70 Days WAR Plan

Day#56 Static Flash Cards Revision [70 Days WAR Plan]

Estuaries; Tropical and subtropical moist broadleaf forests in India; Nidhi Company; Tropical Cyclone formation; Fixed-term employment; Savanna type climate; Twin Balance sheet Problem; Classical smog; Photochemical smog; Monetised Deficit; Marginal propensity to consume (MPC);
By IT's Core Team
May 16, 2019




What is plotted on X axis and Y axis on the graph of the Marginal propensity to consume (MPC)?

Click to View the Answer
Click to View the Question


Marginal propensity to consume (MPC) is depicted by a consumption line, which is a sloped line created by plotting change in consumption on the vertical “y” axis and change in income on the horizontal “x” axis.

Enrich Your Learning:

Marginal propensity to consume (MPC):

  • The marginal propensity to consume (MPC) is the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
  • Marginal propensity to consume is a component of Keynesian macroeconomic theory and is calculated as the change in consumption divided by the change in income.
  • The marginal propensity to consume is equal to ΔC / ΔY, where ΔC is change in consumption, and ΔY is change in income. 
  • Given data on household income and household spending, economists can calculate households’ MPC by income level.
  • This calculation is important because MPC is not constant; it varies by income level.
  • Typically, the higher the income, the higher the MPC, because as wealth increases, so does the ability to satisfy needs and wants.
  • According to Keynesian theory, an increase in production increases consumers’ income, and they will then spend more.
  • If we know what their marginal propensity to consume is, then we can calculate how much an increase in production will affect spending.
  • This additional spending will generate additional production, creating a continuous cycle.
  • The higher the MPC, the higher the multiplier—the more the increase in consumption from the increase in investment.




What is the ecological and economic importance of Estuaries?

Click to View the Answer
Click to View the Question

Answer & Enrich Your Learning:

Ecological Importance:

  • Estuaries provide critical habitat for species that are valued commercially, recreationally, and culturally. Birds, fish, amphibians, insects, and other wildlife depend on estuaries to live, feed, nest, and reproduce.
  • Some organisms, like oysters, make estuaries their permanent home; others, like horseshoe crabs, use them to complete only part of their life cycle.

Economic Importance:

  • Estuaries provide stopovers for migratory bird species such as mallard and canvasback ducks.
  • Many fish, including American shad, Atlantic menhaden and striped bass, spend most of their lives in the ocean, but return to the brackish waters of estuaries to spawn.
  • Estuaries are often the economic centres of coastal communities. Estuaries provide habitat for more than 75 percent of the U.S. commercial fish catch, and an even greater percentage of the recreational fish catch (National Safety Council’s Environmental Center, 1998). The total fish catch in estuaries contributes $4.3 billion a year to the U.S. economy.
  • Estuaries are also important recreational areas. Millions of people visit estuaries each year to boat, swim, watch birds and other wildlife, and fish. Coastal recreation and tourism generate from $8-$12 billion per year in the United States.
  • Many estuaries are important centres of transportation and international commerce. In 1997, commercial shipping employed over 50,000 people in the United States.
  • Many of the products you use every day pass through one or more estuaries on a commercial shipping vessel before ever reaching your home.
  • The continuing prosperity many coastal communities reap from transportation, fishing and tourism is clearly linked to the health of their estuaries. The economy and the environment are completely intertwined.



  • An estuary is a partially enclosed body of water, and its surrounding coastal habitats, where saltwater from the ocean mixes with fresh water from rivers or streams. In fresh water the concentration of salts, or salinity, is nearly zero.
  • The salinity of water in the ocean averages about 35 parts per thousand (ppt).
  • The mixture of seawater and fresh water in estuaries is called brackish water and its salinity can range from 0.5 to 35 ppt.
  • The salinity of estuarine water varies from estuary to estuary, and can change from one day to the next depending on the tides, weather, or other factors.
  • Estuaries are transitional areas that straddle the land and the sea, as well as freshwater and saltwater habitats. The daily tides are a major influence on many of these dynamic environments.
  • Most areas of the Earth experience two high and two low tides each day. Some areas, like the Gulf of Mexico, have only one high and one low tide each day.
  • The tidal pattern in an estuary depends on its geographic location, the shape of the coastline and ocean floor, the depth of the water, local winds, and any restrictions to water flow.
  • With the variety of conditions across the Earth, each estuary displays a tidal pattern unique to its location.




