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Full Mock Test & Solutions: UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 (100 Questions)

You can boost your UPSC 2026 exam preparation with this UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 (available with detailed solutions).. This mock test has been designed with the analysis of important topics, recent trends of the exam, and previous year questions of the last 3-years. All the questions have been designed to mirror the official pattern of UPSC 2026 exam, helping you build speed, accuracy as per the actual exam.

Mock Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 120 minutes
  • - Total Questions: 100
  • - Analysis: Detailed Solutions & Performance Insights

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UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 1

Which of the following are examples of flow variables?

1. Exports

2. Population of a country

3. Government debt

4. Depreciation

Select the correct answer using the code given below.

Detailed Solution: Question 1

The concept of stock and flow is mainly used while computing the national income of a country. There are a number of terms related to national income which are classified into stock and flow.

The distinction between a stock and a flow is very significant and the basis of distinction is measurability at a point of time or period of time. It should be noted that both stocks and flows are variables. A variable is a measurable quantity that varies (changes).

  • Flow Variables:
    • A flow is a quantity that is measured with reference to a period of time. Thus, flows are defined with reference to a specific period (length of time), e.g., hours, days, weeks, months, or years. It has a time dimension. National income (GDP of a country) is a flow. It describes and measures the flow of goods and services which become available to a country during a year.
    • Similarly, all other economic variables which have a time dimension, i.e., whose magnitude can be measured over a period of time are called flow variables. For instance, the income of a person is a flow that is earned during a week or a month or any other period. Likewise, investment (i.e., adding to the stock of capital) is a flow as it pertains to a period of time.
    • Other examples of flows are expenditure, savings, depreciation, interest, exports, imports, change in inventories (not mere inventories), change in money supply, lending, borrowing, rent, profit, etc. because the magnitude (size) of all these are measured over a period of time.
  • Stock Variables:
    • A stock is a quantity that is measurable at a particular point in time. Capital is a stock variable. On a particular date (say, 1st April 2022), a company owns and commands a stock of machines, buildings, accessories, raw materials, etc. It is a stock of capital. Like a balance sheet, a stock has a reference to a particular date on which it shows the stock position. Clearly, a stock has no time dimension (length of time) as against a flow that has a time dimension.
    • Stock indicates the quantity of a variable at a point of time. Thus, wealth is a stock since it can be measured at a point in time, but income is a flow because it can be measured over a period of time. Examples of stocks are wealth, Government debt, loans, inventories (not change in inventories), opening stock, money supply (amount of money), population, etc.
  • Hence option (d) is the correct answer.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 2

Consider the following statements regarding the ‘International Solar Alliance (ISA)’:

1.Singapore is included in ISA.

2.The United Nations General Assembly (UNGA) has granted Observer Status to the International Solar Alliance (ISA).

3.The Assembly of the ISA is the apex decision-making body which comprises of representatives from each Member Country.

Which of the statements given above is/are correct?

Detailed Solution: Question 2

  • 94 countries (Members of ISA) have signed and ratified the ISA Framework Agreement, but a total of 116 countries have signed the ISA Framework Agreement (not all countries ratify the agreement). Singapore has ratified the International Solar Alliance, signifying the decision to join collective efforts on climate action. Hence, statement 1 is correct.
  • Observer Status to International Solar Alliance: The United Nations General Assembly (UNGA) has granted Observer Status to the International Solar Alliance (ISA). Hence, statement 2 is correct.
  • It will help provide for regular and well-defined cooperation between the Alliance and the United Nations that would benefit global energy growth and development. The Assembly of the ISA is the apex decision-making body which comprises of representatives from each Member Country. Hence, statement 3 is correct.
  • The Assembly deliberates matters of substance such as the selection of the Director General, achievement of ISA objectives, its functioning, approval of the operating budget and more

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 3

Which of the following statements regarding the coastal plains of India is/are not correct ?

1. The western coastal plains are an example of an Emergent coastal plain.

2. The Eastern coastal plains are an example of a submerged coastal plain.

3. The eastern coastal plains provide natural conditions for the development of ports and harbors.

Select the correct answer using the code given below :

Detailed Solution: Question 3

  • The coastal plains in India run parallel to the Arabian Sea & Bay of Bengal along the Peninsular Plateau. The western coastal plain is a narrow belt about 10-20km wide along the Arabian Sea. It stretches from Rann of Kachchh to Kanya Kumari. Western coastal plains comprise three sectors (i) Konkan Coast (Mumbai to Goa), (ii) Karnataka coast from Goa to Mangalore (iii) Malabar Coast (Mangalore to Kanya Kumari). The eastern coast runs along the Bay of Bengal. It is wider than the western coastal plain.
  • The western coastal plains are an example of a submerged coastal plain. It is believed that the city of Dwaraka, once part of the Indian mainland situated along the west coast, is submerged underwater.
  • The western coastal plains are narrow in the middle and get broader towards the north and south. The rivers flowing through this coastal plain do not form any delta. The Malabar coast has certain distinguishing features in the form of 'Kayals' (backwaters), which are used for fishing, and inland navigation due to its special attraction for tourists. So, Statement 1 is not correct.
  • Compared to the western coastal plain, the eastern coastal plain is broader and an example of an emergent coast. There are well-developed deltas here, formed by the rivers flowing eastward into the Bay of Bengal. So, Statement 2 is not correct.
  • Because of its emergent nature, the eastern coastal plain has fewer ports and harbours. The continental shelf extends up to 500 km into the sea, making it difficult to develop good ports and harbours. Whereas western coastal plains are submerged in nature, their narrow belt provides natural conditions for developing ports and harbours—Kandla, Mazagaon, JLN port Navha Sheva, Marmagao, Mangalore, Cochin, etc. So, Statement 3 is not correct.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 4

Consider the following situations in an economy:

1. Surge in Exports

2. Increased government spending on large-scale projects

3. High economic growth

How many of the above situations can lead to demand-pull inflation?

