 Hello, everyone. Welcome to Shankarai's Academy YouTube channel. My name is Sharath. I teach economics at Shankarai's Academy. We'll continue on our series of videos on how to attend UPSC equations through certain techniques of eliminating options and all those. So, we have already completed a few subjects. This is continuing that series. Today, we'll be looking at economics. The moment we think of economics, there is a general perception that it's very technical in nature and it's difficult. There's a lot of prior knowledge required. True to some extent, but what I have experienced over the years is that about 80% of the questions, we can handle it purely based on the options that are given there, certain elimination techniques and simple understanding of the English words that are given there. So, I've shortlisted about 30 questions through which I'll demonstrate whatever I've just said. So, there are certain words we need to focus. I'll mention about all those in the following third questions. Can we look at question number one now? This is from 2016. So, the question says, there has been a persistent deficit budget year after year, which actions of the following can be taken by the government to reduce the deficit. So, before we go to reading 1, 2, 3 and 4, let us look at what is there in the question. What is it that has been asked? So, the situation that is given is persistent deficit budget. So, right there we know that there is not enough money with the government. So, what action or actions of the following can be taken by the government to reduce the deficit? So, our answer logically thinking should not have anything which increases the expenditure of the government because there is already a deficit. So, reducing revenue expenditure seems like a very logical thing. Similarly, if you introduce new schemes, that will be greater expenditure for the government deficit will widen even further. So, this will get eliminated. Now, if you look at the fact that 1 is part of the answer, B is already eliminated and we are seeing that 2 is not part of the answer. So, D is also eliminated. The only question is now, we don't even have to look at whether 4 is part of the answer or not. We just need to find out if 3 is part of the answer. If it is there, C will be the answer. Let us look at 3. 3 says, rationalizing subsidies. Now, they have not given eliminating subsidies. They have only given rationalizing subsidies, which means that wherever there is unnecessary expenditure on subsidies, reduce that, keep it to a bare necessity sort of a situation, which would be the, which would be a correct answer, which means that the answer for us in this case would be C. So, there is no other knowledge required here, just an understanding of the word deficit budget, which means that there is a lack of money with the government and what is the logical action, which is something that any of us should be in a position to answer. Moving to the second question, with reference to inflation in India, which of the following statements is correct. So, let us look at the statements one by one. So, the idea is inflation, which of the statements is correct, nothing else is asked. So, everything lies in the four options. Controlling the inflation in India is the responsibility of the government of India only. So, we have seen already in previous videos that such extreme statements are generally not correct. Let us look at that is the first statement. So, let us not eliminate it yet. Let us just look at it. Second statement now, the Reserve Bank of India has no role in controlling inflation. So, there is this aspect, both these are extreme statements. If we have read our newspaper even a little bit, we will be in a position to say that RBA does through its monetary policy, try to control inflation. We have also heard of concepts like inflation targeting 4 percentage plus or minus 2 percentage, all those are done by the Reserve Bank of India. So, in that way, we can eliminate these two. We can also eliminate it because these are all extreme statements, but there is also another way of looking at it. Look at options C and D. Option C says decreased money circulation helps in controlling inflation. Option D says increased money circulation helps in controlling inflation. Now, these are two statements which are completely contradictory to each other, which means that most likely one of the statements is right and one of the statements is wrong, which means that even if you do not read A and B, you should know that the answer is somewhere here, either C or D. So, in that way, we can eliminate two of the options and we can arrive at these two, C and D, even if we do not have a lot of knowledge about A and B. So, now let us look at C and D, decreased money circulation helps in controlling inflation. So, when you increase the money supply, what will happen is there is more money with the people and people will start demanding more and more, which would mean the price of the commodities will go up, which will lead to inflation. So, the answer here is C. Moving on to question number 3. An increase in the bank rate generally indicates that the and the four options, we will see a very similar thing here again. Look at options C and D. They are directly opposites of each other. Central bank is following an easy money policy. Central bank is following a tight money policy. So, there is easy money, tight money, which are opposites of each other. So, the likelihood is that answer is one of C or D, which is true in this case. So, here the answer is increase in interest rate, when the interest rate, when the bank rate, whatever is the rate, bank rate is the rate at which banks can borrow from RBI by giving certain commercial instruments. Here, when that rate increases, which means that the bank will have less money available with it, which means that a tight money policy is being followed. But let us also look at A and B. Market rate of interest is likely to fall. So, something we need to look at in all the rates of interest. There is a general feeling confusion among people that how do we remember what happens to the general rates if one rate goes up. Please know that all the rates in the economy work in the same direction. If the report rate increases, all the associated rates are also likely to increase. And if the report decreases, all the related rates are also likely to decrease irrespective of whether it is reverse report rate, whether it is bank rate, whether it is banks lending rate, which is MCLR, all of those are likely to move in the same direction. So, when we say an increase in bank rate, it is not likely to lead to a decrease in the market rate of interest. Central bank is no longer making loans to commercial. Once again, an extreme statement can eliminate it over here. So, three questions done. There are certain patterns which you are observing right now. Look at question number one. It is a very logical thing. There is not a lot of prior knowledge or technical knowledge required here, fairly straightforward. Question number two, we looked at two things, extreme statements and then C and D which are opposites. Similarly, in question number three, C and D which are opposites and one extreme statement concept as well. Let us look at question number four now. With reference to Indian economy, consider the following. So, there are four things which are given, four options, bank rate, open market operations, public debt, public revenue, which of the above is our component or components of monetary policy. So, the answer could be one or more. The keyword here is monetary policy. Some level of prior knowledge is required over here. We should at least know that monetary policy is the policy of RBI and we should also know that fiscal policy is the policy of the government of India. So, there are two keywords here. Please look at the word public. Generally, when the word public comes, it is something that is associated with the government. So, these two are terms associated with the government. These two are terms associated with the RBI. It says monetary policy. Monetary policy is something that belongs to the RBI. So, the answer here would be one and two and so C would be the answer. Once again, if we have this little bit of knowledge that the moment it says public and public, it is government of India, we can eliminate three and four. So, any option which has three and four, we can eliminate it. We are left with only A and C. Then, there is a little bit of other knowledge required. What are RBI actions? We need to know that open market operations are RBI selling or buying bonds from the government bonds from the open market. In bank rate, as I mentioned in the previous question, RBI is interaction with the banks. So, that is question number four. Now, let us move to question number five. With reference to Indian economy, consider the following statements. Now, this is an interesting question because