Cash Management Fund Payment Form: Fill & Download for Free

This is an excellent question that people really need to know more about.When we solve a problem, after a while, we tend to forget what solved the problem and go back to what we used to do that caused the thing to go over the cliff in the first place.That was the 2008 mortgage and financial crisis, as it forgot the lessons of the Great Depression.History up to the Great DepressionIn the 1920’s, when the economy was booming and it seemed like the party would never stop, banks lent out a ton of money on credit, with the presumption that all that money would be paid back and that there was sufficient collateral to cover it.Except, there wasn’t.One of the biggest assets that people might own that a bank could recover is real property. As Will Rogers once noted: “Buy land. They ain’t makin’ any more of the stuff.” Real property was something that pretty much always appreciated in value.Prior to the early 1900’s, most people didn’t own their own homes. Most people rented. Many lived in tenements and apartments in cities, or lived as tenants on farms in rural areas. Land speculators often bought what was left of the government land grants as the frontier closed.But, in the 1920’s, that began to change as banks felt more confident in lending credit for new construction. There were significant speculation bubbles. People bought property and built homes on future credit that wasn’t based on anything but hope.And as the stock market ticked ever higher and higher, banks bet on it. With the deposit money of their customers.And then the Stock Market Crash of 1929 hit.Banks that were significantly overleveraged and undercapitalized were hit hard. Many just failed, and those who had their deposits at banks that became insolvent just lost everything. There was no deposit insurance. If your bank went under, you were screwed out of your entire savings.And if you lost your job, that meant you also lost any means of continuing to pay back that home loan.Additionally, there were suddenly vast quantities of new construction for sale… that nobody could afford any longer. That drove down property values everywhere.Suddenly, your property that was worth $10,000 last year might now only be worth $5,000. But you might still owe $8,000 - what we call “underwater.” If you default or declare bankruptcy, the bank loses. And you’re out on the street.And then, what could the bank do with the house? How could they sell it? Nobody was buying. So, the bank suddenly has a ton of illiquid assets.More foreclosures in a neighborhood continues to lower the property values further, and the destructive cycle just ends up repeating itself.The Hoover administration tried economic protectionism. At the administration’s pushing, Congress passed the Smoot-Hawley Act of 1930, which imposed schedules of high tariffs on over twenty thousand types of imported goods, to protect American business, by golly.It backfired spectacularly and greatly exacerbated the worsening Depression.Weather conditions didn’t help. A severe drought ravaged the Midwest and Great Plains starting in 1930. Farmers had been using what in retrospect were poor farming practices, tearing down line fences and forest windbreaks and not planting cover crops for winters. The thin layer of good topsoil in the Great Plains turned to dust and became an ecological nightmare.Farms started going under as crops failed. The Smoot-Hawley tariffs only made things worse.Additionally, the money supply dried up. The banks that survived, like J.P. Morgan Chase, just turned off the credit spigot to stay afloat. They stopped lending. Why? Again: illiquid assets. The banks were holding on to all these properties and other assets that they couldn’t sell. And people didn’t trust the banks because so many had lost everything depositing their savings there. Because the banks couldn’t sell anything they had, and nobody would give them any cash, they didn’t have any money to give out.Part of the problem was the gold standard. Under the Federal Reserve Act, at least 40% of the money in circulation had to be backed by gold reserves held by the federal government. So, there was no modern tool of being able to print more money to help increase liquidity.On top of that, gold became more expensive. Mortgages often had clauses that allowed banks to demand repayment in gold because of the gold standard. By 1932, that resulted in a disparity in payment between the dollar and the value of gold that meant that if a debtor was forced to repay in gold, it could cost him as much as $1.69 for every dollar he owed. This led to more bankruptcies and foreclosures still.Because of the tariffs, the lack of money supply, the collapse of agriculture, and lack of consumer spending, rampant deflation initially set in. This made exported American goods increasingly more expensive for overseas importers, even where other nations had not instituted retaliatory tariffs of their own. Manufacturing began to collapse. The steel industry followed.And the Depression spiraled out of control.When Roosevelt took over from Hoover in 1932, the nation was becoming increasingly desperate.The New DealRoosevelt ran on a radical new idea that he called “The New Deal.” The premise was that the government would intervene in the economy and prop it up through deficit spending and government borrowing. The New Deal would create government programs to put people back to work and get people back to farming and building things, and that eventually, once people got back on their feet, the government could take those supports out.Various New Deal reforms were leveled at the financial sector to try to get the credit flowing again.One reform was put on the banks directly: the Glass-Steagall Act. One of the problems with the banking crisis was that banks could gamble with depositor’s money. The Glass-Steagall Act separated investment banks from commercial banks. Investment banks are gamblers. These deal with stock and bonds and venture capital and hedge funds and Wall Street. Commercial banks are the Savings and Loan where you put your nest egg. The Glass Steagall Act put a firewall between the two. The idea was that Wall Street could melt to the ground and Main Street wouldn’t go with it.Keep this in mind. It will be important later.Another was to protect depositors. Commercial banks would be required to pay into a new Federal Deposit Insurance Corporation: the FDIC, which would make sure that depositors would get paid back if the bank collapsed. That encouraged people to trust banks again. People would deposit their money, and banks could use that money to start giving out loans again.A third was to help reduce the risk of default on certain types of loans through surety agreements. Sureties had been around forever: they’re a promise to pay a debt if the original debtor defaults.The Federal government aimed these programs at home loans in particular, to try to reduce the homelessness problem. And so, in 1938 with the National Housing Act, the government formed the Federal National Mortgage Association, or FNMA. FNMA, or “Fannie Mae,” would buy the mortgages from the banks, who would continue to “service” the mortgages. From the perspective of the consumer, it looked just like their ordinary transaction: get a loan from the bank, pay the bank. The bank kept some money for “service fees,” and the Feds took over the loan, and importantly: the risk of default. This created a secondary market for mortgages for the first time in history.But Fannie would only buy that mortgage if it met certain criteria, such as debt to income ratios, term of the loan, and more. If banks wanted to make other loans, that was fine, but Fannie wouldn’t buy them.And the program basically worked. Banks started lending again. Credit slowly started to thaw out. Banks started getting more liquidity in their balance sheets. People started being able to buy homes again.After World War II, the housing market took off again, fueled in part by the GI Bill and a push for suburbanization and the creation of easily duplicated, cheap ranch houses on a standardized template.But in the background still driving things along was always Fannie Mae and the prime 30 year fixed-rate mortgage, which had become as much a part of the standardized American experience as baseball. Housing prices rose steadily home ownership became a stable part of the American economy. Virtually every person in the country could see a viable path to owning their own home.By the 1960’s, FNMA owned more than 90% of the residential mortgages in the United States and individual home ownership had risen to the highest levels ever recorded. This led to the greatest expansion of the middle class in history.So, of course, like all wildly successful government programs, we had to fix it.PrivatizationIn 1954, FNMA was semi-privatized into a public-private hybrid where the government owned the preferred stock (with better voting rights within the corporation,) and the public held the common stock (which gave dividends, but inferior voting rights).And in 1968, Fannie Mae was privatized entirely, with a small slice of it (known as Ginnie Mae) carved off to maintain Federal Housing Authority loans, Veterans Administration loans, and Farmer’s Home Administration mortgage insurance. Because Fannie Mae had a near monopoly on the secondary mortgage market, the government created the Federal Home Loan Mortgage Corporation to compete with it: Freddie Mac.By 1981, Fannie and Freddie were doing well as private companies, and Fannie came up with a great idea that had been done in limited settings: pass-through mortgage derivatives. They would bundle up various mortgages and sell them as a type of bond to investors. Investors loved the idea. The housing market had been extremely stable for nearly fifty years and offered a modest, but highly reliable return. And so the commercial home loan mortgage backed security was born.Keep this in mind. It will be important later.The Savings and Loan CrisisBy the early 1980’s, the economy had been stable for 30 years (more or less,) and thanks to the Glass-Steagall Act, commercial banks were doing okay