ECONOMY PRE PYQ 2011-2020 YEARWISE

0
998

2011

The lowering of Bank Rate by the Reserve Bank of India leads to

(a) More liquidity in the market

(b) Less liquidity in the market

(c) No change in the liquidity in the market

(d) Mobilization of more deposits by commercial banks

a

 

 

Economic growth is usually coupled with:

(a) Deflation

(b) Inflation

(c) Stagflation

(d) Hyperinflation

b

 

 

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

  1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
  2. The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

d

 

 

Which of the following can aid in furthering the Government’s objective of inclusive growth?

1. Promoting Self-Help Groups.

2. Promoting Micro, Small and Medium Enterprises.

3. Implementing the Right to Education Act.

Select the correct answer using the codes given below :

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

 

 

 

(d) 1, 2 and 3

d

 

 

In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

(a) Commercial Banks

(b) Cooperative Banks

(c) Regional Rural Banks

(d) Microfinance Institutions

a

 

 

In the context of Indian economy, consider the following statements:

1. The growth rate of GDP has steadily increased in the last five years.

2. The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

d

 

 

Why is the offering of “teaser loans” by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.

2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

(a) 1 only

 

 

 

(b) 2 only

(c) Both 1 and 2

 

 

 

(d) Neither 1 nor 2

a

 

 

 

Regarding the International Monetary Fund, which one of the following statements is correct?

(a) It can grant loans to any country

(b) It can grant loans to only developed countries

(c) It grants loans to only member countries

(d) It can grant loans to the central bank of a country

c

 

 

Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

 

(a) Adult members of only the scheduled caste and scheduled tribe households.

 

 

 

(b) Adult members of below poverty line (BPL) households.

 

 

 

(c) Adult members of households of all backward communities.

 

 

 

(d) Adult member of any household.

d

 

 

 

A company marketing food products advertises that its items do not contain trans-fats. What does this campaign signify to the customers?

1. The food products are not made out of hydrogenated oils.

2. The food products are not made out of animal fats/oils.

3. The oils used are not likely to damage the cardiovascular health of the consumers.

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 3

c

 

 

Southeast Asia has captivated the attention of global community over space and time as a geostrategically significant region. Which among the following is the most convincing explanation for this global perspective?

 

(a) It was the hot theatre during the Second World War.

 

 

 

(b) Its location between the Asian power of China and India.

(c) It was the arena of superpower confrontation during the Cold War period.

 

 

 

(d) Its location between the Pacific and Indian oceans and its pre-eminent maritime character.

d

 

 

Microfinance is the provision of financial services to people of low-income goups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are:

1. Credit facilities

2. Savings facilities

3. Insurance facilities

4. Fund Transfer facilities

Select the correct answer using the codes given below the lists:

(a) 1 only

(b) 1 and 4 only

(c) 2 and 3 only

(d) 1, 2 ,3 and 4

d

 

With what purpose is the Government of India promoting the concept of “Mega Food Parks”?

1. To provide good infrastructure facilities for the food processing industry.

2. To increase the processing of perishable items and reduce wastage.

3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.

Select the correct answer using the codes given below:

(a) 1 only

 

 

 

(b) 1 and 2 only

(c) 2 and 3 only

 

 

 

(d) 1, 2 and 3

b

 

India is home to lakhs of persons with disabilities. What are the benefits available to them under the law?

1. Free schooling till the age of 18 years in government-run schools.

2. Preferential allotment of land for setting up business.

3. Ramps in public buildings.

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 3

d
In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply?

1. It is a major classification of crude oil.

2. Its is sourced from North Sea.

3. It does not contain sulphur.

Which of the statements given above is/are correct?

(a) 2 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

b

 

 

With reference to “Aam Admi Bima Yojana”, consider the following statements:

1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless household.

2. The member insured must be in the age group of 30 to 65 years.

3. There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12.

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 3

c

 

 

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

 

(a) FII helps bring better management skills and technology, while FDI only brings in capital.

 

 

 

(b) FII helps in increasing capital availability in general, while FDI only targets specific sectors.

 

 

 

(c) FDI flows only into the secondary market, while FII targets primary market.

 

 

 

(d) FII is considered to be more stable than FDI.

b

 

 

Karl Marx explained the process of class struggle with the help of which one of the following theories?

(a) Empirical liberalism

(b) Existentialism

(c) Darwin’s theory of evolution

(d) Dialectical materialism

d

 

 

With reference to India, consider the following Central Acts:

1. Import and Export (Control) Act, 1947.

2. Mining and Mineral development (Regulation) Act, 1957

3. Customs Act, 1962

4. Indian Forest Act, 1927

Which of the above Acts have relevance to/bearing on the biodiversity conservation in the country?

 

(a) 1 and 3 only

 

 

 

(b) 2, 3 and 4 only

(c) 1, 2, 3 and 4

(d) None of the above Acts.

c

 

 

A “closed economy” is an economy in which

(a) the money supply is fully controlled

(b) deficit financing takes place

(c) only exports take place

(d) neither exports nor imports take place

d

 

 

Which one of the following is not a feature of “Value Added Tax”?

(a) It is a multi-point destination-based system of taxation .

(b) It is a tax levied on value addition at each stage of transaction in the production-distribution chain.

(c) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer.

(d) It is basically subject of the Central Government and the State Governments are only a facilitator for its successful implementation.

d

 

 

A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

(a) It is the impact of drastic deficiency in supply due to failure of crops.

(b) It is the impact of the surge in demand due to rapid economic growth.

(c) It is the impact of the price levels of previous year on the calculation of inflation rate.

(d) None of the statements (a ), (b ) and (c  ) given above is correct in this context.

c

 

 

Consider the following actions which the government can take:

1. Devaluing the domestic currency.

2. Reduction in the export subsidy.

3. Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above action/actions can help in reducing the current account deficit?

(a) 1 and 2

 

 

 

(b) 2 and 3

(c) 3  only

(d) 1 and 3

d

 

 

Which one of the following statements appropriately describes the “fiscal stimulus”?

(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.

(b) It is an intense affirmative action of the Government to boost economic activity in the country.

(c) It is Government”s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.

(d) It is an extreme affirmative action by the Government to pursue its policy of financial inclusion.

b

 

 

Microbial fuel cells are considered a source of sustainable energy. Why?

1. They use living organisms as catalysts to generate electricity from certain substrates.

2. They use a variety of inorganic materials as substrates.

3. They can be installed in waste water treatment plants to cleanse water and produce electricity.

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 3

c

 

 

In terms of economy, the visit by foreign nationals to witness the XIX common Wealth Games in India amounted to

(a) Export

(b) Import

(c) Production

(d) Consumption

a

 

India has experienced persistent and high food inflation in the recent past. What could be the reasons?

1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.

2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.

3. The food supply chain has structural constraints.

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 3

b

 

 

In the Union Budget 2011-12, a full exemption from the basic customs duty was extended to the bio-based asphalt (bioashphalt). What is the importance of this material?

1. Unlike traditional asphalt, bio-asphalt is not based on fossil fuels.

2. Bioasphalt can be made from non-renewable resources.

3. Bioasphalt can be made from organic waste materials.

4. It is eco-friendly to use biosphalt for surfacing of the roads.

Which of the statements given above are correct?

(a) 1, 2 and 3 only

(b) 1, 3 and 4 only

(c) 2 and 4 only

(d) 1, 2, 3 and 4

b

2012

The basic aim of Lead Bank Scheme is that

(a) big banks should try to open offices in each district.

(b) there should be stiff competition among the various nationalized banks.

(c) individual banks should adopt particular district for intensive development.

(d) all the banks should make intensive efforts to mobilize deposits.

c

 

 

Consider the following statements:  The price of any currency in international market is decided by the-

1. World Bank

2. Demand for good/services provided by the country concerned.

3. Stability of the government of the concerned country.

4. Economic potential of the country in question.

Which of the statements given above are correct?

(a) 1, 2 3, and 4

(b) 2 and 3 only

(c) 3 and 4 only

(d) 1 and 4 only

b

 

 

Which of the following would include Foreign Direct Investment in India?

  1. Subsidiaries of foreign companies in India.
  2. Majority foreign equity holding in Indian companies.
  3. Companies exclusively financed by foreign companies.
  4. Portfolio investment.

Select the correct answer using the codes given below.

(a) 1, 2, 3 and 4

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2 and 3 only

d

 

 

Which of the following measures would result in an increase in the money supply in the economy?

  1. Purchase of government securities from the public by the Central Bank.
  2. Deposit of currency in commercial banks by the public.
  3. Borrowing by the government from the Central Bank.
  4. Sale of government securities to the public by the Central Bank.

Select the correct answer using the codes given below.

(a) 1 only

(b) 2 and 4 only

(c) 1 and 3

(d) 2, 3 and 4

c

 

 

Under which of the following circumstances may ‘capital gains’ arise?

1. When there is an increase in the sales of a product.

2. When there is a natural increase in the value of the property owned.

3. When you purchase a painting and there is a growth in its value due to increase in its popularity.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2 and 3

b

 

 

The Reserve Bank of India (RBI) acts as a bankers” bank. This would imply which of the following?

  1. Other banks retain their deposits with the RBI.
  2. The RBI lends funds to the commercial banks in times of need.
  3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below.

(a) 2 and 3 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

d

 

 

Consider the following:

1. Hotels and restaurants

2. Motor transport undertakings

3. Newspaper establishments

4. Private medical institutions

The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State  Insurance Scheme?

(a) 1, 2 and 3 only

(b) 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

d

 

 

 

The endeavour of ‘Janani Suraksha Yojana’ Programme is

1. To promote institutional deliveries.

2. To provide monetary assistance to the mother to meet the cost of delivery.

3. To provide for wage loss due to pregnancy and confinement.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

a

 

 

In India, in the overall index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?

