IAS Prelims 2012 General Studies Solved (Part 6 of 10)

  1. Under which of the following circumstances may capital gains arise?

    1. When there is an increase in the sales of a product

    2. When there is a. Natural increase in the value of the property owned

    3. When you purchase a painting and there is a growth in its value due to increase in its popularity

    Select the correct answer using the codes given below:

    1. 1 only

    2. 2 and 3 only

    3. 2 only

    4. 1, 2 and 3

    Answer: b

  2. Which of the following measures would result in an increase in the money supply in the economy?

    1. Purchase of government securities from the public by the Central Bank

    2. Deposit of currency in commercial banks by the public

    3. Borrowing by the government from the Central Bank

    4. Sale of government securities to the public by the Central Bank

    Select the correct answer using the codes given below:

    1. 1 only

    2. 2 and 4 only

    3. 1 and 3

    4. 2, 3 and 4

    Answer: c

  3. Which of the following would include Foreign Direct Investment in India?

    1. Subsidiaries of companies in India

    2. Majority foreign equity holding in Indian companies

    3. Companies exclusively financed by foreign companies

    4. Portfolio investment

    Select the correct answer using the codes given below:

    1. 1, 2, 3 and 4

    2. 2 and 4 only

    3. 1 and 3 only

    4. 1, 2 and 3 only

    Answer: d

  4. Consider the following statements: The price of any currency in international market is decided by the

    1. World Bank

    2. demand for goods/services provided by the country concerned

    3. stability of the government of the concerned country

    4. economic potential of the country in question

    Which of the statements given above are correct?

    1. 1, 2, 3 and 4

    2. 2 and 3 only

    3. 3 and 4 only

    4. 1 and 4 only

    Answer: b

  5. The basic aim of Lead Bank Scheme is that

    1. big banks should try to open offices in each district

    2. there should be stiff competition among the various nationalized banks

    3. individual banks should adopt particular districts for intensive development

    4. all the banks should make intensive efforts to mobilize deposits

    Answer: c

  6. Consider the following:

    1. Assessment of land revenue on the basis of nature of the soil and the quality of crops

    2. Use of mobile cannons in warfare

    3. Cultivation of tobacco and red chillies

    Which of the above was/were introduced into India by the English?

    1. 1 only

    2. 1 and 2

    3. 2 and 3

    4. None

    Answer: d

  7. With reference to the guilds (Shreni) of ancient India that played a very important role in the countrys economy, which of the following statements is/are correct?

    1. Every guild was registered with the central authority of the State and the king was the chief administrative authority on them.

    2. The wages, rules of work, standards and prices were fixed by the guild.

    3. The guild had judicial powers over its own members.

    Select the correct answer using the codes given below:

    1. 1 and 2 only

    2. 3 only

    3. 2 and 3 only

    4. 1, 2 and 3

    Answer: c

  8. The distribution of powers between the Centre and the States in the Indian Constitution is based on the scheme provided in the

    1. Morley-Minto Reforms, 1909

    2. Montagu-Chelmsford Act, 1919

    3. Government of India Act, 1935

    4. Indian Independence Act, 1947

    Answer: c

  9. Despite having large reserves of coal, why does India import millions of tonnes of coal?

    1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.

    2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.

    3. Steel companies need large quantity of coking coal which has to be imported.

    Which of the statements given above is/are correct?

    1. 1 only

    2. 2 and 3 only

    3. 1 and 3 only

    4. 1, 2 and 3

    Answer: b

  10. A person stood alone in a desert on a dark night and wanted to reach his village which was situated 5 km east of the point where he was standing. He had no instruments to find the direction but he located the polestar. The most convenient way now to reach his village is to walk in the

    1. direction facing the polestar

    2. direction opposite to the polestar

    3. direction keeping the polestar to his left

    4. direction keeping the polestar to his right

    Answer: c