on the face of it, this may look like a very factual question where data is very important for us to know the data. I am seeing that it is not necessary for us to know the data. A general understanding of what is happening in the economy is more than sufficient. I will show how. It says the rate of growth of real GDP has steadily increased in the last decade, which means that when we say that our economy is growing, so one year it grows at 5% age, the next year it grows at 6% age, the next year it grows at 8% age. So, this is where the rate of growth is steadily increasing. But if the next year you have a growth of 7.5% age, it means that it is not steadily increasing. There is a drop here and then the next year you have an 8% growth. You see that the steady increase has been hampered over here. If we know a general understanding of how the economy works, there are some years where the growth is high, there are some years where there is growth, but the growth is to a lower extent. We know that it says last decade. What is last decade? This was asked in 2015. So, 2015, 2005, 2005, 6, 7, 8, we were in the boom and 2009 onwards we faced a little bit of a recession. We were still growing, but at very low rates. There itself, just by understanding the economy, we do not need to know what percentage of growth and all those things. Based on what is happening in the market, we will be able to eliminate this answer. It has not steadily increased. There is an unsteady increase. Some increase, some decrease, but it is increasing overall. So, one is eliminated. So, your two options are eliminated. 50% chance of getting this answer. Now, the next one. The gross domestic product at market prices has steadily increased in the last decade and they have said in rupees. So, which means that they are not talking about these percentages. They are talking about what is the value of GDP, 3 trillion dollars and convert it to rupees. It does not really matter whether what currency it is denominated in, has it steadily increased. So, we see that there is a 5% growth, there is a 6% growth, there is a 7.5% growth, even if there is a 2% growth, there is a 2% growth, which means that in rupee terms, it is still an increase. From the previous year, the GDP has increased, but at a lesser rate. So, this is more likely to be correct. Here in this case, the answer is B, because the GDP value has increased, but it has not increased by increasing percentages every year. So, that is the contradiction over here. Once again, a general understanding is enough. We do not need to know the numbers exactly to answer this question. So, that is question number 5. Let us move to question number 6. What is or the most likely advantages of implementing goods and services tax? 2017 question. Let us assume that we do not know anything about goods and services tax, which should not be the case, but let us assume that we do not really know much. There are three big statements that are given there and four options that are there. Let us just read through the options. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. It will drastically reduce the current account deficit of India and will enable it to increase its foreign exchange reserves. That is one. Then it will enormously increase, it will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future. Few things to note. Look at the second point, drastically reduce and it talks about current account deficit. Let us say we do not know the impact of GST on current account deficit and all those. Let us just hold that statement. Let us look at the third statement. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future. All these are extreme statements. So, China's economy is three times our size. One small measure, not a small measure, it is a huge measure, but one measure. In the near future, if it is going to enable us to overtake China, it is like a magic wand. Nothing works like that. Remove all the extremes, you know that three is obviously wrong because it is not going to, nothing in the economy works like this. So, you eliminate three, you are left with only one answer. There is nothing else here. We do not even need to know whether one and two is right or wrong. Two is obviously wrong, only one is right. So, one is right. If you look at two again, there is a extreme statement here. It will drastically reduce the current account deficit. Yes, there may be or may not be some impact on the current account. Why? Because GST, good implementation means that the cost of production may go down, it may increase our exports. As a result, we may get more forex. All that may or may not happen and the impact may be marginal, but we cannot say drastically. So, that is the point over there. So, that is question number six. We will now move on to question number seven. Priority sector lending by banks in India constitutes the lending too. Once again, let us assume that we have never heard the term priority sector lending. It is a term, it is a technical term. Let us say we have never heard this term before. Do we know the meaning of the word priority sector? Lending towards priority sector by banks, banks primary activity is lending. So, what could be the priority sectors in India? Is agriculture an area of priority for us? It seems like it is a priority sector. Micro and small enterprises, yes, that is what will increase the inclusivity. All those aspects will come in. Weaker sections are their priority. It all seems like a priority. So, the logical answer here should be all of the above and that is also what the answer is. So, that is question seven. The answer is D. Question number eight. The term core banking solution is sometimes seen in the news, which of the following statements best describes or describe this term. So, I am going to tell you about different methodology of approaching. Let us for a moment forget this part of the question. Let us just focus on one, two and three. Let us just focus on these three statements. First statement is, it is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. So, this is something of an intra-bank activity. This first statement. It is an effort to increase RBA's control over commercial banks through computerization. So, this seems like an RBA to bank interaction. It is a detailed procedure by which a huge bank with huge NPAs is taken over by another bank. This seems like a bank to bank transaction. These three things are talking about three completely different things. The term core banking solution, which is sometimes seen in the news, which of the following statements best describes or describe it. How can one term describe three different, completely different activities, three different interactions. So, it is the likelihood of all three or any two being right is also very limited. There is only one answer which says only one and we can make a safe assumption that that could be right and that is also the correct answer. Let us also look at, now that is one way of looking at it. Let us also look at core banking solution. So, it says core banking solution. So, something with respect to the bank. We have not, it is not something regarding non-performing assets, one bank taking over another. Those could be about mergers and all those. So, if you remove this also, you will be able to arrive at the answer as one only, if you are able to remove three. Also, let us look at another thing. It is an effort to increase RBAs control over commercial banks. This is RBA and bank. Let us say that we are not focusing on one. It is RBA and banks. And this next one is about one bank and another bank. So, that is about within banks. So, once again, two and three cannot be part of the same answer. So, this and this can be eliminated. So, there are various ways to approach this answer. I have told you two different ways to arrive at the answer in this question. One, even without understanding this term, purely based on what is given in these three terms. That is question number eight. Let us move to question number nine. What is or the purpose, purposes of MCLR announced by RBA, marginal cost of funds based lending rate. Before we read this, there is an area that I would like you to focus announced by RBA, which means that it is something new that they are trying out. They are not asking about an existing scheme. They are talking about something that is a recent initiative of RBA. So, whenever something logically we have to think is that whenever there is something new coming up, it is likely to be, it is likely to overcome the issues with an earlier system. So, with that thought in mind, let us look at this. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. So, marginal cost of funds based lending rate. So, the concept is about lending rate, lending rate based on something. So, they are saying that these guidelines help in improving, help improve the transparency in the methodology followed by banks for determining the interest rates on advances. These interest rates are the same as lending rate. So, if the RBA is announcing something new, it is obviously to make some improvement. So, which is what the statement seems like a correct statement. These guidelines help ensure availability of bank credit at interest rates, which are fair to borrowers as well as banks. So, taking the point from here, transparency. Only transparency will ensure that there is fairness between borrowers as well as the banks. So, if you take this to be correct, then this also sounds to be logically correct. So, the answer in this case is C is correct, both 1 and 2 is correct. Even without knowing the specific features of what is MCLR, just based on certain other aspects associated with the question, we will be able to arrive with the answer as both 1 and 2. I am not saying that every single time the strategy will work, but there is a chance that there is a good chance that these sort of strategies are thought process. You are just aligning the thought process, focusing on all the parts of the question, not just the keyword, which is the marginal cost of funds based lending rate. So, all these will help in making an attempt in a question which otherwise may seem like a question which cannot attend at all. Let us move to question number 10. The establishment of payment banks is being allowed in India to promote financial inclusion. So, there is financial inclusion that is happening. Which of the following statements is our correct in this context? Let us look at the statements. Mobile phone, mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of payment banks. So, it is a little bit of the nitty gritties of who can own and who cannot own. We may not know the answer to this. So, let us hold on to it. Let us look at the simpler ones. Payment banks can issue both credit cards and debit cards as one statement. Payment banks cannot undertake lending activities. So, if this statement is correct, payment bank cannot undertake lending activities, then this statement seems like wrong, because lending activity is credit. If payment banks can issue credit means that they should be able to undertake lending activities. So, there is a contradiction here. So, 2 and 3 both cannot be part of the same statement. So, what else are we left with? Now, we need a little bit of knowledge. So, the question about what are the features of payments banks? So, when we say payment banks, one aspect which differentiates payment bank from any other bank, even the small finance banks which was something launched along with payments bank, is that payment banks can only accept deposits they cannot give out loans. So, in that sense, you eliminate the second one, payment banks can issue both credit and debit cards. No, they cannot issue credit cards. So, you eliminate that you are left with only one answer. In this case, if you can eliminate 2, you will arrive at the answer as 1 and 3. So, that is how we arrive at the answer for this. That is question number 10. We will move to question number 11. It is about capital adequacy ratio. Let us start with the assumption that we know nothing about capital adequacy ratio. Capital adequacy ratio is the amount that banks have to maintain in the form of their own funds to offset any laws that banks incur if any account holder fails to any account holders fail to repeat use. That is one statement. And CAR is decided by each individual bank. Let us look at it. Let us say we do not know what is the meaning of the technical term capital adequacy ratio. Let us look at the English meaning. Capital and we are talking about banks is the amount that the banks have to maintain. So, what is the bank's capital? Money. So, capital adequacy means sufficiency of capital and it is a ratio. So, ratio is with regard to some base. So, there is sufficiency or adequacy of capital. So, why do you need adequacy of capital is the amount that banks have to maintain in the form of their own funds to offset any laws that the banks could occur if any account holders fail to repeat use. This seems like a correct statement purely based on the general understanding of capital adequacy ratio. Sufficiency of capital, sufficiency of money. What is the money sufficient for? In case there is a loss, some NPS happens, some loans which are given by the banks do not come back, the depositors money should be safe. Is there enough money to keep their money safely? So, that is the question. This is correct. But even if we do not know this, look at the second one, CAR is decided by each individual bank. So, if you give the banks the liberty to decide their own capital adequacy ratio, then different banks will have different levels of safety or risk associated with the deposits, which is not an ideal situation in an economy. So, whenever you have regulatory norms, capital adequacy ratio is a regulatory norm. It is something that is going to be decided by the regulating authority, which means that the RBI based on in this case, I am getting factual here, RBI based on the Bank of International Settlement Recommendations, they decide what is going to be the capital adequacy ratio. So, in India, it is the RBI which is deciding the capital adequacy ratio for the banks. If you know that, if you eliminate the second statement, you know that these two are wrong, you are only left with A and D. Just by the simple understanding of the words capital adequacy, we can make a safe assumption that first statement is correct. But purely based on elimination, we can only shorten it down to two statements A and D. So, that is question number 11. We will move on to question number 12. Which one of the following statements correctly describes the meaning of legal tender money? See, this is a question for which you need to have prior knowledge. But the reason I took this question is because they have made a little bit of a twist even in the options. Normally, we study legal tender money as legally accepted medium of repaying debt or financial obligations. See, this is the normal definition that we would read of legal tender. If you look at purely this description, it is not something that we can find over here in A, B, C and D. If this is the case, here you say look at option A, the money which is tendered in courts of law to defray fee of legal cases. So, they are just trying to play with the term legal here and try to confuse. If you have a general understanding, you will know that this option is wrong. It has nothing to do with courts or legal cases. So, A can be eliminated. B, the money which a creditor is under compulsion to accept and settlement of his claims. We do not know it could be correct. We do not know yet. The bank money in the form of checks, drafts, bills of exchange, etc. So, once again, if we know what is legal tender, we know that checks do not fall into the category of legal tender, drafts or bills of exchange. None of this falls under the legal tender category. Next, the question, the option is the metallic money in circulation in the country. Now, we know that metallic money is a part of legal tender because 1 rupee coins, 2 rupee coins, all those are legal tender. Now, the question is B and D. How to know which is the answer? Look at D, metallic money, that is not the complete definition of what is legal tender. Which one correctly describes legal tender? Yes, metallic money may be legal tender, but only metallic money is not legal tender. There is more to it. And also, we have studied that there is something called as limited and unlimited legal tender. Coins of smaller denominations tend to be limited legal tender. They have a limit, which means that with 1 rupee coin, you cannot make say 1 lakh rupee repayment all in 1 rupee coins. It is not allowed. There is a limit up to which you can repay with 1 rupee coins or such similar small denomination coins. So, now let us try to look at how B is the answer. B is the answer here. Let us look at how this point and this point here are related. So, this point here, legally accepted medium of repaying debt or financial obligation is from the givers perspective. Whoever is giving the money from their perspective, who are paying the money from their perspective, it is the legally accepted medium through which they can repay. The same statement is given from the receiver's perspective here. The money which a creditor, who is a creditor? The one who is going to receive the money at this point, he once upon a time gave the money. Now he is receiving that money. So, he is the receiver of that money. The money which a creditor is under compulsion. Why is the person under compulsion? Because it is a legally accepted form. When it is legally accepted, you cannot say no to it. The money which a creditor is under compulsion to accept in settlement of his claims. So, if I am a borrower, I go to the person from whom I borrowed money, I repay in legal tender, he or she cannot say that no, I cannot accept it, you have to give