1. Cement

2. Fertilizers

3. Natural Gas

4. Refinery products

5. Textiles

Select the correct answer using the codes given below:

(a) 1 and 5 only

(b) 2, 3 and 4 only

(c) 1, 2, 3 and 4 only

(d) 1, 2, 3, 4 and 5

c

 

 

Consider the following specific stages of demographic transition associated with economic development:

1. Low birthrate with low death rate.

2. High birthrate with high death rate.

3. High birthrate with low death rate.

Select the correct order of the above stages using the codes given below:

(a) 1, 2, 3

(b) 2, 1, 3

(c) 2, 3, 1

(d) 3, 2, 1

c

 

 

What is/are the recent policy  initiative(s) of Government of India to promote the growth manufacturing sector?

1. Setting up of National Investment and Manufacturing Zones.

2. Providing the benefit of ‘single window clearance’.

3. Establishing the Technology Acquisition and Development Fund.

Select the correct answer using codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

d

 

 

Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.

2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend.

3. Devolution of a specified share of central taxes to local bodies as grants.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

c

 

 

The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development initiative with UNDP support covers which of the following?

  1. Deprivation of education, health, assets and services at household level.
  2. Purchasing power parity at national level.
  3. Extent of budget deficit and GDP growth rate at national level.

Select the correct answer using the codes given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

a

 

 

How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?

1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas.

2. By strengthening ‘self-help groups’ and providing skill development.

3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

b

 

 

With reference to National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained community health worker?

1. Accompanying women to the health facility for antenatal care checkup.

2. Using pregnancy test kits for early detection of pregnancy.

3. Providing information on nutrition and immunization.

4. Conducting the delivery of baby.

Select eh correct answer using the codes given below:

(a) 1, 2 and 3 only

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

a

 

 

Which of the following can be said to be essentially the parts of ‘Inclusive Governance’?

1. Permitting the Non-Banking Financial Companies to do banking.

2. Establishing effective District Planning Committees in all the districts.

3. Increasing the government spending on public health.

4. Strengthening the Mid-day Meal Scheme.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 3 and 4 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

c

2013

Biomass gasification is considered to be one of the sustainable solutions to the power crisis in India. In this context, which of the following statements is/are correct?

1. Coconut shells, groundnut shells and rice husk can be used in biomass gasification.

2. The combustible gases generated consist of hydrogen and carbon dioxide only.

3. The combustible gases generated from biomass gasification can be used for direct heat generation but not in internal combustion engines.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

a

 

 

The national income of a country for a given period is equal to the

(a) total value of goods and services produced by the nationals

(b) sum of total consumption and investment expenditure

(c) sum of personal income of all individuals

(d) money value of final goods and service produced.

 

100.

Which of the following grants/grant direct credit assistance to rural households?

1. Regional Rural Banks

2. National Bank for Agriculture and Rural Development

3. Land Development Banks

Select the correct answer using the codes given below.

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

d

 

 

Economic growth in country X will necessarily have to occur if

(a) there is technical progress in the world economy

(b) there is population growth in X

(c) there is capital formation in X

(d) the volume of trade grows in the world economy

c

 

 

Supply of money remaining the same when there is an increase in demand for money, there will be

(a) a fall in the level of prices

(b) an increase in the rate of interest

(c) a decrease in the rate of interest

(d) an increase in the level of income and employment

b

 

 

Which one of the following is likely to be the most inflationary in its effect?

(a) Repayment of public debt.

(b) Borrowing from the public to finance a budget deficit.

(c) Borrowings from banks to finance a budget deficit.

(d) Creating new money to finance a budget deficit.

d

 

 

 

Which one of the following groups of items is included in India’s foreign-exchange reserves?

(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries

(b) Foreign-currency assets, gold holdings of the RBI and SDRs

(c) Foreign-currency assets, loans from the World Bank and SDRs

(d) Foreign-currency assets, gold holdings of the RBI, and loans from the World Bank

b

 

 

 

A rise in general level of prices may be caused by

1. an increase in the money supply

2. a decrease in the aggregate level of output

3. an increase in the effective demand

Select the correct answer using the codes given below.

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

d

 

 

Which one among the following industries is the maximum consumer of water in India?

(a) Engineers

(b) Paper and pulp

(c) Textiles

(d) Thermal power

d

 

 

 

Priority Sector Lending by banks in Indian constitutes the lending to

(a) Agriculture

(b) Micro and small enterprises

(c) Weaker sections

(d) All of the above

d

 

 

In the context of Indian economy, ‘Open Market Operations’ refers to

(a) Borrowing by scheduled banks from the RBI.

(b) Lending by commercial banks to industry and trade.

(c) Purchase and sale of government securities by the RBI.

(d) None of the above

c

 

 

Consider the following liquid assets:

1. Demand deposits with the banks

2. Time deposits with the banks

3. Savings deposits with the banks

4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

(a) 1–4–3–2

(b) 4–3–2–1

(c) 2–3–1–4

(d) 4–1–3–2

d

 

 

 

Disguised unemployment generally means

(a) Large number of people remain unemployed

(b) Alternative employment is not available

(c) Marginal productivity of labour is zero

(d) Productivity of workers is low

c

 

 

Consider the following statements:

  1. Inflation benefits the debtors.
  2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

a

 

 

Which of the following constitute Capital Account?

1. Foreign Loans

2. Foreign Direct Investment

3. Private Remittances

4. Portfolio Investment

Select the correct answer using the codes given below.

(a) 1, 2 and 3

(b) 1, 2 and 4

(c) 2, 3 and 4

(d) 1, 3 and 4

b

 

 

In India, deficit financing is used for raising resources for

(a) economic development

(b) redemption of public debt

(c) adjusting the balance of payments

(d) reducing the foreign debt

a

 

 

An increase in the Bank Rate generally indicates that the

(a) market rate of interest is likely to fall

(b) Central Bank is no longer making loans to commercial banks

(c) Central Bank is following an easy money policy

(d) Central Bank is following a tight money policy

d

 

 

The Reserve Bank of India regulates the commercial banks in matters of

  1. liquidity of assets
  2. branch expansion
  3. merger of banks
  4. winding-up of banks

Select the correct answer using the codes given below.

(a) 1 and 4 only

(b) 2, 3 and 4 only

(c) 1, 2 and 3 only

(d) 1, 2, 3 and 4

d

 

 

The balance of payments of a country is a systematic record of

(a) all import and export transactions of a country during a given period of time, normally a year

(b) goods exported from a country during a year

(c) economic transaction between the government of one country to another

(d) capital movements from one country to another

a

 

 

With reference to the usefulness of the by-products of sugar industry, which of the following statements is/are correct?

1. Bagasse can be used as biomass fuel for the generation of energy.

2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers.

3. Molasses can be used for the production of ethanol.

Select the correct answer using the codes given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

c

2014

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

 

Defence expenditure

Interest payments

Salaries and pensions

Subsidies

Select the correct answer using the code given below.

 

(a) 1 only

 

(b) 2 and 3 only

 

(c) 1, 2, 3 and 4

 

(d) None of the above

 

100. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

  1. Defence expenditure
  2. Interest payments
  3. Salaries and pensions
  4. Subsidies

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1, 2, 3 and 4

(d) None of the above

 

 

 

a

 

 

Consider the following towns of India:

1. Bhadrachalam

2. Chanderi

3. Kancheepuram

4. Karnal

Which of the above are famous for the production of traditional sarees/fabrics?

 

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1, 3 and 4

b

 

 

Consider the following statements:

1. Maize can be used for the production of starch.

2. Oil extracted from maize can be a feedstock for biodiesel.

3. Alcoholic beverages can be produced by using maize.

Which of the statements given above is/are correct?

 

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

d

 

 

If the interest rate is decreased in an economy, it will

(a) decrease the consumption expenditure in the economy.

(b) increase the tax collection of the Government.

(c) Increase the investment expenditure in the economy.

(d) increase the total savings in the economy.

c

 

 

7 Which of the following are associated with ‘Planning’ in India?

1. The Finance Commission

2. The National Development Council

3. The Union Ministry of Rural Development

4. The Union Ministry of Urban Development

5. The Parliament

Select the correct answer using the code given below.

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2 and 5 only

(d) 1, 2, 3, 4 and 5 only

c

 

 

In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance. Which one of the following statements is correct in this context?

(a) The oil extracted from seeds is used in the manufacture of biodegradable plastics.

(b) The gum made from its seeds is used in the extraction of shale gas.

(c) The leaf extract of this plant has the properties of anti-histamines.

(d) It is a source of high quality biodiesel.

b

 

 

With reference to two non-conventional energy sources called “coalbed methane” and “shale gas”, consider the following statements:

1. Coalbed methane is the pure methane gas extracted from coal seams, while shale gas is a mixture of propane and butane only that can be extracted from fine-grained sedimentary rocks.

2. In India, abundant coalbed methane sources exist, but so far no shale gas sources have been found.

Which of the statements given above is/are correct?

 

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

d

 

 

In the context of Indian economy which of the following is/are the purpose/purposes of “Statutory Reserve Requirements”?

1. To enable the Central Bank to control the amount of advances the banks can create.

2. To make the people”s deposits with banks safe and liquid.

3. To prevent the commercial banks from making excessive profits.

4. To force the banks to have sufficient vault cash to meet their day-to-day requirements.

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4 only

a

 

 

What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.

