IASbaba’s Daily Prelims Test [Day 21]

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IASbaba’s Daily Prelims Test [Day 21]

Topic- Economy/IYB/Current Affairs

1. Consider the following statements.

1. An extremely low aggregate demand.
2. Comparatively lower inflation.
3. Production houses go for forced labour cut in order to reduce production cost.

Which of the following stage of Business cycle best represents the above characteristics?

1. Recession
2. Recovery
3. Depression
4. Boom

2. Which of the following government actions can be used as remedy for the “recession” phase of the business cycle?

1. Cut in the direct and indirect taxes.
2. Slashing interest rate and liberalizing the lending procedures.
3. Upward revision of salaries and wages.

Select the correct code from below.

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. 1, 2 and 3

3. Consider the following statements with regards to inflation indexed bonds (IIBs).

1. IIBs will provide inflation protection to principal only.
2. Existing tax provisions will be applicable on interest payment and capital gains on IIBs.
3. Foreign institutional investors (FIIs) are not allowed to invest in IIBs.

Which of the above statements are NOT correct?

1. 2 and 3 only
2. 1 and 2 only
3. 1 and 3 only
4. All of the above

4. Which of the following step/s may result in inflation?

1. Increase in the repo rate.
2. Increase in the indirect taxation rate.
3. Proper maintenance of buffer stock of major agricultural products.
4. Decrease in the crude oil production.

Select the correct code from below.

1. 2, 3 and 4 only.
2. 4 only.
3. 2 and 4 only.
4. 1 and 3 only.

5. Consider the following statements regarding Producer Price Index (PPI).

1. PPI gives an idea of consumer prices in the future.
2. In PPI only basic prices and taxes are used while trade margins and transport cost are excluded.

Which of the above statement/s is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

6. Inflation has multidimensional effects on the economy. Which of the following is/are correct regarding the effects of inflation?

1. Lenders suffers and borrowers benefit out of inflation.
2. In the short run, investment in the economy is boosted.
3. Burden of tax payer is increased as they are forced to pay increased taxes.

Select the correct code from below.

1. 1 only
2. 1 and 3 only
3. 2 and 3 only
4. All the above

7. Consider the following statements regarding “core inflation”.

1. Core inflation is an indicator of long-term trend in the inflation.
2. While calculating core inflation transitory price changes are excluded.

Which of the above statement/s is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

8. WPI and CPI are two important indices for measuring inflation. But there are substantial differences between the two. Which of the following statements is/are true bout the difference between CPI and WPI?

1. WPI measures inflation at wholesale market, while CPI measure at retail level.
2. WPI is more or less same throughout the country but CPI vary across the region.

Select the correct code from below.

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

9. “Inflationary gap” refers to

1. Difference between CPI and WPI inflation.
2. The excess of total government spending above the national income.
3. The shortfall in total spending of the government.
4. None of the above.

10. New CPI series with base year 2012 are available for five major groups. For which of those five groups CPI-Rural index is not calculated?

1. Food, beverages and tobacco
2. Fuel and light
3. Housing
4. Clothing, bedding and footwear

India Year Book and Current Affairs

11. Consider the following regarding ‘Telegraphy’

1. The first telegraph came in the form of Optical telegraph.
2. In India, it became available for public use in 1854.
3. Continuous wave is used in wireless telegraphy

Select the correct code

1. 1 and 3
2. 2 and 3
3. 1 and 2
4. 1, 2 and 3

12. ‘Project Arrow’ is associated with

1. Department of Post
2. Maritime exercise between France and India
3. DRDO project
4. A scientific research project under CSIR

13. Consider the following statements regarding Post Office Saving Banks in India

1. The Department of Posts operates Small Savings on behalf of Ministry of Rural Development
2. Post office saving banks do not offer ATM services
3. The Post Office Savings Bank operates Savings Account, Recurring Deposit (RD) and Time Deposit (TD) apart from other services.

Select the correct code

1. Only 1
2. Only 2
3. Only 3
4. 1, 2 and 3

14. Consider the following

1. The territorial sea is regarded as the sovereign territory of the state, although foreign ships (both military and civilian) are allowed innocent passage.
2. The difference between the territorial sea and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second is merely a “sovereign right” which refers to the coastal state’s rights below the surface of the sea.
3. The EEZ is 188 nautical miles from Territorial waters and includes contiguous zone.

Select the correct code

1. 1 and 2
2. 2 and 3
3. Only 1
4. 1, 2 and 3

15. Consider the following

1. Preservation and protection of Maritime Environment
2. Collection of Scientific Data
3. Protection and assistance to fishermen at sea

Which of the above includes the functions of Indian Coast Guard?

1. 1 and 3
2. 1 and 2
3. 1, 2 and 3
4. Only 3

16. India successfully launched its first subsonic cruise missile named ‘Nirbhay’. Consider the following w.r.t it

1. Sub-sonic cruise missiles are able to fly at very low altitudes, close to the earth, without being detected
2. Nirbhay blasts off like a rocket, but then unlike a missile, it turns into an aircraft.
3. Like other ballistic missiles Nirbhay also has wings and pronounced tail fins.

Select the correct codes

1. 1 and 3
2. 2 and 3
3. 1 and 2
4. 1, 2 and 3

17. Consider the following about ‘Guru Poornima’

1. It is an Indian festival celebrated by Hindus, Jains and Buddhists
2. The first full moon after Summer Solstice is known as Guru Poornima.
3. Lord Shiva, the first yoga practitioner (Adi Yogi) is said to have begun imparting the knowledge of yoga to the rest of mankind on this day and became the first guru (Adi Guru).

Select the correct codes

1. 1 and 2
2. 2 and 3
3. 1 and 3
4. 1, 2 and 3

18. The terms ‘Pushkaram’ and ‘Amrapali’ are related with

1. Bharatnatyam
2. Kuchipuddi
3. Kathakali
4. Odissi

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