Paper-3 Economy and Development

Syllabus

SEO of Telangana- Detailed version

SEO of Telangana- MCQ version

Net Demand and Time Liabilities [NDTL]

Consider the following markets: 

1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market 

How many of the above are included in capital markets?

Two of those—the Government Bond Market and the Stock Market—fall under capital markets. The other two are part of money markets, used for short-term funding needs.

Money markets are all about short-term borrowing and lending, typically dealing with instruments that have maturities of less than a year, like Treasury bills and Call money. 

Capital markets, on the other hand, are for long-term investments, dealing in securities with longer maturities, like stocks and government bonds.

Consider the investments in the following assets: 

1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients 

How many of the above are considered intangible investments

Three of those—brand recognition, intellectual property, and mailing lists—are considered intangible investments. They don’t have a physical presence but can create significant value.

Consider the following: 

1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts 

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance

The Fifteenth Finance Commission used three additional criteria for horizontal tax devolution apart from population, area, and income distance

These criteria are:

Demographic Performance: Evaluates states' efforts in population control, fertility rates, infant mortality rates, and gender equality indicators1

Forest and Ecology: Assesses states' efforts in preserving and protecting forest cover and natural resources1

Tax and Fiscal Efforts: Measures the ability of states to mobilize resources through efficient tax collection and expanding the tax base

Governance reforms and stable government were not included as criteria

Consider the following statements with reference to India : 

1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with investments in plant and machinery between ₹ 15 crore and ₹ 25 crore. 

2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

The correct statement is Statement 2

All bank loans to Micro, Small, and Medium Enterprises (MSMEs) qualify under the priority sector lending guidelines set by the Reserve Bank of India (RBI)1

Statement 1 is incorrect because, according to the MSMED Act, 2006, the criteria for medium enterprises have been revised over time

As of the latest update, medium enterprises are defined as those with investments in plant and machinery between ₹ 20 crore and ₹ 50 crore.

1. As per Government of India, a small industry is one in which the annual turnover is more than one crore rupees but not more than ? 50 Crores [1-50 crores]

2. With reference to the Micro Small Medium Enterprises (MSME), Consider the following statements: 

a.  It is the country’s second-largest employment generating sector, second only to agriculture

b. The backbone of the Indian economy: MSME sector, in our country, acts as a bulwark against the global economic shocks, besides providing an entrepreneurial base to a large section of people.

c. Checks rural-urban migration: A stable and growing MSME sector reduces immigration in urban areas, thus reducing the resource stress in these areas.

d. The sector contributes about over 28% of the GDP while creating employment for about 11.1 crore people, which in terms of volume stands next to the agricultural sector

e. Around 20% of MSMEs are based in rural areas, which indicates a significant rural workforce in the sector

3.  The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. 

• These are
  • Manufacturing Enterprises
  • Service Enterprises

4. The National Board for Micro, Small and Medium Enterprises meets once every 6 months in a year.

5. Match the following considering the classification of the Central Public Sector Enterprises [CPSE]

Maharatna- Average annual turnover of more than Rs. 25,000 crore.

Navratna- The company must have a ‘Miniratna Category – I‘ status along with a Schedule ‘A’ listing.

Miniratna- A profit RS 30 crore or more in one of the preceding three years.

6. In India, businesses with investment up to Rs. 1 Crore and turnover up to Rs. 5 Crore are known as: Micro Enterprise

Small -Not more than Rs.10 crore and Annual Turnover; not more than Rs. 50 crore.

6. The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.

7. The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006.

8. In which of the following year, the latest classification of MSME was done ? 2020

9. Micro= 1cr-5cr, Small= 10-15cr, Medium= 20-Hundred

10. Which of the following bank is primarily focused on the development of the MSME (Micro, Small and Medium Enterprises) sector? SIDBI- Small Industries Development Bank of India

11. Which of the following statements is correct regarding gender budgeting in India? It ensures that financial outlays are made from a gender perspective.

12. In India, businesses with investment up to Rs. 1 Crore and turnover up to Rs. 5 Crore are known as: Micro Enterprise

13. Arrange the following sectors in descending order according to their allocation of budget for the year 2023-24:

1. Educational sector

2. Health sector

3. Agriculture sector

4. Rural development

1. 4-3-1-2
   
   
2. The concept of five-year plans in the Constitution of India is borrowed from? Russia
3. 
   
4. 3-4-1-2
5. 4-2-1-3
6. More than one of the above
7. None of the above

Socio Economic Outlook- 2023

The Telangana region lies between 15°50’10” N and 19°55’4” N latitudes and 77°14’8” E and 81°19’16” E longitudes.  

Telangana is ranked 12th in the country in terms of population (350.04 Lakh as per the 2011 Census) and ranked 11th in terms of area (1,12,077 Sq. Km).

The official languages of the state are Telugu and Urdu

Between 2014-15 and 2022-23, the state’s contribution to India’s nominal GDP increased from 4.1% to 4.9%

As per the Provisional Advance Estimates for 2022-23, Telangana’s Gross State Domestic Product (GSDP) at current prices is Rs. 13.27 lakh crore – a growth of 15.6% over the 2021- 22 value

Even in terms of the Per Capita Income (PCI), which is a measure of the economic benefit accrued by an individual in any economy, Telangana outperformed India (Telangana’s PCI at current prices stands at Rs. 3.17 lakh, which is Rs. 1.46 lakh higher than the national PCI (Rs.1.71 lakh)).  

The Government has also ensured inclusivity in growth. As per the NFHS 2019-21 report, the state ranks 1st among all states (along with Tamil Nadu and Kerala) in terms of equitable income distribution, with a Gini coefficient of 0.10.

Increase in the share of Agriculture and Allied sectors in the total current-price GSVA of the state – from 16.3% in 2014-15 to 18.2% in 2022-23.  

Gross Irrigated Area (GIA) has significantly increased by 117% (from 62.48 lakh acres in 2014-15 to 135 lakh acres in 2021-22).

 This impressive growth in irrigated area has resulted in an increase in paddy production by 342% between 2015-16 and 2021-22 (from 45.71 lakh MTs to 202 lakh MTs) and the State has emerged as the second largest supplier of Paddy to the Food Corporation of India (FCI). 