2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2 only

(d) Neither 1 nor 4

c

 

 

The terms “Marginal Standing Facility Rate” and “Net Demand and Time Liabilities”, sometimes appearing in news, are used in relation to

(a) banking operations

(b) communications networking

(c) military strategies

(d) supply and demand of agricultural product

a

 

 

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

1.Balance of trade

2.Foreign assets

3.Balance of Invisibles

4.Special Drawing Rights

Select the correct answer using the code given below :

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 4 only

c

 

 

The main objective of the 12th Five-Year Plan is

(a) inclusive growth and poverty reduction.

(b) inclusive and sustainable growth.

(c) sustainable and inclusive growth to reduce unemployment.

(d) faster, sustainable and more inclusive growth.

ANS:D

What does venture capital mean?

(a) A short-term capital provided to industries.

(b) A long-term start-up capital provided to new entrepreneurs.

(c) Funds provided to industries at times of incurring losses.

(d) Funds provided for replacement and renovation of industries.

b

 

 

 

The sales tax you pay while purchasing a toothpaste is a

(a)Tax imposed by the Central Government.

(b)Tax imposed by the central Government but collected by the State Government.

(c)Tax imposed by the State Government but collected by the Central Government.

(d)Tax imposed and collected by the State Government.

d

2015

Convertibility of rupee implies:
a) being able to convert rupee notes into gold
b) allowing the value of rupee to be fixed by market forces
c) freely permitting the conversion of rupee to other currencies and vice versa
d) developing an international market for currencies in India
Solution: c)

Rupee convertibility means the system where any amount of rupee can be converted into any other currency without any question asked about the purpose for which the foreign exchange is to be used.
Non-convertibility can generally be defined with reference to transaction for which foreign exchange cannot be legally purchased (e.g. import of consumer goods etc), or transactions which are controlled and approved on a case by case basis (like regulated imports etc). A move towards free convertibility implies a reduction in the number / volume of the above types of transaction.
Source: http://www.caclubindia.com/articles/convertibility-of-indian-rupee-1945.asp

 

 

The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and Peace Clause’ appear in the news frequently in the context of the affairs of the:
a) Food and Agriculture Organization
b) United Nations Framework Conference on Climate Change
c) World Trade Organization
d) United Nations Environment Programme
Solution: c)

Source: www.wto.org/english/docs_e/legal_e/14-ag_01_e.htm
www.wto.org/english/tratop_e/sps_e/spsagr_e.htm
www.wto.org/english/tratop_e/agric_e/negs_bkgrnd13_peace_e.htm

 

 

Which of the following brings out the ‘Consumer Price Index Number for the Industrial Workers’?
a) The Reserve Bank of India
b) The Department of Economic Affairs
c) The Labour Bureau
d) The department of Personnel and Training
Solution: c)

The CPI-IW series on scientific lines was first introduced with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW with base year 2001=100 covers 78 industrially important centers spread across the country.
It reflects the consumption pattern of the working class population.
Source: http://www.labourbureau.nic.in/indexes.htm

 

 

When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?
a) India’s GDP growth rate increases drastically
b) Foreign Institutional Investors may bring more capital into our country
c) Scheduled Commercial Banks may cut their lending rates
d) It may drastically reduce the liquidity to the banking system.
Solution: c)

If SLR is reduced, banks have to park lesser money with RBI in form of securities, cash etc. So, they have more money to lend and the return on lending is also greater than what they get in SLR. Hence, the scheduled commercial banks may cut their lending rates.

 

 

68. With reference to ‘fly ash’ produced by the power plants using the coal as fuel, which of the following statements is/are correct?
1. Fly ash can be used in the production of bricks for building construction
2. Fly ash can be used as a replacement for some of the Portland cement contents of concrete
3. Fly ash is made up of silicon dioxide and calcium oxide only, and does not contain any toxic elements.
Select the correct answer using the code given below
a) 1 and 2
b) 2 only
c) 1 and 3
d) 3 only
Solution: a)

Fly ash from coal-fired thermal power stations is an excellent potential raw material for the manufacture of construction material like blended cement, fly ash bricks, mosaic tiles and hollow blocks. It also has other, high volume applications and can be used for paving roads, building embankments, and mine fills.
Fly ash contains trace concentrations of heavy metals and other substances that are known to be detrimental to health in sufficient quantities. Potentially toxic trace elements in coal include arsenic, beryllium, cadmium, barium, chromium, copper, lead, mercury, molybdenum, nickel, radium, selenium, thorium, uranium, vanadium, and zinc.
Source: http://construction.about.com/od/Innovations/a/Fly-Ash-Applications.htm
https://en.wikipedia.org/wiki/Fly_ash#Environmental_problems

 

 

The Fair and Remunerative Price of Sugarcane is approved by the
a) Cabinet Committee on Economic Affairs
b) Commission for Agricultural Costs and Prices
c) Directorate of Marketing and Inspection, Ministry of Agriculture
d) Agricultural Produce Marketing Committee
Solution: a)

CACP recommends the fair and remunerative prices based on inter-crop price parity, inflation considerations, fair return to farmers and a host of other factors.
It is the cabinet Committee on Economic affairs that finally approves it.
Sources: http://www.indiainfoline.com/article/news-top-story/cabinet-approves-fair-and-remunerative-price-of-sugarcane-payable-by-sugar-mills-113110712710_1.html
http://www.prsindia.org/theprsblog/?tag=fair-and-remunerative-price

 

 

 Which of the following statements is/are correct regarding National Innovation Foundation-India (NIF)?
1. NIF is an autonomous body of the Department of Science and Technology under the Central Government
2. NIF is an initiative to strengthen the highly advanced scientific research in India’s premier scientific institutions in collaboration with highly advanced foreign scientific institutions.
Select the correct answer using the code given below.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution: a)

National Innovation Foundation – India (NIF) is an autonomous body under the Department of Science and Technology (India), Government of India. It was set up in February 2000 at Ahmedabad, Gujarat, India to provide institutional support for scouting, spawning, sustaining and scaling up the grassroots innovations across the country.
NIF conducts a biennial national competition for grassroots green technologies (not highly advanced) developed by farmers, mechanics, artisans and others through their own genius without any recourse to professional help. NIF validates these innovations with the help of experts, and, ascertains the novelty in these innovations by doing prior art search. If the innovation is deemed novel, NIF files a patent on behalf of the innovator. NIF also funds value addition initiatives in these innovations to upscale them and make them more useful for a larger segment of people.
Source: http://nif.org.in/aboutnif

 

 

 In the Index of Eight Core Industries, which one of the following is given the highest weight?
a) Coal Production
b) Electricity generation
c) Fertilizer Production
d) Steel Production
Solution: b)

 

 

 A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rates
2. Less equitable distribution of national income

Select the correct answer using the code given below.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution: d)

There is some dispute about the correct answer. As per some websites, second statement should be correct. But, here is a catch.
About Statement 1: Slowing economic growth rates may result in lower tax collection. But whether the fall in tax collection is proportionate to the fall in GDP cannot be known without knowing the on-ground statistics. It depends on the structural characteristics of the economy. So, slowing economic growth rates does not necessarily mean decrease in tax-GDP ratio.
About Statement 2: Change in collection of taxes with the change in GDP shows the tax buoyancy. Tax buoyancy can be affected by a number of reasons including tax evasion, tax avoidance, less efficient methods of tax collection etc. These are the short-term reasons which affect the tax collection. Long term reasons are structural reasons. Distribution of income is one such factor.
Generally, less/greater equitable distribution of national income happens over a long period of time. If the distribution of national income is not equitable, it may mean a perennial LOW TAX-GDP ratio, but not a DECREASE in TAX-GDP ratio over the years. A decrease in tax-GDP ratio is a short-term phenomenon. It happens for reasons mentioned above.
You can refer to the link to understand more about the issue:

http://www.investopedia.com/terms/t/tax-to-gdp-ratio.asp
http://articles.economictimes.indiatimes.com/2014-07-09/news/51248100_1_jahangir-aziz-gdp-ratio-economic-survey

 

 

Pradhan Mantri Jan Dhan Yojana has been launched for
a) providing housing loan to poor people at cheaper interest rates
b) Promoting women’s Self Help Groups in backward areas
c) promoting financial inclusion in the country
d) providing financial help to marginalised communities
Solution: c)

http://jandhanyojana.net/

52. With Reference to the Fourteenth Finance Commission, which of the following statements is/are correct?
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent
2. It has made recommendations concerning sector-specific grants
Select the correct answer using the code given below.
a) 1 only
b) 2 only
c) Both 1 and 2
c) Neither 1 nor 2
Solution: a)

 

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?
1. It is a Public Limited Government Company.
2. It is a Non – Banking Financial Company.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 or 2
Solution: c)

IREDA has been awarded “Mini Ratna” (Category -I) status in 2015 by Ministry of New and Renewable Energy (MNRE). IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 under the administrative control of MNRE to promote, develop and extend financial assistance for renewable energy and energy efficiency /conservation projects with the motto: “ENERGY FOR EVER”.
Source: http://ireda.gov.in/

 

 

Which of the following has/have been accorded ‘Geographical Indication’ status?
1. Banaras Brocades and Sarees
2. Rajasthani Daal-Bati-Churma
3. Tirupathi Laddu
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 only 3 only
(d) 1, 2 and 3
Solution: c)

 

 

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1,2,3 and 4
Solution: a)

Introducing new welfare scheme will further inflate the budget.
Expanding industries by budgetary support will not add anything in the short-run to the tax revenues of the government, and thus will increase the budget deficit.
Rationalizing subsidies and reducing revenue expenditure are two direct ways of reducing the fiscal burden of the government of India.

