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IASbaba’s 60 Day Plan – IAS Prelims Test Series 2021 – ECONOMY, CURRENT AFFAIRS & CSAT [Day 46]

  • IASbaba
  • May 14, 2021
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IASbaba Prelims 60 Days Plan
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Hello Friends, 

ARCHIVES OF 60 DAYS

NOTE: IASbaba’s 60 DAY questions 

Let us pledge to make it a big game-changer (better than last year) in the next 60 days! 

Note- Download the OMR Sheet and attempt the questions exactly like UPSC Prelims. After you are done, please post your OMR in the comment section. Once the solution key is released (around 5 PM), cross-check the answers and, comment the marks (you scored) in the same comment thread. This will keep you accountable, responsible and sincere in days to come. 

You can also take part in the discussion with peers.  


ECONOMY [DAY 46] 


Q.1) Which of following is not part of current account of balance of payments (BOP)?

  1. Goods
  2. Services
  3. Loans
  4. Transfers

Q.2) Which of the following statement is incorrect?

  1. Currently, India is experiencing a deficit in income part of current account in BOP.
  2. Currently, India is experiencing a surplus in services part of current account in BOP.
  3. Currently, India is experiencing a deficit in transfers part of current account in BOP.
  4. None

Q.3) Official Reserve Transactions will always be zero in which of the following exchange rate regime:

  1. Fixed exchange rate system
  2. Flexible exchange rate system
  3. Managed Floating exchange rate system
  4. All of the above

Q.4) Indian Currency is fully convertible for which of the following purposes?

  1. Repatriation of remittances.
  2. Interest payments of foreign loans.
  3. Foreign Direct Investment
  4. Trade

Which of the statements given above is/are correct?

  1. 1, 2 and 4 only
  2. 1, 2 and 3 only
  3. 3 and 4 only
  4. 2, 3 and 4 only

Q.5) Which of the following comes under the capital account of Balance of Payments in India?

  1. External Assistance.
  2. Non-Resident Deposits.
  3. Transfer including remittances.
  4. External Commercial Borrowings.

Which of the statements given above is/are correct?

  1. 1, 2 and 3 only
  2. 2 and 3 only
  3. 3 and 4 only
  4. 1, 2 and 4 only

Q.6) Which of the following is true regarding Managed Floating Exchange Rate system?

  1. It is neither fixed nor flexible.
  2. Central government intervenes directly or can direct the Central Bank, whenever required.

Choose the correct answer using the codes given below

  1. 1 only
  2. 2 only
  3. Both 1and 2
  4. Neither 1 nor 2

Q.7) Which of the following are considered as ‘invisibles’ in Balance of Payments calculation? 

  1. Tourism
  2. Factor incomes from one country to another
  3. Income earned from ownership of overseas assets by Indian companies.

Select the code from following:

  1. 1 and 2 only
  2. 2 and 3only
  3. 1 and 3 only
  4. All of the above

Q.8) Consider the following statements –

  1. Trade conducted by the private sector are also accounted for in the Balance of Payment.
  2. Balance of Trade is positive for all developed economies.

Select the correct answer

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None of the above

Q.9) Consider the following –

  1. A positive Balance of Payment (BOP) can cause appreciation of rupee which benefits the exporters.
  2. A negative BOP can cause rupee depreciation and this may promote RBI to absorb the excess rupee in the market.

Select the correct answer:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.10) In the context of India, what does the depreciation of Rupee mean?

  1. Increase in exchange rate where the price of foreign currency (dollar) in terms of domestic currency (rupees) has increased
  2. Increase in exchange rate where the price of Indian currency (rupees) in terms of foreign currency (dollar) has increased
  3. Decrease in exchange rate where the price of Indian currency (rupees) in terms of foreign currency (dollar) has increased
  4. Decrease in exchange rate where the price of foreign currency (dollar) in terms of domestic currency (rupees) has decreased

Q.11) Which of the following is/are correct regarding depreciation and devaluation?

  1. Depreciation occurs in pegged exchange rate system while devaluation occurs in a floating exchange rate system.
  2. Depreciation favours exports, while devaluation does not favour exports.

Select the code from following:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.12) Consider the following statements

  1. The real exchange rate is often taken as a measure of a country’s international competitiveness.
  2. If the real exchange rate is equal to one, currencies are at purchasing power parity.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.13) If a country has a Capital account deficit, what does it imply?