even with the “stagflation” of the 1970’s. Home prices continued to rise about on par with wage growth.But one type of commercial banks, the Savings and Loan banks, wanted to do better than okay. S&L’s were the kind of bank in It’s a Wonderful Life. S&L’s were specifically singled out in federal legislation, like credit unions, for a single purpose: to promote and facilitate home ownership, small businesses, car loans, that sort of stuff.A business-friendly Congress agreed. They passed two laws in 1980 (signed by Jimmy Carter) and 1982 (Signed by Ronald Reagan) that allowed banks to offer a variety of new savings and lending options, including the Adjustable Rate Mortgage, and dramatically reduced the oversight of these banks.Adjustable rate mortgages work by locking in a fixed rate for a short term, and then after that initial term, the mortgage rate would re-adjust every additional term after that. If the prime interest rates set by the Federal Reserve stayed high, lenders would get hammered.But S&L’s had a fix in mind for consumers: just keep refinancing your home every time the first term is up. Home prices would just always continue to rise, right? They could collect closing costs every couple of years, and consumers remained essentially chained to them in debt with a steady stream of revenue that would always be secured if something happened. It was perfect.Keep these types of mortgages in mind. It will be important later.By the mid-1980’s, the lack of oversight allowed S&L’s to start making riskier and riskier decisions, offering certificates of deposit with wild interest rates, as much as eight to ten percent. They were exempted from FDIC oversight, while still keeping deposits federally insured (what could go wrong there, right?)And then the Federal Reserve, in an effort to reduce inflation, raised short-term interest rates, which sent ripple effects through these S&L’s, who had been made very vulnerable to that particular issue through these bad decisions, lack of appropriate capitalization, and overpromising depositors.By 1992, almost a third of savings and loan banks nationwide had collapsed.This crisis led to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), which put back some of the same oversights that had been taken off because people wanted to make more money, particularly better capitalization rules (which were tied to risk,) increased deposit insurance premiums and brought back some FDIC oversight, and reduced these banks’ portfolio caps in non-residential mortgages.Keep this in mind. It will be important later.The Repeal of Glass-SteagallRemember how back in the 30’s, in the midst of the Great Depression, we instituted that firewall between investment banks and commercial banks?Again, it worked so well, we had to fix it.Starting in the 1960’s, the federal regulators began to start to allow commercial banks to get back into the securities game again. The list was limited, and was supposed to stay in relatively safe stuff.This accelerated under Reagan’s policy of deregulation, and continued under Clinton in the 1990’s. By 1999, Bill Clinton declared that Glass-Steagall no longer served any meaningful purpose, and most people had declared it dead well before that. The law was officially repealed in 1999 with the Gramm-Leach-Bliley Act.Immediately, investment and commercial banks start merging again. Bear Stearns, Lehman Brothers, Citibank, all of these investment banks start buying out the commercial banks or merging.And there’s a culture difference between those.Remember: investment banks are gamblers. These are the Wall Street guys. They’re risk takers. They’re hedge fund managers. These are your Gordon Gekko type guys. Commercial banks are Main Street guys. They’re generally conservative, George Bailey types.And the investment banker culture won out over the course of the 2000’s. George Bailey starts snorting coke and putting on Ray Bans with a blazer and jeans.Sub-Prime, NINJA, and ARM LoansIn the early 1990’s, affordable housing started to become a greater and greater issue. George H.W. Bush signed legislation in late 1992 amending Fannie and Freddie’s charters to push them to make loans to people with lesser means than the traditional prime criteria. The Clinton Administration continued pushing Fannie and Freddie to accept more low and moderate income earners.That meant taking on riskier loans.The Clinton administration put rules in place in 2000 to curb predatory lending practices, and rules that disallowed those risky loans from counting towards their low-income targets.The Bush administration took those predatory lending rules off in 2004, and allowed those risky, “sub-prime” mortgages to count towards the low-income targets set by Housing and Urban Development.Remember those ARM mortgages?Heh, heh. This is getting long, and you probably glossed over that, didn’t you? I told you it was going to be important.Banks started making riskier and riskier loans, often those ARM loans. They could meet their HUD targets and make tons of money. And again: the gravy train was endless, right? The housing market had not lost value for over fifty years, even in the recessions of the 70’s and 80’s.So, they put more people in houses. Bigger houses. More expensive houses. The economy was doing good. New construction was hot. Contractors couldn’t build the McMansions fast enough.Banks started a race to the bottom with these sub-prime loans, getting all the way to NINJA loans: No Income, No Job, No Assets required. You’re a homeless person selling Etsy products out of your car? You’re already prequalified on a quarter-million subdivision home with a quarter-acre. Congratulations.As long as you could afford the payments, you were in.De-regulationIn the early 2000’s, the Bush administration wanted to keep the economy going. There was a low-level recession from March 2001 to November 2001 following the dot-com crash. The administration lifted a number of securities and financial sector oversight rules. One of those rules was about capitalization.Remember that? I told you that was going to be important.Capitalization requirements are how much reserve cash a bank needs to keep on hand to prevent collapse if something happens, against their liability sheets. Remember: that’s how banks got in trouble before the Great Depression and again right before the Savings and Loan Crisis. They took on too many liabilities and didn’t have enough capital to actually pay it all out.The Bush administration relaxed the rules on required capitalization and what assets could count as capital. Some of those assets turned out not to be very useful.Collateralized Debt Obligations and the Mortgage Backed SecurityRemember, back in 1981, when Fannie starts issuing those mortgage backed securities, re-selling them as bonds with a low, but reliable interest rate?That gets more complicated after 2004–2005 with the increased use of a financial tool called the collateralized debt obligation. Basically, a CDO is just a promise to pay investors in a sequence based on the cash flow from something the CDO invests in. The rate of return was tied to how risky the CDO was.In the 70’s and 80’s, CDOs were pretty safe, mundane things. They were basically like index funds; they invested in a lot of stuff and did okay. But by the mid-2000’s, CDOs were becoming riskier and riskier, while providing more and more reward. CDOs bought up mortgages like crazy, because they had increasingly higher interest rates as the subprime mortgages started taking off.But people were nervous about investing solely in these high-risk CDOs. And so, investment banks that bought up those mortgage-backed securities started to bundle together some high-risk mortgages with some regular, low-risk mortgages and promising that they were safer.And then some investment banks started to lie about how many of those high-risk mortgages were in them. Why? Again: the housing market was super-stable and always going up. Those loans only looked high-risk on paper, right? I mean, those debtors could always just keep refinancing every couple of years.So banks bought up those assets and added them to their capitalization sheets.You see it, right? You see the problem here? Not yet?Keep this in mind. It will be important in just a minute.The CollapseI remember being in college in the early 2000’s, and asking the loan officer at our local bank how some of the people I knew were making maybe $10–12 an hour could afford these massive homes and boats and jet skis and campers. My parents were teachers; they weren’t doing bad, but we couldn’t afford all that and I knew they were doing better than some of those people. The loan officer shook his head and said, “They can’t. They can afford the payments.”Some of those people didn’t have furniture in their homes. If they had a party, they rented furniture for a couple days. I’m serious. That was a thing. Many of them were in deep, crippling credit card debt, paying off the balances of one with another, and justifying it with the idea that it would be okay when the next raise kicked in.It was a classic speculation bubble.Then in late 2006–2007, that bubble burst.The housing market became oversupplied. People stopped buying the new construction and the existing homes as much. And home values started to drop.And suddenly, because home values plateaued and then dropped, so too did the little bit of equity that many of these purchasers, in debt up to their eyeballs, had in their homes. Without more equity, they couldn’t refinance. And because they could’t refinance, those ARM loans or other loans kicked in, and the interest rates on them skyrocketed.And suddenly, they couldn’t make the payments anymore.And then they went into default on their mortgages.Followed by foreclosure.And often bankruptcy.It turned into a vicious cycle. Once one or two neighbors end up losing their homes in foreclosure, it affects the property values of everyone else around those properties like a contagion. Healthier borrowers started to become impacted as property values declined and now they couldn’t refinance.In 2007, lenders foreclosed on 79% more homes than in 2006: 1.3 million foreclosures. In 2008, this