it in some other form. No, that cannot be done. So, that is the point here. So, B is the answer. The reason I took up this question is that this whatever I have written over here is the general definition. This is a slightly different version of the same definition. So, this is something that we need to train ourselves to read in UPC equations. So, that is question number 12. We will move to question number 13. Consider the following statements. Human capital formation as a concept is better explained in terms of a process which enables. Key point here, it says human capital. It does not say capital, it looks at human itself as a capital. So, let us look at the four statements now. Individuals of a country to accumulate more capital, which enables individuals of a country to accumulate more capital. Here, we are talking about capital which is physical in nature because there is accumulation. We are talking about accumulating more and more of physical wealth assets. So, that is the first statement. Second statement, increasing the knowledge, skill levels and capacities of the people of the country. The moment you increase the knowledge, skill level and capacities, the people of the country become better skilled, better equipped. They have more knowledge. They have more skill. They are more capable of doing work which means that they themselves become a better resource. That is exactly what the concept of human capital is. Once again, we do not need to have prior knowledge of how do we define human capital. Just a pure understanding. It says human capital, which means human itself is capital. How does a human become a capital when the human becomes more and more equipped? So, this statement is correct. If you know that two is correct, you can eliminate D. Then accumulation of tangible wealth. Accumulation of tangible wealth. What is tangible? Tangible are things that you can touch, feel. So, accumulation of say machinery, accumulation of such similar things in land and all those who come under the tangible wealth category. Once again, this is physical in nature. And we are talking about human capital formation, not physical capital formation. So, this will not be part of the answer. Anyway, we do not need to worry because the moment we eliminate D, we have also eliminated three as a part of the option. Now, the next question is accumulation of intangible wealth. What is intangible wealth? We have it as wealth, but we will not be able to touch it or feel it. And you know, we cannot point to it and say, see, I have that wealth. We cannot do that. What are those types of wealth? Knowledge, skill level, capacity. That is what is intangible wealth. So, two is an answer. Four describes what is two. Similarly, three describes what is one. So, two and four have to go hand in hand. One and three have to go hand in hand. Only one of these combinations could be correct. Either one, three or two, four. In this case, one and three talks about physical capital, two and four talks about human capital. So, the answer to 13 is C. Once again, no prior knowledge required, just a general understanding of the words human and capital. We will move to question number 14 now. Despite being a high saving economy, capital formation may not result in significant increase in output due to points to note here, high saving economy. So, there is a lot of money which is being saved in the economy. When you have high savings, it will also mean that there is a likelihood of higher investment. More money, money just does not stay idle. There is greater investment happening. But capital formation may not. So, despite being a high saving economy, saved money is used for capital formation. So, capital formation may not result in significant increase in output. So, there is investment happening, but it is not leading to as much of output. So, why is that happening? Weak administrative machinery, maybe we cannot really say. Illiteracy, we cannot really pinpoint at illiteracy and say that it is because of illiteracy that we are putting in money and we are not getting output. So, it does not seem logical. High population density, they are not saying high population, high population density for a given area to many people. Once again, it does not seem like something that is directly related to what we are talking about. So, we can tentatively eliminate these two. Then look at high capital to output ratio. So, whenever you come across the term ratio, what you have to do is write it as in ratio form, capital to output. So, what does capital output ratio is? In order to get one output, how much capital do you have to put? So, you put three capital, you get one output. So, capital output ratio would be three. You put four capital, you get only one output. Capital output ratio is four. You put eight capital, you get one output. Capital output ratio is eight. So, if you have high capital output ratio, it means that you need to put in more and more input. What is input is capital? Capital is the input here. So, you need to put more and more input in order to produce one output, which is, which shows inefficiency. So, if you have high capital output ratio, in this case, you have capital which is formed, but it is not leading to output. So, high capital output ratio, purely by logic, just write this in the form of an equation and in the form of a ratio and we will be able to easily arrive at the answer. Weak administrative machinery may or may not play a role in this. Illiteracy may or may not play. High population density, we cannot really comment on it, but high capital output ratio we can definitely say that is a reason for output not increasing. Once again, just basic understanding of the term capital, basic understanding of the term output, that is all that is required in this case to arrive at the answer. There is no technical knowledge required here. It is not a complicated question. It is not the moment you see capital output ratio or capital formation, we may get afraid saying it is very technical, it is economics and all those, it is not. It is very simple, easy to understand. Simple English words, understanding that would be enough. Moving to question number 15, increase in absolute and per capita real GNP do not connote a higher level of economic development if. So, here it is given that there is an increase in absolute and per capita real GNP. So, there is an increase there. Do not connote a higher level of economic development. So, development is how the growth is being distributed among the people or in the economy. So, that is what development is about. Let us look at it now. Industrial output fails to keep pace with agricultural output. So, if you think that if we think that the statement is correct, then we are restricting economic development to just two sectors, industrial output, agricultural output. What about service sector? What about the tertiary sector? We are not even commenting about that. Can we say with certainty that agricultural output does not keep pace with industrial output, does not keep pace with agriculture, that means that development is not happening? We cannot say that. This may have a role to play, but this is not the conclusive answer. Agricultural output fails to keep pace with industrial output. It is the inverse of that. Once again, it is very narrow in scope. So, we cannot take that as an answer. Poverty and unemployment increase. Let us see. Let us come back to that. Imports grow faster than exports. Once again, the scope is very narrow here. We are only talking about trade over here. So, these three are very narrow in scope. Now, let us look at the answer here as C. Let us look at why it is the case. So, there is increase in GDP, real per capita GNP and absolute GNP and all those, but it is not leading to development. What do we mean by development? The qualitative aspect of growth or the qualitative aspect of the economy. So, yes, there is GNP that is rising, but the GNP rise is being contributed by without any improvement in the income distribution, which would mean there is a high level of inequality, poverty and unemployment increases, which means that a limited number of people are getting to work and that is leading to high level of GNP. So, increase in GNP does not lead to economic development if there is poverty and unemployment, high levels of that. We are not saying that this will lead to that. We are saying that even in spite of high GNP, we may see a situation of low economic development if there is poverty and unemployment at high levels. That is all. The question may sound a little tricky, but if you think about it, if you spend about 15 to 30 seconds on it, we will be able to arrive at the answer. Why? We will be able to arrive at the answer or we will at least be able to eliminate the other three because they are very, very narrow in scope. So, that is 15. The answer is C. Moving to 16, tax revenue as a percentage of GDP of India has steadily increased