GPSC Prelims Paper 2 Mock Test - 10 - GPSC (Gujarat) MCQ

The Banjara Virasat Museum was inaugurated in Maharashtra, showcasing the rich heritage of the Banjara community through its various galleries and exhibits, thereby promoting cultural awareness.

Gopal Krishna Gokhale served as a political mentor to Mahatma Gandhi, influencing his philosophical and political beliefs, particularly in the realm of social reform and national independence.

Tamil was designated as a classical language in 2004, recognized for its significant antiquity and rich literary tradition, marking an important milestone in the preservation of linguistic heritage.

The Union Cabinet has approved the classical language status for Marathi, Pali, Prakrit, Assamese, and Bengali, bringing the total number of classical languages in India to eleven, thereby enhancing their recognition and preservation.

The revised criteria stipulate that to qualify as classical, a language must have a recorded history of at least 1,500 to 2,000 years, emphasizing the significance of its ancient origins and literary contributions.

Tamil was the first Indian language to be declared classical in 2004, showcasing its extensive literary heritage and ancient roots, which set a precedent for other languages seeking similar recognition.

The FCI's ANNA DARPAN initiative aims to revolutionize supply chains, enhancing efficiency and transparency in food distribution, which is crucial for addressing food security challenges in India.

Karnataka launched an initiative aimed at eliminating cervical cancer, reflecting a proactive approach to public health and women's healthcare issues in the state.

Malayalam was designated as a classical language in 2013, recognizing its historical significance and rich literary tradition, which have been influential in preserving the culture of Kerala.

The designation of languages as classical primarily aims to recognize and preserve cultural heritage, including ancient literature and knowledge systems, ensuring their continued relevance and study.

The Banjara Virasat Museum features 13 galleries dedicated to showcasing the rich cultural heritage of the Banjara community, emphasizing their traditions, history, and contributions to Indian society.

PM Narendra Modi inaugurated projects worth ₹80K crore in Hazaribagh, Jharkhand, reflecting the government's commitment to infrastructural development and economic growth in the region.

Marathi has the oldest inscription dating from the 1st century BCE, showcasing its historical significance and evolution as a language over the centuries.

Sanskrit contributed significantly to ancient Indian literature through the composition of the Rigveda, which is considered the first known book in the world, laying the foundation for various philosophical and literary traditions in India.

• Primary deficit refers to the difference between the current year's fiscal deficit and interest payments on previous borrowings. It indicates the borrowing requirements of the government, excluding Interest. It also shows how much of the government's expenses, other than interest payments, can be met through borrowings. A fiscal deficit is a difference between the government's total expenditure and total income. When the government spends more than its total income, such a situation is called a fiscal deficit. So, Statement 1 is not correct.
• Off-Budget borrowings are loans obtained by government entities, such as P.S.U.s or special purpose vehicles, on behalf of the government to finance its expenditure. According to the Comptroller and Auditor General of India, these borrowings are not included while computing the debt and the fiscal deficit of the State governments. However, the State government is responsible for repaying the loan and servicing the debt from its Budget. So, Statement 2 is correct.
• A proportional tax is a taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. This means that lower, middle, or upper-class people pay the same tax. Since the tax is charged at a flat rate for everyone, whether earning higher income or lower income, it is also called a flat tax. Indian Income-tax levies tax on individual taxpayers on the basis of a slab system. A slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every Budget. Thus, the tax slabs of the new tax regime are not an example of proportional taxation. So, Statement 3 is not correct.

• Revenue expenditures refer to the day-to-day expenditures incurred by the government to ensure its normal functioning. Interest payments on the debt incurred by the government, defense purchases, administrative expenditures, and wage bills are all a part of the government’s revenue expenditure. So, Statements 1 and 3 are correct.
• Loans are given to the state government by the central government for various purposes. Such loans are considered the Centre’s capital expenditure as these are treated as assets from which the Centre derives interest. On the contrary, all grants given to State Governments/Union Territories and other parties are also treated as revenue expenditure, even though some of the grants may be used for the creation of assets. So, Statement 2 is not correct. 