 

 

The problem of international liquidity is related to the non-availability of
(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
Solution: c)

The concept of international liquidity is associated with international payments. These payments arise out of international trade in goods and services and also in connection with capital movements between one country and another. International liquidity refers to the generally accepted official means of settling imbalances in international payments which is basically dollars and hard currencies.
Source: http://capital-flow-watch.net/2006/02/19/what-is-international-liquidity/

http://www.ide.go.jp/English/Publish/Periodicals/De/pdf/65_03_05.pdf

international liquidity problem hard currencies

 

 

The substitution of steel for wooden ploughs in agricultural production is an example of
a) labour-augmenting technological progress
b) capital-augmenting technological progress
c) capital-reducing technological progress
d) None of the above
Solution: b)

“Capital” in an economic context means machinery or capital goods which can be employed to produce other goods.
Substitution of steel can be considered as the substitution of a lesser machine by a better machine.  This encourages steel production. Hence it is a capital-augmenting technological progress.

 

 

Which reference to inflation in India, which of the following statements is correct?
a) Controlling the inflation in India is the responsibility of the Government of India only
b) The Reserve Bank of India has no role in controlling the inflation
c) Decreased money circulation helps in controlling the inflation
d) Increased money circulation helps in controlling the inflation
Solution: c)

Decreased money circulation leads to lesser money in hands of people to spend. Hence, lower demand (given the same supply) leads to falling prices fall and reduced inflation.

 

 

36. With reference to India economy, consider the following :
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the above is/are component/components of Monetary Policy?
a) 1 only
b) 2, 3 and 4
c) 1 and 2
d) 1, 3 and 4
Solution: c)

Public debt and Public revenue are matters falling under Fiscal policy. The Ministry of Finance handles these subjects.
Bank rate and OMOs fall within the jurisdiction of RBI’s monetary policy.

 

 

With reference to India economy, consider the following statements:
1. The rate of growth of real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade
Which of the statement given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Solution: b)

Due to recession in 2008, the growth rate of the Indian economy had declined for the next few years from 8-9% to 5-6%. So, statement 1 is wrong.
Even though the growth rate declined, it never became negative. So, the GDP at market prices has always increased year on year since last one decade.

 

 

. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to
(a) develop national strategies for the conservation and sustainable use of biological diversity
(b) improve banking sector’s ability to deal with financial and economic stress and improve risk management
(c) reduce the greenhouse gas emissions but places a heavier burden on developed countries
(d) transfer technology from developed Countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
Solution: b)

Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing and market liquidity risk. It was agreed upon by the members of the Basel Committee on Banking Supervision in 2010–11, and was scheduled to be introduced from 2013 until 2015.
Source: https://en.wikipedia.org/wiki/Basel_III

 

 

“Pradhan Mantri Jan-Dhan Yojana” has been launched for

(a) providing housing loan to poor people at cheaper interest rates

(b) promoting women”s Self-Help Groups in backward areas

(c) promoting financial inclusion in the country

(d) providing financial help to the marginalized communities.

ANS:C

2016

With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

  1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
  2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: B

Justification: Statement 1: Farmers’ premium has been kept at a maximum of 2 per cent for foodgrains and oilseeds, and up to 5 per cent for horticulture and cotton crops. So, it is different for different crops. 1 is incorrect.

Statement 2: Post-Harvest Losses coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of cyclone and cyclonic rains and unseasonal rains. So, 2 is correct.

https://india.gov.in/spotlight/pradhan-mantri-fasal-bima-yojana

 

 

  1. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

(a) It is the ratio of value of imports to the Gross Domestic Product of a country

(b) It is the total value of imports of a country in a year

(c) It is the ratio between the value of exports and that of imports between two countries

(d) It is the number of months of imports that could be paid for by a country’s international reserves

Solution: D

Justification: Import Cover measures the number of months of money available in the national bank to cover the cost of imports.

This is to avoid a BoP crisis, so that early preventive action can be taken.

India has an import cover of around 12 months presently.

http://articles.economictimes.indiatimes.com/2015-12-29/news/69379605_1_import-cover-foreign-exchange-reserves-import-bill

 

 

  1. ‘Rashtriya Garima Abhiyaan’ is a national campaign to

(a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood

(b) release the sex workers from their practice and provide them with alternative sources of livelihood

(c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers

(d) release the bonded labourers from their bondage and rehabilitate them

Solution: C

Justification: It is the “National Campaign for Dignity and Eradication of Manual Scavenging”.

http://pib.nic.in/newsite/efeatures.aspx?relid=126057

 

 

0) With reference to the International Monetary and Financial Committee (IMFC), consider the following statements :

  1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its   work.
  2. The World Bank participates as observer in IMFC’s meetings.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: C

Justification: Statement 1: The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system.

Statement 2: A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

http://www.imf.org/external/np/exr/facts/groups.ht

 

 

  1. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(a) Rouble

(b) Rand

(c) Indian Rupee

(d) Renminbi

Solution: D

Justification: In the most recently concluded review (November 2015), the Executive Board of IMF decided that, effective October 1, 2016, the Chinese renminbi (RMB) will be included in the SDR basket as a fifth currency, along with the U.S. dollar, euro, Japanese yen and pound sterling.

https://www.imf.org/external/np/exr/facts/sdrcb.htm

 

7) Which of the following is/are included in the capital budget of the Government of India?

  1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
  2. Loans received from foreign governments
  3. Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: D

Justification: The Capital Budget is an account of the assets as well as liabilities of the central government, which takes into consideration changes in capital – both capital expenditure and capital receipt.

  • The main items of capital receipts are loans raised by the government from the public which are called market borrowings, borrowing by the government from the Reserve Bank and commercial banks and other financial institutions through the sale of treasury bills, loans received from foreign governments and international organisations, and recoveries of loans granted by the central government. So, 2 is correct.
  • Capital Expenditure includes expenditure on the acquisition of land, building, machinery, equipment, investment in shares, and loans and advances by the central government to state and union territory governments, PSUs and other parties. So, 1 and 3 are correct.

Source: 12th NCERT Macroeconomics

 

  1. In the context of which of the following do you sometimes find the terms `amber box, blue box and green box’ in the news?

(a) WTO affairs

(b) SAARC affairs

(c) UNFCCC affairs

(d) India-EU negotiations on FTA

Solution: A

Justification: They relate to direct/indirect support given by states to their industries and agriculture, and regulate such supports as they have a bearing on international trade.

Source: WTO Website

 

With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

  1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
  2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: C

Justification:

Statement 1: The World Bank Group (WBG) consists of five organizations – IBRD, IDA, IFC, MIGA and ICSID.

IFC is a member of the World Bank Group (WBG) and at the same time it’s called as the World Bank’s private sector lending arm with a stated objective to ensure that any financing does not result in harm to communities and the environment. (Source: https://www.oxfam.org/en/pressroom/pressreleases/2013-02-08/world-banks-private-sector-financing-arm-doesnt-know)

Another source that mentions IFC as WB’s arm – https://www.icij.org/blog/2015/06/numbers-world-banks-lesser-known-arm-ifc (read first paragraph)

 

Another sourcehttps://www.theguardian.com/global-development/2016/mar/30/world-bank-lending-arm-ifc-sees-off-lawsuit-by-indian-fishermen-power-plant

 

Statement 2: IFC has been issuing offshore rupee bonds known as ‘Masala Bonds’. They provide a new source of funding for Indian companies which benefit in the longer term from comparative pricing of bonds.

http://economictimes.indiatimes.com/markets/bonds/masala-bonds-can-be-new-funding-source-for-indian-cos-ifc/articleshow/51762984.cms

http://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/ifc+issues+first+green+masala+bond+on+london+stock+exchange

 

 

  1. Which one of the following is a purpose of `UDAY’, a scheme of the Government?

(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy

(b) Providing electricity to every household in the country by 2018

(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

(d) Providing for financial turnaround and revival of power distribution companies

Solution: D

Justification: It is the Ujwal DISCOM Assurance Yojana, where DISCOMs stand for distribution companies (electricity) that are state-owned and suffering huge financial losses due to poor infrastructure, AT&C losses, mis-governance, low tariff rates etc.

The scheme aims at their financial turnaround and revival.

Source: Ministry of Power Website

 

79) The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

  1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
  2. Payment Banks can issue both credit cards and debit cards.
  3. Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 only

(d) 1, 2 and 3

Solution: B

Justification: Statement 1: Eligible promoters (mentioning only some of them):

Existing non-bank Pre-paid Payment Instrument (PPI) issuers; and other entities such as individuals / professionals; Non-Banking Finance Companies (NBFCs), corporate Business Correspondents(BCs), mobile telephone companies, super-market chains, companies, real sector cooperatives; that are owned and controlled by residents; and public sector entities may apply to set up payments banks.

So, 1 is correct.

Statement 2: Scope of activities of Payment Banks as per RBI guidelines (we are mentioning only few of them):

  • They can accept demand deposits.
  • They can issue ATM/debit cards. Payments banks, however, cannot issue credit cards (as they can’t lend money). So, 2 is wrong, which makes option B the only answer.

Statement 3: As per RBI guidelines, they cannot undertake lending activities.

https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=32615

 

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalizing subsidies
  4. Reducing import duty

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

Solution: C

Justification: Statement 1: Unnecessary revenue expenditure bloats the fiscal deficit, and since it forms the majority of government spending, its reduction has a very large effect on the fiscal deficit.

Statement 2: It will further increase the fiscal deficit.

Statement 3: Subsidies are a major component of government spending, and its reduction will cut down fiscal deficit.

Statement 4: It reduces tax revenue and thus increases fiscal deficit.

Source: NCERT 12th Macroeconomics

 

) Regarding DigiLocker’, sometimes seen in the news, which of the following statements is/are correct?

  1. It is a digital locker system offered by the Government under Digital India Programme.
  2. It allows you to access your e-documents irrespective of your physical location.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: C

Justification: DigiLocker is one of the key initiatives under the Digital India Programme. This was released by the Department of Electronics and Information Technology (DeitY), Government of India.