skyrocketed another 81% still: 2.3 million. By August of 2008, nearly one in ten mortgages nationally were in default and foreclosure proceedings. By one year later, this had risen to over 14% nationally.The RecessionRemember, the financial sector had heavily invested in all of those housing market securities. They thought they were safe. They thought that the housing market would never go anywhere but up. They built their whole foundation on it.And they had relied on those securities to meet their capitalization requirements.Securities that suddenly turned out to be nearly worthless.Huge banks ran out of liquid cash almost immediately. This is what happened to Bear Stearns, Lehman Brothers, Goldman Sachs, Citibank, and more. They were suddenly holding on to billions upon billions of dollars of assets that were either worthless, or completely frozen. They couldn’t sell the bits of stuff that was even worth anything.And because their assets weren’t liquid, they didn’t have money to lend anymore.And that lack of credit is what grinds the economy to a halt.That impacted every sector of business in the United States. Which impacted every sector of business in the world. And that meant that businesses started having to lay people off because they couldn’t get the money to keep paying them.And then because those people lost their jobs, they started to default on their mortgages. Which rippled through the CDO market again.This was why it was so critical for the Federal Reserve to buy those toxic assets and provide the banks with liquid cash in their place. They had to get the credit flowing again to re-start the gears of the economy. Without it, we almost certainly would have seen a full repeat of the Great Depression.And that brings us to today.That’s the abbreviated, oversimplified explanation. It’s more complicated than this, and there’s other factors that contributed, but that’s kind of the main story in basic terms. That’s roughly how 10 million homes went into foreclosure.And we still haven’t fully recovered. Over twice as many people rent as opposed to own. Less than one-third of people who have lost a home in foreclosure in the last decade will be able to repurchase another again. Roughly 2/3ds of those people who lost their homes have so damaged their credit that they will never qualify again. Hundreds of thousands, if not millions more, were so emotionally traumatized by the experience that they simply refuse to go through it again.And that number of renters to owners is substantially higher for my generation, the Millenials, who have never seen any substantial portion of the post-2008 recovery. We still haven’t made up the wages that would allow us to save enough to purchase, even setting aside the massive increase in student debt we carry.75% of my generation wants to own a home. Less than 35% do.And, in case reading this wasn’t chilling enough for you, the present administration has been lifting some of the exact rules and regulations that were put into place after the 2008 collapse that were lifted in 2004 that were put in place after the 1980’s collapse after those were lifted. Because it worked so well the first two times.Mostly Standard Addendum and Disclaimer: read this before you comment.I welcome rational, reasoned debate on the merits with reliable, credible sources.But coming on here and calling me names, pissing and moaning about how biased I am, et cetera and BNBR violation and so forth, will result in a swift one-way frogmarch out the airlock. Doing the same to others will result in the same treatment.Essentially, act like an adult and don’t be a dick about it.Look, this is pretty oversimplified. Ph.D. theses have been written about this. I’m trying to make it at least remotely accessible to those with the patience to read it. Don’t be pedantic about it, please?Getting cute with me about my commenting rules and how my answer doesn’t follow my rules and blah, blah, whine, blah is getting old. Stay on topic or you’ll get to watch the debate from the outside.Same with whining about these rules and something something free speech and censorship.If you want to argue and you’re not sure how to not be a dick about it, just post a picture of a cute baby animal instead, all right? Your displeasure and disagreement will be duly noted. Pinkie swear.If you have to consider whether or not you’re over the line, the answer is most likely yes. I’ll just delete your comment and probably block you, and frankly, I won’t lose a minute of sleep over it.Debate responsibly.

The following are my key takeaways from the 2019 Berkshire Hathaway Chairman’s Letter to Shareholders. Strap in, this is going to be a long post.Operating Earnings Vs Accounting EarningsOur advice? Focus on operating earnings, paying little attention to gains or losses of any variety. My saying that in no way diminishes the importance of our investments to Berkshire. Over time, Charlie and I expect them to deliver substantial gains, albeit with highly irregular timing.A new GAAP (Generally Accepted Accounting Principles)[1] rule has mandated that the MTM Gains / Losses in Investment Securities should also be included in the Profit & Loss Account of a company. While this doesn’t affect the actual performance of Berkshire Hathaway (Measured via Operating Profits), it impacts the Accounting Profits. Therefore, Warren Buffett advises that going forward, we pay more attention to the Operating Profit of Berkshire Hathaway, and ignore half-baked news like this[2].Best Measure of Business PerformanceIn future tabulations of our financial results, we expect to focus on Berkshire’s market price. Markets can be extremely capricious: Just look at the 54-year history laid out on page 2. Over time, however, Berkshire’s stock price will provide the best measure of business performance.Businesses do not grow in a straight line and neither do their stock prices. But over very long time periods (Say, 10–20 years), the performance of the company’s stock should correlate with how the underlying business performs.Focus on the Forest – Forget the TreesFortunately, it’s not necessary to evaluate each tree individually to make a rough estimate of Berkshire’s intrinsic business value. That’s because our forest contains five “groves” of major importance, each of which can be appraised, with reasonable accuracy, in its entirety. Four of those groves are differentiated clusters of businesses and financial assets that are easy to understand. The fifth – our huge and diverse insurance operation – delivers great value to Berkshire in a less obvious manner, one I will explain later in this letter.I believe Berkshire’s intrinsic value can be approximated by summing the values of our four asset-laden groves and then subtracting an appropriate amount for taxes eventually payable on the sale of marketable securities.While evaluating a conglomerate, an investor can get lost trying to find out the exact prospects of each moving part. But this isn’t necessary. It is better to divide the several businesses in chunky groups and then attempt to evaluate each group separately.Hidden ExpensesFor example, managements sometimes assert that their company’s stock-based compensation shouldn’t be counted as an expense. (What else could it be – a gift from shareholders?) And restructuring expenses? Well, maybe last year’s exact rearrangement won’t recur. But restructurings of one sort or another are common in business – Berkshire has gone down that road dozens of times, and our shareholders have always borne the costs of doing so. Abraham Lincoln once posed the question: “If you call a dog’s tail a leg, how many legs does it have?” and then answered his own query: “Four, because calling a tail a leg doesn’t make it one.” Abe would have felt lonely on Wall Street.ESOPs / Stock-based Compensations and/or Corporate Restructuring activities are an indirect charge on the Free Cash Flows of a company. It doesn’t matter what the management chooses to call them, they’re value destructive in nature and that’s that.DepreciationIn contrast, Berkshire’s $8.4 billion depreciation charge understates our true economic cost. In fact, we need to spend more than this sum annually to simply remain competitive in our many operations. Beyond those “maintenance” capital expenditures, we spend large sums in pursuit of growth. Overall, Berkshire invested a record $14.5 billion last year in plant, equipment and other fixed assets, with 89% of that spent in America.Depreciation, although technically a non-cash expense, is representative of the Capital Expenditure done by a business. Higher-than-average Depreciation is bad, not good, if the profitability of the company remains the same. It would imply that the company requires more by way of investments in Assets just to maintain their old levels of profit.BuybacksAll of our major holdings enjoy excellent economics, and most use a portion of their retained earnings to repurchase their shares. We very much like that: If Charlie and I think an investee’s stock is underpriced, we rejoice when management employs some of its earnings to increase Berkshire’s ownership percentage.Buybacks are the best use of a company’s otherwise idle funds. Buybacks improve the Earning per Share of a company, which directly translates into a higher Market Capitalization for the company. Also, Buybacks improve each individual shareholder’s stake in the company, thereby allowing them to earn more dividends without purchasing more shares.However..For continuing shareholders, the advantage is obvious: If the market prices a departing partner’s interest at, say, 90¢ on the dollar, continuing shareholders reap an increase in per-share intrinsic value with every repurchase by the company. Obviously, repurchases should be price-sensitive: Blindly buying an overpriced stock is value destructive, a fact lost on many promotional or ever-optimistic CEOs.Buybacks aren’t always good.. especially not good when its done at a premium to the estimated intrinsic value of the company. CEOs often do massive buybacks just to boost their rapport with shareholders. This could lead to value destruction for shareholders in the long term.Cash in or Cash out?Berkshire