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MYUPSC IAS Prelims Exam 2020 Mock Test – 2

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upsc ias prelims exam 2020 test series, Civil Services Preliminary Examination Free solved Test.

Practice Mock Test – 2

Q1. Consider the following statements about Indian Ocean Dipole (IOD).

1. The western Indian Ocean becomes alternately warmer and then colder than the eastern part of the ocean.

2. A study has demonstrated a significant correlation between the IOD and drought in the southern half of Australia.

3. IOD can either aggravate or weaken the impact of El Nino on Indian monsoon.

Which of the above statements is/are correct?

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: d

Q2. Consider the following statements about anticyclone?

1. It is an area of high pressure.

2. The wind direction is Anticlockwise in the Northern Hemisphere.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both

d) None

Answer: a

Q3. The most prominent feature in the oceans, forming an almost continuous mountain range, is the

a) Seamount

b) Deep ocean trench

c) Abyssal plain

d) Mid-ocean ridge

Answer: d

Q4. Qatar is bordered by which of the following countries.

1. United Arab Emirates

2. Bahrain

3. Saudi Arabia

Select the correct code:

a) 1, 3

b) 2, 3

c) 3 only

d) 1, 2

Answer: c)

Explaination:

Qatar has one land border. The country borders Saudi Arabia to the south.

Q5. The California Ocean current, which flows along the west coast of North America, is a

a) Cold current, flowing north

b) Cold current, flowing south

c) Warm current, flowing south

d) Warm current, flowing north

Answer: b

Explaination:

The California Current is a Pacific Ocean current that moves southward along the western coast of North America, beginning off southern British Columbia and ending off southern Baja California Peninsula. It is considered an Eastern boundary current due to the influence of the North American coastline on its course. It is also one of five major coastal currents affiliated with strong upwelling zones, the others being the Humboldt Current, the Canary Current, the Benguela Current, and the Somali Current. The California Current is part of the North Pacific Gyre, a large swirling current that occupies the northern basin of the Pacific.

Q6. Which of the following port is known as “Queen of Arabian Sea”?

a) Jawaharlal Nehru port

b) Marmagao port

c) Kochi port

d) New Mangalore port

Answer: c

Explaination:

Kochi is a major port city on the south-west coast of India bordering the Laccadive Sea. Called the Queen of the Arabian Sea, Kochi was an important spice trading centre on the west coast of India from the 14th century onward.

Q7. Which of the following factors affect Ocean Salinity?

1. Evaporation

2. Wind

3. Influx of river water

4. Ocean currents

5. Precipitation

Select the correct code:

a) 1, 3, 5

b) 1, 2, 3, 5

c) 1, 3, 4, 5

d) 1, 2, 3, 4, 5

Answer: d

Q8. December and January are the coldest months in the northern plain. The reasons for the excessive cold in north India are:

1. far away from the sea.

2. Snowfall in the nearby Himalayan ranges

3. Cold winds coming from Taklamakan Desert and Plateau of Tibet.

Which of the above statements is/are correct?

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: a

Explaination:

There are three main reasons for the excessive cold in north India during this season:

(i) States like Punjab, Haryana and Rajasthan being far away from the moderating influence of sea experience continental climate.

(ii) The snowfall in the nearby Himalayan ranges creates cold wave situation; and

(iii) Around February, the cold winds coming from the Caspian Sea and Turkmenistan bring cold wave along with frost and fog over the north-western parts of India.

Q9. Consider the following statements about Intertropical Convergence Zone (ITCZ).

1. ITCZ is also known as doldrums

2. ITCZ is an area encircling the Earth near the Equator, where the northeast and southeast trade winds converge

3. ITCZ has no effect on tropical cyclone formation

Which of the above statements is/are correct?