The space can be utilized for storing personal documents like University certificates, Permanent account number (PAN) cards, voter id cards, etc., and the URIs of the e-documents issued by various issuer departments.

https://india.gov.in/spotlight/digilocker-online-document-storage-facility

 

 

  1. ‘European Stability Mechanism’, sometimes seen in the news, is an

(a) agency created by EU to deal with the impact of millions of refugees arriving from Middle East

(b) agency of EU that provides financial assistance to eurozone countries

(c) agency of EU to deal with all the bilateral and multilateral agreements on trade

(d) agency of EU to deal with the conflicts arising among the member countries

Solution: B

Justification: The European Stability Mechanism is a European Union agency that provides financial assistance, in the form of loans, to eurozone countries or as new capital to banks in difficulty.

 

On which of the following can you find the Bureau of Energy Efficiency Star Label?

  1. Ceiling fans
  2. Electric geysers
  3. Tubular fluorescent lamps

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Solution: D

Justification: http://www.beepindia.org/sites/default/files/Chapter%206%20-%20Appliances.pdf

 

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

  1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
  2. Only one member of a family can join the scheme.
  3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: C

Justification: Statement 1: The Yojana mainly addresses the longevity risks among the workers in unorganised sector and encourages them to voluntarily save for their retirement. So, 1 is correct.

Statement 2: Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme. So, 2 is wrong.

Statement 3: As per the Ministry of Finance, “The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse. After the death of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age of 60 years of the subscribe”. So, clearly 3 is correct.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=116208

Some recent changes (on which statement 3 is based): http://economictimes.indiatimes.com/wealth/plan/government-amends-atal-pension-yojana/articleshow/51511223.cms

 

  1. Pradhan Mantri MUDRA Yojana is aimed at

(a) bringing the small entrepreneurs into formal financial system

(b) providing loans to poor farmers for cultivating particular crops

(c) providing pensions to old and destitute persons

(d) funding the voluntary organizations involved in the promotion of skill development and employment generation

Solution: A

Justification: http://www.icicibank.com/Personal-Banking/loans/pradhan-mantri-mudra-yojana.page

 

) What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

  1. To bring the idle gold lying with Indian households into the economy
  2. To promote FDI in the gold and jewellery sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: C

Justification: The scheme doesn’t intend to bring FDI in gold and jewellery sector, and by eliminating this only possible answers you have are either A or C.

Both schemes aim at reducing physical demand of gold and thus bring down gold imports which clearly tell us that the answer must be C.

http://www.financialexpress.com/markets/commodities/gold-monetisation-scheme-gold-monetization-scheme-indian-gold-coin-launched-2015/161906/

 

 

1) With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?

  1. Bitcoins are tracked by the Central Banks of the countries.
  2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
  3. Online payments can be sent without either side knowing the identity of the other.

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2 and 3

Solution: B

Justification: Bitcoins can be sent directly to anyone, anywhere in the world. The only requirement is that you should have a Bitcoin address of the recipient. The process doesn’t require you to reveal your identity. So, 2 and 3 are correct.

The system is peer-to-peer and transactions take place between users directly, without an intermediary. So, it is not tracked by the Central bank or any intermediary. 1 is incorrect.

https://bitcoin.org/en/how-it-works

 

  1. Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in

(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh

Solution: A

Justification: http://articles.economictimes.indiatimes.com/2015-09-21/news/66760948_1_andhra-pradesh-nimz-manufacturing-zone


 

37) What is/are the purpose/purposes of `District Mineral Foundations’ in India?

  1. Promoting mineral exploration activities in mineral-rich districts
  2. Protecting the interests of the persons affected by mining operations
  3. Authorizing State Governments to issue licences for mineral exploration

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: B

Justification: District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners.

  • So, all other statements apart from 2 are wrong.
  • Setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.
  • Its manner of operation comes under the jurisdiction of the relevant State Government.

http://www.arthapedia.in/index.php?title=District_Mineral_Foundation_(DMF)

 


 

  1. `SWAYAM’, an initiative of the Government of India, aims at

(a) promoting the Self Help Groups in rural areas

(b) providing financial and technical assistance to young start-up entrepreneurs

(c) promoting the education and health of adolescent girls

(d) providing affordable and quality education to the citizens for free

Solution: D

Justification: SWAYAM is an Information Technology platform which will host Massive Open Online Courses (MOOCs) and provide high quality education on various subjects from school level–class 9-12 to Under Graduate and Post Graduate students– covering all disciplines.

Through this scheme the Ministry has proposed to provide high quality e-content to all colleges and universities free of cost.

http://economictimes.indiatimes.com/industry/services/education/pm-narendra-modi-to-launch-swayam-massive-open-online-courses-platform-on-aug-15/articleshow/53029959.cms

 

 

 

  1. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a) mining operation by multinational companies in resource-rich but backward areas

(b) curbing of the tax evasion by multinational companies

(c) exploitation of genetic resources of a country by multinational companies

(d) lack of consideration of environmental costs in the planning and implementation of developmental projects

Solution: B

Justification: Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.

  • Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS measures and tackle BEPS.
  • Double-tax avoidance treaties and tax-information exchange between member nations are used to curb this practice.

http://www.oecd.org/tax/beps/

 

31) With reference to ‘Financial Stability and Development Council’, consider the following statements :

  1. It is an organ of NITI Aayog.
  2. It is headed by the Union Finance Minister.
  3. It monitors macro-prudential supervision of the economy.

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 3

Solution: C

Justification: Statement 1: With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government as the apex level forum in December 2010 (much before NITI AAyog was even setup). So, 1 is incorrect.

Statement 2: The Chairman of the Council is the Finance Minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC) Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser. So, 2 is correct.

Statement 3: Without prejudice to the autonomy of regulators, the Council monitors macro prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues. So, 3 is correct.

It also focuses on financial literacy and financial inclusion.

http://finmin.nic.in/fsdc/StrucFSDC.pdf

 

 

18) What is/are the purpose/purposes of the `Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

  1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
  2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: C

Justification: It is the new benchmark lending rate at which banks will now lend to new borrowers.

Statement 1: MCLR will be calculated after factoring in banks’ marginal cost of funds (largely, the interest at which banks borrow money), return on equity (a measure of banks’ profitability), and other risks and costs.

  • The MCLR should be revised monthly by considering some new factors including the repo rate and other borrowing rates.
  • Specifically the repo rate and other borrowing rates that were not explicitly considered under the base rate system.
  • Banks will also publically publish all kinds of MCLR periodically.
  • This will surely bring transparency in the calculation methodology. So, 1 is correct.
  • The RBI expects the new formula to make floating lending rates more responsive to its policy rate cuts.

Statement 2: Based upon this MCLR, interest rate for different types of customers should be fixed in accordance with their riskiness. So, it become fair to both borrowers as well as lenders.

 

 

  1. ‘Net metering’ is sometimes seen in the news in the context of promoting the

(a) production and use of solar energy by the households/consumers

(b) use of piped natural gas in the kitchens of households

(c) installation of CNG kits in motor-cars

(d) installation of water meters in urban households

Solution: A

 

9) With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011?

  1. List of ingredients including additives
  2. Nutrition information
  3. Recommendations, if any, made by the medical profession about the possibility of any allergic reactions
  4. Vegetarian/non-vegetarian

Select the correct answer using the code given below.

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1 and 4 only

Solution: C

 

 

  1. ‘Mission Indradhanush’ launched by the Government of India pertains to

(a) immunization of children and pregnant women

(b) construction of smart cities across the country

(c) India’s own search for the Earth-like planets in outer space

(d) New Educational Policy

Solution: A

 

4) The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term?

  1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network   regardless of where they open their accounts.
  2. It is an effort to increase RBI’s control over commercial banks through computerization.
  3. It is a detailed procedure by which a bank with huge non- performing assets is taken over by another bank.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Solution: A

 

 

1) With reference to ‘stand up India scheme’, which of the following statement is/are correct?

  1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
  2. It provides for refinance through SIDBI.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Solution: C


2017


Which of the following are the objectives of ‘National Nutrition Mission’?

 

  1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
  2. To reduce the incidence of anaemia among young children, adolescent girls and women.
  3. To promote the consumption of millets, coarse cereals and unpolished rice.
  4. To promote the consumption of poultry eggs.

Select the correct answer using the code given below:

(a)1 and 2 only

(b)1, 2 and 3 only

(c)1, 2 and 4 only

(d)3 and 4 only

ANS:A

There are two components of the National Nutrition Mission as follows:

 

1. Information, Education and Communication (IEC) Campaign against malnutrition

2. Multi-sectoral Nutrition Programme

The key objectives of these programmes are as under:

– To create awareness relating to malnutrition amongst pregnant women, lactating mothers, promote healthy lactating practices and importance of balanced nutrition;

– To improve maternal and child under-nutrition in 200 high burdened districts and to prevent and reduce the under-nutrition prevalent among children below 3 years;

– To reduce incidence of anaemia among young children, adolescent girls and women.

 

 

With reference to the ‘Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)’, consider the following statements:

 

  1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
  2. Properties held benami are liable for confiscation by the Government.
  3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)1 and 3 only

(d)2 and 3 only

ANS:B

Salient features of Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)-

 

– The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine. The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner.

– The definition of a benami transaction has been widened to include a transaction made in a fictitious name; where the owner is not aware or denies knowledge of the ownership of the property or the person providing the consideration for the property is not traceable.

– Properties held benami are liable for confiscation by the Government without payment of compensation.

– An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.

 

 

Which of the following statements is/are correct regarding the ‘Monetary Policy Committee (MPC)?

 

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a)1 only

(b)1 and 2 only

(c)3 only

(d)2 and 3 only

ANS:A

The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee it would be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. Hence Statement 1 is correct.