  1. The country is buying assets in other countries.
  2. Foreigners are buying assets in the country.
  3. Countries liability to foreigners is increasing.
  4. Value of import of Invisibles of the country exceeds the value of its exports.

Q.14) India’s foreign exchange reserves consist of –

  1. Foreign currency assets held by RBI.
  2. Foreign currency assets held by individual citizens.
  3. Gold stock by RBI.

Choose the correct answer using the codes given below

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. All of the above

Q.15) Which of the following factors determines the exchange rate of a currency?

  1. Market sentiment
  2. Interest rates
  3. Fiscal Policy

Choose the correct answer using the codes given below

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. All of the above

Q.16) In the context of Balance of payment (BoP), what are ‘accommodating transaction’?

  1. Mismatches in Balance of payment records.
  2. Current account transactions.
  3. Transactions that are done to balance the surplus or deficit of Balance of payment.
  4. Transactions that are done with profit maximization motive.

Q.17) Which of the following can be said to be the likely effect of declining crude oil prices in the international market on Indian Economy?

  1. Widening Current Account Deficit.
  2. Increase in Inflation.
  3. Depreciation of Rupee

Select the correct answer using the code given below –

  1. 1 and 2 only
  2. 2 and 3 only
  3. 3 only
  4. None of the above

Q.18) Consider the following statements

  1. Convertibility of rupee means freely converting it only into US dollars and vice versa.
  2. India currently has full convertibility of rupee in capital accounts only.

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None of the above

Q.19) For the purpose of improving the balance of payment situation in country which of the following measures are important?

  1. Investment in the country through the channel of FDI and FPI.
  2. Stability of Macroeconomic factors.

Choose the correct answer using the code given below –

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Q.20) Which of the following is incorrect about Liberalisation and Privatisation?

  1. There are no sectors currently which are reserved for MSMEs.
  2. Except 5 sectors, a private entrepreneur can start the business by simplifying an Industrial Entrepreneur Memorandum with Commerce Ministry
  3. Government interference in CPSEs decreased after LPG, as government signed MoU with CPSEs.
  4. No sector was reserved for public sector after privatisation since 1991.

Q.21) Consider the following statements about ‘Bamiyan Buddha’:

  1. It is situated in the Bamiyan valley of Pakistan.
  2. It is representation of Gandhara school of Art.
  3. It is included in UNESCO world heritage site.

Which of the above given statement is/are correct?

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Q.22) Which of the following product are exempted from GST?

  1. All kind of Alcohol
  2. Natural Gas
  3. Elasticity
  4. Aviation Turbine Fuel

Which of the above given statement is/are correct?

  1. 1 and 2 only
  2. 1, 2 and 3 only
  3. 2 and 3 only
  4. 2, 3 and 4 only

Q.23) Consider the following statements about ‘Kumbha Mela’:

  1. It is organised every 12 years at Prayagraj, Haridwar, Nasik and Ujjain.
  2. The dates of the event are determined according to the Shaka Samvat calendar.
  3. It is included in UNESCO’s Representative List of Intangible Cultural Heritage.

Which of the above given statements is/are correct?

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Q.24) Pabbi-Antiterror-2021 is a military exercise of:

  1. North Atlantic Treaty Organization (NATO)
  2. India – Uzbekistan
  3. India – Kazakhstan
  4. Shanghai Cooperation Organisation(SCO)

Q.25) Consider the following statements about ‘Pradhan Mantri Swasthya Sewa Nidhi’:

  1. It is a non-lapsable fund administered by Ministry of Finance.
  2. Accruals from the fund will also be used in National Health Mission.
  3. It is funded by Health and Education cess under Finance act 2007.

Which of the given statement is/are correct?

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Q.26) Consider the following statements:

  1. It is one of the modern religions, established in the 19th century and initially developed in Persia and parts of the Middle East.
  2. It celebrates first day of the first year of the calendar as ‘Náw-Rúz’.
  3. Lotus Temple of New Delhi is their house of worship in India.

Which Faith is here talked about?

