GA 7.0

Front

Question:

Which of the following Mauryan inscriptions is NOT located in present-day India?

(a) Kandahar
(b) Girnar
(c) Kalsi
(d) Maski

Back

✔ A. Kandahar

Explanation:

The Mauryan inscription at Kandahar is located in present-day Afghanistan, not in India. It is one of Ashoka’s bilingual edicts (written in Greek and Aramaic), reflecting the influence of Hellenistic culture in the region.

Additional Important Information:

✔ Girnar Inscription (Gujarat): Found in Junagadh Rock Inscription, it mentions the Sudarshan Lake, which was first constructed by Pushyagupta (Mauryan governor under Chandragupta Maurya) and later repaired by Rudradaman I (Shaka ruler) and Skandagupta (Gupta ruler).

✔ Kalsi Inscription (Uttarakhand): Located in Kalsi, Uttarakhand, it is the only Ashokan rock edict in North India, written in Prakrit (Brahmi script).

✔ Maski Inscription (Karnataka): Important because it was the first edict where Ashoka used his name (Devanampriya Ashoka) instead of just "Devanampriya".

✔ Sudarshan Lake:

• Initially constructed by Pushyagupta (Mauryan Governor).

• Later repaired by Rudradaman I (Shaka ruler) and again by Skandagupta (Gupta ruler).

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Related SSC PYQs:

1. Which Ashokan inscription first mentioned his name as ‘Devanampriya Ashoka’?
   ➤ Maski Inscription (SSC CGL 2019)

2. In which script are most of Ashoka’s inscriptions written?
   ➤ Brahmi script (SSC CHSL 2017)

3. Which Mauryan emperor sent his missionaries to Sri Lanka?
   ➤ Ashoka (SSC CPO 2021)

4. What was the language of Ashoka’s Kandahar Inscription?
   ➤ Greek and Aramaic (SSC CGL 2020)

5. Which edict of Ashoka mentions the Dhamma Mahamatras?
   ➤ Rock Edict XIII (SSC MTS 2018)

6. Who constructed the Sudarshan Lake during the Mauryan period?
   ➤ Pushyagupta (Mauryan Governor under Chandragupta Maurya) (SSC CGL 2022)

7. Which ruler repaired the Sudarshan Lake in the 2nd century AD?
   ➤ Rudradaman I (Shaka ruler) (SSC CGL 2018)

8. Who was the last significant Gupta ruler mentioned in the Junagadh Rock Inscription?
   ➤ Skandagupta (SSC CHSL 2019)

Front

Question:

Which Gupta ruler was known for defeating the Sakas in western regions, assuming the title of 'Vikramaditya'?

(a) Kumaragupta I
(b) Samudragupta
(c) Chandragupta I
(d) Chandragupta II

Back

✔ D. Chandragupta II

Explanation:

Chandragupta II, also known as Chandragupta Vikramaditya, was one of the most powerful rulers of the Gupta Empire. He is credited with defeating the Western Kshatrapas (Sakas) and annexing their territories, marking the decline of Saka rule in India. His conquest led to the defeat of Rudrasimha III, the last ruler of the Western Kshatrapas.

Additional Important Information:

✔ Prabhavati Gupta – Chandragupta II married his daughter, Prabhavati Gupta, to Rudrasena II, the ruler of the Vakataka dynasty. This matrimonial alliance strengthened his position in the Deccan region.
✔ Rudrasena II – He was a Vakataka ruler and the husband of Prabhavati Gupta. His early death allowed Chandragupta II to exert indirect control over the Vakataka kingdom.
✔ Prashasti (Eulogy) – His victories were recorded in the Mehrauli Iron Pillar Inscription.
✔ Udayagiri Caves – These caves, located in present-day Madhya Pradesh, contain rock-cut sculptures and inscriptions related to Chandragupta II’s rule. The caves depict Hindu deities, including Vishnu’s Varaha Avatar, symbolizing Gupta-era patronage of Hinduism.
✔ Maharajadhiraja – A prestigious title used by Gupta emperors, including Chandragupta II.
✔ Nalanda University – Though it reached its peak later, the foundation of its prominence was laid during the Gupta period.

