Test 13 Solutions Final (1)

INSIGHTS MOCK TEST 13 - SOLUTIONS

http://insightsonindia.com INSIGHTS Page 1

1. Solution: c)

Coral reefs deliver ecosystem services to tourism, fisheries and coastline protection. The global

economic value of coral reefs has been estimated to be between US $29.8 billion and $375

billion per year. Coral reefs protect shorelines by absorbing wave energy, and many small

islands would not exist without their reefs to protect them. According to the environmental

group World Wide Fund for Nature, the economic cost over a 25-year period of destroying one

kilometer of coral reef is somewhere between $137,000 and $1,200,000. About six million tons

of fish are taken each year from coral reefs. Well-managed coral reefs have an annual yield of

15 tons of seafood on average per square kilometer. Southeast Asia's coral reef fisheries alone

yield about $ 2.4 billion annually from seafood

2. Solution: a)

The Governor must consult the high court as a whole before making an appointment. The opinion of the Supreme Court is not required in the appointment of district judges.

3. Solution: b)

Page no. 110, Goh Cheng Leong

4. Solution: a) In line with the government’s guiding principle of ―Innovation Impulse with Investment,‖ ADB has been integrating innovations and regional best practices into project design and implementation. ADB will continue to support the strategic goals of the government—faster, more inclusive, and sustainable growth—as emphasized in the 12th Five-Year Plan and reflected in ADB’s country partnership strategy (CPS), 2013–2017 for India. The strategic pillars of the new CPS include three agendas: support for inclusive growth, environmentally sustainable growth, and regional integration. ADB lends only to member nations in the Asia-pacific region.

5. Solution: b)

IMF issues SDRs and its operations also affect the value of SDR. Besides, the members can exchange their SDRs only with the IMF. RBI manages the forex i.e. SDRs, gold reserves and foreign currency.



6. Solution: c)

Refer to the section on appointment of judges in Laxmikanth – Indian polity.

7. Solution: d)

http://en.wikipedia.org/wiki/Humidity


8. Solution: d)

All the above factors contribute in determining the direction of the movement of ocean

currents.

Page no. 85-86, Goh Cheng Leong

9. Solution: c)

Import and export would be covered under the current account convertibility. ECBs and foreing investment comes under capital account convertibility.

10. Solution: a)

Refer to the section on Powers of the high court in Laxmikanth – Indian polity.

11. Solution: c)

Page No. 89, Goh Cheng Leong

http://msi.nga.mil/MSISiteContent/StaticFiles/NAV_PUBS/APN/Chapt-32.pdf

12. Solution: d)

When it comes to FIIs, they need to report returns on their Indian portfolio in their local currency. For example, FIIs from USA would need to convert their Indian portfolio in US Dollar terms. Lets assume that a particular FII has a portfolio of Rs. 70 million in India. When they value their portfolio in dollar terms (when dollar is at 45 Rs.), the value would be $1.55 million. However, the same portfolio would be valued at $1.25 when dollar is at Rs. 56,



shaving off a neat $300K from their valuation owing to currency movements ! This at times triggers FIIs to sell out of their holdings to prevent any further losses and exit from India resulting in large scale withdrawal of funds from the country. High CAD also affects the value of rupee and increases the vulnerability of the Indian economy. Besides, if other parts of the world are experiencing high economic growth, the FII capital would get better returns there also.

13. Solution: d)

The Chief Justice of India must consult a collegium of judges. After this the President of India gives orders for the transfer of judges, even while the high courts come under the administrative control of the SC.

14. Solution: b) Some of the important changes made in the Existing FDI Limits are provided below:

FDI Limit in Telecom Sector is increased from 74 per cent to 100 percent, out of which up to 49 per cent will be allowed under automatic route and the remaining through Foreign Investment Promotion Board (FIPB) approval. A similar dispensation would be allowed for asset reconstruction companies and tea plantations.

FDI in 4 sectors i.e. gas refineries, commodity exchanges, power trading and stock exchanges have been allowed via the automatic route. In case of PSU oil refineries, commodity exchanges, power exchanges, stock exchanges and clearing corporations, FDI will be allowed up to 49 per cent under automatic route as against current routing of the investment through FIPB.

