August 27-2024 Prelims Practice Questions (PPQs)

Correct

Explanation

Option (b) is correct

• The RBI has joined Project Nexus, a multilateral international initiative to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems (FPSs).
• However, despite technological advances, cross-border payments remain riddled with inefficiencies that hinder financial inclusion and economic growth.
• Key Challenges in Cross-Border Payments:
  • Regulatory and Compliance Costs due to diverse legal frameworks across jurisdictions. E.g. Discrepancies in anti-money laundering and counter-terrorist financing measures of FATF.
  • Privacy and Data Protection: Varying standards for data sharing and privacy can complicate compliance with regulations. GDPR in Europe imposes strict data protection rules, affecting cross-border data flows.
  • High Costs and Low Speed due to multiple intermediary banks. Financial Stability Board (FSB) Report – Cross-border payments often involve 1 to 3 intermediary banks.
  • Limited Access to cross-border payment systems in developing regions. 40% of countries have implemented some form of cross-border payment system. (World Bank)
  • Insufficient Transparency: Approximately 40% of cross-border payment users reported being unaware of the total cost due to hidden fees and complex pricing structures. (World Bank)
• Innovative Solutions for Cross-Border Payments:
  • Linking Fast Payment Systems (FPS): Connecting national payment systems to enable real-time cross-border transactions. UPI-PayNow linkage between India and Singapore.
  • Central Bank Digital Currency (CBDC) Projects: National digital currencies designed for cross-border payments. China’s Digital Yuan project includes cross-border payment features with selected countries.
  • Distributed Ledger Technology (DLT): Using blockchain for secure, transparent, and efficient cross-border transactions. Ripple’s XRP ledger enables real-time global payments with low transaction costs.

Answer: (b) A multilateral international initiative to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems (FPSs); Difficulty Level: Medium

Correct

Explanation

Statement 1 is incorrect

• The CBI conducted polygraph tests in the Kolkata doctor rape-murder case.
• A polygraph, or a lie detector test, is a device or procedure that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while a person is asked and answers a series of questions.
• This test is based on the concept that physiological responses when a person is lying are distinct from those when they are telling the truth.
• It is not completely accurate as it depends on the analysis and assumptions of the polygraph operator.
• According to the Indian Evidence Act, 1872, polygraph test results are not considered conclusive evidence, but they can be used as corroborative evidence to support other evidence.

Statement 2 is incorrect

• NHRC guidelines mandate that polygraph tests require the accused’s voluntary, informed, and recorded consent, with proper documentation.
• Additionally, statements from these tests are not considered confessions, and judges must consider factors such as detention duration and interrogation techniques when assessing the test results.
• Selvi vs State of Karnataka Case 2010: The SC ruled that involuntary narco/lie detector tests breach an individual’s mental privacy & violate the right against self-incrimination under Article 20(3) of IC.
• Article 20(3) states that “No person accused of any offence shall be compelled to be a witness against himself.

Answer: (c) Both 1 and 2; Difficulty Level: Medium

Correct

Explanation

All statements are correct

• The Union Cabinet, chaired by the Prime Minister approved the Department of Biotechnology’s proposal ‘BioE3 (Biotechnology for Economy, Environment and Employment) policy for fostering high performance biomanufacturing.
• High performance biomanufacturing is the ability to produce products from medicine to materials, address farming and food challenges, and promote manufacturing of bio-based products through integration of advanced biotechnological processes.
• BioE3 Policy aims to catalyse a technological revolution by developing products ranging from medicines to sustainable materials using advanced biotechnological processes.
• The six thematic verticals of the policy are:
  • High-value bio-based chemicals, biopolymers, and enzymes: Substances created using biological processes that have various industrial applications.
  • Functional foods and smart proteins: Create healthier and more sustainable food options.
  • Precision biotherapeutics: Development of advanced medicines tailored to individual needs.
  • Climate-resilient agriculture: Enhance agricultural practices to adapt to climate change.
  • Carbon capture and utilization: Methods to reduce greenhouse gases and repurpose them.
  • Futuristic marine and space research: Advance exploration and technological innovations.

Answer: (d) 1, 2, 3, 4 and 5; Difficulty Level: Hard

Correct

Explanation

Option (c) is correct

• The Humpback Whale (IUCN: LC) (Megaptera novaeangliae) is a species of baleen whale, named after the distinctive hump in front of its small dorsal fin.
• They filter-feed on krill, anchovies, cod, sardines, mackerel, capelin, and other schooling fish using baleen plates and also create “bubble nets” to catch their prey.
• They share complex songs with whales to attract females or serve as territorial markers.
• They migrate seasonally between high-latitude feeding grounds in the summer and low-latitude breeding grounds in the winter.
• Recently, researchers found that humpback whales can manipulate bubble-nets to catch up to seven times more food in one dive, showing advanced skills and intelligence.

Source: WDC

Answer: (c) Humpback Whale; Difficulty Level: Medium

Correct

Explanation

Option (c) is correct

• Nangarni Spardha is a centuries-old traditional oxen race held in various villages of Maharashtra annually at the peak of the rainy season by a village committee.
• The soft muddy ground during the rainy season prevents serious injury to the drivers, who compete in bare feet and without protective gear.
• The oxen are no longer used for ploughing the fields but are kept strictly for competition. Their horns are brightly painted and their bodies are sprinkled with colored powder before the race.
• The race is held in a horseshoe-shaped track where the driver must hold onto the reins while controlling the oxen’s speed by pulling and twisting their tails. If he drops the reins, his team will be disqualified.

Answer: (c) Nangarni Spardha; Difficulty Level: Medium

Correct

Explanation

Statement 1 is incorrect, and Statement 2 is correct

• Tanager-1, a satellite developed by a coalition of companies and organizations, including NASA’s Jet Propulsion Laboratory, was launched aboard a SpaceX Falcon 9 rocket.
• Notably, the launch has come just months after MethaneSAT launched in March and is capable of monitoring emissions across 130,000 square kilometers per day.
• It will use imaging spectrometer technology to track methane and carbon dioxide emissions by identifying the plume of gases and measuring hundreds of wavelengths of light that are reflected by the earth’s surface.
• Different compounds in the planet’s atmosphere including methane and carbon dioxide absorb different wavelengths of light, leaving spectral “fingerprints” that the imaging spectrometer can identify.
• These infrared fingerprints can potentially accelerate the mitigation efforts by enabling researchers to pinpoint and quantify strong greenhouse gas emissions.

Answer: (b) 2 only; Difficulty Level: Medium