The Telangana Civil Supplies Corporation Limited has purchased huge quantities of paddy in the last 7 years ensuring the Minimum Support Price, benefitting lakhs of farmers.

Consider the following statements:

1. Population composition refers to the structure of the population.

2. India has a Triangular population pyramid.

Both are correct

• The composition of the population helps us to know how many are males or females, which age group they belong to, how educated they are and what type of occupations they are employed in, what their income levels and health conditions are

• The shape of the population pyramid tells the story of the people living in that particular country.

• In countries where death rates (especially amongst the very young) are decreasing, the pyramid is broad in the younger age groups, because more infants survive to adulthood.

• This can be seen in the pyramid for India. India, therefore, has a triangular population pyramid. 

• Such populations contain a relatively large number of young people and which means a strong and expanding labor force

2. The 'demographic dividend' is- Working population of 15 to 59 years

• The demographic dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population is larger than the non-working-age share of the population.

• In this demographic dividend, the age group of 15-59 years are considered.
• India has 62.5% of its population in the age group of 15-59 years.
• It is estimated to peak around 2036 when it will reach approximately 65%.
• The Demographic dividend in India, which started in 2005-06 and will last till 2055-56.

3. Which state has the highest number of installed plants of biogas in India? Maharashtra

• A biogas plant is where biogas is produced by fermenting biomass.

4. The decadal growth rate of population during 2001-2011 in India was: +17.64

• Decadal Growth is critical part of census. it gives overview of total growth rate in a particular area.
• The percentage decadal growth during 2001-2011 has registered the sharpest decline since independence -- a decrease of 3.90 percentage points from 21.54 to 17.64 per cent.

5. What is the approximate area of India (in million km²)? 3.28

• It comprises an area with a total area of 3,287,469 square kilometers.
• Presently India is the seventh-largest country in respect of area.
• It lies in the north of the equator between 8°04' to 37°06' north latitude and 68°07' to 97°25' east longitude.
• It borders 7 countries: Pakistan, China, Nepal, Bangladesh, Bhutan, Burma and Afghanistan
• The highest point is Kanchenjunga at 8,598 meters. It is the third highest mountain in the world.

6. Which of the following is an important determinant of population change?  Migration

• Migration is an important determinant of population change as it not only changes the size of the population but also affects the population composition of urban and rural areas.

7. Which of the following is among the ‘pull factors of migration’?  Security of life

• People migrate from one place to another for a better economic and social life.
• The two sets of factors that influence migration are:
• The push factors
• The pull factor.

• The Push factors make the place of origin seem less attractive for reasons such as:
• Unemployment.
• Poor living conditions.
• Political turmoil.
• Unpleasant climate.
• Natural disasters.
• Epidemics and socio-economic backwardness.

• The Pull factors make the place of destination seem more attractive than the place of origin for reasons such as:
• Better job opportunities and living conditions.
• Peace and stability.
• Security of life and property.
• Pleasant climate

8. According to the Census of India 2011 which one of the following Union Territories had the highest sex ratio? Puducherry

• As per the provisional results of Census 2011, with the sex ratio of 943 females per 1000 males.
• The top five states/Union territories which have the highest sex ratio are-
• Kerela (1,084) 
• Puducherry (1,038),
• Tamil Nadu (995),
• Andhra Pradesh (992) and
• Chhattisgarh (991).

• The five Union territories which have the lowest sex ratio are:
• Daman & Diu (618),
• Dadra & Nagar Haveli (775),
• Chandigarh (818),
• NCT of Delhi (866) and
• Andaman & Nicobar Islands (878).

9. Madhya Pradesh covers how much percentage of total area of India?  9.38%

• Madhya Pradesh is the second largest State covering an area of 3,08,252 sq. km which is 9.38% of the geographical area of the India.
• Forest land is 94,689 sq. km which is 30% of the total area of Madhya Pradesh.

10. Which of the following can not be drawn from the Population Pyramid of a country? Total population size

• We cannot infer the size of the population from the Population Pyramid. We can only find out its characteristics. 
• The population pyramid explicitly provides the percentages of males and females in all age groups. 

11. Which of the following areas is the original habitat of the 'Toda tribe'? Nilgiri Hills

• Part of western ghats, spread in Karnataka, Kerela, and TamilNadu.
• The highest peak of the Nilgiri hills is Doddabetta. 
• Garo Hills- Garo Hills are part of the Garo-Khasi range in Meghalaya, India. 
• Cherrapunji one of the wettest places in India is in this range (East-Khasi)
• Meghalaya's most famous Living Root Bridges is also in these ranges.

12. 'Ethnic' group of people, more appropriately, refers to people with a ______? Shared culture

• Ethnic' group of people, more appropriately, refers to people with a Shared culture.
• Ethnic Group, a social group of the population that, in a larger society, is set apart and bound together by common ties of race, language, nationality, or culture. 

13. India has become the largest producer of sugar.

• India is the second largest exporter of sugar after Brazil. 
• The world's largest producer of coconuts is India.
• Karnataka is the major producer of coconut in India
• Followed by Tamil Nadu, Kerala and Andhra Pradesh account for the majority of India's coconut production.

14. Millet Production:

• The world's largest producer of millet is India.
• Currently, the production of millet in India is accounted for by ten states collectively almost 100%
• Over 81% of all millet products are produced in three states: Rajasthan, UP, and Haryana.
• In India, half of the country's entire millet production comes from Rajasthan. 

15. Sonalika and Kalyan Sona are high yielding varieties of _______ 

Wheat

• China is the largest producer of wheat in the world according to FAOSTAT (Food and Agriculture Organization Corporate Statistical Database)
• India is the second-largest producer of wheat in the world after China 

16. Which of the following was formed to maintain and develop road networks in Indian border areas for easy accessibility and connectivity?  Border Roads Organisation [BRO]

• The Border Roads Organisation (BRO) is a road construction executive force in India.
• BRO was formed in 7 May 1960.
• It provides support to and is now a part of the Indian Armed Forces.
• BRO develops and maintains road networks in India's border areas and friendly neighboring countries.
• It is completely controlled by the Ministry of Defence.