FDI in single brand retail is to be allowed up to 49 percent under the automatic route and beyond that shall be through FIPB.

In credit information firms, 74 per cent FDI under automatic route will be allowed.

In respect of courier services, FDI of up to 100 per cent will be allowed under automatic route. Earlier, similar amount of investment was allowed through FIPB route.

FDI cap in defense sector remained unchanged at 26%, however higher limits of foreign investment in state-of-the-art manufacturing would be considered by the Cabinet Committee on Security (CCS). Technically, the decision leaves it open for CCS to even allow 100% foreign investment in what the defence ministry will define as "state-of-the-art" segments with safeguards built in to ensure that the technology and equipment are not shared with other countries.

In the contentious insurance sector, it was decided to raise the sectoral FDI cap from 26 per cent to 49 per cent under automatic route under which companies investing do not require prior government approval. A Bill to raise FDI cap in this sector is pending in the Rajya Sabha.



15. Solution: a) Refer to the section on risks in foreign currency borrowings in Ramesh Singh – Indian economy. High BoP of India would propel the government to restrict ECBs and cut down on foreign loans.

16. Solution: d)

Six states as of now have legislative councils : AP, Bihar, UP, J&K, Maharashtra and Karnataka. A council can be created by a laws of the parliament on the request of the state assembly.

17. Solution: d) Refer to the link http://www.mining.com/indias-measures-to-curb-gold-imports-have-worked-but-what-now-41976/ http://www.livemint.com/Opinion/lReVMO6hKpVgUsc7mNgriN/Indias-version-of-the-yellow-peril.html Besides, refer to the section on Gold Imports – It has been dealt comprehensively in Ramesh Singh.

18. Solution: a) Refer to http://saarc-sec.org/areaofcooperation/detail.php?activity_id=5 Myanmar is a south-east Asian country. It is not a part of SAFTA.

19. Solution: a) The Triffin dilemma or paradox is the conflict of economic interests that arises between short-term domestic and long-term international objectives when a national currency also serves as a world reserve currency. The dilemma of choosing between these objectives was first identified in the 1960s by Belgian-American economist Robert Triffin. He pointed out that the country whose currency, being the global reserve currency, foreign nations wish to hold, must be willing to supply the world with an extra supply of its currency to fulfill world demand for these foreign exchange reserves, and thus cause a trade deficit.

http://www.mining.com/indias-measures-to-curb-gold-imports-have-worked-but-what-now-41976/


http://www.livemint.com/Opinion/lReVMO6hKpVgUsc7mNgriN/Indias-version-of-the-yellow-peril.html

http://www.livemint.com/Opinion/lReVMO6hKpVgUsc7mNgriN/Indias-version-of-the-yellow-peril.html

http://saarc-sec.org/areaofcooperation/detail.php?activity_id=5



The use of a national currency, e.g., the U.S. dollar, as global reserve currency leads to tension between its national and global monetary policy. This is reflected in fundamental imbalances in the balance of payments, specifically the current account: some goals require an overall flow of dollars out of the United States, while others require an overall flow of dollars into the United States. Specifically, the Triffin dilemma is usually cited to articulate the problems with the role of the U.S. dollar as the reserve currency under the Bretton Woods system.

20. Solution: d) Refer to the details given in the section WORLD BANK in Ramesh Singh – Indian economy. It has been explained quite comprehensively. World Bank and IMF are important topics. Refer to the following link http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/WBEUROPEEXTN/0,,contentMDK:23154743~pagePK:64168445~piPK:64168309~theSitePK:268437,00.html Also, for a detailed coverage - http://carnegieendowment.org/1999/09/04/world-bank-its-role-governance-and-organizational-culture/2bkj

21. Solution: d) Refer to http://www.wto.org/english/thewto_e/thewto_e.htm Besides, refer to Ramesh Singh section on WTO. All sovereign nations are not members of the WTO. Presently 159 nations are members of the WTO agreeing to its terms and conditions.