• Public sector banks or nationalized banks are those in which the Government holds more than 50% of the total stock. There are 12 public sector banks in India, where the Government has retained most of its share with the primary aim of public interest. Public sector banks were not granted 'Ratna status.' So, Statement 1 is not correct.
• Life Insurance in its modern form came to India from England in 1818. Life Insurance Corporation (LIC) is not granted 'Ratna status.' So, Statement 2 is not correct.
• Central Public Sector Enterprises (CPSEs) are those companies in which the direct holding of the Central Government or other CPSEs is 51% or more. Under the Articles of Association, the board of directors of Central Public Sector Enterprises (CPSEs) enjoys autonomy in respect of recruitment, promotion and other service conditions of below-board-level employees. The board of directors of a CPSE exercises delegated powers subject to broad policy guidelines issued by the government from time to time. The government has granted enhanced powers to the Boards of profit-making enterprises under various schemes like Maharatna, Navratna and Miniratna. So, Statement 3 is correct.
• State government-owned companies are not given ‘Ratna status’. So, Statement 4 is not correct. Private owned companies were not granted 'Ratna status.' The following were some of the Private owned companies
  • Reliance Industries Limited
  • Tata Consultancy Services (TCS)
  • Hindustan Lever Limited
  • Bharti Tele-Ventures Limited
  • ITC Limited

So, Statement 5 is not correct.

• Poverty can be defined as a condition in which an individual or household lacks the financial resources to afford a basic minimum standard of living. The conventional approach to measuring poverty is to specify a minimum expenditure (or income) required to purchase a basket of goods and services necessary to satisfy basic human needs. This expenditure is called the poverty line. The basket of goods and services necessary to satisfy basic human needs is the Poverty Line Basket (PLB). Poverty can be measured in terms of the number of people living below this line (with the incidence of poverty expressed as the headcount ratio (HCR) or the poverty ratio – the number of poor to the total population expressed as a percentage). So, Statement 1 is correct.
• Poverty estimation in India is now carried out by a task force of the NITI Aayog through the calculation of poverty lines based on data collected by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI). So, Statement 2 is not correct. 

• Investment in health is considered an important input for the development of a nation as much as it is important for the development of an individual. A sick labourer without access to medical facilities is compelled to abstain from work, and productivity is lost. Hence, expenditure on health is an important source of human capital formation. So, Statement 1 is correct.
• Investment in education is considered one of the main sources of human capital. Spending on education by individuals is similar to spending on capital goods by companies with the objective of increasing future profits over a period of time. Likewise, individuals invest in education with the objective of increasing their future income. So, Statement 5 is correct.
• Firms spend on giving on-the-job training to their workers. This may take different forms: the workers may be trained in the firm itself under the supervision of a skilled worker; two, the workers may be sent for off-campus training. In both these cases, firms incur some expenses. Firms will, thus, insist that the workers work for a specific period after their on-the-job training, during which they can recover the benefits of the enhanced productivity owing to the training. Expenditure regarding on-the-job training is a source of human capital formation as the return of such expenditure in the form of enhanced labor productivity is more than the cost of it. So, Statement 2 is correct.
• Price support and input subsidy have proved to be the most effective instruments in accelerating agricultural growth in the country. However, some economists are of the view that subsidies consumed most of the surpluses leaving little to invest. They have argued that the increasing burden of subsidy is the most important factor· responsible for declining public investment over the years in capital formation, not only in the form of agricultural infrastructure but also human capital formation. So, Statement 3 is not correct.
• In October 2018, India signed a USD 5 billion deal with Russia to buy five units of the S-400 air defense missile systems, which are considered to be one of the most advanced air defense systems available in the world. While these missiles serve the purpose of protecting the sovereignty, security and territorial integrity of India, they do not serve as a source of human capital formation. So, Statement 4 is not correct.

• Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government rather than the worth of a commodity backing it. Cheques are not fiat money because the central bank or R.B.I. does not back them. Other parties can refuse to accept it as a mode of payment. So, Statement 1 is not correct.
• Money that has a legal sanction by the government or central bank behind it is called legal tender or legal tender money. It is money issued by the monetary authority or the government, which any person cannot refuse in payment for transactions. So, Statement 2 is correct.

In terms of Section 22 of the RBI Act of 1934, Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI. The Reserve Bank, in consultation with the Central Government and other stakeholders, estimates the number of banknotes that are likely to be needed denomination-wise in a year and places indents with the various currency printing presses for the supply of banknotes. The Reserve Bank, in terms of its clean note policy, provides good quality banknotes to the members of the public. With this objective in view, the banknotes received back from circulation are examined, and those fit for circulation are reissued. In contrast, the others (soiled and mutilated) are destroyed so as to maintain the quality of banknotes in circulation. In respect of coins, the role of RBI is limited to the distribution of coins that are supplied by the Government of India. The Government of India is responsible for designing and minting coins in various denominations as per the Coinage Act 2011. So, Option (a) is correct.