Detailed Solution: Question 4

  • Demand-pull inflation is a type of inflation that is influenced by growing demand for a good or service. When the aggregate demand is higher than the aggregate supply, prices will rise. It is commonly described as "too much money chasing too few goods."
  • What Causes Demand-Pull Inflation?
    • Economic Growth: When an economy is thriving, people and businesses tend to feel more confident in spending their money. When this happens, general demand rises and many businesses may have trouble keeping pace with the increased demand.
    • Surge in Exports: Exchange rate depreciation can drive aggregate demand and create demand-pull inflation by encouraging a high level of exports. Typically when this happens people in a country buy fewer imports while at the same time exports from their country increase.
    • Government Spending: When the government begins spending on large-scale projects, this often drives prices up. This is because substantial projects funded by massive amounts of capital that governments provide creates more demand overall. Fiscal policies that drive demand can also create demand-pull inflation.
    • Inflation Forecasts: When economists, the government, or major media outlets forecast inflation, this can unintentionally cause demand-pull inflation through a couple of avenues. First, some companies may raise their prices preemptively to meet the expected inflation. Second, some consumers may make major purchases preemptively to avoid paying higher prices later. This can create greater demand and result in demand-pull inflation.
    • Exorbitant Supply of Money: When a government prints too much money, this can create demand pull inflation. In this case, the popular definition of demand-pull inflation"too much money chasing too few goods" applies quite literally. Hence option (c) is the correct answer.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 5

Consider the following statements:

1. Anaerobic decomposition occurs in the absence of oxygen and a lot of energy is produced in this process.

2. Anaerobic decomposition kills seeds of weeds and germs present in the waste.

Which of the statements given above is/are correct?

Detailed Solution: Question 5

  • The microbial action on solid wastes breaks it into simpler form. Some of the waste matter is converted into gases (mostly carbon dioxide, CO2) and the rest becomes simple to be taken in by plants.
  • Aerobic bacteria decompose solid wastes in air and produce carbon dioxide. They absorb nitrogen, carbon and phosphorus from the decomposed wastes. Anaerobic decomposition occurs in the absence of oxygen. Anaerobic bacteria give out enzyme which breaks down the wastes and produce Methane or Marsh Gas (CH4). The sulphur content is converted into sulphur dioxide (SO2). Hence, statement 1 is correct.
  • The nutrients like nitrogen, phosphorus and carbon etc. are then taken in by anaerobic bacteria. Very much heat (upto 80°C) is produced due to anaerobic decomposition. It kills seeds of weeds and germs present in the waste. The solid waste, for this type of decomposition has to be covered in a pit properly to cut off oxygen supply from the air. Hence, statement 2 is correct.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 6

Consider the following statements with respect to ‘Codex Alimentarius Commission (CAC)’:

1. CAC is an international food standards body established jointly by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO).

2. The Agreement on Application of Sanitary and Phytosanitary Measures (SPS) of the UN Economic and Social Council (ECOSOC) acknowledges Codex standards for international trade and trade dispute settlement.

3. The objective of ‘Codex Alimentarius Commission (CAC)’ is to protect consumer’s health and ensure fair practices in the food trade.

How many of the above statements are not correct?

Detailed Solution: Question 6

  • ‘Codex Alimentarius Commission (CAC)’ is an international food standards body established jointly by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). Hence, statement 1 is correct.
  • India has been unanimously elected as a member representing the Asian region in the Executive Committee of Codex Alimentarius Commission (CAC) during its 46th meeting at Food and Agriculture organization (FAO) headquarters at Rome. The Agreement on Application of Sanitary and Phytosanitary Measures (SPS) of the World Trade Organization (WTO) recognizes Codex standards, guidelines and recommendations as reference standards for international trade and trade dispute settlement. Hence, statement 2 is not correct.
  • Currently the Codex Alimentarius Commission has 189 Codex Members made up of 188 Member Countries and one Member Organization (The European Union). The objective of ‘Codex Alimentarius Commission (CAC)’ is to protect consumer’s health and ensure fair practices in the food trade. Hence, statement 3 is correct

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 7

Bhutan is set to graduate from the UN List of Least Developed Countries (LDCs). In this context, inclusion in the LDC category is based on which of the following parameters?

1. Gross National Income per capita

2. Human Assets Index

3. Gross National Happiness Index

4. Economic and Environmental Vulnerability Index

Select the correct answer using the code given below.

Detailed Solution: Question 7

UN list of Least Developed Countries (LDCs)

  • The UN in the 1960s began to recognise some of the most vulnerable and disadvantaged countries in the international community, considering factors such as development capacity, socio-economic parameters, lack of domestic financing, and geographical location. In 1971, the UN officially established the category of LDCs to attract particular support for them.
  • Currently, 46 countries across Africa, Asia, Caribbean and the Pacific are categorised as LDCs. The LDCs host about 40% of the world’s poor. They account for 13% of the world population but for only about 1.3% of global Gross Domestic Product (GDP) and less than 1% of global trade and Foreign Direct Investment (FDI). Some countries on the LDC list are Burkina Faso, Senegal, Rwanda, Bangladesh, Bhutan, Nepal, Solomon Islands, and Haiti.
  • Countries classified as LDCs are entitled to preferential market access, aid, technological capability- building and special technical assistance, among other concessions and international support measures.
  • Inclusion in and graduation from the LDC category is based on three criteria:
    • Gross National Income (GNI) per capita,
    • Human Assets Index (HAI) measuring health and education outcomes, and o Economic and Environmental Vulnerability Index (EVI).
  • To be included in the list, a country must have an average per capita income of below $1,018, have low HAI scores and high EVI levels measured in terms of remoteness, dependence on agriculture and vulnerability to natural disasters.
  • However, there’s no automatic application process for graduation from the list. The UN Committee for Development Policy (CDP) conducts a review of the LDCs every three years and countries that reach the graduation threshold levels for two of the three criteria in two consecutive triennial reviews become eligible for graduation.
  • The list of LDCs peaked in 1991 when it had 51 countries. So far, only six countries, namely, Botswana, Cabo Verde, Maldives, Samoa, Equatorial Guinea, and Vanuatu, have managed to graduate from the list. Bhutan was recommended for graduation in 2018 and is due to move out of the list on December 13, 2023.
  • Hence option (a) is the correct answer.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 8

The Enforcement Directorate (ED) is entrusted with the enforcement of the provisions of which of the following Acts ?

