tax Code will streamline the process of collecting direct tax and thus make the process of tax filing easy and efficient. This will thus lead to an increase in tax- GDP ratio.

Prompt Corrective Action or PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The PCA framework deems banks as risky if they slip below certain norms on three parameters — capital ratios, asset quality and profitability.

As most bank activities are funded by deposits which need to be repaid, it is imperative that a bank carries a sufficient amount of capital to continue its activities. PCA is intended to help alert the regulator as well as investors and depositors if a bank is heading for trouble. PCA is applicable to only commercial banks.

The most important role of RBI is as the controller of money supply and credit creation in the economy. RBI is the independent authority for conducting monetary policy in the best interests of the economy.

The instruments that the RBI uses for conducting monetary policy are as follows:

• Statement 1 is correct. Open Market Operations (OMO) - RBI purchases (or sells) government securities to the general public in a bid to increase (or decrease) the stock of high-powered money in the economy.

• Statement 2 is correct. Varying Reserve Requirements - CRR and SLR also works through the Reserve Deposit Ratio route. A high (or low) value of CRR or SLR increases (or decreases) the value of reserve deposit ratio, thus diminishing (or increasing) the value of money multiplier and money supply in the economy in a similar fashion.

• Repo Rate - The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).

• Statement 4 is correct. Moral Suasion can be undertaken by RBI to persuade commercial banks to follow the monetary policy directives given by the Monetary Policy Committee.

• Statement 3 is incorrect. Sterilisation is one of the important functions of RBI where it sterilises the economy against adverse external shocks. However, it is not an instrument of monetary policy transmission.

• It lays specific focus on hard to abate sectors that are key stakeholders in the global climate action and require specific interventions.

• Japan and South Africa, the latest members of the initiative were welcomed.

  This extends the total membership of LeadIT to 37 including countries and companies together.

• It gathers countries and companies that are committed to action to achieve the Paris Agreement.

• Statements 2 and 3 are correct : LeadIT members subscribe to the notion that energy-intensive industry can and must progress on low-carbon pathways, aiming to achieve net-zero carbon emissions by 2050.

  It provides an arena for public-private collaboration, and for sectoral and cross sectoral learning for example when it comes to innovation opportunities and new technologies. It also supports governments and industries to co-produce stakeholder-led pathways to low carbon industry transformation.

Statement 1 is correct: Revenue expenditure refers to the expenses incurred by the government that do not result in the creation of physical or financial assets. These expenditures include salaries, pensions, subsidies, interest payments, and grants to states and Union Territories.

Statement 2 is also correct: Capital receipts refer to the funds raised by the government through borrowings, either from internal or external sources, and disinvestment of public sector undertakings. Loans raised by the government from the Reserve Bank and commercial banks fall under capital receipts as they represent borrowings.

Since both statements are correct, neither of them is incorrect.

Option (a) is the correct answer.

• Statement 1 is incorrect: Public goods are distinct from private goods as they cannot be provided through the market mechanism and thus must be provided by the government. This is known as the “allocation function” of the government.

• Statement 2 is incorrect: Public goods such as roads, public parks, highways, railways are for the benefit of all. The consumption of such goods by several individuals is not “rivalrous” in the sense that a person can enjoy the benefits without reducing their availability to others.

• Statement 3 is correct: In case of private goods if one does not pay then one can be excluded from enjoying its benefits. However, in case of public goods there is no feasible way of excluding anyone from enjoying its benefits. Thus, non-payers cannot be excluded. Since public goods are “non-rivalrous” and “non-excludable” it becomes difficult to collect fees for the public goods. This leads to the problem of “Free-riders”. Since consumers will not voluntarily pay for what they are getting for free it breaks the link between producers and consumers and therefore the government must step in to provide for such gods. This is known as “Public provisioning”.

Option (d) is the correct answer.

• Statement 1 is incorrect:Trade Balance is referred to as the balance of exports and imports of goods only. Adding trade in services and net transfers to the trade balance, we get the current account balance. All tourism activities come under the services sector which is not included in the ‘Trade Balance’.

• Statement 2 is correct: Depreciation of the Rupee will lead to increase in exports and reduction in imports thus it will lead to a positive trade balance

• Statement 1 is incorrect: In a market economy, all economic activities such as supply and demand interactions, individuals freely exchanging their products with each other etc. are organised through the market without any government interference. There may be some government intervention or planning, but usually it refers to an economy that is more market oriented in general. In this kind of an economy most economic decision making is done through voluntary transactions according to the laws of supply and demand. Hence the arrangement which allows people to buy and sell commodities freely are the defining features of a market economy.

• Statement 2 is correct: Most of the economies are mixed economies, where some important decisions are taken by the government and the economic activities are by and large conducted by the market. The extent of government control varies, for example in the United States of America the role of government is minimal whereas in China, the role of the government is much more interventionist.

