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Question 1 of 5
1. Question
1 pointsWhich of the following statement is/are correct in context of monetisation of deficit?
1. Monetisation of the deficit mean the government is getting free money from the RBI.
2. Fiscal Responsibility and Budget Management Act do not permit monetisation of the deficit at any circumstances.Select the correct answer from the option below:
Correct
Explanation:
What monetisation of deficit mean (and doesn’t mean)
Monetisation of the deficit does not mean the government is getting free money from the RBI.
If one works through the combined balance sheet of the government and the RBI, it will turn out that the government does not get a free lunch.
But it does get a heavily subsidised lunch.
That subsidy is forced out of the banks.
And, as in the case of all invisible subsidies, they don’t even know.
So, is the RBI monetising the debt?
It is not as if the RBI is not monetising the deficit now; it is doing so.
It is doing so indirectly by buying government bonds in the secondary market through what are called open market operations (OMOs).
Note that both monetisation and OMOs involve the printing of money by the RBI.
But there are important differences between the two options that make shifting over to monetisation a non-trivial decision.Incorrect
Explanation:
What monetisation of deficit mean (and doesn’t mean)
Monetisation of the deficit does not mean the government is getting free money from the RBI.
If one works through the combined balance sheet of the government and the RBI, it will turn out that the government does not get a free lunch.
But it does get a heavily subsidised lunch.
That subsidy is forced out of the banks.
And, as in the case of all invisible subsidies, they don’t even know.
So, is the RBI monetising the debt?
It is not as if the RBI is not monetising the deficit now; it is doing so.
It is doing so indirectly by buying government bonds in the secondary market through what are called open market operations (OMOs).
Note that both monetisation and OMOs involve the printing of money by the RBI.
But there are important differences between the two options that make shifting over to monetisation a non-trivial decision. -
Question 2 of 5
2. Question
1 pointsIn the context of Force Majeure, consider the following statements:
1. Force Majeure has neither been defined nor specifically mention in the Indian Contract Act, 1872.
2. Parties typically identify, prior to the execution of a contract, an exhaustive list of events, which would attract the applicability of the force majeure clause.
Which of the statement given above is/are correct?
Correct
Explaination:
What is Force Majeure?
Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief, the reference would be to the express terms of the contract.
It is a contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially as a result of an event that the parties could not have anticipated or controlled.
While force majeure has neither been defined nor specifically dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian Contract Act, 1872 (the “Contract Act”).
It envisages that if a contract is contingent on the happening of an event which event becomes impossible, then the contract becomes void.What is the difference between force majeure and frustration of a contract?
Under the doctrine of frustration, the impossibility of a party to perform its obligations under a contract is linked to the occurrence of an event/circumstance subsequent to the execution of a contract and which was not contemplated at the time of execution of the contract.
However, under in case of a force majeure, parties typically identify, prior to the execution of a contract, an exhaustive list of events, which would attract the applicability of the force majeure clause.
The doctrine of Frustration renders the contract void and consequently, all contractual obligations of the parties cease to exist.Incorrect
Explaination:
What is Force Majeure?
Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief, the reference would be to the express terms of the contract.
It is a contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially as a result of an event that the parties could not have anticipated or controlled.
While force majeure has neither been defined nor specifically dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian Contract Act, 1872 (the “Contract Act”).
It envisages that if a contract is contingent on the happening of an event which event becomes impossible, then the contract becomes void.What is the difference between force majeure and frustration of a contract?
Under the doctrine of frustration, the impossibility of a party to perform its obligations under a contract is linked to the occurrence of an event/circumstance subsequent to the execution of a contract and which was not contemplated at the time of execution of the contract.
However, under in case of a force majeure, parties typically identify, prior to the execution of a contract, an exhaustive list of events, which would attract the applicability of the force majeure clause.
The doctrine of Frustration renders the contract void and consequently, all contractual obligations of the parties cease to exist. -
Question 3 of 5
3. Question
1 pointsHeatwaves being more frequent phenomena, in this context consider the following statements:
1. IMD declares a heatwave event when the maximum (day) temperature for a location in the hills crosses 40 degrees Celsius.
2. Heat Waves are absent in southeastern coast of Indian Continent.Which of the statement given above is/are correct?
Correct
Explanation:
What is a heatwave and when is it declared?
Heatwaves occur over India between March and June.IMD declares a heatwave event when the maximum (day) temperature for a location in the plains crosses 40 degrees Celsius.
Over the hills, the threshold temperature is 30 degrees Celsius.
Following criteria are used to declare heatwave:To declare heatwave, the below criteria should be met at least in 2 stations in a Meteorological subdivision for at least two consecutive days and it will be declared on the second day.
a) Based on Departure from Normal
Heat Wave: Departure from normal is 4.5°C to 6.4°C
Severe Heat Wave: Departure from normal is >6.4°C
b) Based on Actual Maximum Temperature (for plains only)
Heat Wave: When actual maximum temperature ≥ 45°C
Severe Heat Wave: When actual maximum temperature ≥47°C
How long can a heatwave spell last?
A heatwave spell generally lasts for a minimum of four days. On some occasions, it can extend up to seven or ten days.
The longest recorded heatwave spell, in recent years, was between 18 – 31 May 2015.
This spell had severely affected parts of West Bengal along with Odisha, Andhra Pradesh, and Telangana.
Heatwave conditions occurring in May have been observed to last longer, as the season reaches its peak this month.
Whereas those reported in June often die down sooner, often due to the onset of Southwest monsoon over the location or in its neighbourhood.Does all of India experience heatwave conditions?