What is the Monetised Deficit?

Click to View the Answer
Click to View the Question


Monetised deficit means the increase in the net RBI credit to the central government, such that the monetary needs of the government could be met easily.

Enrich Your Learning:

Monetized deficit

  • The Monetised Deficitis the extent to which the RBI helps the central government in its borrowing programme.
  • The monetized deficit results in the increase in the net holdings of treasury bills by the RBI and also the RBI contribution towards the government’s market borrowings increases.
  • With the issue of more money to the government, the money supply in the economy increases, as a result of which the inflationary pressure prevails.
  • Hence, we can say that monetised deficits are the part of a fiscal deficit that leads to the inflation in the economy.
  • Thus, it can be concluded that monetised deficit occurs when the government takes a monetary support from the RBI to finance its debt obligations and try to reduce its unnecessary expenditures.




Which smog is also known as ‘London smog’? Classical smog OR Photochemical smog OR Sulfurous smog?

Click to View the Answer
Click to View the Question


  • Sulfurous smog

Enrich Your Learning:

  • The word smog is derived from smoke and fog.
  • This is the most common example of air pollution that occurs in many cities throughout the world.

There are two types of smog:

Classical smog:

  • Classical smog occurs in cool humid climate. It is a mixture of smoke, fog and sulphur dioxide. Chemically it is a reducing mixture and so it is also called as reducing smog.

Photochemical smog

  • Photochemical smog occurs in warm, dry and sunny climate.
  • The main components of the photochemical smog result from the action of sunlight on unsaturated hydrocarbons and nitrogen oxides produced by automobiles and factories.
  • Photochemical smog has high concentration of oxidising agents and is, therefore, called as oxidising smog.
  • Effects of photochemical smog The common components of photochemical smog are ozone, nitric oxide, acrolein, formaldehyde and peroxyacetyl nitrate (PAN).
  • Photochemical smog causes serious health problems. Both ozone and PAN act as powerful eye irritants.
  • Ozone and nitric oxide irritate the nose and throat and their high concentration causes headache, chest pain, dryness of the throat, cough and difficulty in breathing.
  • Photochemical smog leads to cracking of rubber and extensive damage to plant life.
  • It also causes corrosion of metals, stones, building materials, rubber and painted surfaces.

Sulfurous smog:

  • Sulfurous smog, which is also called “London smog,” results from a high concentration of sulfur oxides in the air and is caused by the use of sulfur-bearing fossil fuels, particularly coal.
  • This type of smog is aggravated by dampness and a high concentration of suspended particulate matter in the air.




What is Twin balance sheet problem with reference to Indian Economy?

Click to View the Answer
Click to View the Question


Twin balance sheet problem refers to the stress on balance sheets of banks due to non-performing assets (NPAs) or bad loans on the one hand, and heavily indebted corporates on the other.

Enrich Your Learning:

Twin Balance sheet Problem:


  • The origins of the NPA problem dates back to the decision taken during the mid-2000s.
  • During this period for the first time in the country’s history, everything was going right: corporate profitability was amongst the highest in the world, encouraging firms to hire labor aggressively, which in turn sent wages soaring.
  • Firms made plans accordingly. They launched new projects worth lakhs of crores, particularly in infrastructure-related areas such as power generation, steel, and telecoms, setting off the biggest investment boom in the country’s history.
  • Within the span of four short years, the investment-GDP ratio had soared by 11 percentage points, reaching over 38 percent by 2007-08.
  • This time saw extraordinary increase in the debt of non-financial corporations.

RBI’s steps to tackle TBS problem:

  • The Asset Quality Review (AQR): To force banks to recognize the true state of their balance sheets but banks kept on ever greening loans.
  • Indradhanush scheme to infuse Rs 70,000 crores of capital into the public sector banks by 2018-19.
  • Insolvency and Bankruptcy Code (IBC)
  • Steps to restore viability to the large IC1 companies (those companies whose earnings do not even cover their interest obligations).
  • Asset Reconstruction Companies (ARCs)
  • Strategic Debt Restructuring (SDR) scheme
  • Sustainable Structuring of Stressed Assets (S4A)




llanos of the Orinoco basin and the compos of the Brazilian Highlands are part of which ecosystem?

