UPSC Prelims Answer Key With Explanation 2019 – Paper 1 (General Studies)

UPSC (Union Public Service Commission) Conduct the UPSC (IAS) Pre – 2019 on 02 June 2019. This General Studies (Paper – 1) Full Paper With Answer Key available Here .
#IAS Prelims answer key 2019, #UPSC Civil Services prelims answer key 2019

Exam – UPSC (IAS) PRE 2019
Subject – General Studies (GS) Paper -1
Date of Exam – 02- June – 2019
BOOKLET SERIES – D

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UPSC IAS 2019 Pre Exam Paper 1 (General Studies) (Answer Key With Explanation

 

1. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements
1. AIIB has more than 80 member nations.
2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia.
Which of the statements given above is / are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

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Answer –  (A)

Explanation –

Statement 1 is correct- AIIB currently has 93 member’s countries and Beijing acts as AIIB headquarter

Statement 2 is Incorrect- India is second largest shareholder in AIIB after China. It is headquartered in Beijing, China.

Statement 3 is Incorrect- AIIB has members from outside Asia also, like Algeria, Ghana, Libya, Morocco, Serbia and Togo.

Thus, Option A is correct.

2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
(a) To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit
(b) To support the infrastructure projects of Central and State Governments
(c) To act as independent regulator in case of applications for loans of Rs. 50 crore or more
(d) To aim at faster resolution of stressed assets of Rs. 50 crore or more which are-under consortium lending

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Answer –  (D)
Explanation

What is Project Sashakt?

  • Project Sashakt was proposed by a panel led by PNB chairman sunil Mehta. bad loans of up to Rs. 50 crore will be managed at the bank level with a deadline of 90 days . for bad loans of Rs. 50-500 crore, banks will enter an inter-credit agreement, authorizing the lead bank to implement a resolution plan in 180 days, or refer the asset to NCLT. For loans above Rs. 500 crore, the panel recommended an independent AMC, supported by institutional funding through the AIF. The idea is to help consolidate stressed assets.

3. The Chairmen of public sector banks are selected by the
(a) Banks Board Bureau
(b) Reserve Bank of India
(c) Union Ministry of Finance
(d) Management of concerned bank

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Answer –  (A)

Explanation

  • The Centre has appointed a new Banks Board Bureau (BBB), under the Chairmanship of BhanuPratap Sharma, to select top management in public sector banks.
  • BBB had started to function from April 1, 2016, and was set up for a period of two years.
  • It was initially given the mandate to recommend candidates for the top posts in public sector banks. This role was later expanded to suggest capital raising plans.

4. Consider the following statements:
1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to, ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

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Answer –  (B)

Explanation

  • The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006 (NO. 19 OF 2006) notified via Gazette Notification dated 31st March, 2006. Thus, it is not the first regulatory body set up by the Government of India as number of other regulatory bodies such as SEBI, IRDA, etc are set up before 2006.
  • The Act provide for the establishment of Petroleum and Natural Gas Regulatory Board to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto.

5. With reference to communication technologies, what is/are the difference / differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?
1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
2. LTE is data-only technology and VoLTE is voice-only technology.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

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Answer –  (D)

Explanation

LTE VOLTE
Stands for Long Term Evolution Stands for Voice over LTE
Primarily designed to be a data-only technology Designed to carry both voice and data
Does not natively support voice transmission. Supports voice as well as data transmission.
Quality of voice reduces if data connection is left on. Voice quality remains excellent even if the data connection is on

https://techwelkin.com/difference-between-lte-and-volte-4g

6. Which of the following statements is / are correct regarding the Maternity Benefit ‘ (Amendment) Act, 2017?
1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with creches must allow the mother minimum six creche visits daily.
3. Women with two children get reduced entitlements.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3

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Answer –  (C)