17. Which one of the following is a nuclear research reactor operated by Bhabha Atomic Research Centre? Dhruva

• The largest research reactor is the Dhruva at the Bhabha Atomic Research Centre (BARC) in Mumbai.
• Dhruva and CIRUS are the two weapons-grade plutonium-producing reactors that are crucial to the Indian strategic program.
• DHRUVA Reactor at BARC was designed, constructed, and commissioned by Indian Engineers and scientists.
• Natural U is the fuel used and heavy water as moderator and coolant, Dhruva enabled India to attain self-sufficiency in the production of radioisotopes.

• Nuclear Power Plants in India 2021- Operational
• Operator: NPCIL
• Kaiga-Karnataka
• Kakrapar- Gujarat
• Kudankulam- Tamilnadu [2000 MW- highest-capacity nuclear plant in India]
• Kalpakkam- Tamilnadu
• Narora- UP
• Tarapur- Maharashtra

18. What is the name of the region in West Bengal known for its red soil and high agricultural productivity? Rarh Region

• The Rarh (also known as Rahr or Radh) region is an area in the Indian subcontinent that extends over West Bengal and parts of Jharkhand and Bihar.
• It lies between the Chota Nagpur Plateau on the West and the Ganges Delta on the East.
• The Rarh region is a significant agricultural belt. The fertile soil and favorable climatic conditions make it a suitable region for the cultivation.

19. Which of the following crops is an example of Kharif Crops ? Cotton

• Kharif crops also are known as monsoon crops as they are cultivated in the monsoon season.
• These crops are sown at the beginning of the rainy season.
• Rice, maize, bajra, ragi, sorghum, soybean, groundnut, cotton, etc. are all Kharif types of crops.

20. Zaid Season:

• It is a short season between Kharif and Rabi season.
• The crops grown during this season are known as Zaid crops.
• Pumpkin, cucumber, watermelon, bitter gourd, etc. are all zaid types of crops. 

21. Rabi Season:

• These are the crops that are sown at the end of the monsoon season or at the beginning of the winter season.
• These crops also are known as winter crops.
• Wheat, Mustard, Peas, Pulses, Barley, etc. are all Rabi types of crops.

22. In Odisha, iron ores are located in _________. Mayurbhanj District & Kendujhar District

• Mayurbhanj and Kendujhar (Keonjhar) districts form a belt of Iron ore occurrence. The Badampahar Mines are located here.
• High-grade iron ore is exported from these sites via the Paradeep Port.

23. Paradeep port: Paradip Port is a natural, deep-water port on the East coast of India in Paradip, just 53 km from Jagatsinghpur city in Jagatsinghpur district of Odisha, India. It is situated at confluence of the Mahanadi river and the Bay of Bengal

24. Pakyong Airport is located in - Sikkim

25. As per the 2011 Census, which of the following is the least populated state in India?  Sikkim 

• The highest population as per the 2011 census is observed in UP.
• Top 5 are:
• UP
• Maharashtra
• Bihar
• West Bengal
• Madhya Pradesh

26. Prayagraj – Haldia waterway is also known as _________.National water way 1

• The Ganga - Bhagirathi - Hooghly river system between Haldia & Allahabad was declared as National Waterway No.1 (NW-1) in 1986.
• The length of NW-1 is 1620 km.
• NW 4- Kakinada–Puducherry stretch of canals, Kaluvelly Tank, Bhadrachalam – Rajahmundry, Waziraba–Vijayawada

27. 'Saddle Peak' the highest peak of Andaman and Nicobar Islands is located in? North Andaman

• It is the highest point of the archipelago in the Bay of Bengal 
• It is surrounded by Saddle Peak National Park.

28. Which among these ports is also known as the New Mangalore Port? Panambur Port

Which of these is NOT a Kharif crop?

Wheat

Groundnut

Paddy

Maize

Wheat

29. In India, the largest reserve of Bauxite is found in ? Odisha

• Odisha is the largest state-produced bauxite which accounts for over half of India's total output.

30. “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following: IMF/ International Monetary Fund

31. With reference to the Indian economy, consider the following statements:

1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.

2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness

3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

The nominal effective exchange rate (NEER)

• It is an unadjusted weighted average rate at which one country's currency exchanges for a basket of multiple foreign currencies.
• The nominal exchange rate is the amount of domestic currency needed to purchase foreign currency.
• It is a measure of the value of a currency against a weighted average of several foreign currencies. An increase in NEER indicates an appreciation of the rupee. Hence, Statement 1 is correct.

The real effective exchange rate (REER)

• It is the weighted average of a country's currency in relation to an index or basket of other major currencies.
• The weights are determined by comparing the relative trade balance of a country's currency against that of each country in the index.
• An increase in REER implies that exports become more expensive and imports become cheaper; therefore, an increase indicates a loss in trade competitiveness. Hence, Statement 2 is not correct.
• The NEER is the weighted geometric average of the bilateral nominal exchange rates of the home currency in terms of foreign currencies.
• The REER is the weighted average of NEER adjusted by the ratio of domestic prices to foreign prices.
• An increasing trend in domestic inflation relative to inflation in other countries creates a divergence in NEER and REER. Hence, Statement 3 is correct.

32. With reference to the Indian economy, consider the following statements:

If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.

If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.

If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Government security (G-Sec)

• It is a tradeable instrument issued by the central government or state government.
•  It acknowledges the government’s debt obligations.
• The G-Secs issuances are managed by the RBI, who on behalf of the Centre, regularly conducts G-Sec auctions every Friday.
• State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments.
• If the inflation is high RBI tries to reduce the liquidity of the market, by selling Government securities to the public via open market operation. Hence, Statement 1 is not correct.

Rupee depreciation

• It means to fall in the value of the rupee with respect to the dollar.
• In a free-floating exchange rate regime, depreciation takes place when the demand for the dollar is more than the supply. Hence, RBI is likely to sell dollars in the economy to increase the supply of the dollar. Hence, Statement 2 is correct.
• If the interest rate in US and EU falls, there will be an inflow of dollars in the Indian market, leading to an appreciation of the rupee.
• To reduce the supply of dollars in the economy, RBI will like to buy the dollars from the market. Hence, Statement 3 is correct.

