UPSC PRELIMS 2023 – GS PAPER 1 – ANSWER SOLUTIONS
1. 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?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
ANSWER: OPTION (b) 2 only
EXPLANATION:
Statement 1: The Central Government vide notification S.O. 1702(E). exercising the powers conferred to it under by sub-section (1) and sub-section (9) of section 7 of the ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) notified the following criteria for classification of micro, small and medium enterprises, namely:—
(i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
(iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
This notification came into effect from 01.07.2020.
Statement 2: Priority Sector Lending Guidelines: In terms of Master Direction on ‘Priority Sector Lending (PSL) – Targets and Classification’ dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed therein qualify for classification under priority sector lending.
SOURCE:
2. With reference to Central Bank digital currencies, consider the following statements:
1.It is possible to make payments in a digital currency without using US dollar or SWIFT system.
2.A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
ANSWER: OPTION (c) Both 1 and 2
3. In the context of finance the term ‘beta’ refers to
(a) the process of simultaneous buying and selling of an asset from different platforms.
(b) an investment strategy of a portfolio manager to balance risk versus reward.
(c) a type of systematic risk that arises where perfect hedging is not possible.
(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market.
ANSWER: OPTION (d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market.
4. Consider the following statements:
1.The Self – Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
2.In an SHG, all members of a group take responsibility for a loan that an individual member takes.
3.The Regional Rural Banks and Scheduled Commercial Banks support SHGs.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
ANSWER: OPTION (b) Only two
5. Consider the following statements:
Statement-I: India’s public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care.
Statement-II: Under India’s decentralized approach to health care delivery, the States are primarily responsible for organizing health services.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-l and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
ANSWER: OPTION (b) Both Statement-l and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
6. Consider the following statements:
Statement-I: According to the United Nations’ World Water Development Report 2022, India extracts more than a quarter of the world’s groundwater withdrawal each year.
Statement-ll: India needs to extract more than a quarter of the world’s groundwater each year to satisfy the drinking water and sanitation needs of almost 18% of world’s population living in its territory.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-ll are correct and Statement-ll is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-1 is not the correct explanation for Statement-I
(c) Statement-I is correct Statement-II is incorrect
(d) Statement-I is incorrect Statement-II is correct
ANSWER: OPTION (c) Statement-I is correct Statement-II is incorrect
7. Consider the following statements:
1. According to the Constitution of India, the Central Government has a duty to protect States from internal disturbances.
2. The Constitution of India exempts the States from providing legal counsel to a person being held for preventive detention.
3. According to the Prevention of Terrorism Act, 2002, confession of the accused before the police cannot be used as evidence.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
ANSWER: OPTION (b) Only two
8. Which one of the following countries been suffering from decades of civil strife and food shortages and was in news in the recent past for its very severe famine?
(a) Angola
(b) Costa Rica
(c) Ecuador
(d) Somalia
ANSWER: OPTION (d) Somalia
Civil war is going on in Somalia since 2009.
Due to drought in the country for last few years, Somalia is also facing the challenge of famine and acute hunger.
Source –
9. Consider the following statements:
1. In India, the Biodiversity Management Committees are key to the realization of the objectives of the Nagoya Protocol.
2. The Biodiversity Management Committees have important functions in determining access and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