22. Solution: a) Refer to the section on methods of taxation in Ramesh Singh – Indian economy. Many heavily capitalistic countries even like the USA do not exactly have a regressive taxation system.

23. Solution: b)

The Indian Monsoon Current refers to the seasonally varying ocean current regime found in

the tropical regions of the northern Indian Ocean. During winter, the flow of the upper ocean

is directed westward from near the Indonesian Archipelago to the Arabian Sea. During the

summer, the direction reverses, with eastward flow extending from Somaliainto the Bay of

Bengal. These variations are due to changes in the wind stress associated with the Indian

monsoon. The seasonally reversing open ocean currents that pass south of India are referred to

as the Winter Monsoon Current and the Summer Monsoon Current (alternately, the Northeast

Monsoon Current and the Southwest Monsoon Current)

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/WBEUROPEEXTN/0,,contentMDK:23154743~pagePK:64168445~piPK:64168309~theSitePK:268437,00.html

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/WBEUROPEEXTN/0,,contentMDK:23154743~pagePK:64168445~piPK:64168309~theSitePK:268437,00.html

http://carnegieendowment.org/1999/09/04/world-bank-its-role-governance-and-organizational-culture/2bkj

http://carnegieendowment.org/1999/09/04/world-bank-its-role-governance-and-organizational-culture/2bkj

http://www.wto.org/english/thewto_e/thewto_e.htm



24. Solution: a)

Annual Budget 2013-14 – Account of the earnings of the government of India

25. Solution: d) Refer to the link http://www.mining.com/indias-measures-to-curb-gold-imports-have-worked-but-what-now-41976/ Besides, refer to the section on Gold Imports – It has been dealt comprehensively in Ramesh Singh.

26. Solution: c)





Revenue a government foregoes through the provisions of tax laws that allow (1) deductions, exclusions, or exemptions from the taxpayers' taxable expenditure, income, or investment, (2) deferral of tax liability, or (3) preferential tax rates. Tax expenditures are revenue losses attributable to tax provisions that often result from the use of the tax system to promote social goals without incurring direct expenditures

27. Solution: c)

Mauna Loa is one of five volcanoes that form the Island of Hawaii in the U.S.

state of Hawaiʻi in the Pacific Ocean. Mauna Loa is the largest subaerial volcano in both mass

and volume, and has historically been considered the largest volcano on Earth. It is

an active shield volcano, with a volume estimated at approximately 18,000 cubic miles

(75,000 km3),[3] although its peak is about 120 feet (37 m) lower than that of its neighbor,Mauna

Kea. The Hawaiian name "Mauna Loa" means "Long Mountain".[4] Lava eruptions from Mauna

Loa are silica-poor, and very fluid; eruptions tend to be non-explosive and the volcano has

relatively shallow slopes.

28. Solution: c)

For giving assistance to nations to boost exports, loans from any regional development bank can be taken like the Asian development Bank. The IMF does not provide such a service. The World Bank can provide a loan, but the conditions attached with the loan do not qualify for the case (c) in the question. It is for general development work.

29. Solution: a)

http://www.bom.gov.au/lam/glossary/beaufort.shtml

30. Solution: c)

Refer to the section on Accession of J&K in Laxmikanth- Indian polity.

31. Solution: d) Internationally, tax avoidance has been recognized as an area of concern and several countries have expressed concern over tax evasion and avoidance. This is also evident from the fact that



either nations are legislating the doctrine of General Anti-Avoidance Regulations in their tax code or strengthening their existing code. In India, the proposed Direct Tax Code 2010 (DTC 2010 or Code) seeks to address the issues relating to tax avoidance and evasion by bringing in General Anti-Avoidance Rules (GAAR) in addition to various transaction-specific Special Anti-Avoidance provisions. The introduction of GAAR regulation recognizes that it may not always be feasible for the

judiciary to address the unforeseen implications of transactions carried out for tax purposes

and also the need to provide some semblance on the matter of tax avoidance. However, where

tax benefit is to be considered as the sole criterion (as is currently recognized under the

proposed new Code) for determining tax avoidance, such a provision may undermine the

common denominator in determination of a tax avoidance scheme, i.e., the principle that

though the taxpayer is free to choose the most tax efficient method, the commercial

justification for the choice taken and tax consideration (benefit) is not the only reason.