 

As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be from the RBI and the other three Members of MPC will be appointed by the Central Government. Hence statement 2 is not correct.

The Governor of the Bank— ex officio Chairperson of MPC. Hence statement 3 is not correct.

 

 

Which of the following statements is/are correct regarding Smart India Hackathon 2017?

 

  1. It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
  2. It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
  3. It is a programme aimed at making all the financial transactions in our country completely digital in a decade.

Select the correct answer using the code given below:

(a)1 and 3 only

(b)2 only

(c)3 only

(d)2 and 3 only

ANS:B

Smart India Hackathon 2017 was a 36 hrs non-stop digital product development competition during which teams of thousands of technology students built innovative digital solutions for the problems posted by 29 different central govt. ministries/ departments e.g. Ministry of Railways, External Affairs, Ministry of Defense, ISRO, Ministry of Tourism, Dept. of Atomic Energy, etc.

 

Smart India Hackathon 2017, has been launched to build Digital India and to engage the youth directly with nation building. For the first time, govt. departments were directly engaging with students and challenging them to build digital solutions to improve their efficiency, plug revenue leakages and corruption.

 

 

Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world?

 

(a)World Economic Forum

(b)UN Human Rights Council

(c)UN Women

(d)World Health Organization

ANS:A

Global Gender Gap Index is released by World Economic Forum. As per the Global Gender Gap Report 2016, India ranks at 87th in respect of Global Gender Gap Index (GGI) among 144 countries of the World. As per the GGR, India climbed 21 spots to rank 87th in 2016, which is an improvement from being ranked at 108th in 2015.

 

 

Recognition of Prior Learning Scheme’ is sometimes mentioned in the news with reference to

 

(a)Certifying the skills acquire by construction workers through traditional channels.

(b)Enrolling the persons in Universities for distance learning programmes.

(c)Reserving some skilled jobs to rural and urban poor in some public sector undertakings.

(d)Certifying the skills acquired by trainees under the National Skill Development Programme.

ANS:A

The Recognition of Prior Learning (RPL) is an assessment of the skills acquired by the individual through experience, observation and self-learning. The assessment, which is followed by a certification, gives an edge to an otherwise informal worker. It provides the employee with the confidence, social recognition and empowerment that are necessary to negotiate his future employment. Following successful assessment, a candidate is given a financial reward, in addition to certification.

 

Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)?

 

(a)Mobile wallets with not be necessary for online payments.

(b)Digital currency will totally replace the physical currency in about two decades.

(c)FDI inflows will drastically increase.

(d)Direct transfer of subsidies to poor people will become very effective.

ANS:A

UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords

 

 

 

What is the purpose of setting up of Small Finance Banks (SFBs) in India?

 

  1. To supply credit to small business units
  2. To supply credit to small and marginal farmers
  3. To encourage young entrepreneurs to set up business particularly in rural areas.

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 3

ANS:A

The objectives of setting up of small finance banks will be to further financial inclusion by-

 

(i) provision of savings vehicles, and

(ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.

 

 

With reference to the ‘Quality Council of India (QCI)’, consider the following statements:

 

  1. QCI was set up jointly by the Government of India and the Indian Industry.
  2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

Which of the above statements is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:C

Quality Council of India (QCI) was set up jointly by the Government of India and the Indian Industry represented by the three premier industry associations i.e. Associated Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), to establish and operate national accreditation structure and promote quality through National Quality Campaign.

 

Chairman of QCI is appointed by the Prime Minister on recommendation of the industry to the government. The Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, is the nodal ministry for QCI.

 

 

With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:

 

  1. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
  2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.

Which of the above statements is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:C

The Union Cabinet approved the National Intellectual Property Rights (IPR) Policy in 2016 that will lay the future roadmap for intellectual property in India. This policy shall weave in the strengths of the Government, research and development organizations, educational institutions, corporate entities including MSMEs, start-ups and other stakeholders in the creation of an innovation-conducive environment, which stimulates creativity and innovation across sectors, as also facilitates a stable, transparent and service-oriented IPR administration in the country.

 

The Policy recognizes that India has a well-established TRIPS-compliant legislative, administrative and judicial framework to safeguard IPRs, which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS agreement. Hence statement 1 is correct.

These objectives are sought to be achieved through detailed action points. The action by different Ministries/ Departments shall be monitored by DIPP which shall be the nodal department to coordinate, guide and oversee implementation and future development of IPRs in India. Hence statement 2 is correct.

 

 

Who among the following can join the National Pension System (NPS)?

 

(a)Resident Indian citizens only

(b)Persons of age from 21 to 55 only

(c)All State Government employees joining the services after the state of notification by the respective State Governments

(d)All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

ANS:C

NPS (National Pension System) is a defined contribution based Pension Scheme launched by Government of India.

 

Eligibility –

– NPS is applicable to all new employees of Central Government service (except Armed Forces) and Central Autonomous Bodies joining Government service on or after 1st January 2004.

– NPS is applicable to all the employees of State Governments, State Autonomous Bodies joining services after the date of notification by the respective State Governments.

– All citizens of India between the age of 18 and 60 years as on the date of submission of his / her application to Point of Presence (POP) / Point of Presence-Service Provider (POP-SP) can join NPS. Recently, NRIs were also allowed to open National Pension Scheme (NPS) accounts online.

 

The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to

 

(a)Developing solar power production in our country

(b)Granting licenses to foreign T.V. channels in our country

(c)Exporting our food products to other countries

(d)Permitting foreign educational institutions to set up their campuses in our country

ANS:A

Domestic Content Requirement’, recently in news, is related to development of solar power production.

 

The World Trade Organization had ruled against India’s domestic content policy for solar cells and modules; India appealed the ruling in a bid to keep DCR rules in place for government procurement. The case against India was originally filed in 2013, following the announcement of DCR in JNNSM Phase II policy and after India decided to file an anti-dumping case against the U.S., China, Malaysia and Taiwan.

 

 

Consider the following statements:

 

  1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
  2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:D

 

What is the aim of the programme ‘Unnat Bharat Abhiyan’?

 

(a)Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.

(b)Connecting institutions of higher education with local communities to address development challenges through appropriate technologies

(c)Strengthening India’s scientific research institutions in order to make India a scientific and technological power.

(d)Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.

ANS:B

With a view to uplift rural India, the Unnat Bharat Abhiyan programme is launched in collaboration with the Indian Institutes of Technology (IIT) and the National Institutes of Technology (NITs) across the country.

 

The programme aims to connect institutions of higher education, including Indian Institutes of Technology (IITs), National Institutes of Technology (NITs) and Indian Institutes of Science Education & Research (IISERs) etc. with local communities to address the development challenges through appropriate technologies.

 

 

What is the purpose of ‘Vidyanjali Yojana’?

 

  1. To enable the famous foreign educational institutions to open their campuses in India.
  2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
  3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

(a)2 only

(b)3 only

(c)1 and 2 only

(d)2 and 3 only

ANS:A

The Ministry of HRD recently launched the Vidyanjali scheme aimed at boosting the education system by delivering volunteer teachers to government schools.

 

It will not replace the regular and professionally qualified teachers in the government schools

The volunteer’s responsibility is towards overall development of the child, not academics.

The volunteer service will be used in developing skills like public speaking, creative writing, counseling, music and dance.

 

 

 

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

 

  1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a)1 only

(b)2 and 3 only

(c)1 and 3 only

(d)1, 2 and 3

ANS:A

Consider the following statements:

 

  1. National Payment Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
  2. NPCI has launched RuPay, a card payment scheme.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:C

(NPCI) is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).

 

The core objective was to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion. Thus statement 1 is correct.

It offers many products and services which include RuPay card, BHIM app, Unified payment interface among others. Thus statement 2 is correct.

 

Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

 

  1. Share of agriculture in GDP increased enormously.
  2. Share of India’s exports in world trade increased.
  3. FDI inflows increased.
  4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a)1 and 4 only

(b)2, 3 and 4 only

(c)2 and 3 only

(d)1, 2, 3 and 4

ANS:B

 

Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

 

(a)It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b)It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c)It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d)It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

ANS:B

The S4A by RBI envisages determination of the sustainable debt level for a stressed borrower, and bifurcation of the outstanding debt into sustainable debt and equity/quasi-equity instruments which are expected to provide upside to the lenders when the borrower turns around.

 

Consider the following in respect of ‘National Career Services’:

 

1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.

2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.

Which of the above statements is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS: B

National Career Service (NCS) project is an initiative launched by the Ministry of Labour and Employment (India)Government of India as a Mission Mode Project for establishing quick and efficient career related services. Hence statement 1 is not correct. The main stakeholders for the NCS would include: – Unemployed candidates seeking jobs – Students seeking career counselling – Candidates seeking vocational / occupational guidance – Illiterate, under-privileged sections of society, blue-collar workers seeking placements and guidance – Person with different abilities (PWDs), ex-servicemen, veterans / senior citizens, etc. – Employers seeking suitable candidates Thus statement 2 is correct.

 

 

With reference to ‘National Skills Qualification Framework (NSQF)’, which of the statements given below is/are correct?

 

1. Under NSQF, a learner can acquire the certification for competency only through formal learning.
2. An outcome expected from the implementation of NSQF is the mobility between vocational and general education.
Select the correct answer using the code give below:

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:B

The National Skills Qualifications Framework (NSQF) organizes qualifications according to a series of levels of knowledge, skills and aptitude. These levels are defined in terms of learning outcomes which the learner must possess regardless of whether they were acquired through formal, non-formal or informal learning. It provides for multiple pathways, horizontal as well as vertical, both within vocational education and vocational training and among vocational education, vocational training, general education and technical education, thus linking one level of learning to another higher level. Thus Statement 1 is not correct and statement 2 is correct

 

 

Q. With reference to ‘National Investment and Infrastructure Fund’,

which of the following statements is/are correct?

