IASbaba ’60 Day Plan- Prelims Test 2016 ECONOMICS & CURRENT AFFAIRS [DAY 45]

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IASbaba ’60 Day Plan’ – Prelims Test 2016 [Day 45]

Q.1) Which of the following can be the objectives behind setting up Public Sector Undertakings (PSUs)?

1. To build a self reliant economy
2. To prevent or reduce concentration of private economic power
3. Establish sound economic infrastructure
4. Assist in ancillarisation and spread the benefits of industrialisation.

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.2) Which of the following are correct w.r.t. Public Sector Undertakings (PSUs)?

1. The government-owned corporations are termed as Public Sector Undertakings (PSUs) in India.
2. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments.
3. The Comptroller and Auditor General of India (CAG) doesn’t audit government companies.
4. In respect of government companies, CAG has the power to appoint the Auditor and to direct the manner in which the Auditor shall audit the company’s accounts.

Select the correct answer

a) 1 and 2 only

b) 1, 2 and 4only

c) 2, 3 and 4 only

d) All of the above

Q.3) Which of the following is incorrect about Public Enterprises Selection Board (PESB)?

a) The Public Enterprises Selection Board [P.E.S.B] is a high powered body constituted by Government of India Resolution.

b) The P.E.S.B has been set up with the objective of evolving a sound managerial policy for the Central Public Sector Enterprises and, in particular, to advise Government on appointments to their top management posts.

c) To advise the Government on formulation and enforcement of a code of conduct and ethics for managerial personnel applicable to PSEs and all government services.

d) To advise the Government on a suitable performance appraisal system for both the PSEs and the managerial personnel in such enterprises

Q.4) Consider the following about industrial policy 1991.

1. One of the major objectives was to liberalise the industry from regulatory devices such as licenses and controls.
2. Ensuring PSUs are not exposed to competition and protected from private sector push.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.5) Consider the following about MRTP (Monopolies and Restrictive Trade Practices)Act.

1. The act came into force from 1st June, 1970 aiming to prevent concentration of economic power, provide for control of monopolies, and protect consumer interest. Currently, the MRTP Act has been renamed as the Competition Act, 2002, with a few changes to it.
2. A Monopolistic Trade Practice is that which represents abuse of market power in production and marketing of goods and services by eliminating potential competitors, charging unreasonably high prices, preventing or reducing competition, limiting technical development, deteriorating product quality, etc.

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.6) Which of the following is incorrect about Competition Commission of India (CCI)?

a) CCI is a statutory body established under the Competition Act 2002.

b) The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India applicable only for state and centre owned establishments.

c) The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

d) To promote and sustain an enabling competition culture through engagement and enforcement that would inspire businesses to be fair, competitive and innovative; enhance consumer welfare; and support economic growth.

1. Narayan Murthy Committee was set up by SEBI in 2003 w.r.t Corporate governance.
2. Whistle blower policy was a key recommendation of the committee.
3. The committee observed nominee of the Government on public sector companies shall be elected and shall be subject to the same responsibilities and liabilities as other directors.

Select the correct answer

a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3only

d) All of the above

Q.8) Which of the following are Maharatnas?

1. Bharat Heavy Electricals Limited
2. Coal India Limited
3. GAIL (India) Limited
4. Indian Oil Corporation Limited
5. NHPC Limited
6. Oil & Natural Gas Corporation Limited
7. Steel Authority of India Limited

Select the correct answer.

a) 1, 2 ,3, 4, 6 and 7 only

b) 2 ,3, 4, 5, 6 and 7 only

c) 1, 2 ,3, 4, 5 and 7 only

d) All of the above

Q.9) The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management (DIPAM). Consider the following.

1. It is a department under the ministry of Heavy Industries and Public Enterprises.
2. The new department has been mandated to “advise the government in the matters of financial restructuring of central public sector enterprises and for attracting investment through capital markets”.
3. The Cabinet Committee on Economic Affairs(CCEA), chaired by the Prime Minister gives its approval for the procedure and mechanism for strategic disinvestment.

Select the correct answer

a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3only

d) All of the above

Q.10) Strategic sale is a part of disinvestment. Consider the following.

1. The NITI Aayog will identify the CPSE for strategic sale.
2. The previous NDA government had between 1999 and 2004 privatised about a dozen state-owned firms and hotels including Videsh Sanchar Nigam Ltd (VSNL), Bharat Aluminium Company Ltd (BALCO), CMC Ltd and Hindustan Zinc (HZL).

Select the correct answer:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of the above

Q.11) Consider the following regarding Central Pay Commission:

1. It is a statutory body formed after Pay Commission’s Act 1947.
2. It is constituted in every five years.
3. It is set to review and make recommendations on the work and pay structure of all civil and military divisions of the Government of India.