Click to View the Answer
Click to View the Question


  • Savannah type climate of South America

Enrich Your Learning:

Savanna type climate:


  • The Savanna or Sudan Climate is a transitional type of climate found between the equatorial forests and the trade wind hot deserts.
  • It is confined within the tropics and is best developed in the Sudan where the dry and wet seasons are most distinct, hence its name the Sudan Climate.
  • The belt includes West African Sudan, and then curves southwards into East Africa and southern Africa north of the Tropic of Capricorn.
  • In South America, there are two distinct regions of savanna north and south of the equator, namely the llanos of the Orinoco basin and the compos of the Brazilian Highlands.
  • The Australian savanna is located south of the monsoon strip running from west to east north of the Tropic of Capricorn.
  • The Sudan type of climate is characterized by an alternate hot, rainy season and cool, dry season. The prevailing winds of the region are the Trade Winds, which bring rain to the coastal districts.


  • The monthly temperature hovers between 7O°F and 90°F. For lowland stations, an annual temperature range of 20°F, is typical, but the range increases as one moves further away from the equator.
  • They are strongest in the summer but are relatively dry by the time they reach the continental interiors or the western coasts of the continents, so that grass and scattered short trees predominate.


  • The prevailing winds of the region are the Trade Winds, which bring rain to the coastal districts.
  • They are strongest in the summer but are relatively dry by the time they reach the continental interiors or the western coasts of the continents, so that grass and scattered short trees predominate.


  • The savanna landscape is typified by tall grass and short trees. It is rather misleading to call the savanna’ tropical grassland’ because trees are always present with the luxuriant tall grass.
  • Trees are mostly hard, gnarled and thorny and may exude gum like gum Arabic.
  • In true savanna lands, the grass is tall and coarse, growing 6 to 12 feet high.

Animal Life:

  • The savanna, particularly in Africa, is the home of wild animals. It is known as the ‘big game country’ and thousands of animals are trapped or killed each year by people from all over the world.

Human Life:

  • Within the savanna lands of the tropics live many different tribes who are either cattle pastoralists like the Masai of the East African plateau or settled cultivators like the Hausa of northern Nigeria.




What is the Fixed-term employment?

Click to View the Answer
Click to View the Question


Fixed-term employment is a contract in which a company or an enterprise hires an employee for a specific period of time.

Enrich Your Learning:

Fixed Term Employment

  • In most case it is for a year but can be renewed after the term expires depending on the requirement.
  • In a fixed-term employment, the employee is not on the payroll of the company. 
  • Under the fixed-term employment contract, the payout or the payment is fixed in advance and is not altered till the term expires.
  • However, such contracts cannot be given for routine jobs.
  • It is usually given out for jobs which are temporary. It cannot be used to replace existing employees, if he or she is on a long leave. 
  • The contract is duly signed by both the parties and is for a specified period of time.
  • In IT companies, sometimes professionals are hired on contractual basis to complete a specific project.
  • They could be absorbed in the company later when the project is completed. 
  • There are lot of companies in India as well who hire a person on contract for a year and make them permanent after the term expires.
  • The company sees the potential of the person before taking him or her on the payrolls of the company.
  • This is one decision which is taken by the management of the company. 
  • Like every other agreement, even a fixed-term employment contract has a provision in which the employers can terminate the contract on certain grounds before the due date. 
  • One of the prominent reasons could be the non-performance or the individual has committed a fraud which was proved when investigated.
  • It is generally seen that workers who are under fixed-term agreement do not get provident fund, and some other benefits as compared to employees who are on the payroll of the company.




What are the favourable conditions for Tropical Cyclone formation?

Click to View the Answer
Click to View the Question


The conditions favourable for the formation and intensification of tropical storms are:

  • Large sea surface with temperature higher than 27° C;
  • Presence of the Coriolis force;
  • Small variations in the vertical wind speed;
  • A pre-existing weak low-pressure area or low-level-cyclonic circulation;
  • Upper divergence above the sea level system.

Enrich Your Learning:

Favourable conditions for Tropical Cyclone formation

  • Tropical cyclones are violent storms that originate over oceans in tropical areas and move over to the coastal areas bringing about large scale destruction caused by violent winds, very heavy rainfall and storm surges.
  • This is one of the most devastating natural calamities.
  • They are known as Cyclones in the Indian Ocean, Hurricanes in the Atlantic, Typhoons in the Western Pacific and South China Sea, and Willy-willies in the Western Australia.
  • Tropical cyclones originate and intensify over warm tropical oceans.
  • The energy that intensifies the storm, comes from the condensation process in the towering cumulonimbus clouds, surrounding the centre of the storm.
  • With continuous supply of moisture from the sea, the storm is further strengthened.
  • On reaching the land the moisture supply is cut off and the storm dissipates.
  • The place where a tropical cyclone crosses the coast is called the landfall of the cyclone.
  • The cyclones, which cross 20o N latitude generally, recurve and they are more destructive.