  1. Zoroastrianism
  2. Judaism
  3. Taoism
  4. Baha’ism

Q.27) Consider the following dams built on the river basin:

  1. Mettur Dam
  2. Harangi Dam
  3. Amaravati Dam
  4. Banasura Sagar Dam

On which River basin these entire dams have been built:

  1. Godavari
  2. Cauvery
  3. Pennar
  4. Krishna

Q.28) Consider the following statement about a Tiger Reserve:

  1. It is situated on the Indo-Nepal Border and thus represents Terai Ecosystem.
  2. It has the largest number of barasinghas in the country.
  3. It was established in 1958 as a wildlife sanctuary for Swamp Deer.

Which of the following Tiger Reserve is being discussed here?

  1. Pilibhit Tiger Reserve
  2. Amangarh Tiger Reserve
  3. Valmiki Tiger Reserve
  4. Dudhwa Tiger Reserve

Q.29) Terms ‘Messier 61’, ‘Sagittarius A*’, ‘Messier 32’ sometimes seen in news is type of:

  1. Super Earth
  2. Moon of Jupiter
  3. Dwarf Planets
  4. Black Holes

Q.30) Which of the following scheme is part of ‘core of core centrally sponsored scheme’?

  1. National Social Assistance Programme
  2. MGNREGA
  3. Pradhan Mantri Krishi Sinchai Yojana
  4. Pradhan Mantri Gram Sadak Yojana (PMGSY)
  5. Swachh Bharat Mission (SBM)

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 1, 2 and 3 only
  3. 1, 3, 4 and 5 only
  4. 1, 2 and 5 only

Read the following passage and answer the questions that follow each passage. Your answer to these questions should be based on passage only.

Once a group of 500 people were attending a seminar. Suddenly the speaker stopped and decided to do a group activity. He started giving each person a balloon. Each person was then asked to write their name on it using a marker pen. Then all the balloons were collected and put in another room. The people were then let into that room and asked to find the balloon which had their name written on it within 5 minutes. Everyone was frantically searching for their name, colliding with each other, pushing around others and there was utter chaos. At the end of 5 minutes no one could find their own balloon. Then, the speaker asked each person to randomly collect a balloon and give it to the person whose name was written on it. Within minutes everyone had their own balloon.

The speaker then began, “this is happening in our lives. Everyone is frantically looking for happiness all around, not knowing where it is. Our happiness lies in the happiness of other people. Give them their happiness; you will get your own happiness. And this is the purpose of human life…the pursuit of happiness.”

Q.31) Which of the following is the most suited topic for the seminar?

  1. Life and sustainable happiness
  2. Path to personal prosperity
  3. Personal growth is all that matters
  4. Happiness is a nothing but a myth

Q.32) According to the passage, which is the most suitable way of life style?

  1. Living a self-centred life with absolute focus on self-progress and materialistic improvements.
  2. Promoting the culture of sustainable happiness and inclusive growth
  3. Enhanced focus on social life along with personal monetary gains

Select the correct answer using the codes below:

  1. Only 1
  2. Only 2
  3. Both 1 and 3
  4. Both 2 and 3

Q.33) Find the missing number: – 1, 0, ?, 8, 15

  1. 1
  2. 2
  3. 3
  4. 4

Q.34) In the following letter series, some of the letters are missing, which are given below it. Choose the correct alternative.

D_F_DEE_D_EF_DE_F

  1. EFFDED
  2. EFFDDF
  3. EFFDFE
  4. None of the above

Q.35) In each question two/three statements followed by two conclusions numbered I and II have been given. You have to take the given statements to be true even if they seem to be at variance with commonly known facts and then decide which of the given conclusions logically follow from the given statements disregarding commonly known facts.

Statements:

  1. All winters are summers.
  2. Some summers are springs.
  3. No spring is an autumn.

Conclusions:

  1. At least some winters are springs.
  2. Some autumns being summers is a possibility.

Choose the correct code

  1. Either conclusion I or II follows
  2. Both conclusions I and II follow
  3. Only conclusion I follows
  4. Only conclusion II follows

NOTE- Follow this for Comments

  1. Mention- Time Taken after solving the Test

  2. After the release of Solution, Edit your Comment to Mention-  Correct/Incorrect and Score

  3. 2 Marks for Correct/0.66 minus for Incorrect.


