IASbaba ’60 Day Plan- Prelims Test 2016 ECONOMICS & CURRENT AFFAIRS [DAY 33]

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IASbaba ’60 Day Plan’ – Prelims Test 2016 [Day 33]

Q.1) Which of the following is incorrectly matched?

a) Tax administration reforms commission – Justice Ashok Kumar Mathur

b) Expenditure Management Commission – Bimal Jalan

c) Committee to simplify Income Tax laws – Justice R V Easwar

d) FRBM review panel – N K Singh

Q.2) The GST Council will be the body that decides which taxes levied by the Centre, States and local bodies will go into the GST. Who among the following are members of GST Council?

1. Union Minister of Finance
2. Minister of Finance of each state
3. Union Minister of state for Finance
4. Chief Economic Advisor to Minister of Finance
5. Governor of RBI

Select the correct answer

a) 1, 2 and 4 only

b) 1, 2, and 3 only

c) 1, 2, 3 and 5 only

d) All of the above 

Q.3) Consider the following about Gold Monetization Scheme.

1. The designated banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit as well as Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes.
2. Both principal and interest to be paid to the depositors of gold, will be ‘valued’ in gold.
3. Customer will have the choice to take cash or gold on redemption, but the preference has to be stated at the time of deposit.
4. The interest rate is decided by the banks concerned.

Select the correct answer

a) 1 and 2 only

b) 1, 2 and 3 only

c) 1, 3 and 4 only

d) All of the above

Q.4) Which of following qualify as measures taken to curb tax evasion and black money by government?

1. Income Disclosure Scheme of 2016
2. Amendment to DTAA with Mauritius
3. Place of Effective Management Rule to applicable
4. Undisclosed foreign income and assets act 2015

Select the correct answer

a) 1, 2 and 3 only

b) 1, 2 and 4 only

c) 1, 3 and 4 only

d) All of the above

Q.5) Consider the following. 

1. Controller General of Accounts is part of Department of Revenue and prepares the appropriation bill.
2. CGA is head of Indian Civil Accounts Service and administers it.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.6) Consider the following.

1. Ideally custom duties should be high on raw material import and low on export for a country like India.
2. Similarly custom duties should be high on finished goods exports and low on import in line with Make in India initiative.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.7) Consider the following. 

1. The Krishi Kalyan Cess and Swachch Bharat Cess are applicable on RBI and Postal services but not on government insurance schemes for social sector.
2. Krishi Kalyan Cess and Swachch Bharat Cess proceeds are part of Consolidated Fund of India and will be part of the shareable tax pool as per the recommendation of the Tax Administration reform Council 2015-16.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.8) Consider the following about revenue and capital receipts. 

1. Interest receipts, dividends and profits are parts of revenue receipts.
2. Article 112 of the constitution mandates expenditure is shown in revenue and other categories.
3. Plan- Non Plan expenditure segregation has been constitutionally mandated and needs an amendment to be removed.
4. Disinvestment proceeds are part of capital receipts.

Select the correct answer

a) 1 and 2 only

b) 1, 2 and 3 only

c) 1, 2 and 4 only

d) All of the above

Q.9) Which of the following is incorrect w.r.t Ways and Means Advances (WMAs)? 

a) RBI provides 2 types of WMAs to state governments one with and another without collaterals.

b) WMAs given by RBI to government of India do not require any collateral.

c) Replacement of adhoc bills with WMAs represents an advance in fiscal discipline and harmonization of fiscal and monetary policies.

d) WMAs are made at Repo rate.

Q.10) Which of the following is correct debt?

a) The union government borrows directly from international capital markets with the help of debt management agencies.

b) Small savings and provident funds are part of other liabilities.

c) Dated securities as part of market borrowings are issued by union governments as T-bills with 14 days, 91days, 182days maturity.

d) Public debt means only internal debt and other liabilities but not external debt.

Q.11) Which of the following recommendations of 14^th Finance Commission regarding tax Devolution are accepted by the Government?

1. States’Share in the net proceeds of Union tax revenues increased to 42% from 32% earlier.
2. Sharing pattern under various CSS to undergo a change, with States sharing higher fiscal responsibility for scheme implementation.
3. Distribution of grants to States for local bodies based on 2011 population data (90%weight) and area (10%weight).
4. Revenue compensation to States under GST should be for five years;100% in first three years, 75% in fourth year and 50% in fifth year.

Select the code from the following:

a) 1,2 and 3

b) 2,3 and 4

c) 1,3 and 4

d) All of the above 

Q.12) Consider the following statements regarding ‘Financial Stability’:

1. Financial stability could be defined as a situation in which the financial sector provides critical services to the real economy without any discontinuity.
2. Financial Stability report is published every year by Ministry of Finance.
3. Financial stability is an important aspect of the Monetary Policy of India.

Which of the above statements are correct?