Explanation

  • The Act has made amendments to the Maternity Benefits Act, 1961.The majority of the provisions of the Maternity Benefit (Amendment) Act has come into force with effect from 1st April, 2017.
  • Statement 1 is incorrect: The Maternity Benefit Amendment Act has increased the duration of paid maternity leave available for women employees from the existing 12 weeks to 26 weeks. Under the Act, this benefit could be availed by women for a period extending up to 8 weeks before the expected delivery date and remaining 18 weeks can be availed post childbirth.
  • Statement 2 is incorrect: The Act makes crèche facility mandatory for every establishment employing 50 or more employees. Women employees would be permitted to visit the crèche 4 times during the day. The Maternity Benefit Amendment Act makes it mandatory for employers to educate women about the maternity benefits available to them at the time of their appointment.
  • Statement 3 is correct: For women who are expecting after having 2 children, the duration of paid maternity leave shall be 12 weeks (i.e., 6 weeks pre and 6 weeks post expected date.
  • Thus, Option C is correct.

7. Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
(a) Maintenance of law and order
(b) Paying taxes
(c) Registering property
(d) Dealing with construction permits

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Answer –  (A)

Explanation

8. In India,’extended producer responsibility’ was introduced as an important feature in which of the following?
(a) The Bio-medical Waste (Management and Handling) Rules, 1998
(b) The Recycled plastic (Manufacturing and Usage) Rules, 1999
(c) The e-Waste (Management and Handling) Rules, 2011
(d) The Food Safety and Standard Regulations, 2011

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Answer –  (C)

Explanation

  • The E-Waste (Management & Handling) Rules 2011 introduced the concept of EPR for the first time in India. All producers of electronics like Phones, Computers, Washing Machines were responsible for setting up reverse logistics for collection of E-Waste and channelizing it to State Pollution Control Board authorized recyclers.
  • In March 2016, the E-Waste policy was amended with the new E-Waste (Management) Rules 2016 being notified by the Ministry of Environment Forest and Climate Change. The new rules set stringent targets for the producers to collect and recycle EOL products starting from 30% in the first two years and increasing to 70% by the seventh year while simplifying the process of applying for EPR Authorization.
  • Currently India has EPR policies for Electronic waste and Plastic packaging waste.
  • Thus, Option C is correct.

9. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
(a) transportation cost only
(b) interest cost only
(c) procurement incidentals and distribution cost
(d) procurement incidentals and charges for go downs

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Answer –  (C)

Explanation


Components of economic cost of foodgrains incurred by the Food Corporation of India Source: FCI Annual Reports (various issues)

10. In the context of any country, which one of the following would be considered as part of its social capital?
(a) The proportion of literates in the population
(b) The stock of its buildings, other infrastructure and machines
(c) The size of population in the working age group
(d) The level of mutual trust and harmony in the society

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Answer –  (D)

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Explanation

  • Social capital is defined by the OECD as “networks together with shared norms, values and understandings that facilitate co-operation within or among groups”. In this definition, we can think of networks as real-world links between groups or individuals. Think of networks of friends, family networks, networks of former colleagues, and so on. Our shared norms, values and understandings are less concrete than our social networks.

11. The Service Area Approach was implemented under the purview of
(a) Integrated Rural Programme
(b) Lead Bank Scheme
(c) Mahatma Gandhi National Rural Employment Guarantee Scheme
(d) National Skill Development Mission

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Answer –  (B)

Explanation

  • The Service Area Approach (SAA) was a scheme launched by the RBI in 1989 for an orderly development of the rural areas with the of the country. Under the SAA, all rural and semi-urban branches of banks were allocated specific villages, generally in geographical difficult areas, the overall development and the credit needs of which were to be taken care of by the respective branches. The concerned bank should meet the banking needs of the service area by creating link between bank credit- production and productivity and income expansion.

12. With reference to the management of minor minerals in India, consider the following statements:
1. Sand is a ‘minor mineral’ according to the prevailing law in the country.
2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is / are correct?
(a) 1 and 3 only
(b) 2 and 3 only
(e) 3 only
(d) 1, 2 and 3

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Answer –  (A)

Explanation

  • In India, the minerals are classified as minor minerals and major minerals.
  • According to section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957 “Minor Minerals” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral. (For the purposes of this Act, the word “minerals” includes all minerals except mineral oils- natural gas and petroleum)
  • The central government has the power to notify “minor minerals” under section 3 (e) of the MMDR Act, 1957.
  • On the other hand, as per Section 15 of the MMDR Act, 1957 State Governments have complete powers for making Rules for grant of concessions in respect of extraction of minor minerals and levy and collection of royalty on minor minerals.