in the past decade. Financial deficit, sorry, fiscal deficit as a percentage of GDP of India has steadily increased in the last decade. Now, this is once again a question which seems like data oriented. We need to have read the economic survey or the newspaper. We need to have followed the last decades economic activity for us to know that could be a perception that is there, not true at all. We talk about the term fiscal deficit almost on a regular basis. We have heard of the concepts like fiscal consolidation. We have heard of concepts like fiscal slippage. So, these are common day-to-day terms which we see in the newspaper. If we are aware of what these terms are and if we are aware of what is happening in the economy, for example, we have been meeting our fiscal deficit targets very regularly over the past many years, past few years, just that this year's budget we had a target of 3.3 and we could only arrive at 3.4 percentage of GDP, fiscal deficit. So, this year we did not meet our target but we did not meet our target for after a very long time which means that for the last five or six years we have been consistently meeting our target. Here it says fiscal deficit as a percentage of GDP of India has steadily increased. So, which means that the whole idea of fiscal consolidation is to reduce the fiscal deficit from 4 percentage to 3.7 percentage to 3.5 percentage downwards which means that and if I say that we have been meeting targets which means that we have been reducing our fiscal deficit as a percentage of GDP. We do not need to know what exactly was the situation each year, we just need to know that we have been reducing our fiscal deficit. This answer is this statement is eliminated, we cannot have these as answer, it is either A or D. We need a little bit of knowledge, once again tax revenue, fiscal deficit is more in the news, tax revenue not so much, tax revenue as a percentage of GDP of India has steadily increased in the last decade. Once again the answer, the statement here is wrong, tax revenue in absolute terms which is last year let us say we had a tax revenue of 1 crore. This year it has increased to 1.5 crore. So, this has been happening regularly because more and more people are paying taxes or when the GDP increases naturally this will increase. But if the GDP increases by 7 percentage and the increase in tax revenues only by say 5 percentage it means that tax revenue as a percentage of GDP has not increased. Tax revenue as a percentage of GDP has not increased, there has been an increase in absolute terms though. So, this is a little bit of something that requires a little bit of knowledge but at least we are able to eliminate based on common newspaper reading two of the options can be eliminated. The answer in this case is D. So, 16 D, 17 with reference to IFC masala bonds sometime seen in the news which of the statements given below is R correct. The reason I took this question is to convey something about the statements here not necessarily to arrive at the answer or any of those focus on statement number one. It says the international finance corporation which offers these bonds is an arm of the world bank. Number two they are the rupee denominated bonds and are a source of debt financing for the public and private sector. Now the moment we read the first statement what we are likely to start thinking is the international finance corporation do they offer this bond or not. Does IFC here mean international finance corporation or does it mean something else for those who are not aware of IFC people may think oh is it Indian finance corporation is it something is it something else. The point I want to convey over here is that we do not need to even think about that here the statement says the international finance corporation which offers these bonds this we do not need to find whether it is correct or not they are saying that it is correct in the statement itself it is given the international finance corporation which offers these bonds means that it is the international finance corporation which is offering these bonds that is not the area that we should focus on. This is what I wanted to convey lot of us will start wondering whether IFC is the one which is offering IFC is in international finance corporation is the one which is offering this for those people who do not know IFC stands for international finance corporation. So we it is the focus area is going to be here international finance corporation is an arm of world bank is it an arm of world bank or not it has nothing to do with IFC masala bonds here they are just testing you the question of whether you are aware of the world bank organizations is IFC a part of this or not yes it is a part of it so that is what I wanted to focus on here beyond that it is a little bit of a technical question where we need to have prior knowledge they are rupee denominated bonds so you can make an association here it says masala bonds so it has something to do with rupee and international finance corporation offers it which means that it is international in nature it is an international bond which is rupee denominated with masala we can probably make that link if we are not in a position to if you are in a situation where you have to definitely attend this question so they are rupee denominated bonds once again there is a source of confusion here which is that and are a source of debt financing for public and private we start wondering whether private can get access to it or not so that is a confusion that we have which we can only resolve through having the knowledge for this in this case the answer is C both 1 and 2 but the point I wanted to highlight is this first part of the statement we should not be wasting time wondering about areas which they have already given as a statement so that is the point over there moving to question number 18 when the Reserve Bank of India reduced the statutory liquidity ratio by 50 basis points which of the following is likely to happen so a little bit of understanding of statutory liquidity ratio will help but even if we do not have that look at the options India's GDP growth rate increases drastically if India's GDP growth rate will increase drastically by reducing SLR by 50 basis points do not you think we will be doing that on a monthly basis so that our GDP growth rate will increase keep on increasing drastically so you can easily eliminate this answer in this statement foreign institutional investors may bring more capital into our country let us say we do not know whether it is right or wrong schedule commercial banks may cut their lending rates okay let us say we do not know that also it may drastically reduce the liquidity of the banking system drastically once again you can eliminate that if it is something that is going to drastically do something then it is an instrument that could be either not used at all or used very frequently so again A and D you can eliminate you will arrive at answer as one of B and C okay now let us look at how to again needs a little bit of knowledge when the Reserve Bank of India reduces the SLR what is SLR here SLR is the amount of money that amount of percentage of the deposits with the bank which the bank has to keep with itself in the form of government bonds or cash or gold okay so they are reducing the SLR which means that let us say the current SLR let us assume the current SLR is 19.5 percentage there has been a change there but let us assume it is 19.5 percentage or let us say let us assume it is 20 percentage which means that if 100 rupees comes to a bank 20 rupees they have to keep as reserve and only 80 rupees they have available with them to give out as loans okay now if they are reducing this ratio by 50 basis points which means it becomes 19.5 which means that the bank has 80 rupees 50 percent now to give which means that the money available with the bank increases so when there is more money available with the bank the bank is likely to cut their lending rates when the bank has less amount of money they are likely to increase their lending rates when the bank has more amount of money with them it is likely to reduce their lending rates so the answer is C over here foreign institutional investors may bring more capital into our country SLR being low does not impact FIAs in any way it is FIA is the interaction sorry SLR is the interaction between RBI bank and people okay all right so that is 18 the answer is C 19 in the context of Indian economy which of the following is are the purpose purposes of statutory reserve requirements here they are not saying statutory liquidity ratio they are saying statutory reserve requirements so legally they are mandated to keep some money as a reserve yeah and this is a 2014 question as well so it is pretty old let us look at this first statement says to enable the central bank to control the amount of advances the banks can create I discussed this in the earlier case SLR