will forever remain a financial fortress. In managing, I will make expensive mistakes of commission and will also miss many opportunities, some of which should have been obvious to me. At times, our stock will tumble as investors flee from equities. But I will never risk getting caught short of cash.It is always good to hold a small chunk of your portfolio in liquid cash / relatively risk-free instruments. You never know when an excellent buying opportunity will come along. It’s better to wait for an excellent opportunity than to stay invested in a mediocre one.Passion is everythingEven at our ages of 88 and 95 – I’m the young one – that prospect is what causes my heart and Charlie’s to beat faster. (Just writing about the possibility of a huge purchase has caused my pulse rate to soar.)This was my favorite part in the entire letter. Warren Buffett, aged 88, is clearly as enthusiastic about picking up undervalued securities as he was when he invested in Citicorp Services at the age of 11. Every investor should hope that they’re as passionate as Mr. Buffett when they’re that old. Meanwhile, we should also hope that we lead a long and healthy life like Charlie Munger, who headed the Daily Journal’s Annual General Meeting[3] recently, at the ripe old age of 95.Conglomerate Capital AllocationFinally, a point of key and lasting importance: Berkshire’s value is maximized by our having assembled the five groves into a single entity. This arrangement allows us to seamlessly and objectively allocate major amounts of capital, eliminate enterprise risk, avoid insularity, fund assets at exceptionally low cost, occasionally take advantage of tax efficiencies, and minimize overhead. At Berkshire, the whole is greater – considerably greater – than the sum of the parts.A conglomerate is the best type of business model. Conglomeration allows for idle capital in one business to be re-allocated to another business in need of capital without much hassle. There are also minor benefits like tax savings, reduction of overhead costs, reduction in funding costs and so on.No Quarterly TargetsFurthermore, Berkshire has no company-wide budget (though many of our subsidiaries find one useful). Our lack of such an instrument means that the parent company has never had a quarterly “number” to hit. Shunning the use of this bogey sends an important message to our many managers, reinforcing the culture we prize.There are no ‘Quarterly Targets’ provided by Berkshire Hathaway to its subsidiaries. Buffett and Munger do not believe in monitoring a company’s performance Quarter to Quarter. It’s a waste of time. Investors will do better to learn more about the things that impact the performance of the business in the long term—like the competitive scenario, new developments in the industry and so on.Government and the IndustryBegin with an economic reality: Like it or not, the U.S. Government “owns” an interest in Berkshire’s earnings of a size determined by Congress. In effect, our country’s Treasury Department holds a special class of our stock – call this holding the AA shares – that receives large “dividends” (that is, tax payments) from Berkshire.Governments have the right to claim a percentage of profits from every company, under the name of ‘Taxes’. So, in a way, Governments own an invisible percentage of stake in every company registered and operating in the country. ‘Taxes’ can be likened to Dividends received by shareholders.“Float”This collect-now, pay-later model leaves P/C companies holding large sums – money we call “float” – that will eventually go to others. Meanwhile, insurers get to invest this float for their own benefit. Though individual policies and claims come and go, the amount of float an insurer holds usually remains fairly stable in relation to premium volume.An insurance firm’s important activity is to effectively utilize its “float” or insurance premium money held with them. Berkshire Hathaway, too, has made use of this “float” as a form of free leverage to boost their returns. Seen in isolation, this will mean that Berkshire Hathaway’s Equity Returns are inflated. But together, it simply means that Warren Buffett and Charlie Munger run a tight ship—expanding the “free float” from their insurance business and investing it in Equities and businesses to earn commensurate returns.DebtWe use debt sparingly. Many managers, it should be noted, will disagree with this policy, arguing that significant debt juices the returns for equity owners. And these more venturesome CEOs will be right most of the time. At rare and unpredictable intervals, however, credit vanishes and debt becomes financially fatal. A Russian roulette equation – usually win, occasionally die – may make financial sense for someone who gets a piece of a company’s upside but does not share in its downside. But that strategy would be madness for Berkshire. Rational people don’t risk what they have and need for what they don’t have and don’t need.Debt is best utilized sparingly—and only when necessary. Leverage is like playing a Russian Roulette. It’s good most of the time, but the cost of that unlikely mishap is too high. Logically then, Debt is a bet a CEO should avoid, unless there’s an immediate need.Valuations MatterOn occasion, a ridiculously-high purchase price for a given stock will cause a splendid business to become a poor investment – if not permanently, at least for a painfully long period. Over time, however, investment performance converges with business performance.While a competent management and a competitive advantage is a must for a good business, the purchase price is also equally important. Purchasing an overvalued security can result in large immediate losses or a long period of low/no returns. Take Mr. Buffett’s word for it—he recently admitted to one such mistake[4].Hedging is CostlyThose who regularly preach doom because of government budget deficits (as I regularly did myself for many years) might note that our country’s national debt has increased roughly 400-fold during the last of my 77-year periods. That’s 40,000%! Suppose you had foreseen this increase and panicked at the prospect of runaway deficits and a worthless currency. To “protect” yourself, you might have eschewed stocks and opted instead to buy 31⁄4 ounces of gold with your $114.75. And what would that supposed protection have delivered? You would now have an asset worth about $4,200, less than 1% of what would have been realized from a simple unmanaged investment in American business. The magical metal was no match for the American mettle.Investors often fear big market draw-downs and choose to permanently allocate a part of their capital to ‘Dead Assets’, such as Gold. Gold and other precious metals do not have underlying cash flows and are priced based on what the next fool is willing to pay for it. Companies are backed by cash flows and physical/intellectual Assets, which makes investing in Stocks a far better alternative.The letter can be accessed here. And I insist that you do. Warren Buffett is an amazing writer and there’s nothing quite like learning it straight from the horse’s mouth.Footnotes[1] What is GAAP (generally accepted accounting principles)? - Definition from WhatIs.com[2] Berkshire Hathaway Swings to Loss in Q4[3] https://www.quora.com/share/LIVE-Charlie-Munger-Speaks-at-Daily-Journal-Annual-Meeting-Feb-14-2019-1?ch=10&share=438d79dd[4] Warren Buffett: I Overpaid for Kraft Heinz

You can use the following answer key which has been diligently prepared by a team of diverse faculties from leading institutes, where each solution for a particular question has also been backed with a credible source as well.Special thanks to Mr. Pranav Chauhan, Mr. Mansimar Singh and Shri User-13211618028665871653 (IAS) for their valuable inputs in this key.Analysis :The paper was moderately difficult like that in 2017 but there were also relatively easier knock-offs when compared to 2018.Breakdown of various subjects asked this year :1. Environment : 18 questions2. Science & Tech : 14 questions3. Economics : 17 questions4. History : 15 questions5. Geography : 10 questions6. Polity and Governance : 17 questions7. Miscellaneous : 9 questionsEstimated Cutoffs based on paper difficulty and students’ response :General : 105–108.OBC : 100–105SC : 91–95ST : 84–88KEY FOR SET-D UPSC Prelims 2019 :1. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements1. AIIB has more than 80 member nations.2. India is the largest shareholder in AIIB.3. AIIB does not have any members from outside Asia.Which of the statements given above is / are correct?(a) 1 only(b) 2 and 3 only(c). 1 and 3 only(d) 1, 2 and 3Answer: ASource: About AIIB Overview - AIIB2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?(a) To lessen the Government of India's perennial burden of fiscal deficit nd current account deficit(b) To support the infrastructure projects of Central and State Governments(c) To act as independent regulator in case of applications for loans of Rs. 50 crore or more(d) To aim at faster resolution of stressed assets of Rs. 50 crore or more which are-under consortium lendingAnswer: DSource: https://www.thehindubusinessline.com/companies/announcements/others/indian-bank-inter-creditor-agreement-for-resolution-of-stressed-assets/article24809734.ece3. The Chairmen of public sector banks are selected by the(a) Banks Board Bureau(b) Reserve Bank of India(c) Union Ministry of Finance(d) Management of concerned bankAnswer: ASource: How public sector bank CEOs are selected4. Consider the following statements:1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.2. One of the tasks of PNGRB is to, ensure competitive markets for gas.3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.Which of the statements given above are correct?(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: BSource: Welcome to Petroleum and Natural Gas Regulatory Board, India5. With reference to communication technologies, what is/are the difference / differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?1. LTE 'is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.2. LTE is data-only technology and VoLTE is voice-only technology.Select the correct answer using the code given below.