Concept Application and Fact for Prelims Day-51

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This is the Day-51 questions of the CAF Revision plan for prelims. The questions are based on the syllabus as provided in the schedule. Aspirants are requested to go through the detailed CAF strategy to understand the need of the UPSC prelims and to prepare well for the same. Attempt the questions honestly. The link to key answers and explanations of this test is at the end of the questions. The maximum time to attempt the 18 questions is 25 minutes.


Q.1) An increase in the Bank Rate generally indicates that the

(a) market rate of interest is likely to fall

(b) Central Bank is no longer making loans to commercial banks

(c) Central Bank is following an easy money policy

(d) Central Bank is following a tight money policy


Q.2) The Reserve Bank of India regulates the commercial banks in matters of

  1. liquidity of assets
  2. branch expansion
  3. merger of banks
  4. winding-up of banks

Select the correct answer using the codes given below.

(a) 1 and 4 only

(b) 2, 3 and 4 only

(c) 1, 2 and 3 only

(d) 1, 2, 3 and 4


Q.3) Which of the following grants/ grant direct credit assistance to rural households?

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3


Q.4) Consider the following liquid assets:

  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency

The correct sequence of these decreasing order of Liquidity is

(a) 1-4-3-2

(b) 4-3-2-1

(c) 2-3-1-4

(d) 4-1-3-2


Q.5) A rise in general level of prices may be caused by

  1. an increase in the money supply
  2. a decrease in the aggregate level of output
  3. an increase in the effective demand

Select the correct answer using the codes given below.

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3


Q.6) In India, deficit financing is used for raising resources for

(a) economic development

(b) redemption of public debt

(c) adjusting the balance of payments

(d) reducing the foreign debt


Q.7) What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

  1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
  2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None


Q.8) In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

  1. To enable the Central Bank to control the amount of advances the banks can create
  2. To make the people’s deposits with banks safe and liquid
  3. To prevent the commercial banks from making excessive profits
  4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4


Q.10) Which of the following is/are included in the capital budget of the Government of India?

1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.

2. Loans received from foreign governments

3. Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3


Q.11) ‘Air-independent propulsion (AIP)’ often in news is related to

(a) Scramjet Engines

(b) Submarines

(c) Space shuttles

(d) Hyperloop


Q.12) Which of the following are under the Strategic Partnership (SP) Model Defence Procurement Procedure 2016.

  1. Submarines
  2. single engine fighter aircraft
  3. helicopters
  4. armoured carriers/main battle tanks

Choose the correct answers from the codes given below

(a) 1, 2 and 3 only

(b) 2, 3, and 4 only

(c) 1, 2 and 4 only

(d) All the above


Q.13) Which of the following are the consequences of Global warming and climate change on Himalayan glaciers?

  1. reductions in glacier area (or shrinkage)
  2. increase in the number of glaciers in the Himalaya

Choose the correct answers from the codes given below

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) None


Q.14) Which of the following is not the member of International Centre for Integrated Mountain Development (ICIMOD):

(a) Afghanistan

(b) Pakistan

(c) Maldives

(d) India


Q.15) Which of the following is/are the both wetlands of International Importance and UNESCO World Heritage Site?

(a) Bhoj Wetland

(b) The Indian Sunderbans

(c) Nalsarovar Bird Sanctuary

(d) Both (a) and (b)


Q.16) According to a recent study, Climate change could lead to decline of underwater kelp forests. Consider the following statements.

  1. The environmental factors necessary for kelp to survive include hard substrate (usually rock), high nutrients, clear shallow coastal waters and light.
  2. The productive kelp forests tend to be associated with areas of significant oceanographic upwelling.
  3. Kelp forest are found along the western coasts of India.

Which of the above statements is/are correct?

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) 1, 2 and 3


Q.17) Which of the following use the echolocation for their survival?

  1. Toothed Whales
  2. Bats
  3. Indus Dolphins
  4. Oil Birds

Choose the correct answers from the codes given below

(a) 1, 2 and 3 only

(b) 2, 3, and 4 only

(c) 1, 2 and 4 only

(d) All the above


Q.18) Which of the following is/are Asian Rhino Range Countries?

  1. India
  2. Nepal
  3. Bangladesh
  4. Malaysia
  5. Bhutan

Choose the correct answers from the codes given below

(a) 1, 2 and 5 only

(b) 1, 3, 5 only

(c) 1, 2, 4, and 5 only

(d) All the above


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