33. A fall in the exchange rate that reduces the value of a currency in terms of other currencies is called ______.Devaluation

• Devaluation of currency will be more beneficial if prices of exports become cheaper to importers.
• Devaluation is the reduction in the value of the currency and is generally used to combat trade imbalances.
• It will be more beneficial because more forex will inflow into our country.

Currency Depreciation:

• Currency depreciation is a fall in the value of a currency in a floating exchange rate system.
• In a floating exchange rate system, market forces (based on demand and supply of a currency) determine the value of a currency.
• Rupee depreciation means that the rupee has become less valuable with respect to the dollar.
• It means that the rupee is now weaker than it used to be earlier.

Types of disinvestment:

• Minority disinvestment: Minority disinvestment in PSUs is the situation when the government retains a majority stake (typically more than 51%) in the company so that it ensures management control.
• Majority disinvestment: In majority disinvestment, the government retains a minority stake in the company i.e. it sells off a majority stake. It is also known as Strategic Disinvestment.
• Complete disinvestment: Complete disinvestment is a form of disinvestment wherein 100% control of the company is passed on to a buyer i.e government of India completely disinvests from that public sector unit. It is also known as privatization.

34. The monetary policy in India is formulated by :Reserve Bank of India

• The Reserve Bank of India (RBI) is given the responsibility of conducting monetary policy.
• The responsibility is mandated under the Reserve Bank of India Act, 1934.
• The main objective is to maintain price stability while focusing on the objective of growth.
• The act was amended in 2016 to provide a statutory for the implementation of flexible inflation.
• The amended act provides the inflation target to be set once in every 5 years by the Government of India, with the consultation of the Reserve Bank.
• Consumer Price Index (CPI) inflation has the target of 4% for the period from  5th of August 2016 to 31st of March 2021.
• The CPI inflation remained same for next 5 years from 1st April 2021 to 31st 2026.
• The Inflation target has upper tolerance limit of 6% and a lower tolerance limit of 2%.

35. Which Finance Minister has presented the Union Budget the maximum number of times? Morarji Desai

36. Which of the following is NOT a classification of capital market?

Cooperative banks

Industrial securities markets 

Gilt edged markets 

Non-banking financial companies

Ans: Cooperative banks

• It is composed of main two markets- Primary market and secondary market.
• Capital market trades mostly in long term securities.
• It is mainly classified into securities market, Gilt-edged markets and NBFC's also known as non banking financial companies.

37. Which organization carries out the survey for determining the poverty line? NSSO

• The Tendulkar Committee proposed a poverty level of Rs 29 per person per day in urban areas and Rs 22 per person per day in rural areas.
• National Sample Survey Office (NSSO)
• The National Sample Survey Office (NSSO) was formerly called the National Sample Survey Organization.
• The poverty line is estimated every five years by conducting sample surveys. The organization responsible for the survey is the National Sample Survey Organization or NSSO.

38. With reference to the India economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”?

Government can reduce the coupon rates on its borrowing by way of IIBs.

IIGs provide protection to the investors from uncertainty regarding inflation.

The interest received as well as capital gains on IIBs are not taxable.

Inflation-Indexed Bonds

• It provides a continuous return to investors regardless of the amount of inflation in the economy.
• The real coupon interest rate on IIBs is fixed, but the nominal principal value is adjusted for inflation. Therefore, We can say Government can reduce the coupon rates on its borrowing by way of IIBs. Hence, Statement 1 is correct.
• On the modified principal value, periodic coupon payments will be issued. In this way, both the principal and the coupon payment will be protected from inflation. Hence, Statement 2 is correct.
• When the bond matures, the adjusted principal or face value, whichever is greater, will be paid.
• IIBs are classified as government securities (G-Sec) and hence qualify for repo transactions, as well as SLR status (i.e., they are eligible to be kept as part of Statutory Liquidity Ratio requirements of banks).
• IIBs assist the small investor in protecting even the principal amount against inflation, in addition to obtaining the investment's yield, which is dependent on the current inflation rate.
• It's also predicted to enhance domestic savings and reverse the savings-to-GDP ratio's downward trend.

Salient Features of Inflation index bonds

• Inflation-indexed bonds were announced in the 2013 budget.
• Anyone can invest in these bonds, however, they are distributed in such a way that institutional investors (such as LICs and mutual funds) receive 80% of the bonds and retail investors receive 20%.
• These bonds are auctioned directly by the RBI. The government receives this money.
• Minimum and maximum investment amounts are 10,000 and 25 lakhs, respectively.
• These bonds can only be redeemed after ten years, or else a penalty will be imposed.
• These bonds can be traded in the secondary market (through the BSE, NSE, and other stock exchanges), however, if they are sold in the secondary market and profit is made, capital gains tax is to be paid. Hence, Statement 3 is not correct.

39. With reference to the expenditure made by an organization or a company, which of the following statements is/are correct ?

1. Acquiring new technology is capital expenditure.

2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.

Capital expenditure

• It is the expenditure by the government for the development of fixed assets.
• If an item has a useful life of more than one year, it is capitalized (i.e., can be considered CapEx). Capital expenditure is a payment for goods or services recorded - or capitalized - on the balance sheet.
• Capital expenditure is used to create assets or to reduce liabilities.
• It consists of: Long-term investments by the government in creating assets such as roads and hospitals

Therefore, Acquiring new technology is considered a capital expenditure as it will generate profit in the future time and helps in the creation of new assets. Hence, Statement 1 is correct.

Debt Financing and equity financing are considered under capital expenditure. Hence, Statement 2 is not correct.

Revenue Expenditure

• It is the expenditure by the government which does not impact its assets or liabilities. For example, this includes salaries, interest payments, pensions, and administrative expenses.

40. In India, credit rating agencies are regulated by SEBI

• The rating agency popularly known as ICRA is a public limited company.
• Brickwork Ratings is an Indian credit rating agency.
• There are a total of six credit agencies in India viz, CRISIL, CARE, ICRA, SMREA, Brickwork Rating, and India Rating and Research Pvt. Ltd.

