IASbaba’s Daily Prelims Test [Day 33]

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 IASbaba’s Daily Prelims Test [Day 33]

TOPIC: Economy- Finance and Fiscal Policy, IYB, Eco-Survey and Current Affairs

1. Consider the following statements regarding ‘Goods and Service tax’.

1. GST essentially a tax only on the value addition at each stage.
2. The proposed GST will have Two components one levied by the centre and the other levied by the state.
3. Alcohol, Tobacco products, Petroleum products are kept out of proposed GST regime.

Which of the above statements are correct?

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

2. Fourteenth Finance Commission submitted its report recently. Which of the following statements are correct regarding the recommendations of 14^th Finance Commission?

1. States share in net proceeds of Union tax revenues raised to 42%.
2. Grants to states divided into two; a basic grant and a performance grant.
3. Ratio of basic to performance grant fixed at 80:20 for panchayats as well as municipalities.

Select the correct code from below.

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

3. Consider the following statements regarding ‘Effective Revenue Deficit’.

1. It is the Revenue deficit excluding the grants for creation of capital assets.
2. 14^th Finance Commission recommended that an amendment to FRBM act to omit the definition of Effective Revenue Deficit.

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

4. Receipts of the government are divided into Revenue receipt and Capital receipt. Which of the following are considered as Revenue receipts?

1. Tax collections by the government.
2. Long term loans raised by the government.
3. Recovery of the loan amount lent out in the past.
4. Fees and penalties received by the government.
5. Interest received by the government out of the loans forwarded by it.

Select the correct code from below.

1. 1, 2, 3 and 4 only
2. 2, 3 and 4 only
3. 1, 4 and 5 only
4. 1, 2 and 5 only

5. Consider the following statements regarding FRBM Act, 2003.

1. It provides for a legal institutional framework for fiscal consolidation.
2. Act makes monetary policy independent of fiscal policy.
3. Government can move away from the path of fiscal consolidation in case of natural calamity, national security and other exceptional grounds.

 Which of the above statements are correct?

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

6. The government recently set up a high-level committee to look into the issues pertaining to levy of minimum alternate tax on foreign institutional investors (FIIs). Which of the following are correct regarding minimum alternative tax (MAT)?

1. MAT is an indirect tax.
2. MAT is applicable to only corporate tax payers.
3. Real estate investment trusts are exempted from MAT.

Select the correct code from below.

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

7. Consider the following statements regarding ways and means advances.

1. It is a mechanism used by RBI to help states to correct the temporary mismatches in the cash flow of their receipts and payments.
2. WMA are provided against government securities only.
3. WMA limits are decided by RBI in consultation with Government from time to time.

Which of the above statements are correct?

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

8. Recently NITI Aayog replaced Planning Commission. Which of the following statements are correct regarding NITI Aayog?

1. Chairperson of NITI Aayog is Prime Minister.
2. Governing council of NITI Aayog consists of chief ministers of states, Lt. Governors and union cabinet ministers.
3. As a think tank it will monitor and evaluate the implementation of programmes.

Select the correct code from below.

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

9. Consider the following statements regarding Financial Stability and Development Council (FSDC).

1. FSDC is headed by Prime Minister.
2. Its members include union cabinet ministers responsible for finance, revenue, commerce etc.
3. FSDC also focuses on financial literacy and financial inclusion.

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

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

10. Expenditure of the government categorized into plan and non-plan expenditure. Which of the following items comes under the category of non-plan expenditure?

1. Interest payments
2. Wage and salary payments to government employees
3. Expenditure on electricity generation
4. Defence Expenditure
5. Loans to public enterprises

Select the correct code from below.

1. 1, 2 and 5 only
2. 1, 2, 3 and 5 only
3. 1, 2, 4 and 5 only
4. 2, 4 and 5 only

11. Consider the following regarding Competition Appellate Tribunal of India

1. It is a non-statutory body under Competition Commission of India
2. They have the power similar to Civil Courts
3. The Appellate Tribunal shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908 but shall be guided by the principles of natural justice

Which of the above is NOT correct about CAT?

1. Only 3
2. 1 and 2
3. Only 1
4. None

12. Consider the following regarding Corporate Social Responsibility (CSR)

1. It is not only applicable to all Indian companies, but also applicable to branch and project offices of a foreign company in India.
2. CSR funds can be also be used in National Relief Fund and combating terrorism.
3. Companies are restricted to use the fund for the welfare of ST’s and SC’s.

Select the Correct statement/s

1. 1, 2 and 3
2. 2 and 3
3. Only 1
4. None

13. Service sector is the biggest contributor to GDP in most of the developing and developed countries. Consider the following w.r.t it

1. There is an increasing trend in World GDP with respect to contribution of Service Sector
2. India is among top five nations in the world in service GDP along with top position holder USA

Select the WRONG statement/s

1. Only 1
2. Only 2
3. Both
4. None

14. Consider the statement/s

1. India’s service sector contributes more to employment than income.
2. India’s major services exports are Professional and Consulting Services.

Select the correct statement/s

1. Only 1
2. Only 2
3. Both
4. None

15. Joint Comprehensive Plan of Action, a Nuclear deal was 

1. Nuke deal between US, UN and Iran
2. Civilian Nuke deal Agreement between UN, P-5 and Iran
3. Signed in Vienna, between Iran and US, Russia, China, Germany, France Plus EU
4. Signed in Vienna, between Iran and P-5 plus Germany and the EU.

16. What does animal BEAR means in Stock Market?

1. Afraid to lose anything
2. Different investment styles and strategies out there.
3. Economy is bad, recession is looming and stock prices are falling.
4. Be conservative and never invest in anything you do not understand.

17. IRENA Headquarter located in

1. Tel Aviv City, Israel
2. Madaba City, Jordan
3. Masfut City, UAE
4. Masdar City, UAE

18. Match the following

              City                                                                        River

1. Hanoi                                                                  (a) Menam
2. Bangkok                                                             (b) Irrawaddy
3. Phnom-Penh                                                     (c) Mekong
4. Yangon                                                               (d) Red River

Codes

             1              2              3            4

1.    a               b              c              d
2.    b               c              a              d
3.    d               a              c              b
4.    d               a              b             c

19. In International law, what does ‘Mare clausum’ refers to?

1. An area in international waters where ocean mining is prohibited
2. A sea, ocean or other navigable body of water under the jurisdiction of state that is open to navigation to ships of all nations.
3. A sea, ocean or other navigable body of water under the jurisdiction of a state that is closed or not accessible to other states.
4. Both (1) and (2)

20. Consider the following with respect to ‘Deep Sea Adaptation’

1. The species have high agility than surface water species
2. The species have reflective scales
3. The species tend to grow much faster than surface sea species.

Select the correct statement/s

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

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