• Statement 3 is also correct: in a centrally planned economy, the government or the central authority plans all the important activities in the economy. All important decisions regarding production, exchange, and consumption of goods and services are made by the government.

  Centrally-planned economic mandates surrounding the production of goods and services are often executed by state owned enterprises, which are government-created legal entities that engage in commercial activities on a government's behalf. The government may try to achieve a particular allocation of resources and distribution of final goods and services which is thought to be desirable for society as a whole.

Statement 1 is correct. Foreign Currency Non-resident (Bank) Account (FCNRA) can be opened by NRIs and Overseas CorporateBodies (OCBs) with an authorised dealer.The accounts can be opened in the form of term deposits. Deposits of funds are allowed in Pound Sterling, Japanese Yen, US Dollar and Euro.

Rate of interest Applicable to these accounts are in accordance with the directives issued by the RBI from time to time.

Statement 2 is incorrect. When a resident becomes an NRI, her existing rupee accounts are designated as Non- Resident Ordinary Rupee Account (NRO Account).

Non-Resident External Account (NRE) can be opened by NRIs and Overseas Corporate Bodies (OCBs) with an authorised dealer and with banks authorised by RBI. They can be in the form of savings, current, recurring or fixed deposit accounts. Also, the deposits are allowed in any permitted currency. Rate of interest Applicable to the accounts are in accordance with the directives issued by the RBI from time to time.

The summit is being held by the World Economic Forum in collaboration with the CII (Confederation of Indian Industry). Statement 2 is correct. The theme of the summit is ‘innovating forIndia: Strengthening South Asia, Impacting the World’. The summit aims to accelerate the Fourth Industrial Revolution. It will also have special focus on collaboration with South Asia and ASEANcountries.

• The growth in GDP during 2021-22 is estimated at 8.7 percent as compared to a contraction of 6.6 percent in 2020-21.

• The Gross Value Added (or GVA) grew by 8.1% in FY22

HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. It is a six-digit identification code. Of the six digits, the first two denote the HS Chapter, the next two give the HS heading, and the last two give the HS subheading.

• Diphtheria: It is an infection caused by the bacterium Corynebacterium diphtheriae. Hence option 1 is correct.

• Tetanus: It is an infection caused by bacteria called Clostridium tetani. Hence option 2 is correct.

• Leprosy is an infectious disease caused by a bacillus, Mycobacterium leprae. The disease mainly affects the skin, the peripheral nerves, mucosa of the upper respiratory tract, and the eyes. It is curable with multidrug therapy (MDT). It is likely transmitted via droplets, from the nose and mouth, during close and frequent contact with untreated cases. India officially eliminated leprosy in 2005, reducing its prevalence rate to 0.72 per 10,000 people at national level but still hosts highest patients of leprosy in the world. Hence option 3 is correct.

• Whooping cough, also called pertussis, is a serious respiratory infection caused by a type of bacteria called Bordetella pertussis. It can cause serious illness in babies, children, teens, and adults. Some other diseases which are caused by bacteria are: Cholera, typhoid, tuberculosis. Plague, and Anthrax etc. Hence option 4 is correct.

• A bacteriophage is a type of virus that infects bacteria. The word "bacteriophage" literally means "bacteria eater," because bacteriophages destroy their host cells. All bacteriophages are composed of a nucleic acid molecule that is surrounded by a protein structure. A bacteriophage attaches itself to a susceptible bacterium and infects the host cell. Hence option (c) is the correct answer.

• Following infection, the bacteriophage hijacks the bacterium's cellular machinery to prevent it from producing bacterial components and instead forces the cell to produce viral components. Eventually, new bacteriophages assemble and burst out of the bacterium in a process called lysis. Bacteriophages occasionally remove a portion of their host cells' bacterial DNA during the infection process and then transfer this DNA into the genome of new host cells. This process is known as transduction.

• Since their discovery, bacteriophages have been considered to be potential antibacterial therapeutics for the treatment of various infectious diseases in humans. In recent times, the rapid rise of multi-drug resistant bacteria worldwide has led to a renewed interest in phage therapy as a possible alternative to antibiotics or, at least, a supplementary approach for the treatment of some bacterial infections.

• Furthermore, bacteriophage-based vaccination is emerging as one of the most promising preventive strategies.

• Bulk Drug Parks are being promoted through the production-linked incentive (PLI) schemes. Hence, statement 1 is correct.

• The government plans to implement a PLI system with 10-20% output incentives for the agrochemical sector to create an end-to-end manufacturing ecosystem through the growth of clusters.

• The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation. Hence, statement 2 is correct.

