(Prelims) IAS General Studies – 2011 (Part 6)

51. An artificial satellite orbiting around the earth does not fall down. This is so because the attraction of earth

(a) Does not exist at such distance.

(b) Is neutralized by the attraction of the moon.

(c) Provides the necessary speed for its steady motion.

(d) Provides the necessary acceleration for its motion.

Answer: d

• An artificial satellite revolves round the earth under centripetal acceleration, which is provided by the gravitational attraction of earth.
  

52. In the context of Indian economy, consider the following statements ?

1. The growth rate of GDP has steadily increased in the last five years.

2. The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct ?

(a) 1 only.

(b) 2 only.

(c) Both 1 and 2.

(d) Neither 1 nor 2.

Answer: d

• The growth rate in GDP has gone down and came up, several times. Same with growth rate of per capita income.

53. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities ?

(a) Commercial banks.

(b) Cooperative banks.

(c) Regional rural banks.

(d) Microfinance institutions.

Answer: a

54. Which of the following can aid in furthering the government’s objective of inclusive growth ?

1. Promoting self-help groups.

2. Promoting micro. Small and medium enterprises.

3. Implementing the right to education act.

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 only

Answer: d

55. Why is the government of India disinvesting its equity in the central public sector enterprises (CPSEs) ?

1. The government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.

2. The government no longer intends to retain the management control of the CPSEs.

Which the correct statements given above is/are correct ?

(a) 1 only.

(b) 2 only.

(c) Both 1 and 2.

(d) Neither 1 nor 2.

Answer: d

56. What is difference between asteroids and comets ?

1. Asteroids are small rocky planetoids, while comets are formed of frozen gases held together by rocky and metallic material.

2. Asteroids are found mostly between the orbits of Jupiter and mars, while comets are found mostly between Venus and mercury.

3. Comets show a perceptible glowing tail, while asteroids do not.

Which of the statements given above is/are correct ?

(a) 1 and 2 only.

(b) 1 and 3 only.

(c) 3 only.

(d) 1,2 and 3.

Answer: b

• The main difference between asteroids and comets is their composition, as in, what they are made of. Asteroids are made up of metals and rocky material, while comets are made up of ice, dust and rocky material. Both asteroids and comets were formed early in the history of the solar system about 4.5 billion years ago.
• Asteroids formed much closer to the Sun, where it was too warm for ices to remain solid. Comets formed farther from the Sun where ices would not melt. Comets which approach the Sun lose material with each orbit because some of their ice melts and vaporizes to form a tail.

57. Economic growth is usually coupled with ?

(a) Deflation.

(b) Inflation.

(c) Stagflation.

(d) Hyperinflation.

Answer: b

58. The lowering of bank rate by the reserve bank of India leads to 

(a) More liquidity in the market.

(b) Less liquidity in the market.

(c) No change in the liquidity in the market.

(d) Mobilization of more deposits by commercial banks.

Answer: c not a (Generally one would think about increaed liquidity, but due to changed definition of Bank rate, it no longer affect liquidity as it act as a penal rate. read more below)

• Bank rate is the rate at which RBI lends money to commercial banks for meeting shortfall for a long period without  selling or buying any security.
• Being the discount rate, the Bank Rate should technically be higher than the policy repo rate. The Bank Rate has, however, been kept unchanged at 6 per cent since April 2003. This was mainly for the reason that monetary policy signalling was done through modulations in the reverse repo rate and the repo rate under the Liquidity Adjustment Facility (LAF) (till May 3, 2011) and the policy repo rate under the revised operating procedure of monetary policy (from May 3, 2011 onwards). Moreover, under the revised operating procedure, marginal standing facility (MSF), instituted at 100 basis points above the policy repo rate, has been in operation, which in many ways serves the purpose of the Bank Rate.
• While the policy repo rate and the MSF rate have become operational, the Bank Rate continues to remain at 6 per cent. Currently, the Bank Rate acts as the penal rate charged on banks for shortfalls in meeting their reserve requirements (cash reserve ratio and statutory liquidity ratio). The Bank Rate is also used by several other organisations as a reference rate for indexation purposes.
• The Reserve Bank aligned Bank Rate to the MSF rate. Accordingly, with effect from February 13, 2012, the Bank Rate increased by 350 basis points, i.e., from 6.00 per cent per annum to 9.50 per cent per annum. This should be viewed and understood as one-time technical adjustment to align the Bank Rate with the MSF rate rather than a change in the monetary policy stance.
• Currently, MSF and Bank Rate: 8.5 %, Repo rate: 7.5 %

59. Westerlies in southern hemisphere are stronger and persistent than in northern hemisphere. Why ?

1. Southern hemisphere has less landmass as compared to northern hemisphere.

2. Coriolis force is higher in southern hemisphere as compared to northern hemisphere.

Which of the statements given above is/are correct ?

(a) 1 only.

(b) 2 only.

(c) Both 1 and 2.

(d) Neither 1 nor 2.

Answer: a

• The Westerlies are strongest in the western hemisphere and at times when the pressure is lower over the poles, while they are weakest in the southern hemisphere and when pressures are higher over the poles.
• The Westerlies are particularly strong in areas where land is absent, because land amplifies the flow pattern, making the current more north-south oriented, slowing the Westerlies.
• The strongest westerly winds in the middle latitudes can come in the Roaring Forties, between 40 and 50 degrees latitude.
• The Westerlies play an important role in carrying the warm, equatorial waters and winds to the western coasts of continents, especially in the southern hemisphere because of its vast oceanic expanse.

60. Between India and east Asia, the navigation-time and distance can be greatly reduced by which of the following ?

1. Deepening the Malacca straits between Malaysia and Indonesia.

2. Opening a new canal across the kra isthmus between the gulf of Siam and Andaman sea.

Which of the statements given above is/are correct ?

(a) 1 only.

(b) 2 only.

(c) Both 1 and 2.

(d) Neither 1 nor 2.

Answer: b

• Opening a new canal in Kra Insthums can reduce the navigation time and distance.
• Malacca strait is the main shipping channel between the Indian Ocean and the Pacific Ocean and links the India, China, Japan and South Korea. The issue of deepening of the Malacca strait is “linked” to its economic importance rather than “time of navigation and distance”.

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