IAS Prelims 2016 GS – Economy


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

1. With reference to ‘stand up india scheme’, which of the following statement is/are correct?
 
1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

2. It provides for refinance through SIDBI.
Select the correct answer using the code given below.
(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer . c
 
Explanation: Search topic ‘Stand up India Programme Launched’ on www.iasmaker.in (Posted on 8th Apr 2016)
 
2. The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term?
 
1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 

2. It is an effort to increase RBI's control over commercial banks through computerization.

3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below.
(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3
 
Answer . a
 


Explanation: Search topic ‘Core Banking Solutions (CBS)’ on www.iasmaker.in (Posted on 11th Mar 2016)


 
3. 'Mission Indradhanush' launched by the Government of India pertains to
 
(a) immunization of children and pregnant women 

(b) construction of smart cities across the country

(c) India's  own search for the Earth-like planets in outer space 

(d) New Educational Policy
 
Answer . a
 


Explanation: Search topic ‘Mission Indradhanush - Aiming to Full Immunization’ on www.iasmaker.in (Posted on 30th Dec 2015)


 
4. With reference to pre-packaged items in India, it is mandatoy to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011?
 
1. List of ingredients including additives

2. Nutrition information

3. Recommendations, if any, made by the medical profession about the possibility of any allergic reactions

4. Vegetarian/non-vegetarian
Select the correct answer using the code given below.
(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1 and 4 only
 
Answer . c
 
Expl: “Prepackaged” or “Pre-packed food”, means food, which is placed in a package of any nature, in such a manner that the contents cannot be changed without tampering it and which is ready for sale to the consumer.
In addition to the General Labelling requirements every package of food shall carry the following information on the label, namely,—
1. The Name of Food: The name of the food shall include trade name or description of food contained in the package.
2. List of Ingredients:
3. Nutritional information
4. Declaration regarding Veg or Non veg
5. Declaration regarding Food Additives
6. Name and complete address of the manufacturer
7. Net quantity
8. Lot/Code/Batch identification
9. Date of manufacture or packing.
10. Best Before and Use By Date
11. Country of origin for imported food
12. Instructions for use
 
5. India's ranking in the 'Ease of Doing Business Index' is sometimes seen in the news. Which of the following has declared that ranking? 
(a) Organization for Economic Cooperation and Development (OECD) 

(b) World Economic Forum

(c) World Bank

(d) World Trade Organization (WTO)
 
Answer . c
 


Explanation: Search topic ‘Ease Of Doing Business Concept’ on www.iasmaker.in (Posted on 5th Dec 2015)


 
6. With reference to the 'Trans-Pacific Partnership', consider the following statements : 
 
1. It is an agreement among all the Pacific Rim countries except China and Russia. 

2. It is a strategic alliance for the purpose of maritime security only.
 
Which of the statements given above is/are correct?
(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer . a
 


Explanation: Search question no.-9 in  ‘Daily Practice Questions Set - 31’ on www.iasmaker.in (Posted on 17th Jun 2016)


 
7. What is/are the purpose/purposes of the `Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI?
 
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 

2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
 
Select the correct answer using the code given below.
(a) 1 only

(b) 2 only 

(c) Both 1 and 2 

(d) Neither 1 nor 2
 
Answer .c
 


Explanation: Search question no.-4 in  ‘Daily Practice Questions Set - 24’ on www.iasmaker.in (Posted on 26th May 2016)


 
8. With reference to 'Financial Stability and Development Council', consider the following statements :
 
1. It is an organ of NITI Aayog. 

2. It is headed by the Union Finance Minister. 

3. It monitors macroprudential supervision of the economy. 
 
Which of the statements given above is/are correct? 
 
(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3
 
Answer . c
 


Explanation: Search topic ‘Financial Stability and Development Council: Composition and Function’ on www.iasmaker.in (Posted on 15th August 2013)


 
9. The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of
 
(a) mining operation by multinational companies in resource-rich but backward areas

(b) curbing of the tax evasion by multinational companies 

(c) exploitation of genetic resources of a country by multinational companies 

(d) lack of consideration of environmental costs in the planning and implementation of developmental projects
 
Answer . b
 
Expl: Base Erosion and Profit Shifting (BEPS)  refers to those instances where  gaps between different tax rules leads to tax avoidance causing harm to the government. It refers to all those artificial arrangements where:
- Due to gaps in application of the bilateral tax treaties, cross border activities may go untaxed in any of the two countries.
- No or low tax is paid by shifting profits to low tax jurisdictions and shifting losses and high expenditures to high tax jurisdictions.
Further, the spread of the digital economy has also posed challenges for international taxation. Over the years, the MNCs have artificially reduced their corporate tax outgo by shifting to lower tax jurisdictions. As per OECD estimates, the base erosion and profit shifting has resulted in a loss of $100-240 billion every year to countries which is around 4-10% of global corporate income tax revenue.