1. It is an organ of NITI Aayog.

2. It has a corpus of Rs. 4,00,000 crore at present.

Select the correct answer using the code given below:

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:D

National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country.

Its creation was announced in the Union Budget 2015-16. Governing Council of NIIF is an advisory body – chaired by the Finance Minister.

It is not an organ of NITI Aayog. Hence statement 1 is not correct. The proposed corpus of NIIF is Rs. 40,000 Crores (around USD 6 Billion). Hence statement 2 is also not correct.

 

The Global Infrastructure Facility is a/an

 

(a)ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.

(b)World Bank collaboration that facilities the preparation and structuring of complex infrastructure Public-Private Partnership (PPPs) to enable mobilization of private sector and institutional investor capital.

(c)Collaboration among the major banks of the world working with the OECD and infrastructure projects that have the potential to mobilize private investment.

(d)UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the World.

ANS:B

The GIF supports Governments in bringing well-structured and bankable infrastructure projects to market. GIF’s project support can cover the spectrum of design, preparation, structuring and transaction implementation activities, drawing on the combined expertise of the GIF’s Technical and Advisory Partners and focusing on structures that are able to attract a wide range of private investors. Along with the World Bank Group, Canada is co-chair of the GIF’s Governing Council.

2018

Consider the following items:

 

  1. Cereals grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. Newspapers containing advertising material

Which of the above items is/are exempted under GST (Goods and Services Tax)?

(a)1 only

(b)2 and 3 only

(c)1, 2 and 4 only

(d)1, 2, 3 and 4

ANS:A

 

 

With reference to the governance of public sector banking in India, consider the following statements:

 

  1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
  2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:B

  • Statement 1 is not correct as Capital infusion into public sector banks by the Government of India has not steadily increased in the last decade.
  • Statement 2 is correct. The merger of SBI associated banks under Section 35 of the State Bank of India
  • Act, 1955 will result in the creation of a stronger merged entity. This will minimize vulnerability to any geographic concentration risks faced by subsidiary banks. It will create improved operational efficiency and economies of scale. It will also result in improved risk management and unified treasury operations.

Consider the following:

 

  1. Areca nut
  2. Barley
  3. Coffee
  4. Finger millet
  5. Groundnut
  6. Sesamum
  7. Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

(a)1, 2, 3 and 7 only

(b)2, 4, 5 and 6 only

(c)1, 3, 4, 5 and 6 only

(d)1, 2, 3, 4, 5, 6 and 7

ANS:B

  • The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP is a statutory body and submits separate reports recommending prices for Kharif and Rabi seasons.
  • Initially, MSP covered paddy, rice, wheat, jowar, bajra, maize, ragi (Finger Millet), barley, gram, tur, moong, urad, sugarcane, groundnut, soybean, sunflower seed, rapeseed and mustard, cotton, jute and tobacco. From 1994-95 onwards, Nigerseed and Sesame were included under MSP Scheme of CACP, in addition to the edible oilseeds already covered by the Commission. Similarly, during 2001-2002, the government enhanced the terms of reference of the Commission by including lentil (masur).

 

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

 

  1. It is the flagship scheme of the Ministry of Labor and Employment.
  2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
  3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

(a)1 and 3 only

(b)2 only

(c)2 and 3 only

(d)1, 2 and 3

ANS:C

With reference to solar power production in India, consider the following statements:

 

  1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
  2. The solar power tariffs are determined by the Solar Energy Corporation 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 2

ANS:D

  • Statement 1 is not correct. Manufacture of solar panels (also called modules) start with polysilicon, which is made from silicon. Polysilicon is made into ingots, which are cut into wafers. Cells are made with wafers and a string of cells is a module. Today, only modules and cells are made in India, with imported material. At present, the only incentives available for manufacturing these is the Modified-Special Incentive Package Scheme, which is available to all electronic goods manufacturers and implemented by the Ministry of Electronics and Information Technology, but there have been few takers for the scheme.
  • Statement 2 is not correct. “Solar Energy Corporation of India ltd” (SECI) is a CPSU under the administrative control of the Ministry of New and Renewable Energy (MNRE). It aims to become the leader in development of large scale solar installations, solar plants and solar parks and to promote and commercialize the use of solar energy to reach remotest corner of India. It also explores new technologies and their deployment to harness solar energy. Solar Power tariffs are determined either through the regulations of Central Electricity Regulatory Commission/State Electricity Regulatory Commission or through competitive bidding

 

Consider the following statements:

 

  1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
  2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the state Governments.
  3. Treasury bills offer are issued at a discount from the par value.

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 3

ANS:C

  • The Reserve Bank of India manages public debt and issues Indian currency denominated loans on behalf of the central and the state governments under the powers derived from the Reserve Bank of India Act. The RBI is the debt manager for both the Central Government and the State Governments. RBI manages the debt of state governments on the basis of separate agreements. Hence, statement 1 is not correct.
  • Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. They are issued at a discount and redeemed at the face value at maturity. For example, a 91 day Treasury bill of ₹100/- (face value) may be issued at say ₹ 98.20, that is, at a discount of say, ₹1.80 and would be redeemed at the face value of ₹100/-. The return to the investors is the difference between the maturity value or the face value (that is ₹100). Hence, statement 2 and 3 are also correct.

 

Economically, one of the results of the British rule in India in the 19th century was the

 

(a)increase in the export of Indian handicrafts

(b)growth in the number of Indian owned factories

(c)commercialization of Indian agriculture

(d)rapid inrease in the urban population

ANS:C

Despite being a high saving economy, capital formation may not result in significant increase in output due to

 

(a)weak administrative machinery

(b)illiteracy

(c)high population density

(d)high capital-output ratio

ANS:D

  • Capital formation means increasing the stock of real capital in a country. In other words, capital formation involves making of more capital goods such as machines, tools, factories, transport equipment, materials, electricity, etc., which are all used for future production of goods. For making additions to the stock of Capital, saving and investment are essential.
  • Capital output ratio is the amount of capital needed to produce one unit of output. For example, suppose that investment in an economy, investment is 32% (of GDP), and the economic growth corresponding to this level of investment is 8%. Here, a Rs 32 investment produces an output of Rs 8. Capital output ratio is 32/8 or 4. In other words, to produce one unit of output, 4 unit of capital is needed. Hence, if the capital-output ratio is high, there will not be significant increase in output despite high savings and investment.

 

Q. Human capital formation as a concept is best explained in terms of a process that enables

(a)the accumulation of unlimited amount of tangible wealth.

(b)the acquisition of skills, education and experience in the people which is critical for the economic development of a nation.

(c)an increase in the population growth rate in a developed country.

(d)the emotional and cultural growth of the people to promote brotherhood and harmony

ANS:B

Increase is absolute and per capital real GNP do not connote a higher level of economic development, if

 

(a)industrial output fails to keep pace with agricultural output.

(b)agricultural output fails to keep pace with industrial output.

(c)poverty and unemployment increase.

(d)imports grow faster than exports.

ANS:C

 

If a commodity is provided free to the public by the Government, then

 

(a)the opportunity cost is zero.

(b)the opportunity cost is ignored.

(c)the opportunity costs is transferred from the consumers of the product to the tax-paying public.

(d)the opportunity cost is transferred from the consumers of the product to the Government.

ANS:C

 

Which one of the following statements correctly describes the meaning of legal tender money?

 

(a)The money which is tendered in courts of law to defray the fee of legal cases

(b)The money which a creditor is under compulsion to accept in settlement of his claims

(c)The bank money in the form of cheques, drafts, bills of exchange etc.

(d)The metallic money in circulation in a country

ANS:B

 

Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India?

 

  1. Formation of India’s own Internet companies like China did.
  2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centers within our national geographical boundaries.
  3. Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centers.

Select the correct answer using the code given below:

(a)1 and 2 only

(b)3 only

(c)2 and 3 only

(d)1, 2 and 3

ANS:B

 

International Labour Organization’s Convention 138 and 182 are related to

 

(a)Child labour

(b)Adaptation of agricultural practices to global climate change

(c)Regulation of food prices and food security

(d)Gender parity at the workplace

ANS:A

 

With reference to digital payments, consider the following statements:

 

  1. BHIM app allows the user to tranfer money to anyone with a UPI-enabled bank account.
  2. While a chip-pin debit card has four factors authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

 

(a)ILO

(b)IMF

(c)UNCTAD

(d)WTO

ANS:D

 

With reference to the provisions made under the National Food Security Act, 2013, consider the following statements:

 

  1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidies food grains.
  2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
  3. Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.

Which of the statements given above is/are correct?

(a)1 and 2

(b)2 only

(c)1 and 3

(d)3 only

ANS:B

 

Consider the following statements:

 

  1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
  2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

Consider the following statements:

  1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
  2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

Which one of the following links all the ATMs in India

 

(a)Indian Banks’ Association

(b)National Securities Depository Limited

(c)National Payments Corporation of India

(d)Reserve Bank of India

ANS:C

 

Consider the following statements:

 

  1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
  2. The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

Consider the following statements:

 

  1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
  2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
  3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

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 3

ANS:C

 

 

With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

 

  1. It is introduced as a part of the Income Tax Act.
  2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:D

 

 

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

 

(a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.

(b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchaing goods or services.

(c)The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

(d)The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

ANS/:C


2019


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 are group

(d)The level of mutual trust and harmony in the society

ANS:D

 

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 and current account deficit.