32. Solution: d)


A mercury barometer has a glass tube with a height of at least 84 cm, closed at one end, with

an open mercury-filled reservoir at the base. The weight of the mercury creates a vacuum in

the top of the tube. Mercury in the tube adjusts until the weight of the mercury column

balances the atmospheric force exerted on the reservoir. High atmospheric pressure places

more force on the reservoir, forcing mercury higher in the column. Low pressure allows the

mercury to drop to a lower level in the column by lowering the force placed on the reservoir.

Since higher temperature at the instrument will reduce the density of the mercury, the scale for

reading the height of the mercury is adjusted to compensate for this effect.

33. Solution: d) As provided, the other provisions of the constitution can be applied with such modifications and exceptions as specified by the President of India only after taking the consent of J&K state. Any modification in the Article 370 will have to be approved by the J&K government.

34. Solution: a)


35. Solution: c)



Refer to the section on present relationship between J&K and India in Laxmikanth – Indian polity.

36. Solution: a)

Zooplankton provide the polyp with nitrogen, and the polyp shares some of the nitrogen with

the zooxanthellae, which also require this element. The varying pigments in different species of

zooxanthellae give them an overall brown or golden-brown appearance, and give brown corals

their colors. Other pigments such as reds, blues, greens, etc. come from colored proteins made

by the coral animals. Coral which loses a large fraction of its zooxanthellae becomes white (or

sometimes pastel shades in corals that are richly pigmented with their own colorful proteins)

and is said to be bleached, a condition which, unless corrected, can kill the coral.

37. Solution: c) Religious, social, customary law etc. are grounds not to make the Parliamentary laws inapplicable to the state. It also includes issues related to land rights etc.

38. Solution: d) Until the council of ministers in the state has the majority support in the state legislature, no member of it can be dismissed by the governor except on the advice of the CM. He himself can only be dismissed only after losing majority.

39. Solution: c)


40. Solution: a) The governor in the states has much more discretion as compared to the President at the Centre. He is not bound by the aid and advice of the council of ministers. The council can advise him even after resignation to maintain political continuity.

41. Solution: d)


42. Solution: d)



The governor holds an independent office under the constitution. Options 2 and 3 are conventions and not mentioned in the constitution.

43. Solution: c)

The Governor literally holds office during the pleasure of the President. His removal is not needed to be justified by the President and is hence not subject to judicial scrutiny.

44. Solution: d) The other two categories are art and social service. It should be noted that cooperative movement is an addition to the President’s list of nomination categories.

45. Solution: a)

If a bill falls in the concurrent list, and if the Governor feels that the bill violates some of the provisions of the Central law on the same subject, then it can be referred to the President. The land law made recently by the West Bengal government in the Singur case (Tata car factory) was declared void by the High Court as the law did not receive Presidential assent.

46. Solution: c)


The width of the continental shelf varies considerably – it is not uncommon for an area to have

virtually no shelf at all, particularly where the forward edge of an advancing oceanic

plate dives beneath continental crust in an offshore subduction zone such as off the coast

of Chile or the west coast of Sumatra where they are mountainous. The largest shelf –

the Siberian Shelf in the Arctic Ocean – stretches to 1,500 kilometers (930 mi) in width.

Continental shelves are the richest fishing grounds.

http://www.un.org/depts/los/clcs_new/continental_shelf_description.htm

47. Solution: a) The Governor can not issue ordinance in case a bill containing the same provisions should have been reserved for the President. But he can issue it with the consent of the President. When a bill has been referred to the President, his role in that bill ends.



48. Solution: a)

Highest temperature is observed in closed seas such as Red Sea.

