UPSC Prelims 2012 Analysis

Explanation

Under the provisions of the law in India, consumers are indeed empowered to take samples for food testing. This is part of the consumer's right to be informed about the quality, quantity, potency, purity, standard and price of goods or services.

When a consumer files a complaint in any consumer forum, there is a nominal fee that needs to be paid. This fee is meant to cover administrative costs.

In case of the death of a consumer, his/her legal heir can file a complaint in the consumer forum on his/her behalf. This is to ensure that the rights of the consumer are protected, even after their death.

Therefore, the correct answer is statements 1 and 3 only.

Explanation

Index of Eight Core Industries (ICI) refers to a production volume index that measures the collective and individual production performances of eight selected core industries.

The Eight Core Industries in India include Cement, Fertilizers, Natural Gas, Refinery Products, Coal, Crude Oil, Electricity, and Steel.

Textiles is not included in the list of the Eight Core Industries.

Explanation

Commercial banks keep a portion of their reserves with the RBI for various reasons, including regulatory requirements and secure storage.

The RBI acts as a lender of last resort, providing liquidity to banks facing temporary shortages.

The RBI does have a role in advising the commercial banks on monetary matters, by giving out advisories time to time.

Therefore, all statements are correct.

Explanation

1. Purchase of government securities from the public by the Central Bank This injects money into the economy. When the Central Bank buys securities, it pays for them with newly created money, effectively increasing the money supply.

2. Deposit of currency in commercial banks by the public This doesn't directly increase the money supply. While the public has less cash on hand, the banks now have more reserves. However, the total amount of money in circulation remains the same.

3. Borrowing by the government from the Central Bank This can increase the money supply. If the Central Bank creates new money to lend to the government, it injects new money into the system.

4. Sale of government securities to the public by the Central Bank This decreases the money supply. When the Central Bank sells securities, it absorbs money from the public in exchange for the securities, taking money out of circulation.

Therefore, statements 1 and 3 are correct.

Explanation

The price of any currency in the international market is primarily determined by the demand for goods and services provided by the country. This is because if a country's goods and services are in high demand globally, then the demand for its currency will also increase, leading to an increase in its value.

The stability of the government of the concerned country also plays a role as it affects investor confidence. A stable government is more likely to have sound economic policies, which can lead to a stronger currency.

The World Bank does not decide the price of a currency in the international market. The economic potential of a country can influence the demand for its goods and services, but it does not directly decide the price of the currency.

Explanation

The Government of India has taken several initiatives to promote the growth of the manufacturing sector.

These include the setting up of National Investment and Manufacturing Zones, which are designed to promote investment and boost manufacturing.

The government has also implemented a 'single window clearance' system to streamline the process of obtaining necessary approvals and clearances for businesses.

Additionally, the Technology Acquisition and Development Fund has been established to facilitate the acquisition of clean, green and energy-efficient technologies.

Therefore, all three statements are correct.

Explanation

The Lead Bank Scheme was introduced by the Reserve Bank of India in 1969 with the objective of ensuring adequate banking and credit facilities in rural areas.

Under this scheme, individual banks are assigned to particular districts where they are expected to promote banking activities and credit growth.

Therefore, the basic aim of the Lead Bank Scheme is that individual banks should adopt particular districts for intensive development.

Explanation

The demographic transition model describes the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialised economic system.

High birth rate with a high death rate is the first stage of the demographic transition model. In this stage, both birth and death rates are high, leading to a low net population growth.

High birth rate with a low death rate is the second stage of the demographic transition model. In this stage, improvements in healthcare, sanitation, and food supply lead to a decrease in the death rate while the birth rate remains high, leading to rapid population growth.

Low birth rate with a low death rate is the final stage of the demographic transition model. In this stage, birth rates fall due to changes in social behavior and improvements in contraception, leading to a stable population.

Explanation

Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

Foreign direct investments can be made in a variety of ways, including the opening of a subsidiary or associate company in a foreign country, acquiring a controlling interest in an existing foreign company, or by means of a merger or joint venture with a foreign company.

Foreign direct investments are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies.

Therefore, the correct answer includes the first three options but not the fourth.

Explanation

The balance of payments of a country is a systematic record of all economic transactions between residents of a country and the rest of the world during a specific period, typically a quarter or a year. It tracks both the inflow and outflow of money.

In essence, it's a way to measure a country's economic activity with foreign entities.

Explanation

China, which is the largest producer of rare earth metals, has indeed imposed restrictions on their export. This has raised concerns about the global supply chain for these essential elements, particularly in industries such as electronics, renewable energy, and defence.

Rare earth metals are found in various countries besides China. While China has a dominant position in rare earth production, other countries like Australia, Canada, the United States, and several others also have significant reserves and production capacities. Hence, statement 2 is incorrect.

Rare earth metals are indeed essential for the manufacture of various electronic items, renewable energy technologies, and defence applications. The growing demand for these elements, coupled with supply chain disruptions and geopolitical factors, has contributed to concerns about their availability in the global market.

So only statements 1 and 3 are correct.

Explanation

Permitting the Non-Banking Financial Companies to do banking This option is not directly related to inclusive governance. It may have implications for financial inclusion, but it's not inherently a part of inclusive governance.

Establishing effective District Planning Committees in all the districts This contributes to inclusive governance by decentralizing decision-making and involving local communities in the planning and development processes.

Increasing government spending on public health This ensures that essential healthcare services are accessible to all segments of society, thereby promoting inclusivity in healthcare.

Strengthening the Mid-day Meal Scheme This initiative aims to improve nutrition and food security among school children, particularly from disadvantaged backgrounds, thereby promoting inclusivity in education and nutrition.

Therefore, statements 2, 3 and 4 are correct.

Explanation

Capital gains arise when there is an increase in the value of a capital asset, such as real estate or an investment, that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold.

Therefore, Increased sales may lead to higher revenue and profits, but not capital gains.

However, a natural increase in the value of property owned or an increase in the value of a painting due to its increased popularity can result in capital gains when these assets are sold.

Explanation

India does not have a policy of intentionally conserving its domestic coal reserves for the future and importing coal for current use.

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. This is due to various factors such as insufficient domestic production, logistical constraints, and quality issues.

Steel companies need a large quantity of coking coal, which has to be imported. India's domestic reserves of coking coal are not sufficient to meet the demand of its steel industry, hence the need for imports.

Therefore, the second and third statements are correct.