41. With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?

• Chairman can be any person of such experts who can be appointed by the Central  Government. It is not mandated that the Governor of RBI will be the chairman of the Bank Board Bureau (BBB).
• BBB recommends for the selection of heads for Public Sector Banks.
• BBB helps the Public Sector Banks in developing strategies and capital raising plans
• It is an Autonomous Body of the Government of India.
• The Banks Board Bureau is mandated to select and appoint Board members for various financial institutions in the public sector.

42. Convertible Bonds, consider the following statements:

As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.

The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

• A convertible bond pays fixed-income interest payments but can be converted into a predetermined number of common stock shares
• It is a hybrid security that offers investors the best of both stocks and bonds.
• Investors accept the lower interest payments because the conversion option offers the opportunity to benefit from increases in the stock price
• The company might issue convertible bonds to avoid negative sentiment.
• Bondholders can, then, convert into equity shares should the company perform well.

43. In India, which one of the following is responsible for maintaining price stability by controlling inflation? Reserve Bank of India

44. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? Labor Bureau

45. With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following?

1. Expansionary policies

2. Fiscal stimulus.

3. Inflation-indexing wages

4. Higher purchasing power

5. Rising interest rates

Select the correct answer using the code given below: 1, 2, and 4 only

• Inflation is the rate of increase in prices over a given period of time.
• Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.
• There are mainly two types of inflation:-
• Demand-pull inflation - This occurs due to an increase in aggregate demand in the economy.
• Cost-push inflation - This occurs when there is a rise in the price of raw materials, higher taxes, e.t.c

Demand-pull inflation is mainly caused due to:-

Depreciation of rupee.

Low unemployment rate.

Increased borrowing.

Due to fiscal stimulus - It includes increased government consumption or lowering of taxes. Hence 2 is correct.

• When the government spends more freely, prices go up. Expansionary policies lead to more economic activity via low-interest rates, more money with the public etc. Hence 1 is correct.
• Asset inflation or Increase in Forex reserves– A sudden rise in exports forces a depreciation of the currencies involved.
• Higher purchasing Power - When consumers feel confident, they spend more and take on more debt. This leads to a steady increase in demand, which means higher prices. Hence 4 is correct.
• The rising interest rate - It decreases the money supply in the economy. This may result in a credit crunch in the economy. It is costlier to borrow money in the economy and it leads to a decreased money supply. So, it can not cause demand-pull inflation in the economy Hence 5 is not correct.
• Inflation-indexing wages - Inflation indexing wages, wages in the economy is linked to inflation which means wage moves as inflation changes in the economy. Such indexing is provided to reduce the effect of inflation on wages. For example - a worker is getting 100 rs as a wage and inflation in the economy increases to 5%, so the wage of the worker increases by 5% i.e. 105. So effective change in the wages is zero and it does not increase/decrease purchasing power. So, it can not lead to a demand to pull inflation in the economy. Hence 3 is not correct.

46. In India, the Central Bank’s function as the “lender of last resort” usually refers to which of the following? 

1. Lending to trade and industry bodies when they fail to borrow from other sources

2. Providing liquidity to the banks having a temporary crisis

3. Lending to governments to finance budgetary deficits

Select the correct answer using the code given below.

• A lender of last resort (LoR) is an institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.
• In India, RBI is the lender of last resort.
• Lender of last resort does not lend money to trade and industry bodies when they fail to borrow from other sources. Hence, statement 1 is incorrect.
• The Reserve Bank extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of the bank, which in turn may also affect other banks and institutions and can have an adverse impact on financial stability and thus on the economy. Hence, statement 2 is correct. 
• RBI does lend to governments to finance budget deficits but it does not come under Lender of last resort. Hence, statement 3 is incorrect.

47. Consider the following statements:

1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.

2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.

3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

• The RBI Governors are appointed by the government of India for a fixed time period. Hence statement 1 is correct.
• The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
• RBI is not a constitutional body.
• Hence, nothing is mentioned in the Constitution of India that gives the Central Government the right to issue directions to the RBI in the public interest. Hence statement 2 is incorrect.
• The Governor of the Reserve Bank of India is the Chief Executive Officer of the Central Bank of India and the Ex-officio Chairman of its Central Board of Directors.
• The Governor of the RBI draws his power from the RBI Act. Hence statement 3 is correct.

48. Which among the following steps is most likely to be taken at the time of an economic recession? 

Cut in tax rates accompanied by increase in interest rate

Increase in expenditure on public projects

Increase in tax rates accompanied by reduction of interest rate

Reduction of expenditure on public projects

• An economic recession is typically defined as a decline in the gross domestic product (GDP) for two or more consecutive quarters. 
• An increase in public expenditure rises GDP by the same amount, other things equal

Consider the following statements :

Other things remaining unchanged, market demand for a good might increase if

1. price of its substitute increases

2. price of its complement increases

3. the good is an inferior good and income of the consumers increases

4. its price falls

• Demand for a given commodity varies directly with the price of a substitute good.
• For example, if the price of a substitute good (say, coke) increases, then demand for a given commodity (say, cane juice) will rise as cane juice will become relatively cheaper in comparison to coke. Hence 1 is correct.
• A complementary good or service is an item used in conjunction with another good or service.
• When the price of a good that complements good decreases, then the quantity demanded of one increases and the demand for the other increases.
• For example, an increase in demand for cars will lead to an increase in demand for fuel. If the price of the complement falls, the quantity demanded of the other goods will increase. Hence 2 is incorrect.
• ​Inferior Good refers to an item that becomes less desirable as the incomes of its consumer's increases.
• Inferior goods are those whose price elasticity is negative.
• As consumers’ incomes increase, they tend to decrease their purchases of inferior goods, opting for normal goods or luxury goods instead. Hence 3 is incorrect.
• The quantity demanded of a good increase when its price falls is that the: lower price increases the real incomes of buyers, enabling them to buy more.  Hence 4 is correct.

