Question :

Recently, “Beggar thy Neighbour” policy is sometimes seen in the news, what does the term “Beggar thy Neighbour” means?

A. Line of credit given to Underdeveloped Economies.

B. Soft loan given to Developing Economies by Financial Institutions.

C. “Debt Trap” mechanism practised by the loan giving country which finally intends to capture the important installations of that country.

D. Steps taken in such a manner that hurts your neighbouring countries economically.

Answer : D

Explanation :

• “Beggar thy neighbor” is a term for policies that a country enacts to address its economic woes that, in turn, actually worsens the economic problems of other countries. The term comes from the policy's impact, as it makes a beggar out of neighboring countries.
• Beggar thy neighbor policies came about, originally, as a policy solution to domestic depression and high unemployment rates. The basic idea is to increase the demand for a nation's exports, while reducing reliance on imports.
Example: Countries go for some type of trade barriers or competitive devaluation to boost their exports.

Is it important for prelims?
Answer to this is ‘Yes’. Recent steps taken by the “Trump Administration” has brought this term in to discussion, so it becomes important from our Prelims point of view.

Question :

Consider the following statements:

1. It was at this Red Fort where Bahadur Shah Zafar was declared as the leader of 1857 revolt.
2. Subhash Chandra Bose was the editor of “New India” (weekly) and ‘Mooknayak’.
3. To defend Guru Baksh Singh Dhillon, Prem Sahgal and Shah Nawaz, J. L. Nehru under Bhullabhai Desai defended them which is also called as Red Fort Trial.

Choose the correct statement/s from the codes given below:

A. 1 only

B. 2 & 3 only

C. 1, 2, 3

D. 1 & 3 only

Answer : D

Explanation :

• At the Red Fort, last Mughal Emperor Bahdur Shah Zafar was made the leader of 1857 revolt. After the defeat of Japan in 2nd World War, INA soldiers were captured and they were tried at Red Fort - which is also called as ‘Red Fort Trial’.
• Lawyers under Bhullabhai Desai defended them. Hence, statement 1 & 3 are correct.
• Subhash Chandra Bose was the editor of “Forward” a weekly paper started by Chittaranjan Das and he started a newspaper “Swaraj”.
• Mooknayak was of Dr. B. R. Ambedkar and weekly ‘New India’ was by Bipin Chandra Pal. Hence, statement 2 is wrong.

Why the question?
21st October 2018 marked the 75th anniversary of “Azad Hind Government”, so we have framed the question related to role of Subhash Chandra Bose in India’s freedom struggle.

Question :

ओर्ट क्लाउड के संदर्भ में निम्नलिखित कथनों पर विचार करें:

1. "ओर्ट क्लाउड" वास्तव में बर्फीले वस्तु का एक विस्तृत आवरण है जो मंगल और बृहस्पति ग्रह की कक्षा के बीच मौजूद है।
2. "ओर्ट क्लाउड" साधारणतया गोलाकार होता है और इसे पृथ्वी की ओर आने वाले अधिकांश दीर्घकालिक धूमकेतु की उत्पत्ति माना जाता है।

नीचे दिए गए कूट का प्रयोग कर सही उत्तर का चयन करें:

A. केवल 1

B. केवल 2

C. 1 और 2 दोनों

D. न तो 1 और न ही 2

Answer : B

Explanation :

"ओर्ट क्लाउड" बर्फीली वस्तुओं का एक विस्तृत आवरण है जो सौर मंडल के बाहरी भाग(कुइपर बेल्ट से बहुत दूर) तक है । इसका नाम खगोल विज्ञानी जन ओर्ट के नाम पर रखा गया है, जिन्होंने सबसे पहले इसके अस्तित्व के बारे में बतलाया था। ओर्ट क्लाउड साधारणतया गोलाकार होता है और इसे पृथ्वी की ओर आने वाले अधिकांश दीर्घकालिक धूमकेतु की उत्पत्ति माना जाता है।
"ओर्ट क्लाउड" के बारे में अध्ययन करना क्यों महत्वपूर्ण है?
ओर्ट क्लाउड धूमकेतु नाभिक का एक भंडार है जिसके संग्रहित बर्फ में सौर मंडल की उत्पत्ति की जानकारी है। तो इसके बारे में जानकारी प्राप्त करने से सौर मंडल का अध्ययन और अधिक स्पष्ट हो जायेगा।
इस पर प्रश्न क्यों?
हाल ही में, वैज्ञानिकों ने एक बौना ग्रह "द गोब्लिन" को खोजा है, जो "इनर ओर्ट क्लाउड" का एक हिस्सा है।