1. Prevention of Money Laundering Act, 2002

2. Foreign Exchange Management Act, 1999

3. Fugitive Economic Offenders Act, 2018

4. Prohibition of Benami Property Transaction Act, 1988

5. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974

6. Foreign Contribution Regulation Act, 2010

Select the correct answer using the code given below :

Detailed Solution: Question 8

  • The Directorate of Enforcement is a multi-disciplinary organization mandated with the investigation of the offense of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include the enforcement of the following Acts:
    • The Prevention of Money Laundering Act, 2002 (PMLA)
      • It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, moneylaundering and for matters connected therewith or incidental thereto. The Enforcement Directorate has been given the responsibility to enforce the provisions of the PMLA by conducting an investigation to trace the assets derived from proceeds of crime, to provisionally attach the property and to ensure prosecution of the offenders and confiscation of the property by the Special court.
      • The ED has arrested Chief Minister Charanjit Singh Channi's nephew, Bhupinder Singh 'Honey,' under money laundering charges in an illegal sand mining case. 3⁄4 The Foreign Exchange Management Act, 1999 (FEMA)
      • It is a civil law enacted to consolidate and amend the laws relating to facilitating external trade and payments and to promote the orderly development and maintenance of the foreign exchange market in India. ED has been given the responsibility to conduct an investigation into suspected contraventions of foreign exchange laws and regulations and to adjudicate and impose penalties on those adjudged to have contravened the law.
      • The Enforcement Directorate has seized ₹5,551.27 crores of Xiaomi Technology India Private Limited under the Foreign Exchange Management Act (FEMA) provisions in connection with the alleged illegal remittances made by the company.
    • The Fugitive Economic Offenders Act, 2018 (FEOA)
      • This law was enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. It is a law whereby the Directorate is mandated to attach the properties of fugitive economic offenders who have escaped from India warranting arrest and provide for the confiscation of their properties to the Central Government.
      • Absconding liquor baron Vijay Mallya became the first person to be declared a fugitive economic offender by the special court hearing cases under the Fugitive Economic Offenders Act (FEOA).
    • The Foreign Exchange Regulation Act, 1973 (FERA) (repealed in 2000)
      • The main functions under the repealed FERA are to adjudicate the Show Cause Notices issued under the said Act up to 31.5.2002 for the alleged contraventions of the Act, which may result in the imposition of penalties and to pursue prosecutions launched under FERA in the concerned courts.
      • The government finally repealed FERA in 1999 through the Foreign Exchange Management Act (FEMA), which liberalized foreign exchange controls and removed many restrictions on foreign investment.
      • FEMA came into existence on June 1, 2000, but FERA was provided a sunset clause of two years to enable the Enforcement Directorate (ED) to complete investigations into cases already detected by it for FERA violations before May 31, 2000.
    • Sponsoring agency under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA).
      • Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), this Directorate is empowered to sponsor cases of preventive detention with regard to the contraventions of FEMA. So, Option (c) is correct.
    • The Ministry of Home Affairs enforced the provision of the Foreign Contribution Regulation Act of 2010.
    • FCRA, 2010 has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.
    • The provision of the Prohibition of Benami Property Transaction Act, 1988, was enforced by the Department of Revenue, Ministry of Finance.
    • The Benami Transactions (Prohibition) Act 1988 was introduced to prohibit Benami transactions and to recover the property held as Benami.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 9

 Consider the following pairs:

How many pairs given above are correctly matched?

Detailed Solution: Question 9

  • The Moskva is a river running through western Russia. It rises about 140 km west of Moscow and flows roughly east through the Smolensk and Moscow Oblasts, passing through central Moscow, it flows into the Oka, itself a tributary of the Volga, which ultimately flows into the Caspian Sea. The name BrahMos is a portmanteau formed from the names of two rivers, the Brahmaputra of India and the Moskva of Russia. Hence option 3 is correctly paired.
  • The Dnipro is one of the major transboundary rivers of Europe, rising in the Valdai Hills near Smolensk, Russia, before flowing through Belarus and Ukraine to the Black Sea. It is the longest river of Ukraine and Belarus and the fourth-longest river in Europe, after the Volga, Danube, and Ural rivers. Hence option 1 is not correctly paired.
  • The Don is the fifth-longest river in Europe. Flowing from Central Russia to the Sea of Azov in Southern Russia, it is one of Russia's largest rivers and played an important role for traders from the Byzantine Empire. The Don rises in the town of Novomoskovsk (south of Moscow), and flows 1,870 kilometres to the Sea of Azov. Hence option 2 is correctly matched

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 10

Consider the following pairs:

How many pairs given above are correctly matched?

Detailed Solution: Question 10

  •  Madhubani painting:
    • Madhubani painting has its origins in the Mithila region of Bihar. The colours used in paintings comprise natural extracts from plants and other natural sources. Hence pair 1 is not correctly matched.
    • Themes: It is based on mythological characters which depict the life of Hindu deities like Krishna, Rama, Lakshmi, Shiva, Durga, and Saraswati.
    • These paintings are popular because of their tribal motifs and use of bright earthy colours. Traditionally the women of the village drew these paintings on the walls of their dwelling, as a demonstration of their feelings, hopes, and ideas. Today men are also involved to meet the demand.
  • Pithora painting:
    • Painted by Rathva Bhils of the Panchmahal region in Gujarat and Jhabua in the neighboring State of Madhya Pradesh, these paintings are done on the walls of houses to mark special or thanksgiving occasions. These are large wall paintings, representing rows of numerous and magnificently colored deities depicted as horse riders. Hence pair 3 is correctly matched.
    • The rows of horse rider deities represent the cosmography of the Rathvas. The uppermost section with riders represents the world of gods, heavenly bodies, and mythical creatures. An ornate wavy line separates this section from the lower region, where the wedding procession of Pithoro is depicted with minor deities, kings, a goddess of destiny, an archetypal farmer, domestic animals, and so on, which represent the earth.
  • Saura tribal art:
    • It is an art form from Eastern India. It is a type of wall painting done by the Saura Tribe people who are spread in the eastern states of India, especially Orissa. These paintings are also known as ikons (or ekons) and are of religious importance to the Saura peoples. They were previously done on the walls of the houses, but today Saura art is known throughout India. Saura art clearly depicts the history, philosophy, and religious beliefs of the Saura people. Hence pair 2 is not correctly matched.
  • How Saura paintings are made:
    • Saura art is made on the red-brown clay walls of the houses in the villages from natural colors and dyes. The objects in the Saura paintings are called ikons or icons and generally, natural items such as trees, rivers, water, and sun are made in the Saura paintings. They have their meanings and symbolism.
  • How Saura is different from Warli art
    • Saura art is less angular than Warli art, there is no physical differentiation between the female and the male figures in Saura art which is another difference between both the art form.
    • Saura art is more elongated than Warli art.
    • One more basic difference between the Saura art and Warli art is that Saura art is started by making boundaries and then going towards the center. 