(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: DSource: Difference Between LTE and VoLTE6. Which of the following statements is / are correct regarding the Maternity Benefit ' (Amendment) Act, 2017?1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.2. Enterprises with creches must allow the mother minimum six creche visits daily.3. Women with two children get reduced entitlements.Select the correct answer using the code given below.(a) 1 and 2 only(b) 2 only(c) 3 only(d) 1, 2 and 3Answer: CStatement 2 is wrong:Refer: Maternity Benefit (Amendment) Act 2017: Significant Provisions and Issuessignificant-provisions-and-issues/Correct Statement: The women employees should be permitted to visit the facility 4 timesduring the day.https://labour.gov.in/sites/default/files/Maternity%20Benefit%20Amendment%20Act%2C2017%20.pdf7. Which one of the following is not a sub-index of the World Bank's 'Ease of Doing Business Index'?(a) Maintenance of law and order(b) Paying taxes(c) Registering property(d) Dealing with construction permitsAnswer: ASource: Methodology for Doing Business8. In India,'extended producer responsibility' was introduced as an important feature in which of the following?(a) The Bio-medical Waste (Management and Handling) Rules, 1998(b) The Recycled plastic (Manufacturing and Usage) Rules, 1999(c) The e-Waste (Management and Handling) Rules, 2011(d) The Food Safety and Standard Regulations, 2011Answer: CSource: Environment Ministry Notifies E-Waste Management Rules, 20169. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus(a) transportation cost only(b) interest cost only(c) procurement incidentals and distribution cost(d) procurement incidentals and charges for godownsAnswer: CSource: Procurement- Food Corporation of India10. In the context of any country, which one of the following would be considered as part of its social capital?(a) The proportion of literates in the population(b) The stock of its buildings, other infrastructure and machines(c) The size of population in the working age group(d) The level of mutual trust and harmony in the societyAnswer: DSource: Social capital - Wikipedia11. The Service Area Approach was implemented under the purview of(a) Integrated Rural Programme(b) Lead Bank Scheme(c) Mahatma Gandhi National Rural Employment Guarantee Scheme(d) National Skill Development MissionAnswer: BSource : What is Service Area Approach?12. With reference to the management of minor minerals in India, consider the following statements:1. Sand is a 'minor mineral' according to the prevailing law in the country.2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.Which of the statements given above is / are correct?(a) 1 and 3 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: ASource: Minor Minerals - Arthapedia13. Consider the following statements:1. Most of India's external debt is owed by governmental entities.2. All of India's external debt is denominated in US dollars.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: DSource : Why is external debt a cause for worry?14. Which of the following is not included in the assets of a commercial bank in India?(a) Advances(b) Deposits(e) Investments(d). Money at call and short noticeAnswer: BSource : Liabilities and Assets of Scheduled Commercial Banks (Main Items)15. In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis?1. The foreign currency earnings of India's IT sector2. Increasing the government expenditure3. Remittances from Indians abroadSelect the correct answer using the code given below.(a) 1 only(b) 1 and 3 only(c) 2 only(d) 1, 2 and 3Answer: : BSource : Basic Economic Concepts [NCERT Class 11 and 12]16. Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past?(a) First Administrative Reforms Commission (1966)(b) Rajamannar Committee (1969)(c) Sarkaria Commission (1983)(d) National Commission to Review the Working of the Constitution (2000)Answer: CSource : Governor’s Role in the Context of Centre State Relations17. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?(a) Certificate of Deposit(b) Commercial Paper(c) Promissory Note(d) Participatory NoteAnswer: DSource : Participatory Notes Allow Foreign Investors to Buy Indian Securities18. Consider the following statements1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.2. People's participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: ASource : CAMPA bill - Wikipedia19. In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?1. Ad Hoc Committees set up by the Parliament2. Parliamentary Department Related Standing Committees3. Finance Commission4. Financial Sector Legislative Reforms Commission5. NITI AayogSelect the correct answer using the code given below.(a) 1 and 2(b) 1, 3 and 4(c) 3, 4 and 5(d) 2 and 5Answer: ASource : Laxmikanth20. With reference to India's Five-Year Plans, which of the following statements is/are correct?1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.Select the correct answer using the code given below.(a) 1 and 2 only(b) 2 only(c) 3 only(d) 1, 2 and 3Answer: ASource : NCERT Class 11 Economicshttps://www.nipfp.org.in/media/pdf/books/BK_33/Chapters/1.%20Import%20Substitution%20Strategy%20Of%20Economic%20Development.pdfFive-Year Plans of India - Wikipedia21. With reference to the Constitution of India, consider the following statements:1. No High Court shall have the jurisdiction to declare any central law to be constitutionally invalid.2. An amendment to the Constitution of India cannot be called into question by the Supreme Court of India.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: DSource : Laxmikanth22. Consider the following statements1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.2. In terms of PPP dollars, India is the sixth largest economy in the world.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: ASource : Measuring India’s economy using PPPs shows it surpassed France 25 years ago23. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements:1. Area under rice cultivation is the highest.2. Area under the cultivation of jowar is more than that of oilseeds.3. Area of cotton cultivation is more than that of sugarcane.4. Area under sugarcane cultivation has steadily decreased.Which of the statements given above are correct?(a) 1 and 3 only(b) 2, 3 and 4 only(c) 2 and 4 only(d) 1, 2, 3 and 4Answer: AStatement 2 is incorrect.Source- https://www.thehindubusinessline.com/economy/agri-business/rabi-sowing-down-by-5/article26029944.ece24. Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?(a) Spices(b) Fresh fruits(c) Pulses(d) Vegetable oilsAnswer: DSource – Let’s cut edible oil importsWhy doubling agri exports may remain elusive25. In the context of polity, which one of the following would you accept as the most appropriate definition of liberty?(a) Protection against the tyranny of political rulers(b) Absence of restraint(c) Opportunity to do whatever one likes(d) Opportunity to develop oneself fully.Answer: DSource - Indian Preamble26. Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?(a) Curbing imports of non-essential goods-and promoting exports(b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds(c) Easing conditions relating to external commercial borrowing(d) Following an expansionary monetary policyAnswer: DSource – NCERT class 11 and 12 Economics27. Consider the following statements:The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that1. they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India2. they shall ensure that the systems are owned and operated by public sector enterprises3. they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar yearWhich of the statements given above is/are correct?(a) 1 only(b) 1 and 2 only(c) 3 only(d) 1, 2 and 3Answer: ASource - Reserve Bank of IndiaIn Defence of Data Localisation — Will The Move Bolster Data Sovereignty In India28. Which of the following adopted a law on data protection and privacy for its citizens known as 'General Data Protection Regulation' in April 2016 and started implementation of it from 25th May, 2018?(a) Australia(b) Canada(c) The European Union(d) The United States of AmericaAnswer: CSource - General Data Protection Regulation - Wikipedia29. Recently, India signed a deal known as 'Action Plan for Prioritization and Implementation of Cooperation Areas in the Nuclear Field' with which of the following countries?(a) Japan(b) Russia(c) The United Kingdom(d) The United States of AmericaAnswer: b30. The money multiplier in an economy increases with which one of the following?(a) Increase in the cash reserve ratio(b) Increase in the banking habit of the population(c) Increase in the statutory liquidity ratio(d) Increase in the population of the countryAnswer: bSource- Multiplier Effect Definition31. Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:1. PVTGs reside in 18 States and one Union Territory.2. A stagnant or declining population is one of the criteria for determining PVTG status.3. There are 95 PVTGs officially notified in the country so far.4. Irular and Konda Reddi tribes are included in the list of PVTGs.Which of the statements given above are correct?(a) 1, 2 and 3(b) 2, 3 and 4(c) 1, 2 and 4(d) 1, 3 and 4Answer: CStatement 3 is incorrect.Source - Development of Particularly Vulnerable Tribal Groups32. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following?(a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.(b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.(c) In the event of grave financial crisis in the country, the President of India can declare Financial Emergency without the counsel from the Cabinet.(d) State Legislatures cannot make laws on certain matters without the concurrence of Union Legislature.Answer: BSource - Article 142 in The Constitution Of India 194933. With reference to the Legislative Assembly of a State in India, consider the following statements:1. The Governor makes a customary address to Members of the House at the commencement of the first session of the year.2. When a State Legislature does' not have a rule on a particular matter, it follows the Lok Sabha rule on that matter.