• National Payments Corporation of India (NPCI) initiates Bharat QR Code. It is a new way for merchants and customers to exchange funds using mobile phones, making it a preferred channel to expedite and grow electronic payments. Merchants have used it to accept digital payments, as not all have the resources to mandate payments through P.O.S. card swipe E.D.C. terminals. NPCI jointly worked with the I.C.S. (International Card Schemes) to develop a common standard for Q.R. code and partnered to launch Bharat QR – a QR Code-based digital payment mechanism that merchant establishments, e-Commerce and m-Commerce websites are already using. So, Statement 1 is correct.
• National Highways Authority of India launched two mobile Apps – MyFASTag and FASTag Partner, to facilitate the availability of FASTags for Electronic Toll Collection. MyFASTag is a consumer App that can be downloaded from the App Store for both Android and iOS systems. A consumer can purchase or recharge FASTags on this App. The App also helps to keep track of transactions and provides for online grievance redressal. FASTag Partner is a merchant App. Agencies like Common Services Centre, banking partners and vehicle dealers can sell and enroll FASTag through this App. In addition to this, the App can also be used to activate the RFID tags that came built-in with around 74 lakh cars in the country following the 2013 Gazette Notification in this regard. These RFID tags are already fixed on the cars but are dormant. This App will convert these RFID tags into E.T.C. Tag (FASTag). So, Statements 2 and 3 are not correct.
• National Payments Corporation of India (NPCI) has developed the National Electronic Toll Collection (NETC) program to meet the electronic tolling requirements of the Indian market. It provides an electronic payment facility for the customer to make payments at national, State and city toll plazas by identifying the vehicle uniquely through a FASTag. FASTag is Radio-Frequency Identification (RFID) sticker that is affixed on the vehicle windshield and enables the driver to make toll payments electronically while the vehicle is in motion without stopping at the Toll plazas by saving Fuel and Time.

So, Statement 4 is correct. 

The merchant discount rate, or MDR, is charged to a merchant for processing debit and credit card transactions. The merchant sets up the service and must agree or commit to the rate before accepting and/or authorizing debit or credit cards for payment processing. The merchant bank charges a fee (MDR). The MDR fee collected by the merchant bank is then split with the bank that issued the credit card, the payment network (Visa, Mastercard, etc.), and the bank that provided the POS terminal or device. The POS terminal is a device used for handling credit and debit card payments at merchant outlets. So, Option (d) is correct.

A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. The World Bank launched bond-i (blockchain-operated new debt instrument) in 2018. It is considered to be the world's first bond to be created, allocated, transferred and managed through its life cycle using distributed ledger technology. The new bond was created through Australia's Commonwealth Bank (CBA). So, Option (d) is correct. 

Hyperinflation or runaway inflation is out-of-control inflation in which the price of goods and services rises at a monthly rate of 50% or an annual rate of 1,000% or more. An oversupply of paper currency can cause hyperinflation without a corresponding rise in the production of goods and services. In other words, hyperinflation is extremely rapid inflation. So, Option (b) is correct.

• The balance of payments (BOP), or the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year. It summarizes all transactions of a country's individuals, companies, and government bodies, complete with individuals, companies, and government bodies outside the country. External Commercial borrowings refer to commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, and securitized instruments availed from non-resident lenders with a minimum average maturity of 3 years. They form a part of the Capital account in the context of the Balance of Payments. So, Statement 1 is correct.
• Government transfers are usually in the form of gifts or grants, which do not have quid pro quo. This means that it need not be compensated or reciprocated. Once it is received, it need not be repaid. Hence, they form a part of the current account and not the capital account in the context of the Balance of Payments. So, Statement 2 is not correct.
• The head of invisibles in the Balance of Payments records the receipts and payments with respect to the following:
  • Import and export of Services
  • Income/ Remittances
  • Transfers These neither create an asset nor a liability. So, the head of invisibles falls under the current account and not the capital account. So, Statement 3 is not correct.
• Companies of a country can go abroad to sell their shares in the foreign capital market. When a foreign investor buys shares of domestic companies abroad (in the capital market), he is issued a receipt by a Custodian Bank. This receipt represents a certain number of underlying shares of domestic companies; hence, they are called depository receipts. The depository receipts raised by Indian companies in the American market are called American Depository Receipts (ADRs). Those raised in some other countries are called Global Depository Receipts (GDRs). They form a part of the Capital account in the context of the Balance of Payments. So, Statement 4 is correct.

