Answer with Explanation Date 04/05/2018 1 Consider the following statement about Balance of Payment 1. Balance of payment is a way of listing of receipt and payment in International transection of a country. 2. Current account in Bop deals with balance of trade, services and remittance 3. Capital account deals with investment and borrowing
(A) Only 1 and 3 (B) Only 2 and 3 (C) Only 1 and 2 (D) All the above Ans: (D) 2 Which of the following is not a part of Invisibles in International Trade? (A) Software Services (B) Import of electronic hardware s (C) Remittance (D) Interest earned by an Indian from his overseas assets 3 Consider the following statement: 1. There is no restriction in capital account convertibility in India 2. Current Account is partially convertible in India Choose the correct answer from the following code (A) Only 1 (B) Only 2
(C) Both 1 and 2 (D) None of the above Ans: (D) Capital account convertibility means the freedom to convert rupees into foreign currency and back for capital transactions. India has current account convertibility but not capital account convertibility. 4 Which of the following is correct about Dutch diseases? 1. It leads to currency appreciation and hurts the competitiveness of domestic economy. 2. It happens due to excessive inflow of capital into the economy 3. It leads to increase in Export and decreases Import in the domestic economy (A) Only 1 and 2 (B) Only 1 and 3 (C) Only 2 and 3 (D) All the above Ans: (A)
5 Consider the following statements about Special Drawing Right (SDR) IMF: 1. The value of SDR is determines on the weighted average of a basket of seven global currencies 2. The Value of SDR keeps changing depending on the floating value of currencies in the basket (A) Only 1 (B) Only 2 (C) Both 1 and 2 (D) None of the above The SDR basket is reviewed every five years, or earlier if warranted, to ensure that the SDR reflects the relative importance of currencies in the world s trading and financial systems. The reviews cover the key elements of the SDR method of valuation, including criteria and indicators used in selecting SDR basket currencies and the initial currency weights used in determining the amounts (number of units) of each currency in the SDR basket. These currency amounts remain fixed over the five-year SDR valuation period but the actual weights of currencies in the basket fluctuate as cross-exchange rates among the basket currencies move. The value of the SDR is determined daily based on market exchange rates. The reviews are also used to assess the appropriateness of the financial instruments comprising the SDR interest rate (SDRi) basket. 6 Consider the following about International Monetary Fund (IMF) 1. IMF uses the principle of one vote one member in its decision making proposals 2. IMF s primary responsibility is to ensure the stability of international monetary system
(A) Only 1 (B) Only 2 (C) Both 1 and 2 (D) None of the above Statement 1 is incorrect: Unlike the General Assembly of the United Nations, where each country has one vote, decision making at the IMF was designed to reflect the relative positions of its member countries in the global economy. The IMF continues to undertake reforms to ensure that its governance structure adequately reflects fundamental changes taking place in the world economy. Statement 2 is correct: The IMF s fundamental mission is to ensure the stability of the international monetary system. It does so in three ways: keeping track of the global economy and the economies of member countries; lending to countries with balance of payments difficulties; and giving practical help to members. 7 Which of the following goals have been set by world-bank to be achieved by 2030? 1. End extreme poverty by decreasing the percentage to no more than 3% 2. Promote shared prosperity by fostering the income growth of the bottom 40% for every country (A) Only 1 (B) Only 2 (C) Both 1 and 2 (D) None of the above Ans: (C) The World Bank Group has set two goals for the world to achieve by 2030: End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3%
Promote shared prosperity by fostering the income growth of the bottom 40% for every country 8 Which of the following is not a part of World Bank Group? (A) International Development Association (B) Multilateral Investment Guarantee Agency (C) International Finance Corporation (D) International Fund for Agriculture Ans: (D) The five agencies of World Bank are: 9 Which of the following is not a member of G 20? (A) Brazil (B) Singapore (C) Indonesia (D) Mexico Ans : (B) The G20 membership comprises a mix of the world s largest advanced and emerging economies, representing about two-thirds of the world s population, 85 per cent of global gross domestic product and over 75 per cent of global trade. The members of the G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.