What is the objective behind setting up Nidhi Companies?

Click to View the Answer
Click to View the Question


  • Nidhi Companies are created mainly for cultivating the habit of thrift and savings amongst its members.

Enrich Your Learning:

What is Nidhi Company?

  • Nidhi in the Indian context / language means “treasure”.
  • However, in the Indian financial sector it refers to any mutual benefit society notified by the Central / Union Government as a Nidhi Company.
  • They are created mainly for cultivating the habit of thrift and savings amongst its members.
  • The companies doing Nidhi business, viz. borrowing from members and lending to members only, are known under different names such as Nidhi, Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
  • Nidhis are more popular in South India and are highly localized single office institutions.
  • They are mutual benefit societies, because their dealings are restricted only to the members; and membership is limited to individuals.
  • The principal source of funds is the contribution from the members.
  • The loans are given to the members at relatively reasonable rates for purposes such as house construction or repairs and are generally secured.
  • The deposits mobilized by Nidhis are not much when compared to the organized banking sector.

Regulatory framework:

  • Nidhi’s are companies registered under section 620A of the Companies Act, 1956 and is regulated by Ministry of Corporate Affairs (MCA).
  • Even though Nidhis are regulated by the provisions of the Companies Act, 1956, they are exempted from certain provisions of the Act, as applicable to other companies, due to limiting their operations within members.
  • Nidhis are also included in the definition of Non- Banking Financial companies or (NBFCs) which operate mainly in the unorganized money market.
  • However, since 1997, NBFCs have been brought increasingly under the regulatory ambit of the Indian Central Bank, RBI.
  • Since Nidhis come under one class of NBFCs, RBI is empowered to issue directions to them in matters relating to their deposit acceptance activities.




Give a list of tropical and subtropical moist broadleaf forest ecoregions in India.

Click to View the Answer
Click to View the Question


Enrich Your Learning:

Tropical and subtropical moist broadleaf forests in India:

  • Tropical and subtropical moist broadleaf forests (TSMF), also known as tropical moist forests, are a tropical and subtropical forest habitat type defined by the World Wide Fund for Nature. The habitat type is sometimes known as jungle.
  • TSMF are generally found in large, discontinuous patches centered on the equatorial belt and between the Tropics of Cancer and Capricorn.
  • TSMF are characterized by low variability in annual temperature and high levels of rainfall.
  • Forest composition is dominated by semi-evergreen and evergreen deciduous tree species. These trees number in the thousands and contribute to the highest levels of species diversity in any terrestrial major habitat type.
  • In general, biodiversity is highest in the forest canopy. The canopy can be divided into five layers: overstory canopy with emergent crowns, a medium layer of canopy, lower canopy, shrub level, and finally understory.
  • These forests are home to more species than any other terrestrial ecosystem: Half of the world’s species may live in these forests, where a square kilometer may be home to more than 1,000 tree species.

Tropical and subtropical moist broadleaf forests in India:

  • Andaman Islands rain forests
  • Brahmaputra Valley semi-evergreen forests
  • Eastern highlands moist deciduous forests
  • Himalayan subtropical broadleaf forests
  • Lower Gangetic Plains moist deciduous forests
  • Malabar Coast moist forests
  • Maldives-Lakshadweep-Chagos Archipelago tropical moist forests
  • Meghalaya subtropical forests
  • Mizoram-Manipur-Kachin rain forests
  • Nicobar Islands rain forests
  • North Western Ghats moist deciduous forests
  • North Western Ghats montane rain forests
  • Orissa semi-evergreen forests
  • South Western Ghats moist deciduous forests
  • South Western Ghats montane rain forests
  • Sundarbans freshwater swamp forests
  • Upper Gangetic Plains moist deciduous forests
  • Chin Hills-Arakan Yoma montane forests
70 Days Prelims Flash Cards 2019 Latest Posts Popular

IT on Facebook


My Favourite Articles

  • Your favorites will be here.

Calendar Archive

January 2020
« Dec