10. Recently, India's first 'National Investment and Manufacturing Zone' was proposed to be set up in -
 
(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh
 
Answer . a
 
Expl: Andhra Pradesh is housed India's first national investment and manufacturing zone after the state assured the Centre of availability of 10 sq km of land in one place in Prakasham district.
11. `SWAYAM', an initiative of the Government of India, aims at -
 
(a) promoting the Self Help Groups in rural areas 

(b) providing financial and technical assistance to young start-up entrepreneurs 

(c) promoting the education and health of adolescent girls 

(d) providing affordable and quality education to the citizens for free
 
Answer . d
 
Expl: The HRD ministry is mulling launching its Massive Open Online Courses (MOOC) platform 'Swayam' that will host over 2,000 courses for up to 3 crore students across the country on August 15., 2016. ‘Swayam’- Study Webs of Active-learning for Young Aspiring Minds.


12. With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?
 
1. Bitcoins are tracked by the Central Banks of the countries.

2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

3. Online payments can be sent without either side knowing the identity of the other.
 
Select the correct answer using the code given below.
(a) 1 and 2 only

(b) 2 and 3 only 

(c) 3 only 

(d) 1, 2 and 3
 
Answer . b
 
Expl:Bitcoin is a form of digital currency, created and held electronically. No one controls it. 
Search topic ‘Bitcoins’ on www.iasmaker.in (Posted on 16th August 2014)
 
13. What is/are the purpose/purposes of Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme'?
 
1. To bring the idle gold lying with Indian households into the economy

2. To promote FDI in the gold and jewellery sector

3. To reduce India's dependence on gold imports
 
Select the correct answer using the code given below.
(a) 1 only 

(b) 2 and 3 only

(c) 1 and 3 only 

(d) 1, 2 and 3
 
Answer . c
 


Explanation: Search question no.-3 in  ‘Daily Practice Questions Set - 26’ on www.iasmaker.in (Posted on  29th May 2016)


 
14. Pradhan Mantri MUDRA Yojana is aimed at -
 
(a) bringing the small entrepreneurs into formal financial system

(b) providing loans to poor farmers for cultivating particular crops

(c) providing pensions to old and destitute persons 

(d) funding the voluntary organizations involved in the promotion of skill development and employment generation
 
Answer . a
 


Explanation: Search question no.-1 in  ‘Daily Practice Questions Set - 28’ on www.iasmaker.in (Posted on  10th Jun 2016)


 
15. 'Global Financial Stability Report' is prepared by the-
 
(a) European Central Bank 

(b) International Monetary Fund

(c) International Bank for Reconstruction and Development

(d) Organization for Economic Cooperation and Development
 
Answer . b
 
Expl: The Global Financial Stability Report provides an assessment of the global financial system and markets, and addresses emerging market financing in a global context. It focuses on current market conditions, highlighting systemic issues that could pose a risk to financial stability and sustained market access by emerging market borrowers. The Report draws out the financial ramifications of economic imbalances highlighted by the IMF's World Economic Outlook. It contains, as special features, analytical chapters or essays on structural or systemic issues relevant to international financial stability.
 
16. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 
 
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers. 

2. Only one member of a family can join the scheme. 

3. Same amount of pension is guaranteed for the spouse for life after subscriber's death.
 
Select the correct answer using the code given below.
(a) 1 only

(b) 2 and 3 only 

(c) 1 and 3 only 

(d) 1, 2 and 3
 
Answer . c
 
Expl: Search topic ‘Atal Pension Yojana’ on www.iasmaker.in (Posted on 30th March 2016)
 
17. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as
 
(a) G20

(b) ASEAN

(c) SCO

(d) SAARC
 
Answer . b
 
Expl: Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the 10-member Association of South East Asian Nations (Asean) bloc and the six states with which they have existing FTAs - Australia, China, India, Japan, South Korea and New Zealand.
 
18. Consider the following statements:
 
(1) The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.

(2) The Alliance includes all the member countries of the United Nations.
 
Which of the statements given above is/are correct?
 
(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer . a
 
Expl: Search topic ‘Paris Climate Conference (COP21) 2015’ on www.iasmaker.in (Posted on 14th Dec 2015)
 
 
19. There has been a persistent deficit budget year after year.
Which action/actions of the following can be taken by the Government to reduce the deficit?
 
1. Reducing revenue expenditure

2. Introducing new welfare schemes

3. Rationalizing subsidies

4. Reducing import duty
 
Select the correct answer using the code given below.
 
(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4
 
Answer.c
 
Expl: Search topic ‘FRBM Act, 2003 - A Non-implemented Law’ on www.iasmaker.in (Posted on 15th Jan 2015)
 
20. The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?
 
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
 
2. Payment Banks can issue both credit cards and debit cards.

3. Payment Banks cannot undertake lending activities.
 
Select the correct answer using the code given below.
 