The temperature of ocean varies even near polar regions thanks to the presence of warm oceam

currents.


http://msi.nga.mil/MSISiteContent/StaticFiles/NAV_PUBS/APN/Chapt-32.pdf

49. Solution: d) Only Bihar does not have a tribal welfare ministry for the reasons mentioned in the Reason (R) of the question. MP has scheduled areas as well as sizeable population of tribals.

50. Solution: a) Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain. The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain. Experts say that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax rate. Benefits of GST Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold. Benefit to the Centre and the States It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.



Benefits of GST for individuals and companies In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

51. Solution: a)

The Governor can not accept a bill which as not been passed by the assembly. Doing so would be unconstitutional. Joint sitting provision is not there, because the assembly has overriding powers with respect to passing any bill in the state. Council is much weaker than the assembly.

52. Solution: a)

Refer to the section on appointment of judges in Laxmikanth – Indian polity.

53. Solution: b)

Low mb represents low pressure. As altitude increases, pressure decreases. Ann object at high

altitude is at low pressure. So, statement one is wrong.


54. Solution: d) Refer to the section on FDI LIBERALISED in Ramesh Singh – Indian economy. PSL is a kind of operational restriction on the foreign firms operating in India.

55. Solution: d) Refer to the link http://www.thehindu.com/business/Economy/commodity-transaction-tax-to-be-levied-from-july-1/article4834367.ece

56. Solution: b) SEZ is a foreign territory only for trade purposes and nearly all Indian laws apply to it. Domestic sales are subject to full customs duty and the import policy in force.

http://www.thehindu.com/business/Economy/commodity-transaction-tax-to-be-levied-from-july-1/article4834367.ece

http://www.thehindu.com/business/Economy/commodity-transaction-tax-to-be-levied-from-july-1/article4834367.ece



57. Solution: d) Expenses are charged on the consolidated fund of the concerned state and not that of India. Pension is however charged on the latter. The power to control subordinate courts is not a sign of independence. Independence here means the ability to give impartial judgements without fear and favour.

58. Solution: a)

Not all cases can be withdrawn, but only those where there is a substantial question of law involved; or the interpretation of the constitution is needed; or the court is exceeding its jurisdiction; or the court has given a malafide judgement.

59. Solution: b) Refer to the section on Eurozone crisis in Ramesh Singh – Indian economy. It is here important to note that high inflation in India is because of the infrastructural bottlenecks and high demand of food grains in the Indian economy. It has no direct relation with the crisis.

60. Solution: d) The High courts have this power under Article 226 of the constitution. Read here a critic of these powers of the High Court : http://www.ebc-india.com/lawyer/articles/76v2a2.htm

61. Solution: a) Refer to Ramesh Singh – Indian economy section on depreciation.

62. Solution: d)

Refer to the manner of election of Legislative council in Laxmikanth – Indian Polity.

63. Solution: a)

The Galápagos Islands are located off the west coast of South America straddling the equator.

The Galápagos are located at the confluence of several currents including the coldHumboldt

Current traveling north from South America and the Panama Current traveling south

from Central America make the islands cooler than you would think and provide the perfect

environment for the unique mix of wildlife that inhabits the islands.

http://www.ebc-india.com/lawyer/articles/76v2a2.htm

http://www.ebc-india.com/lawyer/articles/76v2a2.htm



These islands are volcanic in origin and were never attached to any continent. Wildlife arrived

here in one of three ways: flying, floating or swimming. Where in most environments larger

mammals are normally the predators at the top of the food chain these animals were unable to

survive the journey. Thus the giant Galápagos tortoise became the largest land animal and due

to the lack of natural predators, the wildlife in the Galápagos is known for being extremely

tame.

The Galápagos Islands are noted as a home to a large number of endemic species. The stark

rocky islands many with few plants made it necessary for many species need to adapt to

survive here and by doing so evolving into new endemic species. It was after visiting the

Galápagos and studying the endemic wildlife that inhabit the islands that a youngCharles

Darwin developed his Theory of Evolution.

64. Solution: c) A value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax. The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.

65. Solution: d)


Andaman and Nicobar islands are not of coral origin. But few coral pockets are seen in these

islands.