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 11

Which of the following statement is correct regarding Sentinel species ?

Detailed Solution: Question 11

Sentinel species are those species that are highly sensitive to environmental disturbance and are sometimes used in aquatic biological assessments to provide an early warning that more severe water quality conditions are likely to occur unless mitigation measures are taken.

Sentinel species are different from the Indicator species. Sentinel species are commonly used as indicators of health threats to humans rather than the health threats in a particular ecosystem or habitat. In contrast, Indicator species are those whose presence or absence or abundance reflects a specific environmental condition.

Various species of animals-domestic, wild, and exotic —are potentially useful as animal sentinels. Several attributes of an animal contribute to its suitability as a sentinel. The canaries are the most familiar example of a sentinel species, which are animals and plants that serve as harbingers of danger to human health and the environment.

In the case of canaries, if odorless carbon monoxide were present in a high enough concentration in a coal mine, the small bird would die first and give miners time to escape. So, Option (b) is correct. 

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 12

Consider the following pairs :

Species  - Location

1. Leith’s Softshell Turtle - Peninsular India

2. Jeypore Ground Gecko - Western Ghats

3. Indian Black Honeybee - Eastern Himalaya

4. Northern River Terrapin - South East Asia

5. Red-crowned roof Turtle - Ganges River

Which of the above pairs are correctly matched ?

Detailed Solution: Question 12

 India’s proposal for transferring Leith’s Softshell Turtle to Appendix I of CITES has been adopted by CoP- 19 to CITES in Panama. Leith’s Softshell Turtle (Nilssonia leithi) is a large fresh water soft-shelled turtle which inhabits rivers and reservoirs. Distribution - Leith’s Softshell turtle is endemic to peninsular India. Its presence is substantial in the Cauvery, Tungabhadra, Ghataprabha, Bhavani, Godavari and Moyar drainages. Feeds on fish, crabs, fresh water molluscs and mosquito larvae. Some turtles are kept in temple tanks, where they are fed with hibiscus flowers.

  • Wild Life (Protection) Act, 1972 - Schedule IV.
  • IUCN - Critically Endangered.
  • CITES - Appendix I (Moved from Appendix II in COP-19 to CITES). So, Pair 1 is correct. The Jeypore Ground Gecko has been included in Appendix II of CITES in the 19th Conference of Parties (COP19) to CITES. Jeypore Ground Gecko (Cyrtodactylus jeyporensis) are wild reptile (lizard) species. They are unique among other Indian Geckos as it has enlarged, hexagonal, plate-like scales across the back. Distribution - Endemic to the Eastern Ghats, India. Known only from two separated locations in the high- elevation moist forest of Patinghe hills near Jeypore (Orissa) and Galikonda hills (Andhra Pradesh). The species does not occur in the protected areas described under the Wild Life (Protection) Act 1972, thereby making it highly vulnerable to habitat loss and poaching for domestic and international trade.
  • IUCN – Endangered.
  • CITES – Appendix II. So, Pair 2 is not correct. A new species of endemic honeybee called the Indian black honeybee has been discovered in the Western Ghats. The new species has been named Apis karinjodian and given the common name Indian black honeybee. Apis karinjodian has evolved from Apis cerana morphotypes that got acclimatised to the hot and humid environment of the Western Ghats. Distribution – Indian black honeybee is endemic to the Western Ghats. Ranges from the central Western Ghats and Nilgiris to the southern Western Ghats, covering the States of Goa, Karnataka, Kerala and parts of Tamil Nadu. IUCN – Near Threatened. So, Pair 3 is not correct. The Northern River Terrapin (Batagur baska) is a large-sized species of aquatic turtle with an average carapace length of 60cm. The Northern River terrapin is a rare freshwater turtle native to Southeast Asia. It is one of Asia's largest freshwater and brackish water turtles. Northern river terrapins are currently found in Bangladesh, India, and Myanmar. They are strongly aquatic but use terrestrial nesting sites, frequenting the tidal areas of estuaries, large rivers, and mangrove forests.
  • IUCN – Critically Endangered.
  • CITES – Appendix I. So, Pair 4 is correct. India has proposed better protection for freshwater reptile species called the red-crowned roofed turtle (Batagur kachuga) under the Convention on International Trade in Endangered Species (CITES). The turtle, native to India and Bangladesh, is at a high risk of extinction. The Red-crowned roofed turtle is native to India, Bangladesh and Nepal. Historically, the species was widespread in the Ganga and Brahmaputra River basins. It is a freshwater turtle species found in deep- flowing rivers with terrestrial nesting sites. Currently, in India, the National Chambal River Gharial Sanctuary is the only area with a substantial population of the species, but even this Protected Area and habitat are under threat. ➢ IUCN – Critically Endangered.
  • CITES – Appendix I. Wildlife Protection Act (WPA): Schedule I. So, Pair 5 is correct. 

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 13

Consider the following statements about the Asian Clearing Union (ACU):

1. The Asian Clearing Union is a payment arrangement to facilitate transactions among the central banks of all the Asian countries.

