IASbaba’s 60 Day Plan- Prelims Test 2018 ECONOMICS & CURRENT AFFAIRS [Day 20]

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Hello Friends, 

Welcome to Day-20.

Importance of Self – Tracking: Learning from Last Year

Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self-track yourself after updating the score. In the end, you can cross check your performance through Disqus profile.

It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes.

The importance of this initiative stands time-bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice.

So, take out few hours from your schedule and make it a revision exercise.

How can you make the best use of it?

Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only. 

Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then?

The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So, make effort to know the answers to all questions. Do not cheat 😛

DETAILED MICRO ANALYSIS MATRIX SAMPLE– is given here. You can download this and do an assessment for yourself.  DOWNLOAD

• You can copy paste the same format/modify as per your need in Google Spreadsheet and update it on daily basis.
• Feedback talks about daily test results.
• Follow-up talks about daily target achieved from sources and the number of revisions to do/done and dates. Sources column is to ensure that aspirants do not run behind various sources and follow the same throughout.

Are you ready? Let’s start!

[Day 20]: ECONOMICS AND CURRENT AFFAIRS

Q.1) Consider the following statements about Insurance in India.

1. Insurance is the item of the concurrent list.
2. Insurance industry is regulated by Insurance Regulatory and Development Authority (IRDA) and Re-insurance industry is regulated by Finance Ministry.

Which of the statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.2) The Minimum Alternate Tax (MAT) is a direct tax imposed on the ‘zero tax’ companies at the rate of 18.5 per cent on their book profit. Which of the following companies/sectors are exempted from MAT?

1. Infrastructure and Power Sectors
2. Free Trade Zones
3. Charitable Activities
4. Venture and Angel Funds

Select the correct answer using the codes given below

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

Q.3) Consider the following statements about ‘fiscal capacity’.

1. It’s simply the government’s ability to generate revenues. 
2. Tax to GDP ratio is often taken as proxy for the fiscal capacity of a government.

Which of the statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.4) Which of the following are the components of ‘revenue expenditure’?

1. Interest payment by the government on the internal and external loans.
2. Defense expenditures needed for smooth operation of the standing armed forces
3. Expenditures on social services.
4. Loans given by the government to Indian states and foreign countries.

Select the correct answer using the codes given below.

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

Q.5) Consider the following statements about fiscal deficit:

1. When balance of the government’s total receipts and total expenditures turns out to be negative, it shows the situation of fiscal deficit.
2. The fiscal deficit excluding the interest liabilities for a year is the primary deficit.
3. The part of the fiscal deficit which was provided by the RBI to the government in a particular year is Monetized Deficit.
4. Printing currency is one of the best methods of deficit financing.

Which of the statements is/are correct?

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

Q.6) Recently BHARAT 22 was in news, is related to?

1. It is the web-based platform for the fiscal consolidation.
2. Index based ETF to offer an investment opportunity in CPSEs.
3. It is new standard for the jewelry industry.
4. None

Q.7) Consider the following recommendations of the FRBM Review Committee headed by former Revenue Secretary, NK Singh:

1. Public debt to GDP ratio should be considered as a medium-term anchor for fiscal policy in India.
2. Formation of Monetary Council to advice the government.
3. Escape Clause to accommodate counter cyclical issues.

Which of the above statements is/are correct?

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

Q.8) Ad Valorem tax is imposed on the basis of:

1. The quantity of the commodity
2. The monetary value of the commodity
3. The Value added to the commodity
4. It is a fixed amount by the Government

Q.9) Consider the following statements:

1. The term ‘budget’ is introduced in Article 112 of Constitution of India.
2. According to the Constitution it is the responsibility of the Finance Minister to get the Budget laid in the Parliament.

Which of the above statements are correct?

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

Q.10) Consider the following statements regarding the recommendations Tax Administration Reforms Commission (TARC) headed by Dr Parthsarathi Shome:

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 and they should 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.

Select the code from following:

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

Q.11) NITI Aayog has replaced the older planning commission. Which of the following statements are NOT correct regarding NITI Aayog?

1. NITI Aayog’s recommendations are binding over the government unlike Planning Commission.
2. 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 Aayog to address local / regional development issues.

Select the code from the following:

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

Q.12) A ‘Commercial Paper’ is an important instrument in the money market. Which of the following statements are correct about ‘Commercial Papers’?

1. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.
2. Commercial papers are usually sold at a discount from the face value.
3. It has to be  backed by a collateral.

Select the code from the following:

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

Q.13) Which of the statements are correct regarding ‘Tax Buoyancy’?

1. It is the relationship between tax revenue and changes in Tax rate.
2. Tax is called buoyant if tax revenue increases with increase in Tax rates.

Select the code from below:

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

Q.14) Tax Terrorism has been in the news for quite sometime now. Which of the following statements correctly defines ‘Tax Terrorism’?

1. It is the act of tax evasion using illegal means.
2. It is the term given for tax avoidance using loop holes in the Tax laws.
3. It refers to unjustified demand of tax by the government to increase the tax revenue.
4. It refers to the use of disposable income in funding terrorist activities.

Q.15) Consider the following:

1. Market borrowing
2. G-Secs issued by the Government
3. Treasury Bills

Which of the above is/are not included in the ‘internal debt’ of India?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.16) Which of the below statements best describes the term ‘Goldilocks economy’?

1. An economy that is too hot with inflation and driven by market-friendly monetary policy.
2. An economy that is struck between hot and cold, in other words doesn’t sustain moderate economic growth and that has high inflation.
3. An economy that’s neither cold enough to support stimulus measures, nor hot enough to sustain growth.
4. An economy that is not so hot that it causes inflation, and not so cold that it causes a recession, which allows a market-friendly monetary policy.

Q.17) Consider the below statements about Foreign Institutional investors (FIIs):

1. FIIs are entities established or incorporated outside India and make proposals for investments in India.
2. The nodal point for FII registrations is SEBI and hence all FIIs must register themselves with SEBI and should also comply with the exchange control regulations of the central bank.
3. In order to act as a banker to the FIIs, the SEBI has designated banks that are authorised to deal with them.

Select the correct statements from the codes given below:

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

Q.18) Match List I with List II and select the correct answer by using the codes given below the lists:

List I                                    List II

(Five Year Plans)         (Highest priority/emphasis given)

1. First FYP               1. establishment of a socialistic pattern of    society in India
2. Second FYP          2. agriculture including irrigation and power projects
3. Third FYP             3. Promotion of equity
4. Fourth FYP           4. Promotion of equality
5. Fifth FYP              5. achieve self-reliance, direct measures for  poverty alleviation

A-B-C-D-E

1. 1-5-3-4-2
2. 1-2-5-3-4
3. 2-1-4-3-5
4. 2-1-5-4-3

Q.19) The Eighth Five-Year Plan could not take off and there were annual plans due to

1. Fast-changing political situation at the Centre
2. New economic policy
3. Indo-Pakistan conflict
4. Two successive years of severe drought

Choose appropriate code:

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

Q.20) Which one of the following statements appropriately describes the “fiscal stimulus”?

1. 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
2. It is an intense affirmative action of the Government to boost economic activity in the country
3. 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
4. It is an extreme affirmative action by the Government to pursue its policy of financial inclusion

Q.21) Consider the following statements about Global Wildlife Program (GWP)

1. It is funded by the Global Environment Facility (GEF)
2. All the partner countries of GWP are located in Asia and Africa only
3. It helps countries achieve their biodiversity goals

Select the correct statements

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

Q.22) Consider the following statements about ‘International Consortium on Combating Wildlife Crime’

1. It is aimed at strengthening criminal justice systems and provide coordinated support at national, regional and international level to combat wildlife and forest crime
2. It is collaboration between INTERPOL, the United Nations Environment Programme, and the World Customs Organization

Select the correct statements

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

Q.23) Consider the following statements about Directorate General of Quality Assurance (DGQA)

1. It was jointly set up by the Government of India and Associated Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI)
2. It is under the aegis of Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

Select the correct statements

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

Q.24) ‘Mount Agung’ was recently in news. Where is it located?

1. Aleutian Islands
2. Andean Mountains
3. Cascade Volcanoes
4. Bali

Q.25) Consider the following statements about ‘SAUBHAGYA’ Yojana

1. It is aimed at providing energy access to all by last mile connectivity and electricity connections to all un-electrified households in rural as well as urban areas
2. It has been launched to plug gaps of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) & Integrated Power Development Scheme (IPDS)

Select the correct statements

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

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