10 Consider the following about New Development Bank (NDB): 1. New Development Bank is headquartered at Beijing. 2. Countries other than BRIC nations can also become a member of NDB (A) Only 1 (B) Only 2 (C) Both 1 and 2 (D) None of the above Statement 1 is incorrect: NDB is headquartered at Shanghai Statement 2 is correct: New Development Bank s Articles of Agreement specify that all members of the United Nations could be members of the bank, however the share of the BRICS nations can never be less than 55% of voting power. 11 Which of the following statements are true regarding Majuli sland : 1. It is formed by the Brahmaputra river in the North and the Kherkutia Xuti, an anabranch of the Brahmaputra, joined by the Subansiri River in the south. 2. It is the first island district of the country and considered to be a cultural heritage site in India. 3. It is said to be the largest inhabited River Island in the world. (A) 1 and 2 only (B) 1 and 3 only (C) 2 and 3 only (D) 1,2 and 3 Ans: (C)
The island is formed by the Brahmaputra river in the south and the Kherkutia Xuti, an anabranch of the Brahmaputra, joined by the Subansiri River in the north therefore statement 1 is incorrect. Mājuli is the world's biggest river island in the Brahmaputra River, Assam and in 2016 became the first island to be made a district in India therefore statement 2 and 3 are correct.
12 The environmental performance index 2018, is a biennial report by which of the following organisation : (A) Oxford University with United Nation Environment programme (B) Yale and Columbia university with World economic forum (C) Cambridge University with World wide fund for Nature (D) Cornell University with Conservation International EPI is a biennial report by Yale and Columbia Universities along with the World Economic Forum. The report ranks 180 countries on 24 performance indicators. It is spread across 10 categories covering environmental health and ecosystem vitality. Switzerland leads the world in sustainability, followed by France, Denmark, Malta and Sweden in the recent EPI. India is among the bottom 5 countries on the index, at 177th place. 13 Consider the following statements: 1. Performance in Health outcomes Index is released by Niti aayog and Ministry of women and child development. 2. States have been ranked in three categories larger States, smaller States and Union Territories to allow for better comparability. 3. Among the larger States, Maharashtra, Bihar and karnataka have emerged as the top performers. (A) 1 and 3 only (B) 2 and 3 only (C) 2 only (D) 1 and 2 only Ans: (C)
Statement 1 is incorrect: The NITI Aayog in collaboration with the ministry of health and family welfare (MoHFW) and World Bank released the Performance in Health Outcomes Index. Statement 2 is correct: It uses 24 different indicators to rank the states. States have been ranked in three categories larger States, smaller States and Union Territories to allow for better comparability. The overall objective of the index is to highlight the top performers and States that are making significant improvements. Statement 3 is incorrect: Among the larger States, Kerala, Punjab and Tamil Nadu have emerged as the top performers, whereas Jharkhand, Uttar Pradesh and Jammu & Kashmir have shown the maximum improvement in annual performance. 14 Which of the following organisation releases the world power language index? (A) United Nations public administration programme (B) World economic forum (C) UN Department for Economic and Social Affairs (UN-DESA) (D) UN Inter-agency Group World Power language Index: It is released by WEF. It measures the usefulness of a language to a representative human being and is not meant to apply to any particular person with their own set of conditions, preferences and geography. The Power Language Index (PLI) uses 20 indicators to measure the influence on language. Neither is the index a measure of the beauty/merit of a language or its associated cultures. It measures the usefulness of a language to a representative human being.
15 Consider the following statements related to Annual status of education report(aser) 2017: 1. It is released by Ministry of Human Resource development 2. It notes that the enrolment gap between girls and boys increases with age 3. In villages, as they grow up, more girls drop out of school. (A) 1 and 3 only (B) 2 and 3 only (C) 1 and 2 only (D) 1,2 and 3 Statement 1 is incorrect: ASER stands for Annual Status of Education Report. This is an annual survey that aims to provide reliable estimates of children s enrolment and basic learning levels for each district and state in India. ASER has been conducted every year since 2005 in all rural districts of India by PRATHAM organisation. It is the largest citizen-led survey in India. It is also the only annual source of information on children s learning outcomes available in India today Statement 2 is correct: The enrolment gap between girls and boys increases with age at 14, there is hardly any difference (94.3% enrolment for girls, 95.3% for boys), but at 18, the gap widens (71.6% for boys, 67.4% for girls). Statement 3 is correct: The widening enrolment gap between boys and girls points out that more girls drop out of school.