2. It was established at the initiative of the International Monetary Fund (IMF).

Which of the statements given above is/are correct?

Detailed Solution: Question 13

  • The Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra- regional transactions among the participating central banks on a net multilateral basis.
  • The main objectives of the ACU are to facilitate payments among member countries for eligible transactions, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade and banking relations among the participating countries.
  • The ACU was established with its head-quarters at Tehran (Iran) in 1974, at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP). The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently the members of the ACU.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 14

With reference to Fast Radio Bursts (FRBs) consider the following statements:

1. Fast Radio Bursts (FRBs) are powerful and brief bursts of radio frequency emissions originating from deep space.

2. These mysterious and intense signals last for many days and release energy comparable to hundreds of millions of suns.

Which of the statements given above is/are correct?

Detailed Solution: Question 14

Fast Radio Bursts (FRBs)

  • Fast Radio Bursts (FRBs) are powerful and brief bursts of radio frequency emissions originating from deep space. Hence, statement 1 is correct.
  • These mysterious and intense signals last only milliseconds but release an amount of energy comparable to hundreds of millions of suns. Hence, statement 2 is not correct.
  • Astronomers have proposed that magnetars, a type of neutron star formed from the remnants of exploding stars, could be a probable origin for FRBs. The rotation of magnetars is comparatively slower than that of other neutron stars. Neutron stars are formed when a massive star collapses. The very central region of the core collapses, crushing together every proton and electron into a neutron. These newly-created neutrons can stop the collapse, leaving behind a neutron star. A magnetar possesses a magnetic field over a thousand times stronger than that of other neutron stars, and it is a trillion times more powerful than Earth's magnetic field

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 15

Consider the following statements:

  1. 150 from the Lok Sabha or 75 from the Rajya Sabha are required to sign a motion to initiate impeachment proceedings against a judge in India
  2.  Only four judges so far have been found guilty for their “misbehaviour” under the impeachment proceedings.

Which of the statements given above is/are correct?

Detailed Solution: Question 15

Statement 1 is incorrect:

  • According to the Indian Constitution, the impeachment process requires the motion to be signed by 100 members of the Lok Sabha or 50 members of the Rajya Sabha to initiate the process.

Statement 2 is incorrect:

  • Only two judges so far have been found guilty for their “misbehaviour” by the three-member committee, which must comprise of a Supreme Court judge, a Chief Justice of a High Court and an eminent jurist.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 16

Micro Light-Emitting Diodes or MicroLEDs have emerged as the next big transition in display technology. What are the advantages of MicroLED displays over Organic Light Emitting Diodes (OLEDs)?

1. MicroLED displays have the ability to shine on their own without the need for separate backlighting.

2. Longer overall lifespan as compared to OLEDs.

3. Limitless scalability is possible as microLED displays are resolution-free.

Select the correct answer using the code given below.

Detailed Solution: Question 16

  • MicroLED technology involves the use of tiny light-emitting diodes (LEDs) that are packed tightly together to create a bright and high-quality display that is not possible with other known technologies.
  • They are self-illuminating diodes that have brighter and better color reproduction than Organic Light Emitting Diode (OLED) display technology. Unlike OLED displays, microLED displays use inorganic materials such as gallium nitride, which also brings in the advantages of ultra-low black levels, but with higher peak brightness compared to Organic Light Emitting Diode (OLED) display technology.
  • The basis of microLED technology is sapphires that can shine on their own forever. Hence, they have a longer lifespan compared to OLEDs. Hence statements 1 and 2 are correct.
  • MicroLEDs have limitless scalability, as they are resolution-free, bezel-free, ratio-free, and even size- free. The screen can be freely resized in any form for practical usage. Hence, statement 3 is correct.
  • However, these MicroLED TVs are very heavy on the pocket even though it is still a direct rival to OLED. 

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 17

Consider the following statements:
1. President of India decides whether a bill is money bill or not.
2. All money bills are financial bills but all financial bills are not money bills
3. Only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of
the Constitution.
Select the correct answer using the code given below:

Detailed Solution: Question 17

Statement 1: "President of India decides whether a bill is money bill or not."
This statement is incorrect. According to Article 110 of the Constitution, it is the Speaker of the Lok Sabha who decides whether a bill is a Money Bill or not. The President has no role in this decision. Therefore, this statement is not correct.

Statement 2: "All money bills are financial bills but all financial bills are not money bills."
This statement is correct. Money Bills are a specific category of Financial Bills. All Money Bills fall under the broader category of Financial Bills, but there are Financial Bills that are not Money Bills because they contain provisions beyond what is specified in Article 110.

Statement 3: "Only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution."
This statement is also correct. A bill can be classified as a Money Bill only if it contains exclusively the matters listed in Article 110, such as taxation, borrowing of money by the government, expenditure from the Consolidated Fund of India, etc.

Correct answer: Only two statements are correct. Hence, the right option is option b.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 18

With reference to the term ‘Jins-i-Kamil’, consider the following statements:

1. The term was often used for the basic staple crops during the Mughal period.

2. Wheat and rice were the Jins-i-Kamil par excellence.

3. Various types of oilseeds were also included in this category.

Which of the statements given above is/are correct?

Detailed Solution: Question 18

The focus on the cultivation of the basic staples did not mean that agriculture in medieval India was only for subsistence. The term Jins-i-Kamil (literary means the perfect crops) was often used for cash crops. The Mughal state also encouraged the peasants to cultivate such crops, as they brought in more revenue. Crops, such as cotton and sugarcane, were Jins-i Kamil par excellence. Cotton was grown over a great swathe of the territory spread over Central India and the Deccan Plateau, whereas Bengal was famous for its sugar. Such cash crops would also include various sorts of oilseeds (e.g., mustard) and lentils. This shows how subsistence and commercial production were closely intertwined in an average peasant’s holding.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 19

With reference to the recent discovery of a new species of Pangolin, consider the following statements:

  1. Pangolins are the only mammals that are wholly covered in scales.
  2. The Indian Pangolin is protected under the Schedule I of the Wildlife (Protection) Act, 1972.
  3. Indian pangolin is categorised as Critically Endangered on the IUCN Red List of threatened species.