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: C34. Consider the following statements:1. The United Nations Convention against Corruption (UNCAC) has a 'Protocol against the Smuggling of Migrants by Land, Sea and Air'.2. The UNCAC is the ever-first legally binding global anti-corruption instrument.3. A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly.4. The United Nations Office on Drugs and Crime (UNODC) is mandated by its member States to assist in the implementation of both UNCAC and UNTOC.Which of the statements given above are correct?(a) 1 and 3 only(b) 2, 3 and 4 only(c) 2 and 4 only(d) 1, 2, 3 and 4Answer: CStatement 3 is incorrect.Source - https://www.unodc.org/unodc/en/treaties/CAC/35. Consider the following statements:1. As per recent amendment to the Indian Forest Act, 1927, forest dwellers have the right to fell the bamboos grown on forest areas.2. As per the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, bamboo is a minor forest produce.3. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 allows ownership of minor forest produce to forest dwellers.Which of the statements given above is / are correct?(a) 1 and 2 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: BSource - Bamboo not a tree: Parliament passes Bill amending Forest Acthttps://www.downtoearth.org.in/news/bamboo-now-a-minor-forest-produce-3323936. Which Article of the Constitution of India safeguards one's right to marry the person of one's choice?(a) Article 19(b) Article 21(c) Article 25(d) Article 29Answer: BWider Interpretation of Article 21Source - http://www.legalserviceindia.com/articles/art222.htm37. Consider the following statements:1. According to the Indian Patents Act, a biological process to create a seed can be patented in India.2. In India, there is no Intellectual Property Appellate Board.3. Plant varieties are not eligible to be patented in India.Which of the statements given above is/are correct?(a) 1 and 3 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: CSource –https://www.ifoam.bio/en/news/2018/05/08/indian-supreme-court-says-seeds-plants-and-animals-are-not-patentable http://www.mondaq.com/india/x/611548/Trademark/The+Intellectual+Property+Appellate+Board+Power+Constitution38. Consider the following statements:The Environment Protection Act, 1986 empowers the Government of India to1. State the requirement of public participation in the process of environmental protection, and the procedure and manner in which it is sought2. Lay down the standards for emission or discharge of environmental pollutants from various sourcesWhich of the statements given above is/ are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: BSource – http://bch.cbd.int/database/attachment/?id=1905239. As per the Solid Waste Management Rules, 2016 in India, which one of the following statements is correct?(a) Waste generator has to segregate waste into five categories.(b) The Rules are applicable to riotified urban local bodies, notified towns and all industrial townships only.(c) The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.(d) It is mandatory on the part of waste generator that the waste generated in one district cannot be moved to another district.Answer: CSource - http://pib.nic.in/newsite/PrintRelease.aspx?relid=138591http://cpcb.nic.in/municipal-solid-waste-rules/40. Consider the following statements:As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 20181. if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to layoff workers.2. no notice of termination of employment shall be necessary in the case of temporary workman.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: CSource – http://www.iasparliament.com/current-affairs/daily-news/industrial-employment-standing-orders-central-amendment-rules-2018-fixed-term-employment41. In the context of digital technologies for entertainment, consider the following statements:1. In Augmented Reality (AR) , a simulated environment is created and the physical world is completely shut out.2. In Virtual Reality (VR), images generated from a computer are projected onto real-life objects or surroundings.3. AR allows individuals to be present in the world and improves the experience using the camera of smart-phone or PC.4. VR closes the world, and transposes an individual, providing complete immersion experience.Which of the statements given above is / are correct?(a) 1 and 2 only(b) 3 and 4(c) 1, 2 and 3(d) 4 onlyAnswer: BStatement 1 is wrong because AR doesn’t shut off Physical realitySource : https://en.wikipedia.org/wiki/Augmented_reality42. The word 'Denisovan' is sometimes mentioned in media in reference to(a) fossils of a kind of dinosaurs(b) an early human species(c) a cave system found in North-East India.(d) a geological period in the history of Indian subcontinentAnswer: BSource: https://en.wikipedia.org/wiki/Denisovan43. With reference to the recent developments in science, which one of the following statements is not correct?(a) Functional chromosomes can be created by joining segments of DNA taken from cells of different species.(b) Pieces of artificial functional DNA can be created in Iaboratories.(c) A piece of DNA taken out from an animal cell can be made to replicate outside a living cell in a laboratory.(d) Cells taken out from plants and animals can be made to undergo cell division in laboratory petri dishes.Answer: ASource: https://en.wikipedia.org/wiki/Petri_dishhttps://en.wikipedia.org/wiki/Cell_culture and https://en.wikipedia.org/wiki/DNA_replication44. Consider the following statements:A digital signature is1. an electronic record that identifies the certifying authority issuing it2. used to serve as a proof of identity of an individual to access information or server on Internet.3. an electronic method of signing an electronic document and ensuring that the original content is unchangedWhich of the statements given above is / are correct?(a) 1 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: DSource: https://www.docusign.com/how-it-works/electronic-signature/digital-signature/digital-signature-faqhttps://en.wikipedia.org/wiki/Digital_signatureSource : http://www.mca.gov.in/MinistryV2/digitalsignaturecertificate.html45. In the context of wearable technology, which of the following tasks is/are accomplished by wearable devices?1. Location identification of a person2. Sleep monitoring of a person3. Assisting the hearing impaired personSelect the correct answer using the code given below.(a) 1 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: DSource : https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6111409/46. 'RNA interference (RNAi)' technology has gained popularity in the last few years. Why?1. It is used in developing gene silencing therapies.2. It can be used in developing therapies for-the treatment of cancer.3. It can be used to develop hormone replacement therapies.4. It can be used to produce crop plants that are resistant to viral pathogens.Select the correct answer using the code given below.(a) 1, 2 and 4(b) 2 and 3(c) 1 and 3(d) 1 and 4 onlyAnswer: ASource : https://www.livemint.com/https://en.wikipedia.org/wiki/RNA_interferencehttps://www.ncbi.nlm.nih.gov/pubmed/1697196747. Recently, scientists observed the merger of giant 'blackholes' billions of light-years away from the Earth. What is the significance of this observation?(a) 'Higgs boson particles' were detected.(b) 'Gravitational waves' were detected.(e) Possibility of inter-galactic space travel through 'wormhole' was confirmed.(d) It enabled the scientists to understand 'singularity'.Answer: BSource:https://www.thehindu.com/sci-tech/science/watch-binary-black-holes-merger/article18700610.ece48. Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India?1. Genetic predisposition of some people2. Taking incorrect doses of antibiotics to cure diseases3. Using antibiotics in livestock farming4. Multiple chronic diseases in some peopleSelect the correct answer using the code given below.(a) 1 and 2(b) 2 and 3 only(e) 1, 3 and 4(d) 2, 3 and 4Answer: BSource: https://www.thehindu.com/opinion/editorial/the-cost-of-resistance/article27005283.ece49. What is Cas9 protein that is often mentioned in news?(a) A molecular scissors used in targeted gene editing(b) A biosensor used in the accurate detection of pathogens in patients(c) A gene that makes plants pest-resistant(d) A herbicidal substance synthesized in genetically modified cropsAnswer: : Ahttps://phys.org/news/2019-02-scientists-sharpen-molecular-scissors-gene.htmlhttps://www.thehindu.com/sci-tech/science/what-is-genome-editing/article19481402.ece50. Which one of the following statements is not correct?(a) Hepatitis B virus is transmitted much like HIV.(b) Hepatitis B, unlike Hepatitis C, does not have a vaccine.(c) Globally, the number of people infected with Hepatitis B and C viruses are several times more than those infected with HIV.(d) Some of those infected with Hepatitis Band C viruses do not show the symptoms for many years.Answer: BSource : https://www.hepb.org/prevention-and-diagnosis/vaccination/51. With reference to Mughal India, what is/are the difference/differences between Jagirdar and Zamindar?1. Jagirdars were holders of land assignments in lieu of judicial and police duties, whereas Zamindars were holders of revenue rights without obligation to perform any duty other than revenue collection.2. Land assignments to Jagirdars were hereditary and revenue rights of Zamindars were not hereditary.Select the correct answer using the code given below.(a) 1 only(b) 2 only(e) Both 1 and 2(d) Neither 1 nor 2Answer: D52. With reference to land reforms in independent India, which one of the following statements is correct?(a) The ceiling "laws were aimed at family holdings and not individual holdings.(b) The major aim of land reforms was providing agricultural land to all the landless.(c) It resulted in cultivation of cash crops as a predominant form of cultivation.(d) Land reforms permitted no exemptions to the ceiling limits.Answer: BSource : https://en.wikipedia.org/wiki/Land_reform_in_India53. The Global Competitiveness Report is published by the(a) International Monetary Fund(b) United Nations Conference on Trade and Development(c) World Economic Forum(d) World BankAnswer: CSource: http://reports.weforum.org/54. Consider the following statements about 'the Charter Act of 1813':1. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China.2. It asserted the sovereignty of the British Crown over the Indian territories held by the Company.3. The revenues of India were now controlled by the British Parliament.Which of the statements given above are correct?(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: ASource : Spectrum Book page-566-56755. With reference to Swadeshi Movement, consider the following statements:1. It contributed to the revival of the indigenous artisan crafts and industries.2. The National Council of Education was established as a part of Swadeshi Movement.Which of the statements given above is/are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: CSource: Spectrum, Bipin Chandra’s India’s Struggle for independence Page-13056. Consider the following pairs:Movement/Organization Leader1. All India Anti-Untouchability League Mahatma Gandhi2. All India Kisan Sabha Swami Sahajanand Saraswati3. Self-Respect Movement E. V. Ramaswami NaickerWhich of the pairs given above is/are correctly matched?(a) 1 only(b) 1 and 2 only(c) 2 and 3 only(d) 1, 2 and 3Answer: DSource: Spectrum , Wikipedia57. Which one of the following is not a Harappan site?(a) Chanhudaro(b) Kot Diji(c) Sohgaura(d) DesalpurAnswer: cSource : Sohgaura is near Gorakhpur, which falls outside the Harappan Area Map.58. In which of the following relief sculpture inscriptions is 'Ranyo Ashoka' (King Ashoka) mentioned along with the stone portrait of Ashoka?(a) Kanganahalli(b) Sanchi I(c) Shahbazgarhi(d) SohgauraAnswer: ASource: Wikipedia and http://bharatkalyan97.blogspot.com/2011/07/asoka-on-ancient-indian-sculptures.html59. Consider the following:1. Deification of the Buddha2. Treading the path of Bodhisattvas3. Image worship and ritualsWhich of the above is/are the feature/ features of Mahayana Buddhism?(a) 1 only(b) 1 and 2 only(c) 2 and 3 only(d) 1, 2 and 3Answer: DSource: RS Sharma, https://www.gktoday.in/gk/hinayana-mahayana/60. With reference to forced labour (Vishti) in India during the Gupta period, which one of the following statements is correct?(a) It was considered a source of income for the State, a sort of tax paid by the people.(b) It was totally absent in the Madhya Pradesh and Kathiawar regions of the Gupta Empire.(c) The forced labourer was entitled to weekly wages.(d) The eldest son of the labourer was sent as the forced labourer.Answer: ASource: Upendra Singh (Page:508)Source: https://books.google.co.in/books?id=H3lUIIYxWkEC&pg=PA508&lpg=PA508&dq=vishti+forced+labour+in+kathiawar&source=bl&ots=xf9E4T6ZkD&sig=ACfU3U2yg3DCAuGhsU3x22JsPuSxzK6wzw&hl=en&sa=X&ved=2ahUKEwjKgP-zzcriAhUFsY8KHRQ1DoAQ6AEwCXoECAgQAQ#v=onepage&q=vishti%20forced%20labour%20in%20kathiawar&f=false61. Which one of the following groups of plants was domesticated in the 'New World' and introduced into the 'Old World'?(a) Tobacco, cocoa and rubber(b)Tobacco, cotton and rubber.(c) Cotton, coffee and sugarcane(d) Rubber, coffee and wheatAnswer: ASource:- https://en.wikipedia.org/wiki/Columbian_exchange#Organism_examples62. Consider the following statements:1. Asiatic lion is naturally found III India only.2. Double-humped camel is naturally found in India only.3. One-horned rhinoceros is naturally found in India only.Which of the statements given above is / are correct?(a) 1 only(b) 2 only(c) 1 and 3 only(d) 1, 2 and 3Answer: ASources:https://www.nationalgeographic.com/animals/mammals/a/asiatic-lion/https://en.wikipedia.org/wiki/Asiatic_lionhttps://www.thehindubusinessline.com/specials/india-interior/two-humps-one-job-in-nubra-valley/article7900544.ecehttps://en.wikipedia.org/wiki/Indian_rhinoceros#Distribution_and_habitat63. Consider the following pairsFamous place RiverPandharpur ChandrabhagaTiruchirappalli CauveryHampi MalaprabhaWhich of the pairs given above are correctly matched?(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: ASource:- https://en.wikipedia.org/wiki/Hampi#Location64. In a given year in India, official poverty lines are higher in some States than in others because(a) poverty rates vary from State to State(b) price levels vary from State to State(c) Gross State Product varies from State to State(d) quality of public distribution varies from State to StateAnswer: Either A or BSource:- https://www.prsindia.org/theprsblog/how-poverty-line-measured65. In the context of which of the following do some scientists suggest the use of cirrus cloud thinning technique and the injection of sulphate aerosol into stratosphere?(a) Creating the artificial rains in some regions(b) Reducing the frequency and intensity of tropical cyclones(c) Reducing the adverse effects of solar wind on the Earth(d) Reducing the global warmingAnswer: Dhttps://journals.ametsoc.org/doi/full/10.1175/JCLI-D-17-0620.166. In the context of which one of the following are the terms 'pyrolysis and plasma gasification' mentioned?(a) Extraction of rare earth elements(b) Natural gas extraction technologies(c) Hydrogen fuel-based automobiles(d) Waste-to-energy technologiesAnswer: DSource:- https://friendsoftheearth.uk/sites/default/files/downloads/gasification_pyrolysis.pdf67. Which of the following are in Agasthyamala Biosphere Reserve?(a) Neyyar, Peppara and Shendurney Wildlife Sanctuaries; and Kalakad Mundanthurai Tiger Reserve(b) Mudumalai, Sathyamangalam and Wayanad Wildlife Sanctuaries; and Silent Valley National Park(c) Kaundinya, Gundla Brahme-swaram and Papikonda Wildlife Sanctuaries; and Mukurthi National Park(d) Kawal and Sri Venkateswara Wildlife Sanctuaries; and Nagarjunasagar-Srisailam Tiger ReserveAnswer: ASOURCE:- https://currentaffairs.gktoday.in/tags/agasthyamala-biosphere-reserve68. Consider the following statements:1. Some species of turtles are herbivores.2. Some species of fish are herbivores.3. Some species of marine mammals are herbivores.4. Some species of snakes are viviparous.Which of the statements given above are correct?(a) 1 and 3 only(b) 2, 3 and 4 only(e) 2 and 4 only(d) 1, 2, 3 and 4Answer: DSource : https://www.seeturtles.org/sea-turtle-diethttp://www.healthyreefs.org/cms/healthy-reef-indicators/herbivorous-fish-abundance/https://www.noaa.gov/education/resource-collections/marine-life-education-resources/marine-mammalshttp://www.reptileknowledge.com/articles/article28.php69. Consider the following pairs:Wildlife Naturally found in1. Blue-finned Mahseer Cauvery River2. Irrawaddy Dolphin Chambal River3. Rusty-spotted Cat Eastern GhatsWhich of the pairs given above are correctly matched?(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: CSource :https://www.downtoearth.org.in/news/iconic-indian-fish-on-the-verge-of-extinction-says-study-49802https://en.wikipedia.org/wiki/Irrawaddy_dolphinhttp://www.conservationindia.org/articles/the-forgotten-wild-cats-of-the-eastern-ghats70. Why is there a great concern about the 'microbeads' that are released into environment?(a) They are considered harmful to marine ecosystems.(b) They are considered to cause skin cancer in children.(c) They are small enough to be absorbed by crop plants in irrigated fields.(d) They are often found to be used as food adulterants.Answer: : ASource : https://www.environment.gov.au/protection/waste-resource-recovery/plastics-and-packaging/plastic-microbeads71. Building 'Kalyaana Mandapas' was a notable feature in the temple construction in the kingdom of(a) Chalukya(b) Chandela(c) Rashtrakuta(d) VijayanagaraAnswer: DSOURCE : https://www.jagranjosh.com/general-knowledge/cultural-history-vijaynagar-empire-architecture-literature-and-art-1492780525-172. Consider the following statements:1. In the revenue administration of Delhi Sultanate, the in-charge of revenue collection was known as 'Amil'.2. The Iqta system of Sultans of Delhi was an ancient indigenous institution.3. The office of 'Mir Bakshi' came into existence during the reign of Khalji Sultans of Delhi.Which of the statements given above is/are correct?(a) 1 only(b) 1 and 2 only(c) 3 only(d) 1, 2 and 3Answer: ASource : Statement 2- IQTA System introduced in medieval (not ancient) period.Statement 3-Office of Mir Bakshi introduced during Mughal period.73. Consider the following statements:1. Saint Nimbarka was a contem-porary of Akbar.2. Saint Kabir was greatly influenced by Shaikh Ahmad Sirhindi.Which of the statements given above is/are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: DSource :https://www.newworldencyclopedia.org/entry/Nimbarkahttp://www.southasiaanalysis.org/paper924https://www.sikhiwiki.org/index.php/Jahangir_and_the_Muslim_fundamentalist_movement74. With reference to the British colonial rule in India, consider the following statements:1. Mahatma Gandhi was instrumental in the abolition of the system of 'indentured labour'.2. In Lord Chelmsford's 'War Conference', Mahatma Gandhi did not support the resolution on recruiting Indians for World War.3. Consequent upon the breaking of Salt Law by Indian people, the Indian National Congress was declared illegal by the colonial rulers.Which of the statements given above are correct?(a) 1 and 2 only(b) 1 and 3 only(c) 2 and 3 only(d) 1, 2 and 3Answer: BSource :https://en.wikisource.org/wiki/Mahatma_Gandhi,_his_life,_writings_and_speeches/Indentured_Labourhttps://scroll.in/article/680616/even-gandhi-apostle-of-peace-wanted-indians-to-fight-in-world-war-iStatement 3- Page 421, Spectrum(A brief history of modern India)75. With reference to Indian National Movement, consider the following pairs:Person Position held1. Sir Tej Bahadur Sapru President, All India Liberal Federation2. K. C. Neogy Member, The Constituent Assembly3. P. C. Joshi General Secretary, Communist Party of IndiaWhich of the pairs given above is/are correctly matched?(a) 1 only(b) 1 and 2 only(c) 3 only(d) 1, 2 and 3Answer: DSource :https://en.wikipedia.org/wiki/Kshitish_Chandra_Neogyhttps://en.wikipedia.org/wiki/Puran_Chand_Joshi76. With reference to Mian Tansen, which one of the following statements is not correct?(a) Tansen was the title given to him by Emperor Akbar.(b) Tansen composed Dhrupads on Hindu gods and goddesses.(c) Tansen composed songs on his patrons.