Question :

Consider the following statements about Indian National Army (INA):

1. INA had two headquarters one at Rangoon and other was at Singapore.
2. Subhash Chandra Bose conceived the idea of INA, when he was there in Japan.
3. There were INA Brigades named after Gandhiji, Nehru, Subhash Chandra Bose, etc.

Choose the correct statement/s from the codes given below:

A. 1 & 2 only

B. 3 only

C. 1, 2, 3

D. 1 & 3 only

Answer : D

Explanation :

The idea of INA was conceived by Mohan Singh, when he decided not to join the retreating British Army and instead went to the Japan Army for the help. Hence, statement 2 is wrong. INA had two headquarters one at Burma/Rangoon and other at Singapore. The Brigades of INA were named after Rani Laxmi Bai, Gandhiji, Nehru and even Subhash Chandra Bose (He was reluctant to name the Brigade after him, but he succumbed under the pressure from the cadets.)

Why the Question on INA?

21st October 2018 will mark the 75th Anniversary of “Azad Hind” Government. Hence, we urge the student to focus on role of Subhash Chandra Bose in India’s freedom struggle for Prelims.

Some Related Information

The Azad Hind Government, founded on 21st October, 1943 was inspired by Netaji Subhash Chandra Bose who was the leader of Azad Hind Government and also the Head of State of this Provisional Indian Government-in-exile. It was a part of the freedom movement, originating in 1940s outside India with a purpose of allying with Axis powers to free India from British Rule.

Question :

Which of the following is the best description of the form of GST that has been implemented in India?

A. One Nation, One Tax

B. Comprehensive tax regime that is levied on all Goods & Services.

C. Unified tax regime that has clubbed all (with few exceptions) Direct & Indirect Tax.

D. A comprehensive Indirect Tax regime with Input Tax Credit facility available in the value chain.

Answer : D

Explanation :

GST is a destination based tax which is comprehensive in nature but is not levied on all Goods & Services. Items of daily usage have been kept out of its ambit (i.e. Zero tax slab). Hence, statement (b) is wrong. GST is a comprehensive tax that amalgamates the Indirect Tax not the Direct Tax; hence statement (c) is wrong. The main criticism of the GST of India is that, it defied the main motto of the GST i.e. “One Nation, One Tax” by having different tax slabs. Hence, statement (a) is also wrong.

GST is a comprehensive Indirect Tax regime with Input Tax Credit facility available in the value chain. So, it takes care of the cascading effect of taxes. Hence, the correct statement is (d).

Question :

Recently, “Chandra X-ray Observatory (CXO)” is in news. Consider the following statements on CXO:

1. It is an Earth based Observatory that was named after Indian-American Astrophysicist Subrhamanyan Chandrashekhar.
2. It was a joint project of NASA and ISRO.
3. Its main function is to observe how solar plasma affects the Earth’s climatic conditions.

Choose the correct statement/s from the codes given below:

A. 1 & 2 only

B. 2 & 3 only

C. 1, 2, 3

D. None of these

Answer : D

Explanation :

The Chandra X-ray Observatory was earlier called as “Advanced X-ray Astrophysics Facility (AXAF) that was launched in 1999 by NASA to study the black holes, supernovas and other sources of high energy phenomenon. Hence, statement 2 and 3 are incorrect. This observatory is a space based observatory rather than Earth based observatory.
What is the benefit of space based observatory compared to Earth based observatory?
The problem with the Earth based observatory is that Earth’s Atmosphere absorbs a vast majority of X-rays, thus it does not give us a clear picture of the Space phenomenon. So, space based observatory is preferred.
Why the question on this?
In the quiz dated 14th October, we have already highlighted that CXO went into the “Safe MODE” due to failure of its Gyroscope, but it has started functioning again. So, it became relevant from our Prelims point of view.
Note: Please read the usage of “Gyroscope” in satellites in the Quiz dated 14th October (Q.No-3)