FSO is a line-of-sight technology that uses lasers to provide optical bandwidth connections. Currently, FSO is capable of up to 2.5 Gbps of data, voice and video communications through the air, allowing optical connectivity without requiring a fibre-optic cable or securing spectrum licenses. Hence statement 2 is correct.

This contrasts with using solids such as optical fibre cable. FSO communications can provide high data rates in Gbits/s ranges through the atmosphere for ranges from a few hundreds of meters to a few kilometres.

FSO links include the following:

• chip-to-chip communication,

• indoor infrared (IR) or VLC,

• interbuilding communication, and

• free-space laser communications including airborne, spaceborne, and deep space missions.

Free-space point-to-point optical links can be implemented using infrared laser light, although low-data-rate communication over short distances is possible using LEDs, Infrared Data Association (IrDA) technology is a very simple form of free-space optical communications. Hence statement 3 is correct.

There are several transmission windows between 780 nm and 1600 nm wavelength range. These windows are very suitable for FSO operation due to its low attenuation, as well as the availability of high-quality transmitter and detector components.

• The halogens are a series of non-metal elements in the periodic table consisting of five chemically related elements: fluorine (F), chlorine (Cl), bromine (Br), iodine (I), and astatine (At). The recently artificially created element 117, Tennessine (Ts), may also be a halogen. In the modern IUPAC nomenclature, this group is known as group 17.

• The name "halogen" means "salt-producing". When halogens react with metals, they produce a wide range of salts, including calcium fluoride, sodium chloride (common table salt), silver bromide and potassium iodide.

• The group of halogens is the only periodic table group that contains elements in three of the main states of matter at standard temperature and pressure. All of the halogens form acids when bonded to hydrogen. Most halogens are typically produced from minerals or salts.

• The middle halogens—chlorine, bromine, and iodine—are often used as disinfectants in the water-purification system. Organobromides are the most important class of flame retardants, while elemental halogens are dangerous and can be lethally toxic.

• During springtime in the polar regions, unique photochemistry converts inert halide salt ions (e.g. Br−) into reactive halogen species (e.g. Br atoms and BrO) that deplete ozone in the boundary layer to near-zero levels. Hence the correct option is (d)

• Of the five states, the matter can be in, the Bose-Einstein condensate is perhaps the most mysterious. Gases, liquids, solids, and plasmas were all well studied for decades, if not centuries; Bose- Einstein condensates weren't created in the laboratory until the 1990s.

• A Bose-Einstein condensate is a group of atoms cooled to within a hair of absolute zero. When they reach that temperature the atoms are hardly moving relative to each other; they have almost no free energy to do so. At that point, the atoms begin to clump together and enter the same energy states. They become identical, from a physical point of view, and the whole group starts behaving as though it were a single atom.

• This state was first predicted, generally, in 1924–1925 by Albert Einstein following and crediting a pioneering paper by Satyendra Nath Bose on the new field now known as quantum statistics. One application for BEC is for the building of so-called atom lasers, which could have applications ranging from atomic-scale lithography to measurement and detection of gravitational fields. Hence the correct option is (a).

• Respiration in aquatic organisms: Since the amount of dissolved oxygen is fairly low compared to the amount of oxygen in the air, the rate of breathing in aquatic organisms is much faster than that seen in terrestrial organisms. Fishes take in water through their mouths and force it past the gills where the dissolved oxygen is taken up by the blood. Hence, statement 1 is correct and 2 is not correct.

• Terrestrial organisms use oxygen in the atmosphere for respiration. This oxygen is absorbed by different organs in different animals. All these organs have a structure that increases the surface area which is in contact with the oxygen-rich atmosphere. Since the exchange of oxygen and carbon dioxide has to take place across this surface, this surface is very fine and delicate. In order to protect this surface, it is usually placed within the body, so there have to be passages that will take air to this area.

• The World Puzzle Federation is an organization of legal entities interested in puzzles. Hence, statement 1 is not correct.

• Prasanna Seshadri has won India's first silver medal after 11 years of trying at the World Puzzle Championship (WPC).

• The objects of the federation are to supervise the World Puzzle Championship (WPC), World Sudoku Championship (WSC) and other WPF events. Hence, statement 2 is correct.

• The WPC gold this year went to Japan’s Ken Endo.

Capillary action is sometimes called capillary motion, capillarity, or wicking. Capillary action is caused by the combination of cohesive forces of the liquid and the adhesive forces between the liquid and tube material.

Cohesion and adhesion are two types of intermolecular forces. These forces pull the liquid into the tube. In order for wicking to occur, a tube needs to be sufficiently small in diameter.

Examples of capillary action include:

• Capillary action in plants is one of the most essential processes which helps them to survive. The roots of plants draw water via capillary action from the soil, and thus, supply it to various parts of the plant including the stems, branches, and leaves. Hence option 3 is correct.