What IMPACT can the ‘60 Day’ have on the final results? We will explain by taking a small example. Imagine you are sitting in the examination hall, appearing in Prelims Paper I. You have attempted 70 questions already but still unsure about a few. Then you stumble upon a question that was asked in 60 Day (and believe us, it has happened to hundreds of students countless times). You choose the right answer and submit your paper hoping for the best! Eventually, you go on to clear Mains as well as Personality Test and secure a good rank as well. When the cut off gets announced by UPSC, you realize that you have scored just one mark more than the cut off! Yes, that one mark can change your life (and it has done so to many of our students in the past). Now, imagine the kind of impact 60 to 80 marks can have! Isn’t that so fascinating to imagine?  

One’s level of preparedness is always different for different subjects. Even within a subject, one’s comfort level may vary with topics. For example, one might be more comfortable in solving questions of Polity than Economics and within Polity also, one might be at ease with questions on fundamental rights than Parliament. The level of comfort and ease that one has with a subject/ topic gets manifested in the examination. However, there is no conscious effort by aspirants to micro analyze these aspects. Now, coming to the second aspect i.e. the mistakes that one commits in answering MCQs, it can be said that there are mainly four reasons behind incorrect responses in the OMR sheet. They are:

  1. Lack of information
  2. Lack of analytical ability
  3. Silly mistakes
  4. Excessive risk-taking

Let’s analyze them one by one:

  1. Lack of information: You simply don’t know the information. You are clueless and that’s why you don’t attempt the question. For example, you may have never come across a regime called the ‘Wassenaar Agreement’ during your preparation and you can’t do much about it. The lack of information is pardonable and rectifiable. You can read more and gather more information. That is within your reach.
  2. Lack of analytical ability: You know the concept but the question is a twisted one and you are not able to apply the concept. For example, in a question asking you to identify the climate type of a region based on certain given parameters like precipitation, temperature, and air density, you might find it difficult to mark the correct option even if you are aware of all the options given in the question! That is clearly a lack of application and you can overcome it by developing a habit of framing questions in your mind while you study any topic.
  3. Silly mistakes: This habit is unpardonable. You know the concept, you become happy, you misread the question, you mark the incorrect answer and you are out of the race! Such mistakes reveal your hurriedness while answering the question. A simple mistake of reading ‘chose the incorrect option’ as ‘chose the correct option’ can destroy your chances. It means that you need to have patience and focus while attempting the paper.
  4. Excessive risk-taking: You are confused between the options and just in order to increase your attempts, you make wild guesses and try your luck only to repent eventually. Risk-taking is an art and one must be very careful while doing the guesswork in confusing questions. If you are not lucky enough, it can spoil your chances.

You will realize that these problems will have different meanings for different people. For example, one might find a lack of information as the main culprit in answering wrong the questions on Culture while in Polity, lack of analytical ability is usually the culprit. The point here is that you must analyse your preparation on these yardsticks by applying them on different subjects/ topics. If one is having a headache, he/ she can’t have the same medicine for fever. Isn’t it.

This is where our revamped ’60 Day’ comes into the picture. It will give you an opportunity to micro analyze your preparation and perform better in the examination.

Finally, it is up to you to take advantage of this framework. We are sure of only one thing- if you follow this program, assess yourself on the basis of the given framework and keep improving your weaker areas, success will be yours.

We are providing you with the right platform, the right guidance, and the right competition. Do you have the right motivation to make full use of this initiative? We think you have. Come, be a part of this initiative and take the first step towards SUCCESS!


Importance of self – tracking:

We could have provided all of you with login id and passwords to monitor your daily performance in the 60-day program.

Instead, a simple and most beautiful way which Disqus provides is profile based commenting!

Yes, we have seen the most successful candidates who have taken the maximum benefit from this program monitoring themselves by commenting on their answers in the box given (Disqus comment). And reviewing their performance themselves once in 10 days on the progress meter. 

DOWNLOAD THE 60 DAYS PLAN 2021

SOLUTION- Download Here

ENTER YOUR PERFORMANCE AND GET YOUR RANK- Click Here

Important:

  • Ranks and Cut off will be calculated for the entries in the given form only. Cut Off will be released around 10PM and Rank List will be announced soon.
  • Top 10 performers will be selected by finding the average ranks of entire 60 Days Programme and they would get FREE GUIDANCE and MENTORSHIP from IASbaba’s Core Team.

All the Best! 

IASbaba

 

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