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Related SSC PYQs:

1. Who was the first Gupta ruler to assume the title of ‘Maharajadhiraja’?
   ➤ Chandragupta I (SSC CGL 2020)

2. Which inscription mentions the victories of Chandragupta II over the Sakas?
   ➤ Mehrauli Iron Pillar Inscription (SSC CHSL 2019)

3. Who was the last ruler of the Western Kshatrapas defeated by Chandragupta II?
   ➤ Rudrasimha III (SSC CPO 2021)

4. Which Gupta princess was married into the Vakataka dynasty?
   ➤ Prabhavati Gupta (SSC CGL 2018)

5. Which cave complex is associated with Chandragupta II?
   ➤ Udayagiri Caves (SSC CHSL 2022)

6. During whose reign did Nalanda University flourish?
   ➤ Kumaragupta I (SSC MTS 2018)

7. Who was the successor of Chandragupta II?
   ➤ Kumaragupta I (SSC CGL 2017)

8. What was the capital of the Gupta Empire?
   ➤ Pataliputra (SSC CHSL 2020)

9. Which Gupta ruler started the practice of land grants to Brahmins?
   ➤ Skandagupta (SSC CGL 2021)

Front

Question: (SSC CGL 2020)

The ‘Hemis Festival’ is celebrated in Ladakh on the 10th day of the Tibetan Lunar month. To which of the following lords is the festival dedicated?

1. Lord Vishnu

2. Lord Shiva

3. Lord Padmasambhava

4. Lord Ganesha

Back

Correct Answer: Lord Padmasambhava

Explanation:

The Hemis Festival is one of the most significant festivals of Ladakh, celebrated in honor of Guru Padmasambhava (Guru Rinpoche), the founder of Tibetan Buddhism. It is organized at Hemis Monastery, the largest and richest monastery in Ladakh, where monks perform the traditional Cham Dance wearing colorful masks to depict the victory of good over evil.

Additional Important Information:

🔹 About Guru Padmasambhava:

• He is believed to have introduced Vajrayana Buddhism in Tibet.

• He is regarded as the "Second Buddha" in Tibetan Buddhism.

🔹 About Hemis Festival:

• Celebrated once every 12 years in a grand manner with the unfurling of a large Thangka (Buddhist religious painting).

• The festival follows the Tibetan Lunar Calendar and usually falls in June or July.

🔹 About Hemis Monastery:

• It was established in 1672 AD by King Sengge Namgyal.

• It belongs to the Drukpa lineage of Tibetan Buddhism.

• The monastery houses a rich collection of ancient Buddhist relics, paintings, and scriptures.

🔹 Significance of Cham Dance:

• Performed by monks in elaborate costumes and masks.

• Symbolizes the victory of virtue over vice.

• It is an essential part of Tantric Buddhism.

🔹 Ladakh's Other Famous Festivals:

• Losar Festival – Tibetan New Year celebration.

• Ladakh Festival – Showcases traditional music and dance.

• Sindhu Darshan Festival – Celebrates the Indus River and cultural harmony.

Related SSC PYQs:

1. Which monastery hosts the famous Hemis Festival?
   ➤ Answer: Hemis Monastery

2. Which Tibetan Buddhist master is considered the founder of Vajrayana Buddhism?
   ➤ Answer: Guru Padmasambhava

3. In which Indian Union Territory is the Hemis Monastery located?
   ➤ Answer: Ladakh

4. The famous ‘Cham Dance’ is performed during which Buddhist festival?
   ➤ Answer: Hemis Festival

5. What is the significance of the Thangka painting unfurled during the Hemis Festival?
   ➤ Answer: It depicts Buddhist deities and is believed to bring blessings.

