PRELIMS मतलब MAD

Answer: (b) Only two

Explanation:

• Urea Gold is basically urea fortified with sulphur. Normal urea contains about 46% nitrogen, while Urea Gold contains 37% nitrogen plus 17% sulphur.
• Statement 1 is not correct: Urea Gold is intended to supply sulphur along with nitrogen, not phosphorus. Indian soils are deficient in sulphur, so it helps address sulphur deficiency.
• Statement 2 is correct: It can improve the Nitrogen Use Efficiency (NUE) of urea. The sulphur coating enables a more gradual release of nitrogen.
• By prolonging the action of urea, crops may remain green for a longer period, potentially reducing the frequency of urea application.
• Statement 3 is correct: It is said to improve plant growth, quality and seed yield, particularly in oilseeds.
• Oilseeds and pulses require sulphur for their growth. Since Urea Gold supplies sulphur, it can help improve their yield.

Answer: (b) Only two

Explanation:

• The Liquidity Adjustment Facility (LAF) is a monetary policy tool used primarily by the Reserve Bank of India (RBI).
• It allows banks to borrow money through repo agreements or lend money to the RBI through reverse repo agreements.
• It is used for managing liquidity pressures and maintaining stability in financial markets.
• According to the given source, scheduled commercial banks, Primary Dealers, Mutual Funds and Insurance Companies, subject to approval of the concerned regulators, are eligible for this facility.
• Regional Rural Banks (RRBs) are not eligible for the same.
• Therefore, 2 out of the 3 entities listed are eligible.

Answer: (c) Only three

Explanation:

• The Finance Commission is a constitutional body established under Article 280 of the Constitution.
• It recommends the method for distribution of tax revenues between the Union and the States.
• The first three statements form part of the terms of reference of the Sixteenth Finance Commission:
  • Distribution of the net proceeds of taxes between the Union and States.
  • Principles governing grants-in-aid to States from the Consolidated Fund of India.
  • Measures needed to augment a State's Consolidated Fund to supplement the resources of Panchayats and Municipalities.
• The Commission may also review existing arrangements for financing Disaster Management initiatives, with reference to funds constituted under the Disaster Management Act, 2005.
• Allocation of resources for internal security measures in Naxal-affected areas is not mentioned in the terms of reference given in the source.
• Hence, only three statements are correct.

Answer: (d) 1 only

Explanation:

• The World Trade Organisation (WTO) was established in 1995 as a successor to GATT.
• It encourages trade liberalisation by progressively reducing barriers to international trade.
• Its principles include non-discrimination in trade, protection primarily through tariffs, and promotion of fair competition.
• Statement 1 is correct: WTO is the international organisation dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
• Statement 2 is not correct: GATT primarily dealt with trade in goods, whereas the WTO has a much broader scope covering goods, services and intellectual property.
• Statement 3 is not correct: India was a founding member of both GATT and the WTO.
• GATT was a multilateral agreement regulating international trade in goods and was subsequently replaced institutionally by the WTO.

Answer: (b) 2 and 3 only

Explanation:

• Rupee depreciation refers to a fall in the value of the rupee in a floating exchange-rate system, where demand and supply determine the value of a currency.
• For example, depreciation against the dollar means that the rupee becomes weaker and less valuable relative to the dollar.
• Statement 1 is not correct: A weaker rupee makes imports more expensive, not cheaper.
• More expensive imports can increase domestic prices and result in imported inflation.
• Statement 2 is correct: Depreciation can enhance export competitiveness, because domestically produced goods may become relatively cheaper for foreign buyers.
• Statement 3 is correct: Higher prices of imported products, inputs or commodities can contribute to imported inflation.