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: a

Q10. Which of the following explains why one side of a mountain usually has more precipitation than the other side?

a) Temperatures are higher on one side of a mountain than on the other

b) The atmosphere gets denser as elevation increases

c) The land on one side is more green and lush than the other

d) Mountains force air to rise, and air cools and releases moisture as it rises

Answer: d

Q11. Consider the following statements about Inflation Indexed Bond (IIB)

1. It is a bond issued by the Government and the corporate sector.

2. There are no special tax concessions for these bonds.

3. They are eligible to be kept as part of Statutory Liquidity Ratio requirements of banks.

Which of the above statements is/are correct?

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: b

Q12. Consider the following statements about Peer to peer (P2P) lending.

1. It is a form of crowd funding used to raise unsecured loans which are re-paid with interest.

2. Only individuals can borrow money.

3. RBI enabled P2P entities as Non-Banking Financial Company (NBFC).

4. Minimum net worth requirement for these platforms is kept at Rs. 5 Cr.

Which of the above statements is/are incorrect?

a) 1, 2

b) 1, 2, 3

c) 2, 4

d) 2, 3, 4

Answer: c

Q13. Under Statutory Liquidity Ratio (SLR) all Scheduled Commercial Banks in India must maintain an amount in which of the following forms?

1. Cash

2. Gold

3. Treasury-Bills of the Government of India

4. Corporate Bonds

5. State Development Loans (SDLs)

Which of the above statements is/are correct?

a) 1, 2, 3

b) 1, 2, 3, 5

c) 1, 2, 5

d) 1, 2, 3, 4, 5

Answer: b

Q14. Buoyancy of tax refers to?

a) Relationship between the changes in government’s tax revenue growth and the changes in Inflation.

b) Relationship between the changes in government’s tax revenue growth and the changes in GDP.

c) Relationship between the changes in government’s tax revenue growth and the changes in Investment.

d) Relationship between the changes in government’s tax revenue growth and the changes in demand.

Answer: b

Q15. Which of the following developments may not likely reduce the fiscal deficit?

1. Increasing Foreign Direct Investment (FDI)

2. Providing budgetary support to public sector enterprises

3. Waiving off farm loans.

4. Austerity measures should be adopted.

Select the correct code:

a) 1, 4

b) 2, 3

c) 2, 3, 4

d) 1, 2, 3

Answer: b

Q16. Consider the following statements about Reserve Bank of India.

1. The bank was set up based on the recommendations of the Hilton–Young Commission.

2. Performs merchant banking function for the central and the state governments; also acts as their banker.

3. Manages the Foreign Exchange Management Act, 1999.

4. Issues and exchanges or destroys currency and coins not fit for circulation.

Which of the above statements is/are correct?

a) 1, 2, 3

b) 2, 3, 4

c) 1, 2, 4

d) 1, 2, 3, 4

Answer: d

Q17. Consider the following statements about Rural Infrastructure Development Fund (RIDF).

1. Government of India created the RIDF in NABARD.

2. The eligible activities are classified into Agriculture and related sector, Social sector and rural connectivity.

3. Panchayat Raj Institutions, Self Help Groups (SHGs) and NGOs are also eligible to receive funds.

Which of the above statements is/are correct?

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: d

Q18. Consider the following statements about ‘Fiat Money’.

1. It is a currency that a government has declared to be legal tender.

2. It is backed by a physical commodity.

3. Its value increases during hyperinflation.

Which of the above statements is/are incorrect?

a) 1 only

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: b

Q19. Consider the following statements about fugitive economic offender.

1. It is an individual who has committed some specified offence(s) involving an amount of one hundred crore rupees or more and has absconded from India.

2. He is declared so by a ‘Special Court’ set up under the Prevention of Corruption Act, 1988.

3. The property of a fugitive economic offender, resulting from the proceeds of crime, including benami property, can be confiscated once he is declared so by the Court.

4. Properties abroad are not liable for confiscation.

Which of the above statements is/are incorrect?

a) 1, 3

b) 2, 4

c) 2 only

d) 1, 3, 4

Answer: b

Q20. Consider the following statements about Consumer Food Price Index (CFPI).