How many of the above statements are correct?

Detailed Solution: Question 19

  • Scientists have discovered a new species of pangolin called Manis mysteria.
  • Pangolins are nocturnal mammals that dig burrows and feed on ants and termites, and play a vital role in ecosystem management, mostly in aerating and adding moisture to the soil.
  • Pangolins are known for their unique appearance. They have scales made of keratin that cover their entire body. When threatened, they can roll into a ball to protect themselves.
  • Pangolins are the only mammals that are wholly covered in scales. Hence statement 1 is correct.
  • There are four species of pangolins found in Africa: Black-bellied pangolin, White-bellied pangolin, Giant Ground pangolin, and Temminck’s Ground pangolin. Four species are found in Asia: Indian pangolin, Philippine pangolin, Sunda pangolin, and the Chinese pangolin
  • The Chinese, Philippine, and Sunda pangolins are listed as Critically Endangered on the IUCN Red List.
  • The Indian pangolin is listed in Schedule I of the Wildlife (Protection) Act, 1972, and as Endangered on the IUCN Red List 1. Hence statement 2 is correct and statement 3 is not correct.
  • Habitat:
    • It is adaptable to a wide range of habitats including primary and secondary tropical forests, limestone and bamboo forests, grasslands, and agricultural fields.
    • The Indian Pangolin is found across the Indian subcontinent; Bihar, West Bengal, and Assam also have the presence of Chinese pangolin. All pangolin species are listed in the Convention on International Trade in Endangered Species (CITES) Appendix I.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 20

Consider the following statements regarding the port sector in India:

1. The power for the establishment and administrative control of major ports vests with the Central Government.

2. Volume of cargo handled is the main criteria to declare a port as a major port.

3. Jawaharlal Nehru Port is the first 100% landlord major port of India.

Which of the statements given above is/are correct?

Detailed Solution: Question 20

  • Jawaharlal Nehru Port has become the first 100 per cent Landlord Major Port of India having all berths being operated on PPP model. Hence statement 3 is correct.
    • Landlord ports are ports where the port authority owns only the basic infrastructure, leasing it out to operators, mostly on a long-term concession basis, while retaining all regulatory functions (directly control strategic port activities & supervise commercial operations).
  • India has a coastline of 7,517 km situated in the 10 maritime States and union territory. Entry 27 of the union list mentions ports declared by or under law made by Parliament or existing law to be major ports, including their delimitation and the Constitution and powers of the Port authorities therein a responsibility of the Centre.
  • All other ports fall within the jurisdiction of the authority of the State governments where the respective State Assemblies have powers to legislate. There are 12 major ports and around 212 non-major ports in the country.
  • The Union government under the provisions of the Indian Ports Act 1908 and Major Port Authorities, Act, 2021 declares a port as a major port. But there is no mention in the Acts on the qualifying conditions or criteria to declare a port as a major port. The real distinction between a major port and a non- major port lies in ownership, control and management of that port — not related to cargo volumes, port facilities or connectivity. Hence statement 2 is not correct.
  • For example, Deenadayal Port in Kandla, Gujarat — a major port handled 123 million tonnes of cargo in 2020 whereas the Mundra Port — a non major port in the same State handled the highest volume of cargo 137 million tonnes in the same period.
  • The power for establishment of new Major Ports and administrative control of Major Ports vests with the Central Government. Hence statement 1 is correct.
  • Establishment & administrative control of Non Major Ports are within the purview of respective State Governments. As per the provisions of the Major Port Authorities, Act, 2021, the Boards of the respective Major Ports are authorized to make rules or regulations to develop and provide infrastructure facilities and such other infrastructure in the interest of the Major Port.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 21

Which countries have a coastline in the Aegean Sea ?

1. Greece

2. Turkey

3. Bulgaria

4. Albania

Select the correct answer using the codes given below :

Detailed Solution: Question 21

The Aegean Sea is an elongated embayment of the Mediterranean Sea between Europe and Asia. It is located between the Balkan Peninsula and Anatolia (Asia minor) and covers an area of some 215,000 square kilometers. In the north, the Aegean is connected to the sea of Marmara and the Black Sea by the straits of the Dardanelles and the Bosphorus. The Aegean Sea lies between Greece and Turkey. The region was the site of two great ancient civilizations, Crete and Greece. The Aegean Sea is about 380 miles (610 kilometers) long and 185 miles (300 kilometers) wide. It connects to the Black Sea through a series of narrow straits in the northeast. The sea has hundreds of islands stretching from Greece to the shores of Asia. The islands are the mountain peaks of an underwater landmass called the Aegeis. So, Option (b) is correct.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 22

Recently, Article 299 of the Indian constitution was seen in the news. It is related to

Detailed Solution: Question 22

  • Recent Context: The Supreme Court has held that the government, when entering into a contract under the President’s name, cannot claim immunity from the legal provisions of that contract under Article 299 of the Constitution.
    • What is Article 299 of the Indian Constitution?
      • Article 298 grants the Centre and the state governments the power to carry on trade or business, acquire, hold, and dispose of property, and make contracts for any purpose, while Article 299 delineates the manner in which these contracts will be concluded.
      • Article 299 provides that “all contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President or by the Governor of the State” and that all such contracts and “assurances of property made in the exercise of that power shall be executed” on behalf of the President or the Governor by persons in a manner as directed and authorized by them. Hence option (a) is the correct answer.
      • Further, the phrase ‘expressed to be made and executed’ under Article 299 (1) means that there must be a deed or contract in writing and that it should be executed by a person duly authorized by the President of the Governor on their behalf. o Essential Requirements for Government Contracts under Article 299: 1966 ruling in ‘K.P. Chowdhry v. State of Madhya Pradesh. And Others’, laid down essential requirements for government contracts under Article 299. Three conditions to be met before a binding contract against the government could arise, namely:
    • the contract must be expressed to be made by the Governor or the Governor-General;
      • it must be executed in writing, and
      • the execution should be by such persons and in such a manner as the Governor or the Governor- General might direct or authorize.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 23

Consider the following statements about the Universal Service Obligation Fund (USOF):

1. It ensures that there is universal non- discriminatory access to quality ICT (Information and Communications Technology) services at economically efficient prices to people in rural and remote areas.