Which of the above statements are correct?

a) 1 and 2

b) 3 only

c) 2 and 3

d) 1 and 3

Q.12) Which of the following dimensions are included in calculating Social Progress Index (SPI)?

1. Basic needs for survival
2. Access to the building blocks to improve living conditions
3. Access to opportunity to pursue goals and ambitions

Select the code from below:

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) All of the above

Q.13) Consider the following statements regarding the Expenditure Management Commission:

1. The commission was set up by the Government under the Chairmanship of Dr. Bimal Jalan.
2. It objective is to suggest ways of meeting development expenditure needs without compromising on Fiscal Discipline.

Which of the above statements are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Q.14) The Ministry of Micro, Small and Medium enterprises released a draft framework for revival of MSMEs order,2015. Which of the following statements regarding the draft framework are correct?

1. Banks are required to classify MSMEs into three categories, based on overdue principle or interest payments.
2. MSMEs that predict a failure of business or inability to pay debts can voluntarily initiate proceedings under the proposed Framework.

Select the code from the following:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Q.15) The action plan for the Start Up India initiative was released by the Prime Minister, Mr. Narendra Modi in Jan 2016. The initiatives seeks to encourage start-ups in India, with the aim of promoting sustainable economic growth and generating large scale employment. Which of the following statements are correct about Start Up India initiative?

1. Start Ups will be allowed to self certify their compliance with six labour laws.
2. In case of Labour Laws and environmental Laws, inspections will not be conducted for three years, unless a complaint is received.

Select the code from below:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Q.16) Consider the following statements with regard to index of Industrial Production (IIP)

1. IIP conveys the status of production in the industrial sector of an economy in a given period of time, in comparison with a fixed reference point in the past.
2. In the IIP index, the maximum weightage is given to Basic goods, followed by Consumer Goods, followed by Intermediate and Capital Goods.

Select the correct code:

a) Only 1 is correct

b) Only 2 is correct

c) Both 1 and 2 is correct

d) Neither 1 nor 2 is correct

Q.17) Which of the following statements is true about ‘P-Notes’ in India?

1. These are issued by SEBI in India.
2. They cannot be used within the country.
3. Investors in P-Notes are not required to register with SEBI.
4. Due to the issue of money laundering, P-Notes are banned in India.

Select the correct answer using the code given below.

a) 1, 2 and 3 only

b) 2 and 3 only

c) 1 and 4 only

d) 1, 2, 3 and 4

Q.18) Consider the following statements regarding Universal Service Obligation Fund (USOF):

1. It is a statutory fund.
2. It is used to extend basic telephony services to the rural areas.
3. It is maintained as a part of Consolidated Fund of India.
4. Resources for USOF are raised exclusively through Universal Service Levy on revenues of all Telecom Service Providers.

Which of the statements given above is/are correct?

a) 1 and 2 only

b) 2, 3 and 4 only

c) 2 and 4 only

d) 1, 2, 3 and 4

Q.19) Recently, there has been large contraction in India’s trade surplus in services. It is due to:

a) sharp drop in non-software services exports

b) global economic slowdown

c) drop in software services exports

d) All of the above

Q.20) Identify the organization that prepared a standardised electronic format for information exchange on Base Erosion and Profit Sharing (BEPS) to help tax authorities

a) Organisation for Economic Cooperation and Development (OECD)

b) Agency for Cooperation and Research in Development (ACORD)

c) International Bank for Reconstruction and Development (IBRD)

d) International Monetary Fund (IMF)

Q.21) Khankahs are—

a) A Sufi convent

b) A retreat designed specifically for gatherings of Sufi brotherhood to meet, reside, study, and assemble and pray together as a group in the presence of a Sufi master

c) Pillars carved in red sandstone

d) A type of pottery practiced during the Neolithic period

Q.22) Identify the State hosting Raas, Sankirtana and Thang-ta as its dance-forms—

a) Meghalaya

b) Assam

c) Nagaland

d) Manipur

Q.23) Consider the following statements:

1. INCOIS is an attached office of the Government of India, under the Ministry of Earth Sciences.
2. Prime Minister’s National Relief Fund consists of public contributions and budgetary support in the 60:40 ratios respectively.

Choose the correct option/s:

a) Only 1

b) Only 2

c) Both 1 and 2

d) None of the above

Q.24) Where will the joint operations centre of the Islamic Military Alliance be established?

a) Hyderabad

b) Islamabad

c) Riyadh

d) Cairo

Q.25) ‘On 15 January 2016, gunmen armed with heavy weapons attacked the Cappuccino restaurant and the Splendid Hotel in the heart of Ouagadougou wherein 28 people were killed and many were injured.’ In which country does Ouagadougou lie?

a) Burkina Faso

b) Texas

c) Florida

d) France 

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IASbaba