IASbaba's Daily Static Quiz
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DAILY STATIC QUIZ will cover all the topics of Static/Core subjects – Polity, History, Geography, Economics, Environment and Science and technology.
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UPSC Static Quiz - 2020 : IASbaba's Daily Static Quiz - ECONOMY [Day 29]
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Question 1 of 10
1. Question
Consider the following statements:
- The Non-debt Capital receipts include recovery of loans and disinvestment receipts.
- Bharat Bond Exchange Traded Fund (ETF) is the first corporate Bond ETF in the country.
Which of the statements given above is/are NOT correct?
Correct
Solution (d)
The Non-debt Capital receipts include recovery of loans and disinvestment receipts.
Hence Statement 1 is correct.
Bharat Bond Exchange Traded Fund (ETF) is the first corporate Bond ETF in the country.
Launch of Bharat Bond Exchange Traded Fund (ETF) is to create an additional source of funding for Central Public Sector Undertakings (CPSUs) Central Public Sector Enterprises (CPSEs), Central Public Financial Institutions (CPFIs) and other Government organizations.
Hence Statement 2 is correct.
Incorrect
Solution (d)
The Non-debt Capital receipts include recovery of loans and disinvestment receipts.
Hence Statement 1 is correct.
Bharat Bond Exchange Traded Fund (ETF) is the first corporate Bond ETF in the country.
Launch of Bharat Bond Exchange Traded Fund (ETF) is to create an additional source of funding for Central Public Sector Undertakings (CPSUs) Central Public Sector Enterprises (CPSEs), Central Public Financial Institutions (CPFIs) and other Government organizations.
Hence Statement 2 is correct.
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Question 2 of 10
2. Question
Consider the following statements regarding Sabka Vishwas (Legacy Dispute Settlement) Scheme 2019:
- The Scheme is a one-time measure for liquidation of disputes in current GST regime.
- Any person who wants to make a voluntary disclosure can file a declaration under the scheme.
Which of the statements given above is/are correct?
Correct
Solution (b)
The scheme is a one-time measure for liquidation of past disputes of Central Excise, Service
Tax and 26 other indirect tax enactments.
Hence Statement 1 is incorrect.
Any person falling under the following categories is eligible, subject to other conditions, to file a declaration under the Scheme:
(a) Who has a show cause notice (SCN) for demand of duty/tax or one or more pending appeals arising out of such notice where the final hearing has not taken place as on 30.06.2019.
(b) Who has been issued SCN for penalty and late fee only and where the final hearing has not taken place as on 30.06.2019.
(c) Who has recoverable arrears pending.
(d) Who has cases under investigation and audit where the duty/tax involved has been quantified and communicated to him or admitted by him in a statement on or before 30th June, 2019.
(e) Who wants to make a voluntary disclosure.
Hence Statement 2 is correct.
Incorrect
Solution (b)
The scheme is a one-time measure for liquidation of past disputes of Central Excise, Service
Tax and 26 other indirect tax enactments.
Hence Statement 1 is incorrect.
Any person falling under the following categories is eligible, subject to other conditions, to file a declaration under the Scheme:
(a) Who has a show cause notice (SCN) for demand of duty/tax or one or more pending appeals arising out of such notice where the final hearing has not taken place as on 30.06.2019.
(b) Who has been issued SCN for penalty and late fee only and where the final hearing has not taken place as on 30.06.2019.
(c) Who has recoverable arrears pending.
(d) Who has cases under investigation and audit where the duty/tax involved has been quantified and communicated to him or admitted by him in a statement on or before 30th June, 2019.
(e) Who wants to make a voluntary disclosure.
Hence Statement 2 is correct.
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Question 3 of 10
3. Question
Consider the following statements
- GST is exempted upto 2050 on imports of specified defence goods not being manufactured indigenously.
- GST is exempted on supply of goods and services to FIFA and other specified persons for organizing the Under-17 Women’s Football World Cup in India.
Which of the statements given above is/are correct?