which is a part of statutory reserve requirements to enable the central banks to control the amount of advances the banks can create let us say statutory reserve requirements 20 percentage it increases to 25 percentage which means that the RBI is now preventing the bank from giving 5 percentage more of money let us say 100 rupees comes in as deposits earlier 80 could be given out now only 75 could be given out so enables the central bank to control the amount of advances that statement is correct so you can eliminate this to make people's deposits with banks safe and liquid we do not know yet let us see okay it looks like that but let us see number 3 to prevent commercial banks from making excessive profits it is a very absurd statement there is no way why a regulator would make any sort of a provision to prevent someone from making excessive profits from cheating yes but by legal means if they are making profits there is no way why anyone would want to prevent that from happening so this statement is also wrong the moment you eliminate 3 this also goes out of the window then you do not have to worry about first statement you do not have to worry about the fourth statement fourth statement is to force the banks to have sufficient vault cash to meet their day-to-day requirements when you say day-to-day requirements it means that their day-to-day transactions to give out money which means that they will be using that money when you say reserve money reserve money is something that is kept without being used so there itself you can eliminate the fourth statement also so the question is only between whether it is 1 or 1 and 2 and there was a lot of debate after this 2014 exam also has to whether it is 1 and 2 or 1 only a lot of people thought that the answer is B but the point here is that but the UPC key says the answer is A the point here is that to make people's deposits with the bank safe so far the statement is correct why because if you have this 20 percentage it means that even if the person who borrows this 80 rupees does not pay back there is at least this 20 rupees which is kept in the form of reserve by accumulating a few of those reserve money the bank can at least pay some part of the money back to the depositor so to make the people's deposit to the bank safe that part is correct and liquid this is where the trickery is you are making it less and less liquid why because statutory reserve requirements if it is CRR with the RBA the money is not easily accessible if it is with the bank itself it is mostly kept in the form of government securities or gold and very little is kept in the form of cash why cash does not earn them anything so higher likelihood is in the form of G6 and gold which makes it less liquid so it is not with the intention of making the money liquid it is with the intention of making the money safe that is why this statement is not right and the answer is A 1 only so 19 done we will move to question number 20 in the context of food and nutritional security of India enhancing the seed replacement rates of various crops helps in achieving food production targets of the future but what is R the constraint or constraints in its wider greater implementation the question seems really long we do not really know what is happening what is the situation here we do not need to is what I am saying let us look at the logic in the statements 1 2 and 3 there is no national seeds policy in place ok we will see second one there is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops in the two statements we have looked at two extremes but let us see let us look at the third one also there is a demand supply gap regarding quality seeds in the case of how in the case of low value and high volume crops let us look at the question again in the context of food and nutritional security of India enhancing the seed replacement rates of various crops helps in achieving food production targets so it is something that we are talking about the future we have food production targets we need to find ways to meet them of the future ok so what is the constraint is what they are asking so there is some constraint in meeting the food production targets whenever we are talking about target not being able to meet it talks about a demand supply gap we are not able to produce as much food as targeted why because we do not have quality seeds in the case of low value high volume crops so high volume low value means that you need to produce at high volume in order to make some profit out of it so there is a demand supply gap regarding quality seeds in case of low value and high volume crops seems like a very logically correct statement let us say that we think that statement is correct then it eliminates A as well as D now let us look at it there is no participation of private sector seed companies in the supply of quality seeds of vegetables no participation of private sector which means that only government would be doing seed supply that is not the case if we look at happenings around us where do we get seeds from any sort of seeds there are there is a lot of private participation I would go as far as to say that most of us it is private participation in the rural areas there is a significant presence of the government there but then otherwise there is a lot of private participation as well so this statement is wrong if you eliminate that statement you will eliminate A and C and none is also eliminated we do not need to know whether there is a seeds policy or not actually that statement is also wrong there is a national seeds policy so 3 is the only correct statement here that is how you arrive at the answer seems like a very complicated question but if you apply a little bit of logic you may be able to arrive at the answer not that this will work every single time but there is a likelihood that you will be able to arrive at the answer here okay 21 the Reserve Bank of India manages and services government of India securities but not any state government securities let us look at this statement itself if the RBI does not manage any state government securities then who does it we know that securities are issued by the central bank have we heard of any reserve bank for individual states we do not have so there is only one reserve bank for the entire country if there is a provision provided by the reserve bank to the central government then they have to provide the same for the state governments also so this statement is wrong there is no separate reserve bank for states it is the same RBI which is going to be the banker for both the central government as well as the state governments so you eliminate 1 you eliminate A and D here we do not need to know whether 3 is right or wrong 3 is automatically correct because B and C both have 3 we do not have to worry about 3 at all now comes the next question treasury bills are issued by the government of India and there are no treasury bills issued by the state governments this is a factual question we need to know the answer to this the answer is that this is correct treasury bills are issued by the government of India and state governments do not issue treasury bills however state governments can issue government securities not T bills T bills are not allowed for states so the answer here is 2 and 3 21 the answer is C this requires a little bit of knowledge but at least we need to we can eliminate 2 of the options and arrive at only 2 all right question number 22 consider the following statements looks really long again it is not something that we will be able to answer with certainty but we will be able to take a stand all right FRBM review committee report has recommended a debt to GDP ratio of 60 percentage for the general government by 2023 comprising 40 percentage of central government 20 percentage of state governments right now I am not checking the correctness of that statement let us move to the second and third statements the central government has domestic liabilities of 21 percentage of GDP as compared to that of 49 percentage of GDP of the state governments and the third statement is as per the constitution of India it is mandatory for a state to take the central government's consent for raising any loan if the former owes any outstanding liabilities to the latter now look at statement 3 it seems like a very logical statement why a state needs to take central government's consent for raising any loan not at all times if the state owes any liabilities to the central any outstanding liabilities so this we can think of from a bank's perspective also if you have borrowed money from bank and you have a liability there you have not even repaid your dues you go to another bank it does not make sense why would the other bank give you similarly if you as a state are trying to raise funds and you already have a debt liability with the central government then you need to take the prior consent it seems like a logical statement so