6. Which king played a key role in the establishment of the Hemis Monastery?
   ➤ Answer: Sengge Namgyal

7. The Sindhu Darshan Festival is celebrated on the banks of which river?
   ➤ Answer: Indus River

8. Which Himalayan region celebrates the Losar Festival?
   ➤ Answer: Ladakh

9. The Drukpa lineage of Tibetan Buddhism is associated with which monastery?
   ➤ Answer: Hemis Monastery

10. Which dance form is commonly associated with Tibetan Buddhist monks?
    ➤ Answer: Cham Dance

Front

Question:

Which phenomenon deals with the scattering of light by molecules of a medium when they are excited to vibrational energy levels?

1. Huygens Effect

2. Maxwell Effect

3. Raman Effect

4. Rayleigh Effect

Back

Correct Answer: Raman Effect

Explanation:

The Raman Effect, discovered by C.V. Raman in 1928, refers to the inelastic scattering of light by molecules in a medium. When light interacts with a molecule, a part of it gets scattered with a shift in frequency due to the change in vibrational or rotational energy levels of the molecule. This shift in wavelength is known as Raman Scattering and is used extensively in spectroscopy for material identification.

Additional Important Information:

🔹 About the Discovery of the Raman Effect:

• Discovered by Sir C.V. Raman on 28th February 1928 (celebrated as National Science Day in India).

• He was awarded the Nobel Prize in Physics in 1930, making him the first Asian to win a Nobel Prize in Science.

🔹 Practical Applications of the Raman Effect:

• Raman Spectroscopy is used in chemical and biological analysis.

🔹 Other Important Light Scattering Phenomena:

• Rayleigh Effect: Explains why the sky appears blue and sunsets appear red.

• Tyndall Effect: Scattering of light by colloidal particles, making beams of light visible in dusty rooms.

• Compton Effect: Scattering of X-rays by electrons, leading to a change in wavelength.

Related SSC PYQs:

1. Who discovered the Raman Effect?
   ➤ Answer: C.V. Raman

2. Which Indian physicist won the Nobel Prize for the discovery of the Raman Effect?
   ➤ Answer: C.V. Raman

3. Which optical phenomenon explains why the sky appears blue?
   ➤ Answer: Rayleigh Scattering

4. Which phenomenon is responsible for the change in frequency of scattered light due to molecular vibrations?
   ➤ Answer: Raman Effect

5. What is the main principle behind Raman Spectroscopy?
   ➤ Answer: Inelastic scattering of light

6. Which date is celebrated as National Science Day in India?
   ➤ Answer: 28th February

7. What type of scattering is responsible for the red color of the setting sun?
   ➤ Answer: Rayleigh Scattering

8. Which effect is used in forensic science for the detection of substances?
   ➤ Answer: Raman Effect

9. Who was the first Indian scientist to win a Nobel Prize in Physics?
   ➤ Answer: C.V. Raman

10. Which phenomenon occurs when X-rays are scattered by electrons, causing a change in wavelength?
    ➤ Answer: Compton Effect

4o

Front

Question:

Which of the following Articles of the Constitution of India states that there would be no tax levied or collected EXCEPT by the authority of law?

1. Article 107

2. Article 123

3. Article 265

4. Article 301

Back

Correct Answer: Article 265

Explanation:

According to Article 265 of the Indian Constitution,
"No tax shall be levied or collected except by the authority of law."
This means that no government (Union or State) can impose or collect any tax without a legal provision or statute enacted by the legislature. This article ensures fiscal discipline and prevents arbitrary taxation.

Additional Important Information:

🔹 Key Points About Article 265:

• It ensures that taxation powers are exercised within a constitutional framework.

• Prevents unauthorized taxation, meaning the government cannot levy a tax without proper legislative approval.

• Falls under Part XII (Finance, Property, Contracts, and Suits) of the Constitution.

🔹 Other Important Articles Related to Taxation:

• Article 266 – Discusses the Consolidated Fund of India and the Public Accounts of India.

• Article 267 – Provides for the Contingency Fund of India.

• Article 270 – Talks about the division of tax revenues between the Union and States.

• Article 280 – Deals with the Finance Commission, which recommends tax-sharing between Centre and States.

