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Exam Year: 2021

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    (a)

    (b)

    (c)

    (d)

    Correct Answer:

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    The integration of 565 princely states into the Indian Union was one of the most complex administrative and socio-cultural challenges faced by independent India.

    Main Administrative Issues

    Proliferation of Small Principalities: Managing hundreds of fragmented, tiny states made coordinating a uniform consensus for accession exceptionally difficult.

    With British departure, paramountcy lapsed, giving princely states theoretical independence or choice to join India or Pakistan. Eg- Hyderabad, Junagadh, and Kashmir posed major challenges.

    Resistance of Rulers – Many rulers were reluctant to surrender sovereignty and merge with India

    Nizam of Hyderabad declared independence; required Operation Polo (1948) for integration.

    Nawab of Junagadh acceded to Pakistan despite Hindu-majority population, requiring Indian military intervention.

    Administrative Reorganisation

    Diverse administrative systems, revenue codes, and legal frameworks had to be unified.

    Some states were merged into provinces, others into unions (Eg- Rajasthan formed by merging 19 states).

    Privy Purse and Privileges created a long-term financial burden and was abolished only in 1971 by Indira Gandhi.

    Disbanding or absorbing irregular princely state armies into the unified Indian Armed Forces presented severe logistical and ranking issues.

    Socio-Cultural Problems

    Demographic and Religious Mismatches: Severe tensions emerged in regions where the ruler’s personal faith differed completely from the majority population. Eg- J&K

    Feudal social structures – entrenched landlordism, bonded labour, and caste hierarchies in princely territories.

    Low levels of education and modern administration in many princely states.

    Regional and linguistic identities complicated integration. Eg- Demand for linguistic reorganisation (SRC, 1956).

    Tribal and ethnic tensions in areas like Northeast India and Bastar.

    Deep-Rooted Feudal Allegiances: Decades of monarchical rule left local populations culturally more loyal to traditional princes than to a distant democratic federation.

    Communal Violence: The trauma of Partition ignited communal polarization in several states, making peaceful, secular integration harder to enforce.

    Sardar Patel‘s monumental efforts successfully overcame these multi-layered fractures, forging a unified, democratic, and geographically cohesive Indian nation.

    (a)

    (b)

    (c)

    (d)

    Correct Answer:

  • ,

    Cryptocurrency is a digital or virtual currency designed to function as a medium of exchange. Unlike traditional money , it does not exist in physical form and is not issued by the central bank.

    Key Features of Cryptocurrency

    Decentralization- Operates on a peer-to-peer network, no need for intermediaries like banks.

    Blockchain Technology- A distributed ledger that records all transactions

    Cryptography- Uses advanced mathematical protocols to secure transactions.

    Immutability- Once a transaction is recorded on the blockchain, it cannot be altered or deleted.

    Limited Supply- Most cryptos (like Bitcoin) have a mathematical cap on their total supply.

    Pseudonymity- Transactions are tied to digital “wallet addresses” rather than personal identities.

    Global Accessibility- Can be accessed by anyone with an internet connection

    Eg- Bitcoin, Ethereum, stablecoins, and central-bank-linked digital assets (CBDCs as a response).

    Positive Impacts

    Financial Inclusion- Provides banking services to the “unbanked” in developing nations.

    Lower Remittance Costs- Enables migrants to send money home with negligible fees compared to traditional services like Western Union.

    Hedge Against Inflation- Citizens in economies with hyperinflation (e.g., Venezuela, Argentina) use stablecoins to preserve their wealth.

    Innovation in Digital Economy – Growth of DeFi, NFTs, and Web3.

    Portfolio diversification for investors. Eg- crypto trading apps like Binance

    Transparency and Traceability – Public blockchains enable transaction audits.

    Tech Innovation and Employment – Eg- Bengaluru has solidified its position as a global Web3 Hub

    Boost to Digital Literacy – Awareness of encryption, wallets, and cyber hygiene.

    Catalyst for Regulatory Innovation – Eg- Introduction of Reserve Bank of India’s Digital Rupee (CBDC).