we can go with the statement being right which eliminates option A now let us look at 1 and 2 FRBM review committee has recommended a debt to GDP of 60 percentage for the general government comprising 40 for the central government and 20 for the state government which means the target itself is 40 percentage for the central government and 20 percentage for the state governments to reduce the public debt or debt to GDP ratio so here the statement says 40 percentage for the central 20 percentage for the states here it says central government has domestic liabilities yes there is a point called domestic liabilities but it says central government currently has 21 percentage of GDP as domestic liabilities and 49 percentage is state which does not make any sense because in the last statement we said center has 40 percent liabilities and target itself is to make 40 percent centers liability and 20 percentage states liability so the statement does not make any sense only one or two one either one or two would be correct which means that the statement can also be eliminated so either B or C would be the answer and if you think about it looking at the workings of the economy and all those we know that there is a lot of devolution of funds from the center to the states through the budget finance committee sorry finance commission's recommendations and all those so the need for borrowing money is higher for the central government than for the states even if all states are put together so going by that we know that answer is C 22 answer is C where it is not the second statement is wrong once again if we know the provisions of FRBM review committee great there is no confusion about this question at all however even if we do not know a little bit of logic will help us at least in eliminating two of the option going to question number 23 which of the following is are included in the capital budget of the government of India expenditure on so the question is capital budget which means some capital creation is happening expenditure on acquisition of assets like roads buildings machinery so this is capital so this likely to be part of the answer which means that you have eliminated two and three now look at the next two statements loan received from foreign governments loans and advances granted to the states and union territories loans received there is a general rule in public finance that we will talk about which says that if you are taking loan it should not be for revenue purposes which means you should not be taking a loan for your day to day food expenditure and salary expenditure and all those from a government's perspective so if you are taking loan it should only be for capital building purposes so if you are taking loan here the assumption I am talking about the structure itself I am not talking about the reality we sometimes do borrow money and some of it is used for revenue purposes which is why we have a concept called as revenue deficit if we are using all the loans only for capital purpose we will not have any revenue deficit at all so but conceptually loans received from foreign government should fall under capital budget so two would be a part of the answer the answer has to be this also loans and advances granted to the states and union territories if there is a loan granted the money should be used only for capital building purposes so the answer here is D 1 2 and 3 so that is question number 23 moving to question number 24 the main objective of the 12th five year plan this seems like a very factual question where you should have read the objectives of five year plan and all those but I will give you another way to look at this look at only the option inclusive growth and property reduction looks like a very logical thing to talk about inclusive and sustainable growth okay sustainable and inclusive growth to reduce unemployment all right and faster sustainable and more inclusive growth now the answer here is D I will tell you why do we why do how do we arrive at this one point it says faster today with the ever growing population there is a need to achieve growth and achieve growth really fast logically speaking we cannot afford to grow at some slow pace we are trying to grow even greater if you are growing at 7 percentage we are trying to grow at 8 percentage we are trying to grow at 10 percentage double digit growth that is always the target so faster is definitely an objective sustainable yes sustainable is there in some other options also but the point key point here is in addition to faster look at the word more inclusive if you do not add the word more here let us say inclusive growth here here there is a slight connotation that till now till the 11th five year plan our growth was not inclusive from the 12th onwards we have to make it inclusive so that there could be such a perception but no we are saying that it has been inclusive but that is not enough we need to make it more inclusive so going by that logic this seems like an option which is the best of all the all the four options I am not saying that 12th five year plan of the four options A B C D D seems like a really good option D seems like the best version of all these things so the answer we can safely mark as D and D also happens to be the answer once again this will not work every single time there is a possibility that 12th five year plan talks about something specific there we need knowledge but even in even otherwise going by general perception if you have to attend this answer we can attend it and mark the answer as D the high there is a high likelihood of this being correct and in this case it is correct the issue with C is that sustainable and inclusive growth to reduce unemployment you are targeting only unemployment you are talking about 12th five year plan five years are you only going to target one area unemployment not true inclusive and sustainable growth is correct which is again a part of D inclusive growth and poverty reduction once again poverty reduction is only talking about one dimension there you can eliminate it B and D once again of B and D D talks about a more broader and better version of B hence D is the answer 25 which of the following groups of items is included in India's foreign exchange reserves okay foreign exchange reserve do you think we can take a loan to add to our reserves it is not likely we if you take loan as I told in the earlier case it is towards some expenditure that is the only case in which we are going to take loan we are not going to say we need to accumulate reserves so let us take loans it is it does not seem like a logical thing to say if you have that thought process why do I talk talk about loans because three of these answers have loans as part of it loan loan loan foreign currency asset SDRs and loans from foreign countries foreign currency assets loans from World Bank and SDRs foreign currency assets gold holdings of RBA and loans from World Bank so the moment you think of the fact that okay we cannot borrow money just to add to our reserves we need to earn it or get it in the form of FDA or some other form form then we can say that B is the answer foreign currency assets foreign currency assets would mean securities of other countries and all those gold holdings of RBA and special drawing rights of the IMF these three are part of the are part of the forex reserves so 25 the answer is Bombay sorry sorry the answer is B okay 26 which one of the following is likely to be the most inflationary in its effect keyword most okay repayment of public debt when the government borrows money from the public and repays it to them there is more money with the people it is likely to be inflationary in nature borrowing from the public to finance a budget deficit so you are borrowing from the public but it is to finance a budget deficit which means that it is again going to be spent which means that the money is just getting circulated in the economy even in this case even in the repayment of public debt it is money that is already in existence in the economy it is being repaid so the money is just getting circulated there see borrowing from banks to finance a budget deficit once again when the money is with the bank it is money that is already existing it is again so if you look at B and C they are not contradictory they are talking about the same thing borrowing from public borrowing from banks for the ultimate purpose of financing budget deficit wherever you borrow from which means that if this is part of the answer then this also has to be the answer if one of this is which cannot be the case you can only choose one of them so there itself you can eliminate both these you cannot have either B or C it has to be B and C but that is not the case so eliminate that you are left with only A and D look at D creating new money to finance a budget deficit which means that money which was not in existence earlier you are printing new money so when you have money