Heatwaves are common over the Core Heatwave Zone (CHZ) — Rajasthan, Punjab, Haryana, Chandigarh, Delhi, West Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Orissa, Vidarbha in Maharashtra.
The CHZ also includes parts of Gangetic West Bengal, Coastal Andhra Pradesh and Telangana, as categorised by IMD.
Several recent studies indicate that CHZ experience more than six heatwave days per year during these four months.
Many places in the northwest and cities along southeastern coast report eight heatwave days per season.
However, the regions in the extreme north, northeast and southwestern India are lesser prone to heatwaves.Incorrect
Explanation:
What is a heatwave and when is it declared?
Heatwaves occur over India between March and June.IMD declares a heatwave event when the maximum (day) temperature for a location in the plains crosses 40 degrees Celsius.
Over the hills, the threshold temperature is 30 degrees Celsius.
Following criteria are used to declare heatwave:To declare heatwave, the below criteria should be met at least in 2 stations in a Meteorological subdivision for at least two consecutive days and it will be declared on the second day.
a) Based on Departure from Normal
Heat Wave: Departure from normal is 4.5°C to 6.4°C
Severe Heat Wave: Departure from normal is >6.4°C
b) Based on Actual Maximum Temperature (for plains only)
Heat Wave: When actual maximum temperature ≥ 45°C
Severe Heat Wave: When actual maximum temperature ≥47°C
How long can a heatwave spell last?
A heatwave spell generally lasts for a minimum of four days. On some occasions, it can extend up to seven or ten days.
The longest recorded heatwave spell, in recent years, was between 18 – 31 May 2015.
This spell had severely affected parts of West Bengal along with Odisha, Andhra Pradesh, and Telangana.
Heatwave conditions occurring in May have been observed to last longer, as the season reaches its peak this month.
Whereas those reported in June often die down sooner, often due to the onset of Southwest monsoon over the location or in its neighbourhood.Does all of India experience heatwave conditions?
Heatwaves are common over the Core Heatwave Zone (CHZ) — Rajasthan, Punjab, Haryana, Chandigarh, Delhi, West Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Orissa, Vidarbha in Maharashtra.
The CHZ also includes parts of Gangetic West Bengal, Coastal Andhra Pradesh and Telangana, as categorised by IMD.
Several recent studies indicate that CHZ experience more than six heatwave days per year during these four months.
Many places in the northwest and cities along southeastern coast report eight heatwave days per season.
However, the regions in the extreme north, northeast and southwestern India are lesser prone to heatwaves. -
Question 4 of 5
4. Question
1 pointsConsider the following statement about Dugong, commonly known as the sea cow:
1. It is given legal protection under Schedule 1 of the Wildlife (Protection) Act, 1972.
2. It is the flagship animal of Gulf of Mannar Marine National ParkWhich of the statement given above is/are correct?
Correct
Explanation:
Dugong
Dugongs are mammals, which means they give birth to live young and then produce milk and nurse them.
It is the flagship animal of Gulf of Mannar Marine National Park.
Once the female is pregnant, she will carry the unborn baby, called a foetus for 12-14 months before giving birth.
Female dugongs give birth underwater to a single calf at three to seven-year intervals.
Dugongs graze on seagrass, especially young shoots and roots in shallow coastal waters. They can consume up to 40 kilograms of seagrass in a day.
Dugongs are an IUCN Endangered marine species like sea turtles, seahorses, sea cucumbers and others.
They are protected in India under Schedule I of the Wild (Life) Protection Act, 1972.Incorrect
Explanation:
Dugong
Dugongs are mammals, which means they give birth to live young and then produce milk and nurse them.
It is the flagship animal of Gulf of Mannar Marine National Park.
Once the female is pregnant, she will carry the unborn baby, called a foetus for 12-14 months before giving birth.
Female dugongs give birth underwater to a single calf at three to seven-year intervals.
Dugongs graze on seagrass, especially young shoots and roots in shallow coastal waters. They can consume up to 40 kilograms of seagrass in a day.
Dugongs are an IUCN Endangered marine species like sea turtles, seahorses, sea cucumbers and others.
They are protected in India under Schedule I of the Wild (Life) Protection Act, 1972. -
Question 5 of 5
5. Question
1 pointsHe wrote biographies of Mazzini, Garibaldi, Shivaji and Shrikrishna; stayed in America for some time; and was also elected to the Central Assembly. He was
Correct
Lala Lajpat Rai was the most prolific writer among his contemporary nationalist leaders of India. His literary activity started when he was still in his teens and he continued to write almost to the last day of his life. To rouse the Punjabis from slumber and inspire them with patriotic zeal, He wrote the biographies of Mazzini, Garibaldi, Shivaji, Dayanand and Shri Krishna, besides other important works in English, Hindi and Urdu.
He visited USA and Japan where he kept in touch with the Indian revolutionaries. In England, he also became a member of the British Labour party. In recognition of his outstanding role in the freedom movement, he was elected President of the Indian National Congress at the Calcutta session (1920). Hence, c is the correct option.Incorrect
Lala Lajpat Rai was the most prolific writer among his contemporary nationalist leaders of India. His literary activity started when he was still in his teens and he continued to write almost to the last day of his life. To rouse the Punjabis from slumber and inspire them with patriotic zeal, He wrote the biographies of Mazzini, Garibaldi, Shivaji, Dayanand and Shri Krishna, besides other important works in English, Hindi and Urdu.
He visited USA and Japan where he kept in touch with the Indian revolutionaries. In England, he also became a member of the British Labour party. In recognition of his outstanding role in the freedom movement, he was elected President of the Indian National Congress at the Calcutta session (1920). Hence, c is the correct option.
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