Question :

"अंतर्राष्ट्रीय आतंकवाद पर एक व्यापक अभिसमय" (सीसीआईटी) के सम्बंध में निम्नलिखित कथनों पर विचार करें:

1. यह 1996 में भारत द्वारा प्रस्तावित एक मसौदा था, जिसे इस बार संयुक्त राष्ट्र महासभा (यूएनजीए) द्वारा स्वीकार कर लिया गया है।
2. यह अच्छे आतंकवाद और बुरे आतंकवाद के बीच स्पष्ट रूप से अंतर करता है।
3. इस बार अमेरिका और उसके सहयोगियों द्वारा सीसीआईटी का समर्थन किया गया है।

नीचे दिए गए कूट से सही कथन का चयन करें:

A. केवल 1 और 2

B. केवल 2 और 3

C. 1, 2 और 3

D. उपरोक्त में से कोई नहीं

Answer : D

Explanation :

"अंतर्राष्ट्रीय आतंकवाद पर एक व्यापक अभिसमय" (सीसीआईटी) को 1996 में भारत द्वारा प्रस्तावित किया गया था। दो दशकों के बाद भी, संयुक्त राष्ट्र महासभा द्वारा इसे पारित नहीं किया गया है। यह मसौदा स्पष्ट रूप से अच्छे आतंकवाद और बुरे आतंकवाद के बीच अंतर नहीं करता और साथ ही अमेरिका और उसके सहयोगियों- इस्लामी सहयोग संगठन (ओआईसी) और लैटिन अमेरिकी देशों द्वारा सीसीआईटी का विरोध किया गया है।

प्रारंभिक परीक्षा के लिए यह प्रश्न इतना महत्वपूर्ण क्यों है?
संयुक्त राष्ट्र महासभा में, हमारे विदेश मंत्री ने फिर से "आतंकवाद" को स्पष्ट शब्दों में परिभाषित करने की मांग उठाई, ताकि उचित समन्वय के साथ इसे प्रभावी ढंग से निपटाया जा सके। अतः इसकी महत्ता को देखते हुए हमने छात्रों का ध्यान इसके विस्तृत स्वरूप की आकृष्ट करने का प्रयास किया है।

Question :

The cause of pollution in Delhi is attributed to crop burning in neighbouring states and wind movement. Consider the following statements vis-à-vis pollution in Delhi:

1. The change in the wind direction from Northwesterly to Easterlies coincides with the burning season of crops and hence brings the particulate matter from states like Punjab and Haryana to Delhi.
2. Delhi already has high base pollution compared to neighbouring states.

Choose the correct statement/s from the codes given below:

A. Only 1

B. Only 2

C. Both 1 & 2

D. Neither 1 nor 2

Answer : B

Explanation :

• To understand the concept, students need to keep the Latitude of Delhi in mind (It is at approximately 28 degree North), which is slightly above the Tropic of Cancer.
• As the Monsoon and Easterly winds start to withdraw by the end of September, winds blowing in from the North-west direction become prevalent again. The change in (wind) direction from Easterly to North-westerly (Due to shift in the pressure belt during winters and withdrawal of Monsoon) coincides with the crop-burning season. And, it is this wind that brings the particulate matter from the neighbouring states to Delhi adding to the worries.
• If a student sees the option, he can easily eliminate the 1st statement as it says that during that crop burning season wind is Easterlies, how it can bring the particulate matter from Punjab or Haryana (They are not located to the East of Delhi). So, with simple knowledge of the location of the city, student could have arrived at the right answer.
• Compared to other neighbouring states, Delhi already has high Base pollution due to vehicular emissions, etc. So, only correct statement is 2.

