1. Consider the following statements:

1. Under subsurface irrigation, water is applied below the ground surface by maintaining an artificial water table at some depth.

2. In case of agriculture lands with slopes that exceed safe limit or if fields are undulating and leveling is not feasible, straight border strip method of irrigation is suitable.

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 (a)

Explanation :

Border Strip Method :

• If the borders are constructed along the general slope of the field, they are known as straight borders or slope borders and if they are constructed across the general slope of the field they are called contour borders.

• When fields can be leveled to desirable land slopes economically and without affecting its productivity, graded borders or straight borders are easier to construct and operate.

• In case where land slope exceeds safe limit, fields are undulating and leveling is not feasible, borders may be laid across the slope ie. contour borders. Thus statement 2 is wrong.

Subsurface Irrigation:

• In this method of irrigation water is applied below the ground surface by maintaining an artificial water table at some depth depending upon the soil texture and the depth of the plant roots.

2. Consider the following statements:

1. Indian Rupee is a currency having full convertibility.

2. Full convertibility means the currency is convertible in both current account and capital account.

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 (b) :

Explanation :

• Indian Rupee is only partially convertible. It is convertible only in terms of the Current Account.

3. In the context of which of the following do you sometimes find the term ‘seigniorage’ in the news?

(a) Minting of currency

(b) Filing a case against a member in the WTO

(c) Demonetisation

(d) Default of the financial institutions

Answer (a) :

Explanation :

• Seigniorage refers to the profits governments make by minting currency. It is the difference between the face value of a currency note or coin, and its actual production cost. For instance, if the cost of printing a ₹2,000-note is about ₹4, printing one such note and putting it into circulation fetches a profit of ₹1,996. Usually central banks ‘earn’ this profit and transfer it to the Government.

4. The Minimum Support Price for the Minor Forest Produce is announced by

(a) Ministry of Tribal Affairs

(b) TRIFED

(c) Cabinet committee on Economic Affairs

(d) State Agricultural Produce Marketing Committees

Answer (a) :

Explanation :

• Under the scheme "Mechanism for Marketing of Minor Forest Produce through Minimum Support Price and development of Value chain for MFP", Minimum Support Price (MSP) has been fixed for select Minor Forest Produce (MFP).

• The scheme envisages fixation of Minimum Support Price for the selected MFPs based on the suggestions/ input received from TRIFED and declaration of MSP for selected MFPs by the Ministry of Tribal Affairs. Procurement & Marketing operation at pre fixed MSP will be undertaken by the designated State Agencies.

• From November 2016, the scheme is applicable in all States. Generally, the Minimum Support Price for crops are announced by the Government on the basis of the recommendations of Commission for Agricultural Costs and Prices (CACP) and is approved by Cabinet Committee on Economic Affairs (CCEA).

5. Consider the following components of India’s forex reserves.

1. Foreign Currency Assets

2. Gold holdings of RBI

3. Special Drawing Rights

4. Reserve Tranche position in IMF

The correct sequence of these assets in the increasing order of their share in forex reserves

(a) 1-4-3-2

(b) 3-4-2-1

(c) 2-3-1-4

(d) 4-1-3-2

Answer (b) :

Explanation :

• As on November 10, 2017, the composition of forex reserves were: foreign currency assets at $374.8 billion, gold reserves at $20.66 billion, SDRs of $ 1.48 billion and $2.26 billion reserves in IMF.

• Therefore, the assets in increasing order: Special Drawing Rights < Reserve Tranche position in IMF < Gold holdings of RBI < Foreign Currency Assets.