Demography

National Income

Primary and Secondary Sectors

Industry and Service Sectors

Planning, NITI Aayog, and Public Finance

Structure and Growth of Telangana Economy:

Demography and HRD:

Agriculture and Allied Sectors

Industry and Service Sectors

State Finances, Budget and Welfare Policies

Growth and Development:

Social Development: 

Poverty and Unemployment: 

Regional Inequalities: 

Environment and Sustainable Development:

MCQs as per Syllabus:

1. Which of the following is not included in the calculation of Gross Domestic Product (GDP) by the production method? Value of intermediate goods

2. Which concept represents the total market value of all final goods and services produced by the residents of a country, including income from abroad? Gross National Product (GNP)

3. What does Net National Product (NNP) at factor cost represent? Gross National Product (GNP) minus depreciation

What does the Net National Product (NNP) at market prices represent? GNP minus depreciation and indirect taxes plus subsidies

Which of the following is a limitation of the income method of measuring national income? Non-inclusion of non-monetary transactions

What is the primary focus of the expenditure method of measuring national income? Calculation of total expenditure on final goods and services

Which institution is primarily responsible for estimating national income in India? Central Statistics Office (CSO)

 Which factor has significantly influenced changes in national income estimates in India? Increase in digital and service-based economy

Which of the following is true regarding Personal Income (PI) and Disposable Personal Income (DPI)? DPI is PI minus personal taxes

Who was the chairperson of the National Statistical Commission that provided recommendations for improving national income estimation in India? C. Rangarajan

In terms of international comparison, which indicator alongside per capita income is crucial for understanding the living standards in a country? Purchasing Power Parity (PPP)

Who is known as the father of the Green Revolution in India? M.S. Swaminathan

The Bhakra Nangal Project is associated with which river? Sutlej

Which institution primarily provides short-term agricultural credit to farmers in India? Cooperative banks

The e-NAM initiative aims to: Create an online platform for agricultural markets

Which committee is responsible for recommending the Minimum Support Price (MSP) in India? Commission for Agricultural Costs and Prices (CACP)

Which sector has shown significant growth in India's allied agricultural sector? Dairy

Which sector has the highest growth rate among the allied sectors in India in the last decade? Fisheries

Which of the following cropping patterns is characteristic of rainfed agriculture in India? Mono-cropping

The Green Revolution in India primarily focused on which of the following geographical regions? Northwestern India

Which of the following is the largest canal irrigation system in India? Indira Gandhi Canal

Which of the following government schemes aims to provide interest subvention to farmers for short-term crop loans? Kisan Credit Card Scheme

Which of the following is a key objective of the National Food Security Act, 2013? Providing subsidized food grains to approximately two-thirds of India's population

The Rashtriya Gokul Mission aims to: Enhance the productivity of indigenous cattle breeds

What was the primary focus of the Industrial Policy Resolution of 1956 in India? Establishment of a socialist pattern of society through state intervention in industrial development

One of the major challenges faced by large scale industries in India is:Regulatory and compliance issues

Which government scheme aims to provide financial support to MSMEs in India? MUDRA Yojana

The Golden Quadrilateral project in India is primarily associated with: Improving road transportation network

The balance of trade refers to: The difference between the value of a country's exports and imports of goods

1. The Silent valley movement was related to ?  Building of Dam

2. Article 48A was added to the Directive Principles of State Policy so as to put the responsibility on the __________ to protect and improve the environment.? Government

3. Which among the following can be stated to be a cause of global warming? Urbanization & Industriliazation

4. What has been established in the field of climate finance? Green Climate Fund

5. The Sustainable Development Goals comprises of how many goals and targets? 17 goals and 169 targets

• The United Nations General Assembly adopted the "2030 Agenda for Sustainable Development" in 2015, with global goals.
• The 2030 Agenda for Sustainable Development was adopted at the United Nations Summit in New York from 25 to 27 September 2015.
• The 193 members of GA  adopted the framework "Transforming our world: the 2030 Agenda for Sustainable Development" with 17 goals & 169 targets.
• Those 17 goals are:
• 1. Take urgent action to combat climate change & its impact.
• 3. Reduce inequalities within & among countries.
• 4. Achieve gender equality & empower all women & girls.

6. Consider the following statements regarding Green Economy:

• It is an economic model based on sustainable development.
• Green national Income measures the overall development of the economy with environmental upgradation.
• Green GDP monetizes the loss of biodiversity & accounts for costs caused by climate change.
• A green economy results in improved human well-being & social equity by reducing environmental risks & ecological scarcities.
• It is an economic development model based on sustainable development without degrading the environment.
• Green National Income: It measures the overall development of the economy with environmental upgradation.
• Green GDP: It monetizes the loss of biodiversity & accounts for costs caused by climate change.

7. How do agricultural practices in the Gangetic plains of West Bengal impact local biodiversity?

• Increased use of pesticides and fertilizers pollutes local waterways
• Expansion of organic farming practices enhances local flora and fauna
• High crop diversity attracts a variety of pollinators

8.Which aspect of environmental conservation is critical for maintaining the health of the Darjeeling Himalayan region? Prevention of landslides through vegetation management

• Vegetation management helps stabilize soil and prevent erosion.
• This practice involves maintaining forest cover, controlling deforestation, and implementing soil conservation techniques.
• The long-term health of the Darjeeling Himalayas depends significantly on sustainable land use and forest management practices.

9.Which of the following Sustainable Development Goals ensures availability and sustainable management of water and sanitation for all?  SDG 6

• Sustainable Development Goal 6 ensures availability and sustainable management of water and sanitation for all.
• Sustainable Development Goal 6 is about "clean water and sanitation for all."

10. Which of the following Sustainable Development Goals (SDG) seeks to ‘Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss’? SDG 15

• The 193 members of GA  adopted the framework "Transforming our world: the 2030 Agenda for Sustainable Development" with 17 goals & 169 targets.

10a.The UN’s Sustainable Development Goal 6 aims to _____ ensure availability and sustainable management of water and sanitation for all

11. GOAL 5= Gender Equality

12. With reference to the United Nations’ Sustainable Development Goals, which of the following is SDG 10? Reduced inequalities

13.  SDG 15= Life on land

• The Sustainable Development Goals agenda was accepted by all members of the United Nations in 2012 at the Rio De Janeiro Council Meet with an aim to promote a healthy and developed future of the planet and its people.
• It was in 2015 when the Sustainable Development Goals were implemented after a successful fifteen-year plan of development called the Millennium Development Goals. 