🔹 Brief Explanation of the Other Options:

• Article 107 – Deals with the legislative procedure in Parliament.

• Article 123 – Empowers the President to promulgate Ordinances during Parliament's recess.

• Article 300 - Deals With: The legal status of the Government of India and State Governments in lawsuits.

• Article 301 – Guarantees freedom of trade, commerce, and intercourse across India.

Related SSC PYQs:

1. Which article of the Indian Constitution prohibits taxation without legal authority?
   ➤ Answer: Article 265

2. Which part of the Constitution deals with taxation and financial matters?
   ➤ Answer: Part XII

3. Which article provides for the Finance Commission in India?
   ➤ Answer: Article 280

4. What is the primary objective of Article 301 of the Indian Constitution?
   ➤ Answer: Freedom of trade and commerce

5. The Consolidated Fund of India is mentioned under which article?
   ➤ Answer: Article 266

6. What is the role of Article 267 in financial management?
   ➤ Answer: It establishes the Contingency Fund of India.

7. Under which article can the President issue an Ordinance?
   ➤ Answer: Article 123

8. Which article in the Constitution prohibits discrimination in taxation among states?
   ➤ Answer: Article 304

9. Which constitutional body recommends the distribution of tax revenue between the Centre and States?
   ➤ Answer: Finance Commission (Article 280)

10. GST was introduced in India under which Constitutional Amendment Act?
    ➤ Answer: 101st Constitutional Amendment Act, 2016

• The Consolidated Fund of India is the main fund of the government where all revenues, loans, and grants are deposited.

• The Contingency Fund of India is a reserve fund used for emergencies and unforeseen expenditures.

Front

Question:

Which of the following statements about the cells of living organisms is/are correct?

(a) All are microscopic and cannot be seen with a naked eye.
(b) All have a cell wall.
(c) All have a nuclear membrane.
(d) All have a cell membrane.

Back

✔ (a) Only D

Explanation:

✔ Statement (a) - Incorrect: Some cells, like the egg of an ostrich, are large enough to be seen with the naked eye.
✔ Statement (b) - Incorrect: Only plant cells, fungi, and some bacteria have a cell wall; animal cells do not.
✔ Statement (c) - Incorrect: Prokaryotic cells (like bacteria) do not have a nuclear membrane; only eukaryotic cells do.
✔ Statement (d) - Correct: All living cells (both prokaryotic and eukaryotic) have a cell membrane, which controls the entry and exit of substances.

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Additional Important Information:

✔ Difference between Prokaryotic and Eukaryotic Cells

• Prokaryotic cells lack a well-defined nucleus and do not have a nuclear membrane. Their genetic material is found freely in the cytoplasm in a region called the nucleoid.

• Eukaryotic cells have a well-defined nucleus enclosed by a nuclear membrane.

• Membrane-bound organelles like mitochondria, Golgi apparatus, and endoplasmic reticulum are present in eukaryotic cells but absent in prokaryotic cells.

• Prokaryotic cells reproduce by binary fission, whereas eukaryotic cells divide by mitosis or meiosis.

• Examples of prokaryotic organisms: Bacteria and Cyanobacteria (Blue-green algae).

• Examples of eukaryotic organisms: Plants, Animals, Fungi, and Protists.

✔ Other Important Cell Facts

• The smallest cell is Mycoplasma (Bacteria).

• The largest cell is the Ostrich Egg.

• The longest cell in the human body is the Neuron (Nerve Cell).

• Plant cells have a cell wall, while animal cells do not.

• Mammalian red blood cells (RBCs) do not have a nucleus, making them an exception among eukaryotic cells.

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Related SSC PYQs:

1. Which cell organelle is called the "powerhouse of the cell"?
   Answer: Mitochondria
   Explanation: It produces ATP (Adenosine Triphosphate), the energy currency of the cell.

2. Which type of cells lack a nuclear membrane?
   Answer: Prokaryotic cells
   Explanation: They lack a well-defined nucleus, and their DNA is present in a region called the nucleoid.