1. It is a measure of change in retail prices of food products consumed by a defined population group in a given area

2. It is released by Central Statistics Office (CSO) for three categories -rural, urban and combined.

3. Cereals and products constitute more than 50 percent weight within CFPI.

Which of the above statements is/are correct?

a) 1, 2

b) 1, 3

c) 2, 3

d) 1, 2, 3

Answer: a

Q21. Which of the following statement about ‘White Label ATMs’ is correct?

a) These ATMs are set up, owned and operated by Non-bank entities.

b) These ATMs are set up, owned and operated by the sponsor bank whose brand is used on the ATM. c) ATMs owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM. d) These are ATMs operated abroad to withdraw Indian currency.

Answer: a

Q22. Sunil Mehta Committee is related to

a) To prepare a blueprint for doubling farmers’ income by 2022.

b) Drafting New Direct Tax Legislation.

c) Examine the setting up of an Asset Reconstruction Company (ARC) for faster resolution of stressed assets.

d) Resolving raising fuel prices in India.

Answer: c

Explaination:

Sunil Mehta Committee was constituted to examine the setting up of an Asset Reconstruction Company (ARC) and/or Asset Management Company (AMC) for faster resolution of stressed assets.

Q23. Which of the following factors can lead to Demand-pull inflation?

1. Strong consumer demand

2. Increase in money supply

3. When prices go up

4. Technological innovation

Select the correct code:

a) 1, 2, 3

b) 1, 2, 4

c) 1, 3, 4

d) 1, 2, 3, 4

Answer: b

Q24. A country can reduce its current account deficit by

1. Improving domestic companies’ global competitiveness

2. Decreasing the value of its exports relative to the value of imports

3. Placing restrictions on imports, such as tariffs or quotas

Select the correct code:

a) 1, 2

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: c

Q25. Consider the following statements:

1. India’s tax-GDP ratio is very low compared to other developing countries or emerging markets

2. Lower tax-GDP ratio can be addressed by mobilising greater tax revenues

Select the correct code:

a) 1 only

b) 2 only

c) Both

d) None

Answer: b

Q26. APMCs are intended to be responsible for:

1. Providing market-led extension services to farmers.

2. Ensuring payment for agricultural produce sold by farmers on the same day.

3. Setup public private partnership in the management of agricultural markets.

Which of the above statements is/are correct?

a) 1 only

b) 2, 3

c) 1, 3

d) 1, 2, 3

Answer: d

Q27. In India, Alternative Investment Funds (AIFs) include:

1. Mutual funds

2. Venture Capital Fund

3. Private equity funds

4. Infrastructure funds

Select the correct code:

a) 1, 2, 3

b) 2, 3, 4

c) 1, 3, 4

d) 1, 2, 3, 4

Answer: b

Q28. Which of the following statements about Monetary Policy Framework Agreement is correct?

a) It is an agreement between Government and Reserve Bank of India (RBI) on the maximum tolerable inflation rate that RBI should target to achieve price stability.

b) It is an agreement between Government and Reserve Bank of India (RBI) on the minimum inflation rate that RBI should target to achieve growth.

c) It is an agreement between Banks and Reserve Bank of India (RBI) to ensure that the changes in the Interest rates are passed on to the customers.

d) Both b and c

Answer: a

Q29. With reference to the Financial Stability and Development Council (FSDC), consider the following statements:

1. It is headed by the Governor of RBI

2. It will monitor macro prudential supervision of the economy, including the functioning of large financial conglomerates.

3. It will focus on financial literacy and financial inclusion.

Which of the above statements is/are correct?

a) 1, 2

b) 1, 3

c) 2, 3

d) 1, 2, 3

Answer: c

Q30. Consider the following statements about National Anti-profiteering Authority (NAA).

1. It is headed by the Finance Minister.

2. The Authority’s core function is to ensure that the benefits of the reduction in GST rates are passed on to the ultimate consumers.

Which of the above statements is/are correct?

a) 1 only

b) 2 only

c) Both

d) None

Answer: b

Must Read Books for UPSC Civil Services Examination

UPSC Civil Services Preliminary Exam 2020 Complete Study Material GS Paper-1

UPSC IAS Mains General Studies Paper 1,2,3,4 Book PDF Download

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