2. It was created under the Ministry of Electronics & Information Technology.

3. The collections of the Universal Service Levy (USL) which comprises the USOF, are credited to the Consolidated Fund of India.

Which of the statements given above are correct?

Detailed Solution: Question 23

  • The Universal Service Obligation Fund (USOF) is a fund under the Department of Telecommunications, Ministry of Communication. Hence statement 2 is not correct.
  • It aims to provide a balance between the provision of Universal Service to all uncovered areas, including the rural areas. Hence statement 1 is correct
  • The USOF is generated by the Universal Service Levy (USL) which is collected from the Service Providers at a defined percentage of Adjusted Gross Revenue (AGR) as a component of the Licence Fee. Such collections are credited to the Consolidated fund of India. The allocation of funds from the USOF needs Parliamentary approval (due to the presence of the Consolidated Fund of India). Hence statement 3 is correct.
  • In fact, the collections for the USOF do not lapse at the end of the financial year.
  • The New Telecom Policy (NTP), 1999 of the Department of Telecom, GoI had Universal Service as one of its main objectives. Further, it envisaged the implementation of USOF for rural and remote areas would be undertaken by all fixed service providers who shall be reimbursed from the USOF. The Indian Telegraph (Amendment) Act, 2003 gave statutory status to USOF.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 24

Which of the following countries is/are the common member(s) of the AUKUS and the Five Eyes?

  1. Australia
  2. USA
  3. United Kingdom

Select the correct answer using the code given below:

Detailed Solution: Question 24

  • The AUKUS Security Partnership: The USA, the UK and Australia have formed a security partnership in the Indo–Pacific, with an aim to counter Chinese aggression. This group has been created in addition to the already existing collaborations, like QUAD, Five Eyes Alliance etc.
  • The Five Eyes Intelligence Cooperation: It is an intelligence alliance comprising Australia, Canada, New Zealand, the UK and the USA. These countries are parties to the multilateral UKUSA Agreement, a treaty for cooperation in signals intelligence.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 25

Which of the following are considered to be assets of the Reserve Bank of India?

1. Notes in Circulation

2. Gold

3. Investments of RBI in US Treasury bonds

4. Deposits of the Central government

5. Loans and advances to the state government

Select the correct answer using the code given below.

Detailed Solution: Question 25

  • A central bank balance sheet is a reflection of its various functions, particularly its role as a monetary authority and as a banker to the Government and banks. The structure of assets and liabilities of the Reserve Bank is, more or less, in line with the balance sheet followed by most central banks. The accounts of the Reserve Bank are, however, bifurcated into the Issue Department, reflecting the currency issue function and the Banking Department, accounting for all other central banking functions (such as banker to the Government and banks) in terms of Section 23(1) of the Reserve Bank of India Act, 1934, following the recommendations of the Hilton Young Commission (1926).
  • The important liabilities of the RBI are as follows: o Notes Issued: The currency notes issued by the Reserve Bank are the Reserve Bank’s liability and this constitutes the liabilities of the Issue Department. Total notes issued are the sum of Notes in circulation and Notes held in the Banking Department of the Bank.
    • Notes in Circulation: The notes in circulation comprise the notes issued by the Government of India up to 1935 and by the RBI since then, fewer notes held in the Banking Department, i.e. notes held outside the Reserve Bank by the public, banks treasuries etc. The Government of India's one rupee notes issued since July 1940 are treated as rupee coins and hence are not included under this head.
    • Notes held in the Banking Department: Notes held in the Banking Department represent the amount of notes held in the Banking Department of the Bank at different centers to meet the day-to- day requirements of that Department. Notes in circulation and Notes held in the Banking Department both items are both liabilities of the Issue Department.
    • Deposits: These represent the cash balances maintained with the Reserve Bank by the Central and State Governments, banks, All India financial institutions, such as Export-Import Bank (EXIM Bank) and NABARD, foreign central banks, international financial institutions, and the balance in different accounts relating to the Employees’ Provident Fund, Gratuity and Superannuation Funds.
    • Deposits of the Central Government: The Reserve Bank acts as a banker to the Central Government in terms of sections 20 and 21 and as a banker to the State Governments by mutual agreement in terms of section 21(A) of the RBI Act. Accordingly, the Central and the State Governments maintain deposits with the Reserve Bank. It has been agreed by the Central Government, to maintain a minimum balance of ` 10 crores daily and 100 crores as on Fridays. Whenever the actual cash balance goes down below the minimum level, the replenishment is made by the creation of WMA and overdraft.
    • Market Stabilisation Scheme: The Market Stabilisation Scheme (MSS) was introduced in April 2004 following the Memorandum of Understanding between the Government and the Reserve Bank, whereby, the Government issues securities specifically for the purpose of sterilization operations. The issuances of Government paper under the MSS are undertaken to absorb rupee liquidity created by capital flows of an enduring nature. In order to neutralize the monetary and budgetary impact of this particular instrument, the proceeds under the MSS were parked in a separate deposit account maintained by the Government with the Reserve Bank which was used only for the purpose of redemption and/or buyback of paper issued under the MSS.
  • Also, important assets of the RBI are as follows:
    • Foreign Currency Assets: India's Foreign Exchange Reserves comprise Foreign Currency Assets, Gold, SDRs and Reserve Bank position with International Monetary Fund (IMF). Foreign currency assets include investments in US Treasury bonds, Bonds/Treasury Bills of other selected Governments, deposits with foreign central banks, foreign commercial banks, etc. Foreign currency assets in WSS are the sum of the foreign currency assets of both the Issue and Banking Departments. In Issue Department, these foreign assets back the issuance of notes along with rupee securities and gold. In Banking Department, it includes foreign currency assets and balances with foreign entities like Bank for International Settlements (BIS), foreign commercial banks, etc.
    • Gold Coin Bullion: Gold coin bullion represents the gold coin bullion of the Issue Department and Banking Department. The gold reserves of the Issue Department and Banking Department are valued at a value close to international market prices on a monthly basis. The current total quantity of gold held is 557.75 tons.
    • Rupee Securities: Rupee securities (including treasury bills) include the government securities held by Issue and Banking departments. In Issue Department, rupee securities along with rupee securities include government securities of that 'foreign country maturing within ten years of the Issue Department plus investment in government securities of the Banking Department.
    • Loans and Advances: The Reserve Bank gives loans and advances to the Central & State Governments, commercial and cooperative banks and others in terms of Sections 17 and 18 of the Reserve Bank of India Act, 1934. Hence, option (b) is the correct answer.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 26

Michigan, Huron, Erie, and Ontario, sometimes in news, is related to which of the following?