13. Consider the following statements:
1. Most of India’s external debt is owed by governmental entities.
2. All of India’s external debt is denominated in US dollars.
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

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Answer –  (B)

Explanation

  • External debt is the money that borrowers in a country owe to foreign lenders. India’s external debt was $513.4 billion at the end of December 2017, an increase of 8.8% since March 2017. Most of it was owed by private businesses which borrowed at attractive rates from foreign lenders.
  • To be precise, 78.8% of the total external debt ($404.5 billion) was owed by non-governmental entities like private companies. The size of external commercial borrowings and foreign currency convertible bonds, which represents Indian companies’ foreign borrowings, has risen from Rs. 99,490 crore at the end of December 2015 to Rs 1,72,872 crore at the end of December 2017.
  • While external debt may be denominated in either the rupee or a foreign currency like the U.S. dollar, most of India’s external debt is linked to the dollar. This means Indian borrowers will have to pay back their lenders by first converting their rupees into dollars. As of December 2017, about 48% of India’s total external debt was denominated in dollars and 37.3% in rupees.

14. Which of the following is not included in the assets of a commercial bank in India?
(a) Advances
(b) Deposits
(c) Investments
(d) Money at call and short notice

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Answer –  (B)
Explanation
Deposits is a liability as this has to be returned back to the public. While all other are assets as it will generate income to the banks. 

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15. In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis?
1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below.
(a) 1 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3

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Answer –  (D)
Explanation

  • Foreign Exchange earnings of India’s IT Sector will bring the dollars in the country and thus, the currency risk
    is reduced.
  • Increasing the government expenditure will inject the demand into an economy which would have reduced
    because of currency risk.
  • Remittances from Indians abroad will also bring dollars into the country and thus, the currency risk will be
    reduced.

16. Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past?
(a) First Administrative Reforms Commission (1966)
(b) Rajamannar Committee (1969)
(c) Sarkaria Commission (1983)
(d) National Commission to Review the Working of the Constitution (2000)

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Answer –  (C)

Explanation

  • Sarkaria Commission – Recommendations related to office of Governor
  • The Governor should be eminent in some walk of life and from outside the state. He should be a detached figure without intense political links or should not have taken part in politics in recent past. Besides, he should not be a member of the ruling party.
  • He should be appointed after effective consultations with the state Chief Minister and Vice President and Speaker of the Lok Sabha should be consulted by the PM before his selection.
  • As far as possible, the governor should enjoy the term of five years.
  • He should be removed before his tenure only on the grounds as mentioned in the constitution or if aspersions are cast on his morality, dignity, constitutional propriety, etc.
  • In the process of removal, state government may be informed and consulted.
  • Thus, Option C is correct

17. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
(a) Certificate of Deposit
(b) Commercial Paper
(c) Promissory Note
(d) Participatory Note

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Answer –  (D)

Explanation

Participatory Notes (P-Notes) are instruments used by foreign funds and investors not registered with the SEBI to invest in Indian securities. They are generally issued overseas by associates of India based foreign brokerages (FPIs) and domestic institutional investors.

18. Consider the following statements
1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.
2. People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.
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

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Answer –  (A)

19. In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?
1. Ad Hoc Committees set up by the Parliament
2. Parliamentary Department Related Standing Committees
3. Finance Commission
4. Financial Sector Legislative Reforms Commission
5. NITI Aayog
Select the correct answer using the code given below.
(a) 1 and 2
(b) 1, 3 and 4
(c) 3, 4 and 5
(d) 2 and 5

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Answer –  (A)

Explanation

Finance Commission, FSLRC and NITI Aayog don’t review the independent regulators in the field of insurance, telecommunications, insurance, electricity etc.

20. With reference to India’s Five-Year Plans, which of the following statements is/are correct?
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3

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Answer –  (A)

Explanation

The financial sector was included in the Eight Five Year Plan from after the economic reforms in 1991.

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