    Institutional Efficiency- Major global banks (e.g., JP Morgan) now use blockchain for near-instant cross-border settlements.

    Negative Impacts

    Extreme Volatility- Sudden price crashes can lead to catastrophic financial losses for uninformed retail investors. Eg- 2022 Terra-Luna collapse

    Environmental Concerns- “Proof of Work” mining consumes massive electricity. Eg- Bitcoin mining consumes more energy than mid-sized countries like Norway.

    Illicit Activities- Used by cybercriminals for money laundering, terror funding, and ransomware payments.

    Lack of uniform global laws leads to “regulatory arbitrage.” Eg- FTX exchange collapse revealing massive gaps in jurisdictional oversight.

    Security Risks- Sophisticated hacking of exchanges has resulted in the theft of millions in user funds. Eg- 2024 WazirX breach

    Psychological Stress- The 24/7 nature of the market has led to “crypto-addiction” and increased anxiety among younger Gen-Z investors.

    Speculative Bubble Behaviour – Prices driven by hype rather than fundamentals. Eg- Sharp rises and falls in meme-based tokens.

    Digital Divide – Benefits skewed towards urban, tech-savvy populations.

    Widespread use of private crypto can weaken a central bank’s control over inflation.

    The way forward lies in balanced regulation, public awareness, and responsible integration, ensuring that innovation serves economic development and social welfare, not unchecked speculation.

    (a)

    (b)

    (c)

    (d)

    Correct Answer:

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    With reference to India, consider the following statements:

    1.When a prisoner makes out a sufficient case, parole cannot be denied to such a prisoner because it becomes a matter of his/her right.
    2.State Governments have their own Prisoners Release on Parole Rules.

    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

    Correct Answer:

    (b)

  • ,

    Consider the following statements:

    Other things remaining unchanged, market demand for a good might increase if:

    1.The price of its substitute increases.
    2.The price of its complement increases.
    3.The good is an inferior good, and the income of the consumers increases.
    4. Its price falls.
    Which of the above statements are correct?

    (a)

    1 and 4 only

    (b)

    2, 3, and 4

    (c)

    1, 3, and 4

    (d)

    1, 2, and 3

    Correct Answer:

    (a)

  • ,

    Consider the following statements:

    The effect of devaluation of a currency is that it necessarily:

    1.Improves the competitiveness of the domestic exports in the foreign markets.
    2.Increases the foreign value of domestic currency.
    3.Improves the trade balance.
    Which of the above statements is/are correct?

    (a)

    1 only

    (b)

    1 and 2

    (c)

    3 only

    (d)

    2 and 3

    Correct Answer:

    (a)

  • ,

    With reference to India, consider the following statements:

    1.Retail investors through a demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in the primary market.
    2.The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
    3.The ‘Central Depository Services Ltd’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

    Which of the statements given above is/are correct?

    (a)

    1 only

    (b)

    1 and 2

    (c)

    3 only

    (d)

    2 and 3

    Correct Answer:

    (b)

  • ,

    Consider the following statements:

    1.In the tropical zone, the western sections of the oceans are warmer than the eastern sections owing to the influence of trade winds.
    2.In the temperate zone, westerlies make the eastern sections of oceans warmer than the western sections.
    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

    Correct Answer:

    (c)

  • ,

    With reference to India, consider the following statements:

    1.Judicial custody means an accused is in the custody of the concerned magistrate, and such an accused is locked up in the police station, not in jail.
    2.During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.

    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

    Correct Answer:

  • ,

    Consider the following statements:
    1. Moringa (drumstick tree) is a leguminous evergreen tree.
    2. Tamarind tree is endemic to South Asia.
    3. In India, most of the tamarind is collected as minor forest produce.
    4. India exports tamarind and seeds of moringa.
    5. Seeds of moringa and tamarind can be used in the production of biofuels.
    Which of the statements given above are correct?

    (a)

    1, 2, 4, and 5

    (b)

    3, 4, and 5

    (c)

    1, 3, and 4

    (d)

    1, 2, 3, and 5

    Correct Answer:

    (b)