Question :

निम्नलिखित कथनों पर विचार करें:

1. "सांप्रदायिक अधिनिर्णय" में न केवल सिखों, एंग्लो-इंडियंस इत्यादि के लिए पृथक निर्वाचक मंडल की घोषणा की गई, बल्कि इसमें दलित वर्ग भी शामिल थे।
2. "पूना संधि" ने संयुक्त हिंदू निर्वाचक मंडल को बरकरार रखा लेकिन दलित वर्ग के लिए आरक्षित सीटों को रद्द कर दिया।
3. पूना संधि के सभी प्रावधानों को वेवेल योजना में शामिल किया गया था।

नीचे दिए गए कूट से सही कथन का चयन करें:

A. केवल 1

B. केवल 1 और 2

C. 1, 2, 3

D. केवल 3

Answer : A

Explanation :

ब्रिटिश प्रधानमंत्री रैमसे मैकडोनाल्ड ने ब्रिटिश भारत में सिखों, एंग्लो-इंडियंस, ईसाई इत्यादि के अलावा दलित वर्ग के लिए पृथक निर्वाचक मंडल की व्यवस्था प्रदान करने के लिए इसकी घोषणा की, जिसे "सांप्रदायिक अधिनिर्णय" / मैकडॉनल्ड्स पुरस्कार के रूप में जाना जाने लगा। मैकडॉनल्ड्स के इरादे को देखते हुए गांधीजी येरवदा जेल (पुणे) में उपवास पर बैठे जिससे उनकी स्वास्थ्य स्थिति बिगड़ गई। मद्रास के दलित नेता एम. सी. राजा और पंडित मदन मोहन मालवीय ने अम्बेडकर को गांधीजी के साथ एक समझौते पर हस्ताक्षर करने के लिए आश्वस्त किया जिसे "पूना संधि" के रूप में जाना जाने लगा।

पूना संधि की मुख्य विशेषताएं:
• दलित वर्ग के लिए पृथक निर्वाचक मंडल को संयुक्त निर्वाचक मंडल के साथ बदल दिया गया।
• मैकडॉनल्ड्स द्वारा आवंटित 71 सीटों के बदले, गांधीजी ने प्रांतीय विधानमंडल में दलित वर्ग के लिए 148 सीटें प्रदान कीं।
• केंद्रीय विधान सभा में कुल सीटों में से 18% दलित वर्ग के लिए आरक्षित थी।
समझौते के प्रावधान भारत सरकार अधिनियम, 1935 में शामिल किए गए थे। इसलिए, कथन 3 गलत है।

Question :

Consider the following statements about “Commercial Paper (CP)”:

1. It is a secured market instrument, whose maturity varies from 7days to 1 year.
2. CPs can be issued by Corporates, Primary Dealers and Financial Institutions.
3. Eligible participant must have A2 rating at the time of issuance.

Choose the correct statement/s from the codes given below:

A. 1 & 2 only

B. 2 & 3 only

C. 1, 2, 3

D. 2 only

Answer : B

Explanation :

CPs is the unsecured money market instruments issued in the form of Promissory Note. It is a short term instrument whose maturity varies from 7days to 1 year. Hence, statement 1 stands incorrect (Our intention is to emphasise that CPs are Unsecured Loans). CPs can be issued by Corporates, Primary Dealers and Financial Institutions. Eligible participant must have A2 rating at the time of issuance. Hence, statements 2 and 3 are correct.

Who can participate in CPs?
Banking companies, Mutual funds, other corporate bodies, FII, and NRIs can participate in CPs.
How CPs is related to IL & FS crisis?
If we look at the business model of IL&FS, we will find that they used to fund the projects which were of long term (15-20 years), so to fund those projects it used to borrow the money for 8-10 years, but three years back Banks stopped the refinancing of those funds and it turned towards CPs to meet the liquidity shortage, and from here the problem began, as the maturity period of these money market instruments was less than 1 year and IL&FS was having liquidity crunch, so it started defaulting on the payment and from here the small “Geyser” took the form of “Volcano”.
Note: Students need to understand that IL&FS per se has not done fraud as their loans amount to Rs 90,000 crores, but they do have asset of Rs 1.15 lakh crore, so this asset can be liquidated (as maximum of them are good assets). So, on broader sense, IL&FS crisis is the result of poor governance. This type of argument can be used in Mains answer writing.