• A candle burns due to capillary action. When the wick of a candle is lit, the heat of the flame causes the candle wax to melt. The molten wax is then pulled up through the wick by capillary action and supplies the fuel needed to sustain the fire and keep the candle burning. Hence option 2 is correct.

• Pores in the sponge act as minute capillaries, causing them to absorb a large number of liquids. Hence option 1 is correct.

• Other examples include uptake of water in paper and plaster (two porous materials), the movement of water through sand etc.

• Benzo[a]pyrene is a polycyclic aromatic hydrocarbon and the result of incomplete combustion of organic matter at temperatures between 300 °C (572 °F) and 600 °C (1,112 °F). The main source of atmospheric BaP is residential wood burning. It is also found in coal tar, in automobile exhaust fumes (especially from diesel engines). BaP is discharged in wastewater by industries such as smelters, particularly iron and steel mills and aluminum smelters, in all smoke resulting from the combustion of organic material (including cigarette smoke), and in charbroiled food or grilled meats. A 2001 National Cancer Institute study found levels of BaP to be significantly higher in foods that were cooked well-done on the barbecue, particularly steaks, chicken with skin, and hamburgers.

• BaP has been identified as a prime carcinogen in cigarette smoke According to the National Ambient Air Quality Standards (NAAQS), there are twelve major pollutants including PM 10, PM 2.5, Nitrogen Dioxide (NO₂), Sulphur Dioxide (SO₂), Carbon Monoxide (CO), Ozone (O₃), Ammonia (NH₃), Benzene (C₆H₆), Benzo (a) Pyrene (BaP), Arsenic (As), Nickel (Ni) and Lead (Pb). Hence the correct option is (d).

They are created when:

• The strongest gravitational waves are produced by cataclysmic events such as colliding black holes, supernovae (massive stars exploding at the end of their lifetimes), and colliding neutron stars.

• Other waves are predicted to be caused by the rotation of neutron stars that are not perfect spheres.

• Some are possibly created even by the Big Bang and are the remnants of gravitational radiation created then. So not all Gravitational waves are as old as Big Bang. Hence statement 1 is not correct.

• They travel at the speed of light, gravitational waves squeeze and stretch anything in their path. Hence statement 2 is not correct.

Gravitational waves were proposed by Albert Einstein in his General Theory of Relativity over a century ago. It was only in 2015, however, that the first gravitational wave was actually detected — by LIGO. Since then, there have been a number of subsequent detections of gravitational waves. Hence statement 3 is correct.

The functions of some of the important macro (required in large amounts) and micro (required in small amounts) mineral nutrients are as follows:

• Magnesium is a critical structural component of the chlorophyll molecule and is necessary for functioning of plant enzymes to produce carbohydrates, sugars and fats. It is used for fruit and nut formation and essential for germination of seeds. Deficient plants appear chlorotic, show yellowing between veins of older leaves; leaves may droop. Magnesium is leached by watering and must be supplied when feeding. It can be applied as a foliar spray to correct deficiencies. Hence the correct option is (a).

• Sulphur is a structural component of amino acids, proteins, vitamins and enzymes and is essential to produce chlorophyll. It imparts flavor to many vegetables. Deficiencies show as light green leaves. Sulphur is readily lost by leaching from soils and should be applied with a nutrient formula. Some water supplies may contain Sulphur.

• Calcium activates enzymes, is a structural component of cell walls, influences water movement in cells and is necessary for cell growth and division. Some plants must have calcium to take up nitrogen and other minerals. Calcium is easily leached. Calcium, once deposited in plant tissue, is immobile (non-translocatable) so there must be a constant supply for growth. Deficiency causes stunting of new growth in stems, flowers and roots. Symptoms range from distorted new growth to black spots on leaves and fruit.

• Yellow leaf margins may also appear.

• Iron is necessary for many enzyme functions and as a catalyst for the synthesis of chlorophyll. It is essential for the young growing parts of plants. Deficiencies are pale leaf color of young leaves followed by yellowing of leaves and large veins. Iron is lost by leaching and is held in the lower portions of the soil structure. Under conditions of high pH (alkaline) iron is rendered unavailable to plants. When soils are alkaline, iron may be abundant but unavailable. Applications of an acid nutrient formula containing iron chelates, held in soluble form, should correct the problem.

• The various life processes of living organisms require at least 40 elements in different quantities. Elements that are needed in large amount are called macronutrients. For example, carbon, hydrogen, oxygen (components of all organic compounds), nitrogen, potassium, calcium, sodium, magnesium, iron, phosphorous and sulphur. They all perform various functions.

• Substances required in small amounts are called micronutrients. They include copper, manganese, selenium, zinc, molybdenum, boron, silicon, etc. Some of the micronutrients (e.g. Zinc, Boron) may often serve as limiting factors to affect the growth, survival, and propagation of living organisms.