(b)To support the infrastructure projects of Central and State Governments

(c)To act as independent regulator in case of application for loans of Rs. 50 core or more

(d)To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

ANS: D

 

The Chairman 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 bank

ANS:A

 

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 3

ANS:C

 

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 godowns

ANS:C

The Service Area Approach was implemented under the purview of

(a)Integrated Rural Development Programme

(b)Lead Bank Scheme

(c)Mahatma Gandhi National Rural Employment Guarantee Scheme

(d)National Skill Development Mission

ANS:B

 

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 2

ANS:D

Which of the following is not included in the assets of a commercial bank in India?

(a)Advances

(b)Deposits

(c)Investments

(d)Money at call and short notice

ANS:B

 

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 sector

2.      Increasing the government expenditure

3.      Remittances from Indians abroad

Select the correct answer using the code given below.

(a)1 only

(b)1 and 3 only

(c)2 only

(d)1, 2 and 3

ANS:B

 

Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?

(a)Certificate of Deposits

(b)Commercial Paper

(c)Promissory Note

(d)Participatory Note

ANS:D

 

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 3

ANS:A

 

Consider the following statements:

1.      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 statement given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

ANS:A

 

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 policy

ANS:D

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 that

1.      they shall ensure that entire data relating to payment systems operated by them are store in a system only in India.

2.      they shall ensure that the systems are owned and operated by public sector enterprises.

3.      they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year

Which of the statements given above is/are correct?

(a)1 only

(b)1 and 2 only

(c)3 only

(d)1, 2 and 3

ANS:A

 

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 country

ANS:B

 

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 in the 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 3

ANS:C

 

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 in the 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 3

ANS:C

 

Consider the following statements:

As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018

1.      if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off 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 2

ANS:C


2020


Along with the budget, the Finance Minister also places other documents before the parliament which include “The Macro Economic Framework Statement” The aforesaid document is presented because this mandated by

(a) Long standing parliamentary convention

(b) Article 112 and article 110(1) of the constitution of India

(c) Article 114 of the Constitution of India

(d) Provisions of the Fiscal Responsibility and Budget Management act, 2003

Answer: D

 

Q10. If you withdraw 1,00,000 from your in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

(a) To reduce it by 1,00,000

(b) To increase it by 1,00,000

(c) To increase it by more than 1,00,000

(d) To leave it unchanged

Answer: D

It will remain unchanged since the money supply includes both cash/currency with public at hand and demand deposits. Withdrawing cash from demand deposit only puts it with the public, hence no change in M.

 

Q27. Gold tranche(Reserve tranche) refers to

(a) A loan system of World bank

(b) One of the operations of a central bank

(c) A credit system of WTO granted to its members

(d) A credit system granted by IMF to its members

Answer: D

A reserve tranche is a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes—without a service fee or economic reform conditions.

 

Q64. According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?

1. Cassava

2. Damaged wheat grains

3. Groundnut seeds

4. Horse gram

5. Rotten potatoes

6. Sugar beet

Select the correct answer using the code given below:

(a) 1,2,5 and 6 only

(b) 1,3,4 and 6 only

(c)2,3,4 and 5 only

(d) 1,2,3,4,5 and 6.

Answer: A

From the policy document: “The scope of the Policy encompasses following categories of fuels as “Biofuels” which can be used as transportation fuel or in stationery applications:—

  1. ‘bioethanol’: ethanol produced from biomass such as sugar containing materials, like sugar cane, sugar beet, sweet sorghum etc.; starch containing materials such as corn, cassava, rotten potatoes, algae etc.; and, cellulosic materials such as bagasse, wood waste, agricultural and forestry residues or other renewable resources like industrial waste;
  2. ‘biodiesel’: a methyl or ethyl ester of fatty acids produced from non-edible vegetable oils, acid oil, used cooking oil or animal fat and bio-oil;

See http://petroleum.nic.in/sites/default/files/biofuelpolicy2018_1.pdf

 

Q72. What is the importance of the term “Interest Coverage Ratio” of a firm in India?

1. It helps in understanding the present risk of a firm that a bank is going to give loan to.

2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c)1 and 3 only

(d) 1,2 and 3

Answer: A

The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The interest coverage ratio may be calculated by dividing a company’s earnings before interest and taxes (EBIT) during a given period by the company’s interest payments due within the same period.

A higher coverage ratio is better, although the ideal ratio may vary by industry.

 

Q73. Which of the following factors/policies were affecting the price of rice in India in the recent past?

1. Minimum Support Price

2. Government’s trading

3. Government’s stockpiling

4. Consumer subsidies

Select the correct answer using the code given below:

(a) 1,2 and 4 only

(b) 1,3 and 4 only

(c)2 and 3 only

(d) 1,2,3 and 4

Answer: D

 

Q76. Under the Kisan Credit Card Scheme, short-term credit support is given to farmers for which of the following purposes ?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini trucks

3. Consumption requirements of farm households

4. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1,2 and 5 only

(b) 1,3 and 4 only

(c) 2,3,4 and 5 only

(d) 1, 2, 3 and 4

Answer: B

S1, S3 and S4: KCC meets the short term credit requirements for cultivation of crops and

  • Post harvest expenses
  • Produce marketing loan
  • Consumption requirements of farmer household
  • Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.
  • Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.

S2 and S5: Investment credit requirement is covered by KCC, so it might seem that purchase of combine harvesters, tractors and mini trucks comes under it. But, we withhold a judgment on this since S5 is clearly wrong (house building is not covered under KCC). So, the only option available to mark is B.

 

Q77. Consider the following statements:

1. The weightage of food in Consumer Price Index(CPI) is higher than that in Wholesale Price Index(WPI).

2. The WPI does not capture changes in the prices of services, which CPI does.

3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1,2 and 3

Answer: A

Q79. Consider the following statements:

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Prices(MSP) is unlimited in any State/UT of India.

2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct ?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: D

S1: While procurement is open-ended, it is not unlimited since our buffer stock is limited.

S2: This is absurd. MSP is only an indicative price, and Market price can rise way above or way below MSP given the situation.

 

Q80. With reference to the Indian Economy, consider the following statements:

1.’Commercial Paper’ is a short term unsecured promissory note.

2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.

3. ‘Call Money’ is a short term finance used for interbank transactions.

4. ‘Zero-Coupon Bonds’ are the interest bearing short term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 4 only

(c) 1 and 3 only

(d) 2,3 and 4 only

Answer: C

RBI does not issue CDs to corporations, so S2 is wrong.

S4 is incorrect too. Zero Coupon Bonds are G-secs that are issued at a discount and redeemed at par. No interest payment is made on such bonds at periodic intervals before maturity.

 

Q81. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

(a) It is the investment through capital instruments essentially in a listed company.

(b) It is largely non-debt creating capital flow.

(c) It is the investment which involves debt-servicing.

(d) It is the instrument made by foreign institutional investors in the Government securities.

Answer: B

 

Q82. With reference to the international trade of India at present, which of the following statements is/are correct ?

1. India’s merchandise exports are less than its merchandise imports.

2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India’s exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 and 4 only

(c) 3 only

(d) 1,3 and 4

Answer: D

 

Q83. The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

(a) Crude oil

(b) Bullion

(c) Rare earth elements

(d) Uranium

Answer: A

 

Q84. In the context of the Indian economy, non-financial debt includes which of the following?

1. Housing loans owned by household
2. Amounts outstanding on credit cards
3. Treasury Bills

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 1,2 and 3

Answer: D

Households, personal consumption, non-financial corporations, and credit to the government sector are a part of the non-financial debt.

Q86. With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ?

1. Quantitative restrictions on imports by foreign investors are prohibited.

2. They apply to investment measures related to trade in both goods and services.

3. They are not concerned with the regulation of foreign investment.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1,2 and 3

Answer: C

 

Q87. If the RBI decides to adopt an expansionist monetary policy, which of the following it would NOT do?

  1. Cut and optimize the statutory liquidity ratio
  2. Increase the Marginal Standing Facility Rate
  3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: B

 

Q88. With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity ( rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.

2. The percentage share of rural areas in the workforce steadily increased.

3. In rural areas, the growth in the non-farm economy increased.

4. The growth rate in rural employment decreased.

Select the correct answer using the code given below:

(a) 1and 2 only

(b) 3 and 4 only

(c) 3 only

(d) 1, 2 and 4

Answer: B

 

Q89. Consider the following statements:

1. In terms of short term credit delivery to the agriculture sector, District Central Cooperative Banks(DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.

2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements is/are correct ?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: B

 

Q90. In India, under cyber insurances for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ?

1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer.
2. Cost of a new computer if some miscreant wilfully damages it, if proved so.
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.
4. Cost of defence in the court of law if any third party files a suit.

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 1,3 and 4 only

(c) 2 and 3 only

(d) 1,2,3 and 4

Answer: B

Q9. If another global financial crisis happens in the near future , which of the following actions/policies are most likely to give some immunity to India?

  1. Not depending on the short term foreign borrowing.
  2. Opening up to more foreign banks
  3. Maintaining full capital account convertibility

Select the correct answer using the given code below-

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 1, 2 and 3

Answer: A

S1: This makes sense because short-term FII money is volatile. So, 1 is correct.

S2: This will further increase India’s exposure to foreign money and may in fact aggravate financial crisis. So, 2 is wrong.

S3: Full CAC implies free movement of currency out of the country for both current and capital account transactions such as short-term and long-term debt. This will only make India more vulnerable to such a crisis. So, 3 is wrong.

 

 

Q6. In India, The term “Public Key Infrastructure” is used in the context of?

(a) Digital security infrastructure

(b) Food security infrastructure

(c) Health care and education infrastructure

(d) Telecommunication and transportation infrastructure

Answer: A

Public Key Infrastructure (PKI) is a technology for authenticating users and devices in the digital world. The basic idea is to have one or more trusted parties digitally sign documents certifying that a particular cryptographic key belongs to a particular user or device.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here