3. What is the function of the cell membrane?
   Answer: Controls the entry and exit of substances
   Explanation: The cell membrane is semi-permeable and regulates the movement of molecules.

4. Who discovered the cell?
   Answer: Robert Hooke (1665)
   Explanation: He observed dead cork cells under a microscope and coined the term "cell".

5. Which structure is present in plant cells but absent in animal cells?
   Answer: Cell Wall
   Explanation: The cell wall provides rigidity and support to plant cells.

6. What is the function of ribosomes?
   Answer: Protein synthesis
   Explanation: Ribosomes are found in both prokaryotic and eukaryotic cells and help in making proteins.

7. What is the full form of DNA?
   Answer: Deoxyribonucleic Acid
   Explanation: It contains the genetic instructions for growth, development, and reproduction.

8. Which organelle is known as the "suicidal bag of the cell"?
   Answer: Lysosome
   Explanation: It contains digestive enzymes that break down waste and foreign particles.

9. What is the main function of the Golgi apparatus?
   Answer: Packaging and transport of proteins
   Explanation: It modifies, sorts, and packages proteins and lipids for transport.

10. What is the structural and functional unit of life?
    Answer: Cell
    Explanation: All living organisms are made up of cells, which perform vital functions.

11. Which scientist proposed the Cell Theory?
    Answer: Schleiden and Schwann (1838-39)
    Explanation: They stated that all living organisms are made up of cells. Later, Rudolf Virchow (1855) added that "All cells arise from pre-existing cells".

12. Which organelle is responsible for photosynthesis?
    Answer: Chloroplast
    Explanation: It contains chlorophyll, which captures sunlight to convert it into chemical energy.

13. Which cell organelle is known as the "brain of the cell"?
    Answer: Nucleus
    Explanation: It contains genetic material (DNA) and controls all cellular activities.

14. Which organelle helps in intracellular digestion?
    Answer: Lysosome
    Explanation: It digests old and worn-out cell components and can cause autolysis (self-destruction).

15. Which structure connects the nucleus to the cytoplasm?
    Answer: Endoplasmic Reticulum (ER)
    Explanation: It helps in the transport of materials and has two types: Rough ER (RER) and Smooth ER (SER).

Front

Question:

Which of the following statements about Mitosis and Meiosis is/are correct?

(a) Mitosis occurs in somatic cells, while meiosis occurs in germ cells.
(b) Daughter cells produced in mitosis are haploid, whereas those in meiosis are diploid.
(c) Mitosis results in two daughter cells, while meiosis results in four daughter cells.
(d) Meiosis is involved in reproduction and genetic variations.

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Back

Correct Answer:

✔ (a), (c), and (d) are correct.
✔ (b) is incorrect (Mitosis produces diploid cells, and meiosis produces haploid cells).

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Explanation:

✔ Mitosis:

• Occurs in somatic cells (body cells).

• Nucleus divides only once.

• Produces two daughter cells, which are diploid (2n) and genetically identical.

• No crossing over takes place.

• Helps in growth, healing, and repair.

• Malfunction in mitosis can result in cancer.

✔ Meiosis:

• Occurs in germ cells (sperm and egg).

• Nucleus divides twice (Meiosis I and Meiosis II).

• Produces four daughter cells, which are haploid (n) and genetically unique.

• Crossing over occurs, increasing genetic variations.

• Meiosis is involved in reproduction.

• Malfunction in meiosis leads to genetic disorders like Down’s Syndrome, Klinefelter’s Syndrome, and Turner’s Syndrome.

✔ Additional Important Facts:

• Largest cell in the human body → Ovum (Egg Cell)

• Smallest cell in the human body → Sperm Cell

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Related SSC PYQs:

1. In which type of cell division does crossing over occur?
   Answer: Meiosis
   Explanation: It occurs during Prophase I, ensuring genetic variation.

2. Which type of cell division is responsible for growth and repair in humans?
   Answer: Mitosis
   Explanation: It produces genetically identical diploid cells.

3. How many daughter cells are produced in meiosis?
   Answer: Four haploid cells
   Explanation: Meiosis involves two successive divisions, producing four unique cells.