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All of the above

Q.13) Volume two of Economic Survey talks about a ‘Chakravyuh’ problem of Indian economy. Which of the following does ‘Chakravyuh’ refers to?

a) Vicious cycle of poverty and lack of capital

b) Over dependence of economy on Foreign Direct investment

c) Lack of clear exit policy for companies

d) Conflict between economic growth and inflation

Q.14) Consider the following Statements regarding ‘Gyan Sangam’ summit:

1. It was a meeting organized by Ministry of Finance and RBI with central banks of Tax haven countries to find a method to recover black money which is tapped outside.
2. It is a forum where the highest officials from public sector banks, the government and the Reserve Bank of India, meet to discuss issues faced by the sector.
3. Focus was discussion on bank consolidation, NPAs and carrying out changes to recovery laws.

Which of the above statements are correct?

a) 1 only

b) 2 and 3

c) 1 and 3

d) None of the above

Q.15) SARFAESI Act refers to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for bad loans (NPA) recovery. Which of the following statements are correct about this act?

1. Upon loan default, banks can seize the securities (except agricultural land) without intervention of the court.
2. Court intervention is not required only in case of secured loans where bank can enforce the underlying security eg hypothecation, pledge and mortgages.
3. If the asset in question is an unsecured asset, the bank would have to move the court to file civil case against the defaulters.

Select the code from the following:

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All of the above

Q.16) Which of the following regarding ‘Tax Buoyancy’ are correct: 

1. Tax buoyancy explains this relationship between the changes in government’s tax revenue growth and the changes in GDP.
2. When a tax is buoyant, its revenue increases without increasing the tax rate

Select the code from below:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2 

Q.17) Which of the following statements are correct regarding ‘Pigovian’ Tax?

1. A Pigovian tax is a tax levied on any market activity that generates negative externalities.
2. It is often levied on companies that pollute the environment or create excess social costs.
3. A type of a Pigovian tax is a “sin tax”, which is a special tax on tobacco products and alcohol.

Select the code from the following:

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All of the above

Q.18) NITI Aayog has replaced the older planning commission. Which of the following points differentiates NITI aayog from Planning Commission? 

1. NITI Aayog is an advisory body while Planning Commission’s recommendations were binding.
2. State representatives were not there in Planning Commission while NITI Aayog has included Chief Ministers of all states as well as administrators of UTs.
3. The provision of regional council is there in Niti Ayog to address local / regional development issues.

Select the code from the following:

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All of the above 

Q.19) Consider the following statements regarding subsidies in current fiscal year:

1. Subsidies on food, fertiliser and petroleum have been pegged higher by over 4 per cent.
2. The deregulation of diesel price, along with the introduction of direct benefit (subsidy) transfer into the bank accounts of domestic LPG consumers, coupled with a sharp decline in global crude oil prices has helped containing the petroleum subsidy bill.

Which of the above statements are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Q.20) Which of the following statement are the recommendation of Tax Administration Reforms Commission?

1. A minimum of 10% of the tax administration’s budget must be spent on taxpayer services.
2. Pre-filled tax returns should be provided to all individuals.  The taxpayer will have the option of accepting the tax return or modifying it.
3. CBDT and CBEC should be fully integrated under Central Board of Direct and Indirect Taxes.
4. The Permanent Account Number (PAN) should be developed as a Common Business Identification Number (CBIN), to be used by other departments such as customs, excise, etc.

Select the code from the following:

a) 1,3 and 4

b) 3 and 4

c) 1,2 and 3

d) All of the above

Q.21) Consider the following statements with respect to cryogenic engine

1. In Cryogenic engine its fuel or oxidizer (or both) are gases liquefied and are stored at very low temperatures.
2. Combination of liquid hydrogen (LH2) fuel and the liquid oxygen (LOX) oxidizer is one of the most widely used fuels in the rocket

Select the correct option

a) 1 only

b) 2 only

c) Both

d) None

Q.22) Consider the following statements with respect to GAGAN satellite

a) It is used for telemedicine in rural areas

b) It is used to provide live streaming of classes from top Indian universities

c) It is used to provide navigation facilities for civil aviation

d) It is used for rain and whether forecasting 

Q.23) Consider the following

1. Chandrayaan 1
2. Mars orbiter mission
3. Space capsule recovery experiment

Which of the above space missions are launched using PSLV launch vehicle?

a) 1 &3 only

b) 1&2 only

c) 2&3 only

d) All

Q.24) Consider the following statements with respect to IRNSS (Indian regional navigation satellite system)

1. It provide accurate position information service to users in India as well as the region extending up to 1500 km from its boundary
2. IRNSS will provide two types of services namely, Standard Positioning Service (SPS) and Restricted Service (RS) to all users

Select the correct answer

a) 1 only

b) 2 only

c) Both

d) None

Q.25) Consider the following statements with respect to ISRO (Indian space research organisation)

1. ISRO is the space agency of the Indian government headquartered at Sri Hari Kota
2. “Space technology in the Service of humankind.” is the motto of ISRO

Select the correct option

a) 1 only

b) 2 only

c) Both

d) None

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IASbaba