in excess of the commodities that you have in an economy it is likely to lead to inflation it is likely to lead to a higher level of inflation which is why which one of the following is likely so if this new money along with the increase in new money if you increase the production as well then it may not be inflationary in nature which is why they are saying which of the following is likely to be the most inflationary in nature you can also make arguments that ABC can be inflationary in nature maybe but which is the most inflationary creating new money to finance budget deficit so that is why the answer here is D number 27 supply of money remaining the same when there is an increase in demand for money there will be what so there is supply of money remaining the same supply is remaining the same when there is an increase in demand let us look at this with the example of commodity let us say here we are talking about supply and demand let us look at money itself as a commodity there is only 10 of these notes available there is this let us say there is only 100 rupees available in the economy in order to get 100 rupees where are we going to get 100 rupees from where are we going to pay to get money we are going to pay interest in the banks interest rate in the banks to get money that is where we have to make payment in order to get money we are talking not talking about salary here we are talking about in a way buying money from somewhere. So, we are trying to get the money from banks if there is 100 rupees in the economy and there is demand for 200 rupees in the economy. So, demand there is an increase in demand what is likely to happen earlier the interest rate was 5 percentage. Now, they are likely to charge 10 percentage or 12 percentage or 7 percentage or whatever this was the earlier rate this is the current rate which means that supply of money remaining the same when there is an increase in the demand for money there will be an increase in the rate of interest that is one way arriving at the answer look at the other way these two. An increase in the rate of interest a decrease in the rate of interest what is likely to happen these are contradictory in nature you remember in the earlier in the initial part of the discussion we said that whenever there is a contrast it is very likely that one of those has to be the answer. So, you can eliminate A and D in that sense and you can see either B or C and by applying the logic that I gave you here you can arrive at the answer as B. So, 27 the answer is B 28 economic growth in country X will necessarily have to occur if there is technical progress in the world economy. There is population growth in X there is capital formation in X the volume of trade grows in the world economy the point here is economic growth in country X will necessarily have to occur if there is technical progress in the world economy it is quite possible that country X is not affected by it at all because it is only in world economy there is technical progress it may or may not filter down to the country X. So, A is eliminated similarly D the volume of trade grows in the world economy maybe if the country X is a closed economy they will not be impacted at all. So, they need to be a certain type of economy for that to have an impact so we cannot say necessarily country X will grow. So, A and D eliminated you are only left with B and C if there is population growth in X and they do not have the sufficient resources to deal with the population growth then the economic growth will not happen the opposite will happen. So, this is again eliminated so the answer is C 28 there is capital if there is capital formation in X it will necessarily have to mean that there is economic growth. The growth rate could be high or low but there will definitely be growth because of capital formation. So, that is the point here 28 answer is C once again does not require a lot of technical knowledge it just is logical applying logic. So, that is 28 coming to 29 inflation benefits the debtors inflation benefits the bond holders the key point to notice here is to understand interpret the question inflation benefits debtors. Debtors are people who borrow money and inflation benefits bond holders who are bond holders they hold bond and they give money bond is also called as a debt instrument whose debt instrument whoever is issuing the bond they are borrowing. So, if the government is issuing G 6 government is borrowing money from the people. So, bond holder will be the person who bought the bond by giving money. So, this bond holder is nothing but lender or creditor. So, the look at the contrast here inflation benefits debtors inflation benefits creditors both cannot be correct at the same time these are contradictory statements. So, it cannot be both and one of this the only situation neither can happen is when inflation does not have an impact on either then neither could be correct but inflation does have an impact on people who are holding money. So, we will eliminate this also let us look at who inflation benefits and whom inflation does harms. Let us say I borrowed 100 rupees from a friend and after that there was an inflation of let us say 100 percentage. I am just taking an extreme example in order to explain this concept inflation of 100 percentage which means that it is from a friend that I borrowed let us say there is no interest rate and all those. So, I borrowed 100 rupees and when I give back before that there is 100 percent inflation I give back 100 rupees this 100 rupees earlier with 100 rupees let us say I could buy 10 commodities of 10 rupees. Now with this 100 rupees after the inflation my friend will be able to buy only 5 commodities worth 10 rupees which means inflation benefits the debtors inflation harms the creditors. So, the answer is A 29 A. Let us move to question number 30. Consider the following liquid assets. So, there is the concept of liquidity that is going to come in the correct sequence of the correct sequence of these decreasing order of liquidity is decreasing order of liquidity which means you have to arrange from the highest liquidity to the lowest liquidity. So, what is the highest what is meant by liquidity first of all the ease of access of money the ease with which you can transact using that. So, if you look at that in this perspective demand deposits with the bank it is with the bank time deposit with the bank with the bank again savings deposits with the bank once again with the bank currency you are likely to have in your hand this is the one you can transact with the easiest the easiest form of transaction. So, if you know that the highest liquidity is for currency. So, the answer has to be either B or D. Now let us say we have written 1 the first one is currency then we have to look at what is liquid now of what is the next highest liquidity. Deposits which you can demand at any time. So, demand deposits would come in next deposits which you can demand at any time then you have time deposits time deposits you can only demand after a certain point of time. Let us say 6 month FD or 9 month FD you can demand only after that point of time. So, the liquidity is very low let us look at savings deposits with banks. Now a lot of people would be wondering how is demand deposit and saving deposit different because in saving deposit there are two components there is the demand liability portion of savings deposit and there is something called as a time liability portion of savings deposit. So, when we say time liability portion take the example of savings account having a minimum balance let us say there is a minimum balance of 1000 rupees that need to be kept which means that the 1000 rupees needs to be kept it is not liquid at all. Let us say 10000 rupees there in the account but 1000 rupees of which is not liquid at all for as long as you have the account which means that some part of the savings deposit is not liquid to us which means that something which is categorized as a demand deposit is something that can be entirely demanded but savings deposit need not be the case. So, you arrange it in that order it will become the savings deposit is the third one and obviously the last one will be time deposits. So, the answer is 4, 1, 3, 2. So, that will be the answer to this with this we have completed the discussion of 30 questions we have looked at various techniques using which we can either eliminate all three options and arrive at the answer and in some cases we will be able to eliminate only two of the options. So, the point here is even if we are able to eliminate the answer to only two options we should still be attending those questions because there is a very high chance that let us say even if we attend 10 such questions and we get say 4 of those correct 4 out of those 10 questions correct we are still going to be in positive. I hope the session was really helpful for you we show all the best for the exam. Thank you so much.