(d) Tansen invented many Ragas.Answer: ASource:- https://www.thehindu.com/entertainment/music/the-legend-of-mian-tansen/article22893454.ece77. Who among the following Mughal Emperors shifted emphasis from illustrated manuscripts to album and individual portrait?(a) Humayun(b) Akbar(c) Jahangir(d) Shah JahanAnswer: CSource : https://www.academia.edu/33006704/Mughal_Paintings78. Which one of the following National Parks lies completely in the temperate alpine zone?(a) Manas National Park(b) Namdapha National Park(c) Neora Valley National Park(d) Valley of Flowers National ParkAnswer: DSource : https://en.wikipedia.org/wiki/Valley_of_Flowers_National_Park#Vegetation79. Atal Innovation Mission is set up under the(a) Department of Science and Technology(b) Ministry of Employment(c) NITI Aayog(d) Ministry of Skill Development and EntrepreneurshipAnswer: CSource : http://vikaspedia.in/education/policies-and-schemes/atal-innovation-mission80. On 21st June, the Sun(a) does not set below the horizon at the Arctic Circle(b) does not set below the horizon at Antarctic Circle(c) shines vertically overhead at noon on the Equator(d) shines vertically overhead at the Tropic of CapricornAnswer: ASource : GC LEONG, PAGE NO-681. Consider the following statements:1. Agricultural soils release nitrogen oxides into environment.2. Cattle release ammonia into environment.3. Poultry industry releases reactive nitrogen compounds into environment.Which of the statements given above is/are correct?(a) 1 and 3 only(b) 2 and 3 only(c) 2 only(d) 1, 2 and 3Answer: DSource - http://www.ghgonline.org/nitrousagri.htmhttps://www.government.nl/topics/livestock-farming/ammonia-emissions-from-farmshttps://www.thehindu.com/sci-tech/energy-and-environment/nitrogen-emissions-going-up-study/article24090131.ece82. What is common to the places known as Aliyar, Isapur and Kangsabati?(a) Recently discovered uranium deposits(b) Tropical rain forests(c) Underground cave systems(d) Water reservoirsAnswer: DSource - https://en.wikipedia.org/wiki/Aliyar_Reservoirhttps://en.wikipedia.org/wiki/Isapur_Damhttps://en.wikipedia.org/wiki/Kangsabati_Project83. In the context of proposals to the use of hydrogen-enriched CNG (H-CNG) as fuel for buses in public transport, consider the following statements:1. The main adyantage of the use of H-CNG is the elimination of carbon monoxide emissions.2. H-CNG as fuel reduces carbon dioxide and hydrocarbon emissions.3. Hydrogen up to one-fifth by volume can be blended with CNG as fuel for buses.4. H-CNG makes the fuel less expensive than CNG.Which of the statements given above is / are correct?(a) 1 only(b) 2 and 3 only(c) 4 only(d) 1, 2, 3 and 4Answer: BSource - https://www.insightsonindia.com/2018/09/11/rajya-sabha-tv-in-depth-hcng-fuel-of-the-future/https://indianexpress.com/article/explained/cng-to-hydrogen-cng-why-switch-and-how-5278356/84. Why are dewdrops not formed on a cloudy night?(a) Clouds absorb the radiation released from the Earth's surface.(b) Clouds reflect back the Earth's radiation.(c) The Earth's surface would have low temperature on cloudy nights.(d) Clouds deflect the blowing wind to ground level.Answer: BSource - https://www.pitara.com/science-for-kids/5ws-and-h/how-does-dew-form/85. Consider the following statements:1. The 44th Amendment to the Constitution of India introduced an Article placing the election of the Prime Minister beyond judicial review.2. The Supreme Court of India struck down the 99th Amendment to the Constitution of India as being violative of the independence of judiciary.Which of the statements given above is/are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Answer: BSource – http://www.ias4sure.com/wikiias/gs2/44th-amendment/https://en.wikipedia.org/wiki/National_Judicial_Appointments_Commission86. Consider the following statements:1. The- motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968.2. The Constitution of India defines and gives details of what Constitutes 'incapacity and proved misbehaviour' of the Judges of the Supreme Court of India.3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, 1968.4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of total membership of that House and by not less than two-thirds of total members of that House present and voting.Which of the statements given above is/are correct?(a) 1 and 2(b) 3 only(c) 3 and 4 only(d) 1, 3 and 4Answer: CSource – Laxmikanth Page 25.2 and 25.387. The Ninth Schedule was introduced in the Constitution of India during the prime ministership of(a) Jawaharlal Nehru(b) Lal Bahadur Shastri(c) Indira Gandhi(d) Morarji DesaiAnswer: ASource - http://www.yourarticlelibrary.com/essay/judicial-review-and-the-ninth-schedule-of-the-indian-constitution/2498288. Consider the following statements:1. Coal sector was nationalized by the Government of India under Indira Gandhi.2. Now, coal blocks are allocated on lottery basis.3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.Which of the statements given above is/are correct?(a) 1 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: ASource - https://en.wikipedia.org/wiki/Coal_mining_in_Indiahttp://pib.nic.in/newsite/printrelease.aspx?relid=160021https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/indias-coal-import-rises-13-to-21-mt-in-april/articleshow/69503158.cms89. Consider the following statements:1. The Parliament (Prevention of Disqualification) Act, 1959 exempts several posts from disqualification on the grounds of 'Office of Profit'.2. The above-mentioned Act was amended five times.3. The term 'Office of Profit' is well-defined in the Constitution of India.Which of the statements given above is/are correct?(a) 1 and 2 only(b) 3 only(c) 2 and 3 only(d) 1, 2 and 3Answer: AArticle 102 only mentions the term “Office of Profit” without defining it.Source - https://indiankanoon.org/doc/390434/90. Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void?(a) Third Schedule(b) Fifth Schedule(c) Ninth Schedule(d) Twelfth ScheduleAnswer: BSource – https://tribal.nic.in/FRA/data/LandandGovernanceunderFifthSchedule.pdfhttps://www.downtoearth.org.in/blog/forests/-progressive-maharashtra-governor-must-step-in-to-save-tribal-land-rights-6421791. Recently, there was a growing awareness in our country about the importance of Himalayan nettle (Girardinia diversifolia) because it is found to be a sustainable source of(a) anti-malarial drug(b) blodiesel(c) pulp for paper industry(d) textile fibreAnswer: DSource : https://www.downtoearth.org.in/blog/environment/khar-s-experimentation-with-himalayan-nettle-brings-recognition-5788092. For the measurement/estimation of which of the following are satellite images/remote sensing data used?1. Chlorophyll content in the vegetation of a specific location2. Greenhouse gas emissions from rice paddies of a specific location3. Land surface temperatures of a specific locationSelect the correct answer using the code given below.(a) 1 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer: D93. Consider the following States:1. Chhattisgarh2. Madhya Pradesh3. Maharashtra4. OdishaWith reference to the States mentioned above, in terms of percentage of forest cover to the total area of State, which one of the following is the correct ascending order?(a) 2-3-1-4(b) 2-3-4-1(c) 3-2-4-1(d) 3-2-1-4Answer: CSource: https://en.wikipedia.org/wiki/Forest_cover_by_state_in_India94. Which of the following statements are correct about the deposits of 'methane hydrate?1. Global warming might trigger the release of methane gas from these deposits.2. Large deposits of 'methane hydrate' are found in Arctic Tundra and under the seafloor.3. Methane in atmosphere oxidizes to carbon dioxide after a decade or two.Select the correct answer using the code given below.(a) 1 and 2 only(b) 2 and 3 only(c) 1 and 3 only(d) 1, 2 and 3Answer: DSource : https://ghginstitute.org/2010/07/13/what-is-different-about-methane-ch4-emissions-the-forgotten-co2-in-ghg-emissions-accounting/95. Consider the following:1. Carbon monoxide2. Methane3. Ozone4. Sulphur dioxideWhich of the above are released into atmosphere due to the burning of crop/biomass residue?(a) 1 and 2 only(b) 2, 3 and 4 only(c) 1 and 4 'only(d) 1, 2, 3 and 4Answer: DSource : https://economictimes.indiatimes.com/news/environment/pollution/biomass-burning-a-major-source-of-pollution-in-india/articleshow/45093405.cms?from=mdr96. Consider the following pairs:Sea Bordering country1. Adriatic Sea Albania2. Black Sea Croatia3. Caspian Sea Kazakhstan4. Mediterranean Sea Morocco5. Red Sea SyriaWhich of the pair given above are correctly matched?(a) 1, 2 and 4 only(b) 1, 3 and 4 only(c) 2 and 5 only(d) 1, 2, 3, 4 and 5Answer: BSource : Atlas97. Among the following, which one is the largest exporter of rice in the world in the last five years?(a) China(b) India(c) Myanmar(d) VietnamAnswer: bSource : http://www.worldstopexports.com/rice-exports-country/98. Consider the following pairs:Glacier River1. Bandarpunch Yamuna2. Bara Shigri Chenab3. Milam Mandakini4. Siachen Nubra5. Zemu ManasWhich of the pairs given above are correctly matched?(a) 1, 2 and 4(b) 1, 3 and 4(c) 2 and 5(d) 3 and 5Answer: aSource : https://en.wikipedia.org/wiki/List_of_glaciers_of_India99. In India, the use of carbofuran, methyl parathion, phorate and triazophos is viewed with apprehension. These chemicals are used as(a) pesticides in agriculture(b) preservatives in processed foods(c) fruit-ripening agents(d) moisturising agents in cosmeticsAnswer: ASource : https://www.downtoearth.org.in/news/agriculture/pesticide-ban-lands-kerala-in-court-33657100. Consider the following statements:1. Under Ramsar Convention, it is mandatory on the part of the Government of India to protect and conserve all the wetlands in the territory of India.2. The Wetlands (Conservation and Management) Rules, 2010 were framed by the Government of India based on the recommendations of Ramsar Convention.3. The Wetlands (Conservation and Management) Rules, 2010 also encompass the drainage area or catchment regions of the wetlands as determined by the authority.Which of the statements given above is / are correct?(a) 1 and 2 only(b) 2 and 3 only(c) 3 only(d) 1, 2 and 3Answer : CSource : https://www.ramsar.org/about/the-ramsar-convention-and-its-mission