Correct
Solution (b)
GST is exempted on imports of specified defence goods not being manufactured indigenously upto 2024.
Hence Statement 1 is incorrect.
GST is exempted on supply of goods and services to FIFA and other specified persons for organizing the Under-17 Women’s Football World Cup in India.
Hence Statement 2 is correct.
Incorrect
Solution (b)
GST is exempted on imports of specified defence goods not being manufactured indigenously upto 2024.
Hence Statement 1 is incorrect.
GST is exempted on supply of goods and services to FIFA and other specified persons for organizing the Under-17 Women’s Football World Cup in India.
Hence Statement 2 is correct.
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Question 4 of 10
4. Question
Consider the following statements:
- In the case of every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years need not pay income tax if annual income is less than 5,00,00 Rupees.
- In the case of every individual, being a resident in India, who is of the age of eighty years or more need not pay income tax if annual income is less than 7,50,000 Rupees.
Which of the statements given above is/are NOT correct?
Correct
Solution (c)
In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years need not pay income tax if annual income is less than 3,00,00 Rupees.
Hence Statement 1 is incorrect.
In the case of every individual, being a resident in India, who is of the age of eighty years or more need not pay income tax if annual income is less than 5,00,000 Rupees.
Hence Statement 2 is incorrect.
Incorrect
Solution (c)
In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years need not pay income tax if annual income is less than 3,00,00 Rupees.
Hence Statement 1 is incorrect.
In the case of every individual, being a resident in India, who is of the age of eighty years or more need not pay income tax if annual income is less than 5,00,000 Rupees.
Hence Statement 2 is incorrect.
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Question 5 of 10
5. Question
Consider the following statements regarding Budget 2020-21
- Borrowings and other liabilities constitutes the highest percentage of Central Government’s income.
- States Share of Taxes and Duties constitutes the highest percentage of Central Government’s expenditure.
Which of the statements given above is/are correct?
Correct
Solution (c)
Borrowings and other liabilities constitutes the highest percentage (20%) of Central Government’s income. It is followed by income from GST (18%) and Corporation Tax (18%).
Hence Statement 1 is correct.
States Share of Taxes and Duties constitutes the highest percentage (20%) of Central Government’s expenditure. It is followed by expenditure on Interest Payments (18%).
Hence Statement 2 is correct.
Incorrect
Solution (c)
Borrowings and other liabilities constitutes the highest percentage (20%) of Central Government’s income. It is followed by income from GST (18%) and Corporation Tax (18%).
Hence Statement 1 is correct.
States Share of Taxes and Duties constitutes the highest percentage (20%) of Central Government’s expenditure. It is followed by expenditure on Interest Payments (18%).
Hence Statement 2 is correct.
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Question 6 of 10
6. Question
Consider the following statements:
- Krishi Udaan scheme is launched by Ministry of Agriculture and Farmers Welfare.
- Nikshay Poshan Yojana is a scheme related to providing nutrition for school children.
Which of the statements given above is/are correct?
Correct
Solution (d)
Krishi Udaan scheme is launched by Ministry of Civil Aviation.
Hence Statement 1 is incorrect.
Nikshay Poshan Yojana is a scheme related to providing nutritional support to Tuberculosis patients.
Hence Statement 2 is incorrect.
Incorrect
Solution (d)
Krishi Udaan scheme is launched by Ministry of Civil Aviation.
Hence Statement 1 is incorrect.
Nikshay Poshan Yojana is a scheme related to providing nutritional support to Tuberculosis patients.
Hence Statement 2 is incorrect.
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Question 7 of 10
7. Question
Consider the following statements with reference to Fiscal Deficit
- Fiscal Deficit = Total Expenditure – Total Receipts including borrowings.
- Fiscal deficit indicates the total borrowing requirements of the government.
Which of the above statements is/are correct?
Correct
Solution (b)
Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings.
The extent of fiscal deficit is an indication of how far the government is spending beyond its means.
Hence Statement 1 is incorrect
Fiscal deficit indicates the total borrowing requirements of the government. Borrowings not only involve repayment of principal amount, but also require payment of interest.