(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 only

(d) 1, 2 and 3
 
Answer.b
 


Explanation: Search question no.-3 in  ‘Daily Practice Questions Set - 25’ on www.iasmaker.in (Posted on  27th May 2016)


 
21. Which one of the following is a purpose of `UDAY', a scheme of the Government?
 
(a) Providing technical and financial assistance to start-up entre¬preneurs in the field of renewable sources of energy

(b) Providing electricity to every gthousehold in the country by 2018

(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

(d) Providing for financial turnaround and revival of power distribution companies
 
Answer.d
 


Explanation: Search question no.-3 in  ‘Daily Practice Questions Set - 27’ on www.iasmaker.in (Posted on 3rd Jun 2016)


 
 
22. With reference to `IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
 
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.

2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below.

(a) 1 only 

(h) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer.c
Expl: Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. They are named after Masala Spice, a mix of spices used India. Unlike dollar bonds where the borrower takes the currency risk, masala bond investors will bear the risk. The first Masala bond was issued by the World Bank backed International Finance Corporation in November 2014 when it raised 1,000 crore bond to fund infrastructure projects in India
 
23. In the context of which of the following do you sometimes find the terms `amber box, blue box and green box' in the news?
 
(a) WTO affairs

(b) SAARC affairs

(c) UNFCCC affairs

(d) India-EU negotiations on FTA
 
Answer.a
 


Explanation: Search question no.-6 in  ‘Daily Practice Questions Set - 24’ on www.iasmaker.in (Posted on 26th May 2016)


 
24. Which of the following is/are included in the capital budget of the Government of India?
 
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.

2. Loans received from foreign governments

3. Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3
 
Answer.d
 
Expl: Search topic ‘Budget Related Glossary’ on www.iasmaker.in (Posted on 28th Dec 2014)
 
25. Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?
 
(a) Rouble

(b) Rand

(c) Indian Rupee

(d) Renminbi
 
Answer.d
 
Expl: The renminbi joins the U.S. dollar, the British pound sterling, the euro, and the Japanese yen in this club. The announcement made in Dec 2015  is a welcome bit of good news for Chinese leaders. This year has been particularly difficult for China economically, amid slowing overall growth rates and a highly volatile equity market. The IMF’s decision to recommend the renminbi for inclusion in the SDR is, if nothing else, a vote of confidence in the global importance of the renminbi and, concomitantly, in China’s enduring status as an economic superpower.
 
26. With reference to the International Monetary and Financial Cornmittee (IMFC), consider the following statements :
 
1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.

2. The World Bank participates as observer in IMFC's meetings.
Which of the statements given above is/are correct?
 
(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer.c
Expl: The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system. It also considers proposals by the Executive Board to amend the Articles of Agreement and advises on any other matters that may be referred to it by the Board of Governors. Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund.
 
27. ‘Rashtriya Garima Abhiyaan' is a national campaign to
 
(a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood

(b) release the sex workers from their practice and provide them with alternative sources of livelihood

(c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers

(d) release the bonded labourers from their bondage and rehabilitate them
 
Answer.c
 
Expl: “The Prohibition of Employment as Manual Scavengers and their Rehabilitation Bill, 2012" was introduced in the Lok Sabha on September 3, 2012 by the Hon’ble Minister of Social Justice and Empowerment, Government of India.1 With a view to eliminate manual scavenging and insanitary latrines and to provide for the rehabilitation of manual scavengers -the Bill proposed a multi-pronged strategy consisting of legislative and programmatic interventions.
 
28. Which of the following best describes the term 'import cover', sometimes seen in the news?
 
(a) It is the ratio of value of imports to the Gross Domestic Product of a country

(b) It is the total value of imports of a country in a year

(c) It is the ratio between the value of exports and that of imports between two countries

(d) It is the number of months of imports that could be paid for by  a country's international reserves
 
Answer.d
Expl: The stock of foreign exchange reserves in terms of months of retained imports of goods as at end of year. It measures the number of months of money available in the national bank to cover the cost of imports.
 
29. With reference to ‘Pradhan Mantri Fasal Bima Yojana', consider the following statements:
 
1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.

2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2
 
Answer.b


Explanation: Search topic ‘Pradhan Mantri Fasal Bima Yojana (PMFBY)’ on www.iasmaker.in (Posted on 26th Apr 2016)


 
30. Why does the Government of India promote the use of ‘Neem-coated Urea' in agriculture?
 
(a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms

(b) Neem coating slows down the rate of dissolution of urea in the soil

(c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields

(d) It is a combination of a weedicide and a fertilizer for particular crops
 
Answer.a
 
Expl: Search topic ‘Neem Coated Urea Mandatory for Sale in India’ on www.iasmaker.in (Posted on 6th March 2016)
 
31. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?
 
1. Undernourishment

2. Child stunting

3. Child mortality
Select the correct answer using the code given below.
 
(a) 1 only

(b) 2 and 3 only

(c) 1 , 2 and 3

(d) 1 and 3 only
 
Answer. C
 
Expl: Search topic ‘Global Hunger Index 2013’ on www.iasmaker.in (Posted on 14th March 2013)
 
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