• Section 3(1) of the Information Technology Act of 2000 gives legal sanctity to the usage of digital signatures in the country. A person can, if he/she wishes, use digital signatures to authenticate an electronic record, and such authentication is now recognizable under the law. Section 2(p) of the Act defines ‘digital signature’ as ‘authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3’. Chapter II of the Act has a single section which is section 3, providing for the authentication of electronic records. Sub-section (1) of section 3 states that ‘any subscriber may authenticate an electronic record by affixing his digital signature.’ This forms the basis for the use of digital signatures. So, Statement 1 is correct.
• The IT Act of 2000 creates a hierarchy in which at the top is the Controller of Certifying Authorities, who has the power to appoint Certifying Authorities and grant them the license to issue Digital Signature Certificates. In turn, the Certifying Authorities can issue such Certificates to the subscribers. So, Statement 2 is correct.
• The IT Act of 2000 adopts the functional equivalent approach. When adopting this approach in the UNCITARL Model Law, attention was given to the existing hierarchy of form requirements, which provides a distinct level of reliability, traceability and inalterability with respect to paper-based documents. This approach singles out the basic functions of paper-based form requirements with a view to providing criteria which, once they are met by electronic documents, enable such e-documents to enjoy the same level of legal recognition as corresponding paper documents performing the same function enjoy. As per Section 18 of The Information Technology Act, 2000 provides the required legal sanctity to the digital signatures based on asymmetric cryptosystems. The digital signatures are now accepted at par with handwritten signatures and the electronic documents that have been digitally signed are treated at par with paper documents. So, Statement 3 is not correct.
• The Data Security Council of India (DSCI) is a not-for-profit industry body on data protection in India, set up by NASSCOM, a non-governmental industry organization. DSCI is committed to making cyberspace safe, secure and trusted by establishing best practices, standards and initiatives in cyber security and privacy. To further its objectives, DSCI engages with governments and their agencies, regulators, industry sectors, industry associations and think tanks for policy advocacy, thought leadership, capacity building and outreach activities. So, Statement 4 is not correct. 

• The term trademark refers to a recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind. A trademark exclusively identifies a product as belonging to a specific company and recognizes the company's ownership of the brand. Trademarks are generally considered a form of intellectual property and may or may not be registered. Intellectual property rights protect trademarks. So, Statements 1 and 2 are correct.
• The Trademark Act 1999 governs the trademark regime and registration. The Act guarantees protection for a trademark registered with the Controller General of Patents, Designs, and Trademarks, also known as the trademark registry. A trademark is valid for 10 years and can be renewed by the owner indefinitely every 10 years. So, Statement (3) is not correct.
• Trademark rights are private rights, and protection is enforced through court orders. The Controller General of Patents, Designs and Trade Marks heads the TRADE MARKS Registry offices and functions as the Registrar of TRADE MARKS. From time to time, he assigns functions of the Registrar to other officers appointed by the Central Government, and such officers also function as Registrar in respect of matters assigned to them. The Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) is located in Mumbai. It functions under the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. The Controller General supervises the working of the Patents Act of 1970, the Designs Act of 2000 and the Trade Marks Act of 1999 and also renders advice to the Government on matters relating to these subjects. The Head Office of the ‘Patent office’ is in Kolkata, the ‘Trade Mark Registry’ is in Mumbai and the ‘GI Registry’ is in Chennai. The Offices of ‘The Patent Information System’ (PIS) and ‘National Institute of Intellectual Property Management’ (NIIPM) are at Nagpur. So, Statement (4) is not correct. 

Landraces refer to naturally occurring variants of commonly cultivated crops. These are as opposed to commercially grown crops, developed by selective breeding (hybrids) or through genetic engineering to express a certain trait over others. Kalbhat, a unique landrace of scented rice, is an example of Landraces. So, Option (d) is correct. 

Grievance Redressal Index (GRI) is the ranking report published by the Department of Administrative Reforms and Public Grievances (DARPG), Ministry of Personnel, Public Grievances and Pensions for all government departments/ministries, and it is a monthly report. The grievance Redressal Index has two dimensions:

• Timely Disposal of Grievance Redressal.
• Quality Disposal of Grievance Redressal. It ranks all Groups A Ministries, Departments and Autonomous Bodies for resolving public grievances.

So, Statement 1 is not correct, and Statement 2 is correct.