66. Solution: b)

Page no. 80-81, Goh Cheng leong



Coral formations require temperature not less than 20 degree Celsius and saline water free

from sediments.

67. Solution: b)

Page 81, Goh Cheng Leong

A fringing reef is one of the three main types of coral reefs recognized by most coral reef

scientists. It is distinguished from the other two main types (barrier reefs and atolls) in that it

has either an entirely shallow backreef zone (lagoon) or none at all. If a fringing reef grows

directly from the shoreline (see photo, right) the reef flat extends right to the beach and there is

no backreef. In other cases (e.g., most of The Bahamas), fringing reefs may grow hundreds of

yards from shore and contain extensive backreef areas with numerous seagrass meadows and

patch reefs.

This type of coral reef is the most common type of reef found in the Caribbean and Red Sea.

68. Solution: c) 42nd amendment made ministerial advice binding only on the President of India. Special areas and the ones under fifth and sixth schedule are under the special responsibility of the Governor. At times he needs Presidential assent in such administration.

69. Solution: d)

Pelagic sediment or pelagite is a fine-grained sediment that accumulates as the result of the

settling of particles to the floor of the open ocean, far from land. These particles consist

primarily of either the microscopic, calcareous or siliceous shells

of phytoplankton or zooplankton; clay-size siliciclastic sediment; or some mixture of these.

Trace amounts of meteoric dust and variable amounts of volcanic ash also occur within pelagic

sediments. Based upon the composition of the ooze, there are three main types of pelagic

sediments: siliceous oozes, calcareous oozes, and red clays.[1][2]

The composition of pelagic sediments is controlled by three main factors. The first factor is the

distance from major landmasses, which affects their dilution by terrigenous, or land-derived,

sediment. The second factor is water depth, which affects the preservation of both siliceous

and calcareous biogenic particles as they settle to the ocean bottom. The final factor is ocean

fertility, which controls the amount of biogenic particles produced in surface waters



Region Percent of Ocean

Area

Percent of Total Volume of Marine

Sediments

Average

Thickness

Continental

shelves 9% 15% 2.5 km (1.6 mi)

Continental

slopes 6% 41% 9 km (5.6 mi)

Continental rises 6% 31% 8 km (5 mi)

Deep-ocean floor 78% 13% 0.6 km (0.4 mi)

70. Solution: b)


Some of the salt in the oceans comes from undersea volcanoes and hydrothermal vents. But its

effect is negligible compared to other sources.

71. Solution: a) There is no such thing as a temporary or a permanent state. J&K is an integral part of India. However, it enjoys special status under Article 370 of the Indian constitution.

72. Solution: a)

Cirrus Clouds

Cirrus clouds are thin, wispy clouds blown by high winds into long streamers. They are

considered "high clouds" forming above 6000 m (20,000 ft). Cirrus clouds usually move

across the sky from west to east. They generally mean fair to pleasant weather.

Here are some examples of cirrus clouds:



73. Solution: b)


74. Solution: d) All form a part of it. BoP - A statement that summarizes an economy’s transactions with the rest of the world for a specified time period. The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts. All the four options form a part of the capital account.

75. Solution: a)

Live coral are colonies of small animals embedded in calcium carbonate shells. It is a mistake

to think of coral as plants or rocks. Coral heads consist of accumulations of individual animals

called polyps, arranged in diverse shapes.[31] Polyps are usually tiny, but they can range in size

from a pinhead to 12 inches (30 cm) across.

Reef-building or hermatypic corals live only in the photic zone (above 50 m), the depth to

which sufficient sunlight penetrates the water, allowing photosynthesis to occur. Coral polyps

do not photosynthesize, but have a symbiotic relationship with zooxanthellae; these organisms

live within the tissues of polyps and provide organic nutrients that nourish the polyp. Because

of this relationship, coral reefs grow much faster in clear water, which admits more sunlight.



Without their symbionts, coral growth would be too slow to form significant reef structures.

Corals get up to 90% of their nutrients from their symbionts

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Test 13 Solutions Final (1)