4. Which genetic disorder is caused by the presence of an extra chromosome 21?
   Answer: Down’s Syndrome
   Explanation: It results from trisomy of chromosome 21.

5. Which process is responsible for the formation of gametes (sperm and egg)?
   Answer: Meiosis
   Explanation: It reduces chromosome number by half to maintain the diploid state in offspring.

6. What is the significance of mitosis?
   Answer: Growth, repair, and asexual reproduction
   Explanation: Mitosis ensures identical cell reproduction for body maintenance.

7. What is the diploid chromosome number in humans?
   Answer: 46 (2n = 46)
   Explanation: Humans inherit 23 chromosomes from each parent, making a total of 46.

8. What is the haploid chromosome number in humans?
   Answer: 23 (n = 23)
   Explanation: Gametes (sperm and egg) contain half the total chromosome number.

9. Which phase of meiosis is responsible for genetic recombination?
   Answer: Prophase I
   Explanation: Homologous chromosomes exchange genetic material through crossing over.

10. Which cell division occurs in bacteria?
    Answer: Binary fission
    Explanation: Prokaryotes (like bacteria) reproduce by binary fission, which is similar to mitosis but simpler.

Front

Question:

With reference to the Balance of Payments (BoP), which of the following constitutes the Current Account?

1. Balance of Trade

2. Foreign Assets

3. Balance of Invisibles

4. Special Drawing Rights (SDRs)

Options:

(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) 1, 2, and 4

Back

✔ (c) 1 and 3

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Explanation:

✔ Current Account in the Balance of Payments includes:

• Balance of Trade (BoT): The difference between a country’s exports and imports of goods.

• Balance of Invisibles: Includes services (like IT and tourism), remittances, and income from abroad.

❌ Foreign Assets are part of the Capital Account (not the Current Account).
❌ Special Drawing Rights (SDRs) are part of foreign exchange reserves, which fall under the Capital Account.

Thus, only Balance of Trade and Balance of Invisibles constitute the Current Account.

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Additional Important Information:

✔ Balance of Payments (BoP): A record of all economic transactions between residents of a country and the rest of the world in a given period.
✔ Two Components of BoP:

1. Current Account – Deals with goods, services, income, and transfers.

2. Capital Account – Deals with foreign investments, loans, and foreign reserves.

✔ Special Drawing Rights (SDRs):

• Issued by IMF (International Monetary Fund).

• SDRs are international reserve assets, not part of the Current Account.

✔ Foreign Assets:

• Includes investments in foreign companies, bonds, and foreign exchange reserves.

• Recorded under the Capital Account.

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Related SSC PYQs:

1. Which component of BoP includes exports and imports of goods?
   Answer: Balance of Trade (BoT) – Current Account

2. Which part of the BoP records Foreign Direct Investment (FDI)?
   Answer: Capital Account

3. Remittances sent by Indians working abroad are recorded in which account of the BoP?
   Answer: Current Account (under Balance of Invisibles)

4. What does a current account deficit (CAD) indicate?
   Answer: A country is importing more goods, services, and transfers than it is exporting.

5. Which organization issues Special Drawing Rights (SDRs)?
   Answer: International Monetary Fund (IMF)

6. Which component of the Current Account includes earnings from tourism and IT services?
   Answer: Balance of Invisibles

7. Which account in BoP deals with foreign exchange reserves?
   Answer: Capital Account

Front

Question:

What does venture capital mean?

Options:

(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries

Back

✔ (b) A long-term start-up capital provided to new entrepreneurs

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Explanation:

✔ Venture Capital (VC) is a type of private equity financing that investors provide to startups and small businesses with high growth potential.

✔ It is typically provided by:
➤ Venture Capital Firms
➤ Angel Investors
➤ Institutional Investors

✔ Key Features of Venture Capital:
➤ It is a long-term investment
➤ Given to startups or small businesses with high risk and high return potential
➤ Investors receive equity shares in return
➤ Not a loan—returns are earned through company growth and profits

✔ Why not other options?
❌ Option (a): It is not short-term; VC is a long-term investment.
❌ Option (c): It is not given to industries incurring losses but to startups with potential.
❌ Option (d): It is not for replacement or renovation but for new businesses.

