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Doubt Clearance Thread: UPSC 2021

"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."

Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here. 

jack_Sparrow,curious_kidand122 otherslike this
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4.2k comments

Agogsaid

@Casablanca NITI snt a dept so can advise on evey othr issue.


Yes@Agog , but here in the article niti is given specifically the work to identify the PSUs for disinvestment. 

However the article also says - the identification is now jointly by DIPAM and NITI. 

 https://economictimes.indiatimes.com/news/economy/policy/cabinet-approves-new-strategic-disinvestment-process/articleshow/71445908.cms#:~:text=While%20presently%20PSUs%20for%20strategic,for%20strategic%20disinvestment%2C%20they%20said. 


My confusion is, for a question like the one below, what should be the answer -

Q.22) Which of the following has been mandated to identify PSUs for strategic disinvestment

a) Department of Investment and Public Asset Management (DIPAM)

b) NITI Aayog

c) Cabinet Committee on Economic Affairs

d) Union Ministry of Commerce

Yeah now it has changed. Previously, for minority stake it was done by DIPAM and for strategic it was done by NITI and finally approved by CCEA. 


Casablanca,
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Regarding motion for removal of SC judge


It says it doesn't lapse and president may issue an order after an address has been presented to him by the parliament in the 'same session'

If the motion doesn't lapse on dissolution, why does it need to be presented in the same session?

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  1. How option C can be correct(as per answer key for above que.) after changes in rules by DoPT? 
  2. Changed rules say that tenure is 3 years and salary decided by centre.
  3. Also please clarify if ICs are eligible for reappointment now.
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The Diwan-i-aam and Diwan-i-Khas were built during the reign of Akbar or Shah Jahan?... There are contradictory answers available online... Could someone help with this one?
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Which one of the following is incorrect regarding ‘Perpetual bond’, sometimes seen in the news?
a) It is a bond with no maturity date.
b) It is listed on stock exchange in India.
c) The issuer doesn’t have the liability to return the principal.
d) It is a debt instrument issued by large corporates and banks.


The answer given is d. Shouldn't it be c?
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Which one of the following is incorrect regarding ‘Perpetual bond’, sometimes seen in the news?
a) It is a bond with no maturity date.
b) It is listed on stock exchange in India.
c) The issuer doesn’t have the liability to return the principal.
d) It is a debt instrument issued by large corporates and banks.


The answer given is d. Shouldn't it be c?

There are only interest payments on perpetual bonds. Principal is not payed. They were previously used by governments to finance wars. 

Since principal is not payed, they are not considered debt instruments. It is similar to equity.

GaryVee,chamomile
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@mhs11 thanks!!


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Sorry, this is not a doubt but a question and it would be really helpful if one could guide me through it.

a) Are there any sites which have a combined calendar for all State PCS exams in one place along with notification updates as and when the advertisements are announced for each state? Or does one have to check for each state individually? 
b) What are the other exams UPSC aspirants take during the course of their preparation with the primary focus on UPSC Civil Services examination? 

Thanks a ton if you could find the time to answer this question! 
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What will be the answer? Please explain the reason behind as well. Thanks!

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@TheNotorious I guess 2 only
rbi will buy/swap dollar for rupee-this will increase rbi forex and reduce dollar supply- increase forex stabilizes ex rate 


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@MarcusA even I think the same. Last year, RBI through swap agreement purchased excess forex from CBs under swap agreement and as a result, the forex crossed the $500 billion mark. But the answer key states the answer is option A. Now in the question it isn’t specified if the RBI is categorically buying or selling dollars. Because if RBI will sell forex under swap agreement then dollar supply will increase(statement 1). If RBI will buy forex then Ruppee supply will increase as well as RBI’s forex( statement 2). So as the question is not specifying precisely if the dollars are being bought or sold, it mentions sell-buy swap, then wont it be feasible to go with the option 1&2 ie B?  Such a basic question it is but still messing up the mind -.- 


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is right to health  considered a fr under art21 ?


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@TheNotorious it is only swap ,not buying or selling in the real sense, so increase in supply should not happen imo .. initially rbi and bank agree to exchange dollar vis a vis rupee...this increases the forex for rbi and provides bank with leverage.
not sure in what context 1 is true ,maybe it talks of increase in the end of term period .however 2 definitely is correct.
 i might be wrong can you share their explanation


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Yes it is a swap agreement but it does involve buying and selling(if buying now then will have to sell at a later date and vice versa). 

The statement 1 is correct in the sense lets say there is a dollar shortage in forex market due to increase in demand. Now there is also high deposits prevailing with the banks in the economy. Now what RBI will do is that it will swap these deposits with the dollar. It can also be said that the RBI is selling the dollars to the CBs. The selling of dollars by the RBI will lead to increase in dollar supply in the economy/ forex market. 

Coming to the second statement, the statement just says Forex will increase. How will the forex increase? Who is or will pump  new forex in the economy? The cumulative forex of India is going to remain same no? Had the statement mentioned that RBI’s forex will increase then toh we could have said for sure that yes it is 100% correct. But the statement says that forex will increase. How will it increase? Think and let me know too.

Someone else forwarded me this question. I have requested for the solution too. I’ll share as soon as I’ll get it. 

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is right to health  considered a fr under art21 ?



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@TheNotorious RBI will give dollars and the buyer gives rupees and the transaction will be reversed later in Sept 2020. So it a 6-month sell-buy swap from RBI. It helps those banks that have seen a big outflow of dollars as foreign funds sell their shares, and with the rupees buy dollars to exit the country. Since there is excessive dollar buying by FPIs, RBI is replenishing the market with dollars


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@NKS_PSIR You are right but it is not necessary no that under this sell-buy swap, RBI will always sell dollars to buyers. Assume that there is excess dollars prevailing in the forex market/ economy, then RBI will purchase the dollars and will supply domestic currency in return. In March 2020, RBI conducted this deal for a 6 month tenor in which it supplied dollars in the economy. Similar swap agreement was done in March 2019 for 3 year tenor and in that agreement RBI purchased dollars and supplied Indian rupees. I’m sharing a link, have a look.


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Hi! I’m finding the vision tests to be too difficult and sometimes the questions are just too obscure. Do I have company? Or I’m the only one. 

One test after another is serving to be a major blow to my confidence. I’m thinking of skipping the sectional tests and attempting FLTs. Is it a wise move? Please help!

chamomile,
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@Oatmeal  this year vision has raised bars!!! some que in modern(6,13,14) r out of basic sources(spectrum+bipin)...polity,eco,env  test r ok...regarding FLT ..initial one are good one...but after test 29 ...i started questioning my preparation...i would suggest to attempt FLT in 2:1 
2 flt of vision and 3rd one of any other institute.. 


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@extinctinwild I feel the same after giving about 15 tests. How you expect to at least improve as the number of revisions increase, on the contrary I became increasingly doubt ridden. I’ll take the advice, thanks !!


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