14. Where was the sustainable development explained for first time? Brundtland Commission Report

Sustainable development was developed for the first time in the Brundtland Commission Report in 1987. 

According to the report, "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

• The first Earth Summit, took place in Rio de Janeiro in June 1992.
• The Rio Declaration on Environment and Development, Agenda 21, Convention on Biological Diversity, Forest Principles and the Framework Convention on Climate Change came out of the 1992 Earth Summit.

15.Which household waste has an excellent recycling potential? Vegetable scraps

16.Which of the following watershed development projects is sponsored by the Central Government aims at enabling the rural population to conserve water? Haryali

Hariyali is a watershed development and management program implemented by the central and state governments.

The project is being implemented at the Grama Panchayat level with people's participation.

17.Which plant is cultivated for biodiesel? Jatropha

• Biodiesel is an alternative fuel similar to conventional or ‘fossil’ diesel.
• Biodiesel is a vegetable oil or animal fat-based diesel fuel. It is used in diesel engines in place of conventional diesel fuel.
• Biodiesel can be produced from straight vegetable oil, animal oil/fats, tallow, and waste cooking oil.
• The process used to convert these oils to Biodiesel is called transesterification.
• Jatropha is a Flowering plant. Its stems are used for basket making and Oil from Jatropha is converted into biodiesel.
• While Malaysia uses Palm Oil, the US uses Soyabean and European nations use sunflower seeds for the production of biodiesel, the Indian government preferred to use the Jatropha plant for the production of biodiesel.

18. Ramsar Convention: The Convention was adopted in the Iranian city of Ramsar in 1971 and came into force in 1975.

• India currently has 82 sites designated as Wetlands of International Importance

19. Why have developed countries put ban on DDT a pesticide? It was affecting food-chain system

• Dichloro-diphenyl-trichloroethane commonly known as DDT is a colourless, tasteless, and almost odourless crystalline chemical compound.
• It was initially used with great effect to combat malaria, typhus, and other insect-borne human diseases among both military and civilian populations.
• Due to hydrophobic properties, in aquatic ecosystems, DDT is absorbed by aquatic organisms and thus bio-accumulates in the food web.
• The bioaccumulation of DDT has caused eggshell thinning and population declines in multiple North American and European bird of prey species.

20. What is the main cause of contamination of Ganges with coliform bacteria? Discharge of untreated sewage [cvig] into the river

• Coliform bacteria are a group of microorganisms commonly found in the environment, including in human and animal waste.

21. In which year Forest Conservation Act was passed? 1980 

• The Forest (Conservation) Act 1980 was further amended in 1988.

22. The Environment (Protection) Act was enacted in the year 1986. 

• Under Article 253 of the constitution
• In the wake of the Bhopal gas Tragedy or Bhopal Disaster, the [Government of India] enacted the Environment Protection Act of 1986 under Article 253 of the Constitution.
• It has 26 sections and 4 chapters.
• The Environmental (Protection) Act was enacted in 1986 was never amended.

22a. The Wild Life (Protection) Act, 1972 is an Act of the Parliament of India enacted for the protection of plants and animal species.

• The Wild Life [Protection] act in 1972
• The Forest [conservation] Act in 1980
• The Environment [Protection] Act in 1986
• Biological diversity Act 2002.
• Wild Life>Forest>Environment>Biological Diversity

Constitutional provisions of Forest Conservation:

• Article 48-A of the Indian Constitution deals with protection and improvement of the environment and safeguarding of forests and wildlife - the state shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country.
• Clause g of Article 51 A of the Indian Constitution says that it shall be the duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers, and wildlife, and to have compassion for living creatures.

23. What is the main aim of Montreal Protocol? Protection of the Ozone layer

• The Montreal Protocol is an international treaty that was adopted on September 16, 1987.
• It is aimed to regulate the production and use of chemicals contributing to the depletion of the ozone layer of the Earth
• Initially, it was signed by 46 countries but now has nearly 200 signatories.

25. How many Ramsar Sites have been declared so far in India? 82

• Two new Ramsar sites, added ahead of this year’s World Wetlands Day, are in Bihar.
• Tamil Nadu has the maximum number of Ramsar sites at 16, followed by Uttar Pradesh, which has 10.
• India signed the Ramsar Convention in 1982.
• It is named after the city of Ramsar in Iran where it was signed on the 2nd of February 1971.
• The 2nd of February each year is World Wetlands Day.

26.Which of the following Sustainable Development Goals ensures availability and sustainable management of water and sanitation for all? SDG6

27. Kyoto protocol is related with ______. Global Warming

• The Kyoto Protocol applies to the six greenhouse gases carbon dioxide (CO2), Methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

28.The greater one-horned rhino is listed under the Schedule ______ of the Wildlife Protection Act, 1972. The greater one-horned rhino is listed under Schedule I of the Wildlife Protection Act, 1972.

29.In which year India launched its second edition of National Forest Policy ? 1988

• The national forest policy in 1988 is now replaced by the draft national forest policy 2018.

30. CITES is an international treaty on?  Conservation of endangered plants and animals

• Convention on International Trade in Endangered Species of Fauna and Flora (CITES)

32.First Ozone hole was found over ________. Antarctica

• Ozone (O3) is a molecule formed by three atoms of oxygen. Ozone is a deadly poison.
• UV radiation is highly damaging to organisms, for example, it is known to cause skin cancer in human beings or can split the DNA.
• It is a pale blue gas with a distinctively pungent smell.
• The amount of ozone in the atmosphere began to drop sharply in the 1980s. This decrease has been linked to synthetic chemicals like chlorofluorocarbons (CFCs), also known as Freons, which are used as refrigerants and in fire extinguishers.
• In the 1980s, for the first time, atmospheric scientists working in Antarctica reported about the depletion of the ozone layer commonly known as ozone hole over the South Pole.
• Acid Rain: This results in acid rain as air contaminants such as nitrogen oxides and Sulphur react with rainwater and come down with the rain.
• Smog: The term smog means a mixture of fog and smoke.​It is a type of air pollution that occurs in many cities worldwide.