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Additional Important Information:

✔ Examples of Venture Capital in India:

• Flipkart – Funded by Accel Partners, Tiger Global

• Zomato – Backed by Sequoia Capital

• Paytm – Supported by SoftBank, Alibaba

✔ Types of Venture Capital:
➤ Seed Funding – Initial stage funding
➤ Early-Stage Funding – Growth-stage financing
➤ Expansion Funding – For established startups

✔ Popular Venture Capital Firms in India:

• Sequoia Capital

• Accel Partners

• SoftBank Vision Fund

• Tiger Global Management

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Related SSC PYQs:

1. Which type of funding is provided to startups with high growth potential?
   Answer: Venture Capital

2. What is the primary source of venture capital funding?
   Answer: Private equity investors and firms

3. Which Indian startup was heavily funded by Sequoia Capital?
   Answer: Zomato

4. What is the difference between Venture Capital and Angel Investing?
   Answer: Angel investors are individuals; Venture capitalists are firms.

5. Which government initiative promotes startups in India?
   Answer: Startup India

6. Which financial institution in India supports startups with venture funding?
   Answer: SIDBI (Small Industries Development Bank of India) established on April 2, 1990 under an Act of Parliament.

Front

Question:

The terms 'Marginal Standing Facility Rate' and 'Net Demand and Time Liabilities', sometimes appearing in news, are used in relation to:

Options:

(a) Banking operations
(b) Communication networking
(c) Military strategies
(d) Supply and demand of agricultural products

Back

✔ (a) Banking operations

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Explanation:

✔ Marginal Standing Facility (MSF) Rate
➤ Introduced by the RBI (Reserve Bank of India) in 2011
➤ It allows scheduled commercial banks to borrow overnight funds from the RBI against government securities
➤ It acts as a last-resort borrowing facility for banks during liquidity crises
➤ MSF rate is higher than the repo rate to discourage unnecessary borrowing

✔ Net Demand and Time Liabilities (NDTL)
➤ Represents the total liabilities of banks, including:

• Demand Liabilities: Current accounts, savings accounts, demand drafts

• Time Liabilities: Fixed deposits, recurring deposits, staff security deposits
  ➤ NDTL is used to determine the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements of banks

✔ Why not other options?
❌ Option (b) Communication networking: MSF & NDTL are not related to telecommunications
❌ Option (c) Military strategies: These terms belong to the banking & finance sector, not defense
❌ Option (d) Supply and demand of agricultural products: They do not relate to agriculture but to banking regulations

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Additional Important Information:

✔ RBI Monetary Policy Tools:
➤ Repo Rate: Rate at which banks borrow from RBI
➤ Reverse Repo Rate: Rate at which RBI borrows from banks
➤ MSF Rate: Emergency borrowing rate for banks
➤ Bank Rate: Long-term borrowing rate for banks
➤ CRR (Cash Reserve Ratio): Percentage of NDTL banks must keep with RBI
➤ SLR (Statutory Liquidity Ratio): Minimum reserve banks must maintain in cash, gold, or approved securities

✔ Latest MSF Rate (as of 2024): 6.75%
✔ Current Repo Rate (as of 2024): 6.50%

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Related SSC PYQs:

1. What is the full form of MSF in banking?
   Answer: Marginal Standing Facility

2. Which financial instrument determines the liquidity condition of banks?
   Answer: Net Demand and Time Liabilities (NDTL)

3. What is the current Repo Rate as per RBI’s latest monetary policy?
   Answer: 6.50% (as of 2024)

4. Which monetary policy tool is used by RBI to control inflation?
   Answer: Repo Rate & CRR

5. Which rate is used by banks to borrow emergency funds from RBI?
   Answer: Marginal Standing Facility (MSF) Rate

6. Which of the following is NOT included in NDTL?
   Answer: Interbank deposits