Detailed Solution: Question 26

  • The Great Lakes of North America—Superior, Michigan, Huron, Erie, and Ontario—are indeed a crucial freshwater ecosystem shared by the United States and Canada.
  • Except for Lake Michigan, which is entirely within the United States, these lakes form a natural border between the two countries. They are connected to the Atlantic Ocean through the Saint Lawrence River and to the Mississippi River basin via the Illinois Waterway. Together, these lakes hold approximately 21% of the Earth's surface freshwater.

Therefore, option B is correct.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 27

Consider the following statements:
1. The constitution provides the equal representation to the states in Upper House.
2. The Parliament is empowered to legislate on any subject of the State List if Rajya Sabha passes a resolution to that effect in the national interest.
Which of the statements given above is/are correct?

Detailed Solution: Question 27

  • Statement 1 is incorrect: The states are given representation in the Rajya Sabha on the basis of population. Hence, the membership varies from 1 to 31. In US, on the other hand, the principle of equality of representation of states in the Upper House is fully recognised. Thus, the American Senate has 100 members, two from each state. This principle is regarded as a safeguard for smaller states.
  • Statement 2 is correct: Even in the limited sphere of authority allotted to them, the states do not have exclusive control. The Parliament is empowered to legislate on any subject of the State List if Rajya Sabha passes a resolution to that effect in the national interest. This means that the legislative competence of the Parliament can be extended without amending the Constitution. Notably, this can be done when there is no emergency of any kind.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 28

With reference to the Lokpal and Lokayukta Act 2013, consider the following statements:

  1. The Lokpal shall consist of a Chairperson and such number of members as the President may from time to time deem necessary to appoint.
  2. At least 2/3rd of the members of Lokpal shall be judicial members.
  3. Lokpal's jurisdiction will cover all categories of public servants, including the Prime Minister of India.

How many of the statements given above is/are correct?

Detailed Solution: Question 28

Lokpal and Lokayukta Act 2013:

  • It seeks to establish the institution of the Lokpal at the Centre and the Lokayukta at the level of the State and thus seeks to provide a uniform vigilance and anti-corruption road map for the nation both at the Centre and at the States.
  • The jurisdiction of Lokpal includes the Prime Minister, Ministers, Members of Parliament and Groups A, B, C and D officers and officials of the Central Government.
  • The Lokpal is to consist of a Chairperson with a maximum of 8 members of which 50% shall be judicial members.
  • 50% of the members of the Lokpal shall come from amongst the SCs, the STs, the OBCs, minorities and women.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 29

With reference to the World Local Production Forum (WLPF), consider the following statements:

1. The WLPF is a platform initiated by the World Health Organization (WHO) with the goal of increasing access to medicines and health technologies.

2. The Local Production and Assistance (LPA) Unit serves as the WLPF Secretariat.

3. This forum provides Member States and the global community with a regular platform to shape strategies for eco-friendly production of quality-assured health products.

How many of the above statements are not correct?

Detailed Solution: Question 29

  • The World Local Production Forum (WLPF) is a platform initiated by the World Health Organization (WHO) with the goal of increasing access to medicines and health technologies. Hence, statement 1 is correct.
  • It provides a global platform to discuss key challenges in promoting local production and technology transfer. The Local Production and Assistance (LPA) Unit serves as the WLPF Secretariat. Hence, statement 2 is correct.
  • It promotes sustainable local production capacity to improve access to quality, safe and effective health products and technologies. This forum provides Member States and the global community with a regular platform to shape strategies for sustainable local production (and not eco-friendly production) of quality-assured health products. Hence, statement 3 is not correct.
  • Here sustainable production is basically trying to maintain the supply of medicines and health technology. Eco-friendly technologies are those technologies which basically protect the environment from emission of gasses and liquids or solid wastes which has not been considered in WLPF.

UPSC Indian Forest Service Prelims (GS1) Mock Test- 5 - Question 30

With respect to the Capital Adequacy Ratio (CAR), consider the following statements:

  1. The CAR is the ratio of a bank's regulatory capital to risk weighted assets.
  2. The CAR excludes Additional Tier-1 Bonds with the banks.
  3. The RBI has mandated a higher capital ratio than what is required by the Basel III norms.

Which of the statements given above is/are correct?

Detailed Solution: Question 30

  • The Capital Adequacy Ratio (CAR) is the ratio of a bank's capital to its risk. It is also known as the Capital to Risk (Weighted) Assets Ratio (CRAR).
  • Banks' regulatory capital is divided into Tier 1 and Tier 2, while Tier 1 is sub-divided into Common Equity Tier-1 (CET-1) and Additional Tier-1 (AT-1) capital.
  • CAR = (Tier-1 Capital + Tier-2 Capital)/RWAs (Risk-Weighted Assets) * 100.
  • The banks in India are required to maintain a CAR of 9% (Tier-1 Capital: 7% + Tier-2 Capital: 2%), along with a Capital Conservation Buffer (CCB) of 2.5%. Hence, unlike the BASEL III norms, which stipulate capital adequacy of 10.5% (8%-CAR + 2.5% CCB), the RBI has mandated to maintain capital adequacy of 11.5% (9% CAR + 2.5% ССВ).

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