33.Which of the following Ultraviolet rays is most dangerous? UV - C

• UV-C Rays are most dangerous because they penetrate the second layer of skin and causes skin cancer.
• The higher the frequency, the shorter the wavelength and the higher the energy of the wave.
• Hence, UV C having a wavelength of 100nm has the highest damaging effect, i.e. more dangerous, when compared to UV A.
• Although UV C is more dangerous they do not pass through the Earth's atmosphere. It is completely absorbed by the ozone layer.

34. What is the pH value of acid rain? Less than 5.6

Acid rain is caused by a chemical reaction that begins when compounds like sulfur dioxide and nitrogen oxides are discharged into the air.

These substances can rise very high into the atmosphere, where they mix and react with water, oxygen, and other chemicals to form more acidic pollutants, known as acid rain. Human activities are the main cause of acid rain. Over the past few decades, humans have released so many different chemicals into the air that they have changed the mix of gases in the atmosphere. 

Power plants release the majority of sulfur dioxide and much of the nitrogen oxides when they burn fossil fuels, such as coal, to produce electricity.

Besides, the exhausts from cars, trucks, and buses release nitrogen oxides and sulfur dioxide into the air. These pollutants cause acid rain.

Oxides: at least one oxygen atom (O) and another element. The other element can be a metal or non-metal.

Di-Oxides: there are exactly two oxygen atoms bonded to another element. "Di" is a prefix meaning "two."

pH: Potential of Hydrogen

The range goes from 0 to 14, with 7 being neutral. pHs of less than 7 symbolize acidity, whereas a pH of greater than 7 indicates a base.

The concept of pH value is introduced in 1909 by Søren Sørensen as a suitable way of expressing acidity

35.______ is the concentration of a toxin at successively higher levels in a food chain? Biomagnification 

• Occurs when organisms like zooplankton feed upon the contaminated phytoplankton and in turn absorb Persistent Organic Pollutants (DDT) into their own tissues at a higher concentration.
• The more contaminated phytoplankton zooplankton eats, the more will be the contamination at upper trophic levels

36. Which of the following gases is NOT a major greenhouse gas that causes climate change?

1. Carbon dioxide-Released through human activities such as deforestation and burning fossil fuels, as well as natural processes such as respiration and volcanic eruptions.
2. Methane
3. Carbon monoxide
4. Nitrous oxide- A powerful greenhouse gas produced by soil cultivation practices.

• Carbon monoxide is NOT a major greenhouse gas. Carbon monoxide is toxic to animals that use hemoglobin as an oxygen carrier. 
• Greenhouse gases cause the greenhouse effect on planets.
• The primary greenhouse gases in Earth's atmosphere are Water vapor, Carbon dioxide, Methane, Nitrous oxide, and Ozone.

37.Launch of Which of the following projects has been announced for the conservation of India’s most endangered species by Prime Minister Narendra Modi during his Independence Day speech at Lal Quila? Project Dolphin

• In India, Dolphins found in Ganga and Brahmaputra and its tributaries like Chambal, Son, Ghandak, Ghaghara, Kosi among others.
• There are around 3700 Dolphins in the Indian river systems.

38. Which of the following types of radiation do Greenhouse gases emit? Infrared (IR)

• Water vapor, carbon dioxide, methane, and other trace gases in Earth's atmosphere absorb the longer wavelengths of outgoing infrared radiation from Earth's surface.
• These gases then emit infrared radiation in all directions, both outward toward space and downward toward Earth.

39. First Ozone hole was found over ________Antarctica

40.Which of the following trees is dangerous for environment? Eucalyptus

• It depletes the nutrients and moisture reserves of the soil and inhibits the undergrowth due to allelopathic properties.
• It replaced indigenous forests in several parts of the world.
• The natural oils of the eucalyptus tree make it extremely flammable.
• Eucalyptus trees are native of Australia 

41. Greenhouse gases in the atmosphere absorb most of the Earth's emitted _____, which heats the lower atmosphere?  Infrared radiation

The greenhouse effect is caused due to Infrared rays. 

The greenhouse effect is the process where infrared radiation from the Sun is absorbed by water vapor and certain gases in the atmosphere, thus increasing the temperature on the Earth.

The major greenhouse gases are:

•     Water Vapour - causes about 36% - 70% of the greenhouse effect
•     Carbon dioxide (CO2) causes 9 - 26%
•     Methane (CH4) causes 4 - 9% and ozone (O3)

42. Without the 'Greenhouse effect', the temperature of the earth would have been: -18°C

• The Greenhouse effect is crucial in maintaining the temperature of the Earth at levels that sustain life.
• In the absence of such a phenomenon, our earth would turn into a cold planet that may not be able to sustain life.

43.Which one of the following biosphere reserves is spread over three States in India?  Nilgiri

• The Nilgiri Biosphere Reserve is a unique and fascinating region in the Western Ghats and Nilgiri Hills in South India. It is renowned for its ecological significance and biodiversity conservation.
• The Western Ghats, where the Nilgiri Biosphere Reserve is located, is recognized as one of the world’s eight ‘hottest hotspots’ of biological diversity.

44. Gym Corbate National Park - Uttarakhand

        Kanah National Park- Madhya Pradesh

        Kazirangs National Park- Assam

        Ranthambore National Park- Rajasthan

45. The finest Indian teak is found in the forests of - Satpura national park  [Madhya Pradesh]

46. Which wildlife sanctuary was established in West Bengal in 1941 primarily to protect the great Indian rhinoceros (Rhinoceros unicornis)? Jaldapara Wildlife Sanctuary 

47.The  ______ peak is the highest peak in Silent Valley National Park, Palakkad? Anginda

48.Keibul Lamjao National Park is located on which lake? Loktak Lake,Manipur 

• Keibul Lamjao National Park, the only floating park in the world, is located in the Loktak lake.
• Keibul Lamjao National Park is the only floating National Park in the world

49.Pench National Park is on the border of Maharashtra and Madhya Pradesh.

• So Pench National Park(Jawahar Lal Nehru) is in Maharashtra and Pench(Priyardishini) National Park is in Madhya Pradesh.

50.‘Simlipal Biosphere Niche’ is situated in : Odisha