Hence Statement 2 is correct
Incorrect
Solution (b)
Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings.
The extent of fiscal deficit is an indication of how far the government is spending beyond its means.
Hence Statement 1 is incorrect
Fiscal deficit indicates the total borrowing requirements of the government. Borrowings not only involve repayment of principal amount, but also require payment of interest.
Hence Statement 2 is correct
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Question 8 of 10
8. Question
Consider the following statements about revenue receipts and capital receipts.
- Interest receipts, dividends and profits are parts of revenue receipts.
- Article 112 of the constitution mandates expenditure is shown in revenue and other categories.
- Disinvestment proceeds are part of capital receipts.
Which of the above statements is/are correct?
Correct
Solution (d)
Interest receipts, dividends and profits are parts of revenue receipts.
Hence Statement 1 is correct.
Article 112 of the constitution mandates expenditure is shown in revenue and other categories.
Hence Statement 2 is correct.
Disinvestment proceeds are part of capital receipts.
Hence Statement 3 is correct.
Incorrect
Solution (d)
Interest receipts, dividends and profits are parts of revenue receipts.
Hence Statement 1 is correct.
Article 112 of the constitution mandates expenditure is shown in revenue and other categories.
Hence Statement 2 is correct.
Disinvestment proceeds are part of capital receipts.
Hence Statement 3 is correct.
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Question 9 of 10
9. Question
Which of the following comes under capital account?
- Purchase of stocks in the USA.
- Reserve Account with the Central Bank
- External Borrowings such as ECB.
Select the correct answer using the codes given below.
Correct
Solution (d)
Capital Account – It deal with capital transactions i.e. those transactions which create assets or liabilities. It reflects the net changes in the ownership of national assets.
For instance, if you buy a stocks or property in US, it will be a capital account transaction and it will be debit on capital account as you have to pay to US to buy the asset.
Components of Capital Account
- Foreign Direct Investment (FDI)
- Foreign Portfolio Investment (FPI)
- External Borrowings such as ECB
- Reserve Account with the Central Bank
Incorrect
Solution (d)
Capital Account – It deal with capital transactions i.e. those transactions which create assets or liabilities. It reflects the net changes in the ownership of national assets.
For instance, if you buy a stocks or property in US, it will be a capital account transaction and it will be debit on capital account as you have to pay to US to buy the asset.
Components of Capital Account
- Foreign Direct Investment (FDI)
- Foreign Portfolio Investment (FPI)
- External Borrowings such as ECB
- Reserve Account with the Central Bank
-
Question 10 of 10
10. Question
Consider the following statements:
- Current Account reflects the nation’s net income.
- The grants are a component of capital account.
- There are only three components of Current Account such as Goods, Services and Investment income.
Which of the above statements are INCORRECT?
Correct
Solution (b)
Current Account – It deals with current, ongoing, short term transactions like trade in goods, services (invisible) etc. It reflects the nation’s net income.
Hence Statement 1 is correct
The grants might appear as component of capital account but are included in current account as they are unilateral, create no liability. Recipient does not have to give anything back in return.
Hence Statement 2 is incorrect
There are 4 components of Current Account:
- Goods – trade in goods
- Services (invisible) – trade in services e.g. tourism
- Income – investment income
- Current unilateral transfers – donations, gifts, grants, remittances.
Hence Statement 3 is incorrect
Incorrect
Solution (b)
Current Account – It deals with current, ongoing, short term transactions like trade in goods, services (invisible) etc. It reflects the nation’s net income.
Hence Statement 1 is correct
The grants might appear as component of capital account but are included in current account as they are unilateral, create no liability. Recipient does not have to give anything back in return.
Hence Statement 2 is incorrect
There are 4 components of Current Account:
- Goods – trade in goods
- Services (invisible) – trade in services e.g. tourism
- Income – investment income
- Current unilateral transfers – donations, gifts, grants, remittances.
Hence Statement 3 is incorrect
