April 23, 2024
With regards the Indian economy, consider the following statements:
1. The National Hydrogen Mission and Green Hydrogen Policy have been introduced to enable India to be energy independent by 2047.
2. Its pivotal role is also reflected in India’s Long Term Low Emissions Development Strategy (LT-LEDS).
Which of the statements given below is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following regarding the Vertical Fiscal Imbalance:
1. One measure of vertical fiscal imbalance is the formula Vertical Fiscal Imbalance(VFI).
2. VFI = [1 - (ratio of State’s own revenue to State’s own expenditure)].
Which of the statements given below is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Which of the following statement(s) is/are not correct?
1. Divestment refers to sale of assets or a subsidiary by the Government.
2. In minority disinvestment, the Government retains a majority in the company, ensuring management control.
Select the answer using the codes:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following statements is/are correct?
1. Bilateral Investment Treaty Agreements (BITAs) are reciprocal agreements between two countries to promote and protect foreign private investments in each other’s territories.
2. BITAs establish minimum guarantees regarding the treatment of foreign investments, and protect them from arbitrary decisions of national Governments.
Select the answer using the codes:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which one of the following is incorrect?
1. Short Selling is defined as selling a stock which the seller does not own at the time of trade.
2. Short Selling is also referred to as ‘Shorting of Stock’.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following statements:
1. Angel tax is a term used to refer to the income tax payable on capital raised by unlisted companies via an issue of shares where the share price is seen in excess of the fair market value of the shares sold.
2. An angel investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity in the company.
Select the correct statements using the code given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
Consider the following statements:
1 Zero budgeting starts from the zero base and every function of the government is analysed for its needs and cost.
2. Outcome Budget was first introduced in the year 2005.
Select the incorrect statement(s) using the code given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
The Plan focussed on Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment through schemes for transferring skills(TRYSEM) and providing slack season employment (NREP), controlling population explosion etc. Which plan is being referred to here?
  • (A) First Five year Plan
  • (B) Fifth Five year Plan
  • (C) Sixth Five year Plan
  • (D) Third Five year Plan
Consider the following statements:
1 Ways and Means Advances (WMA) are temporary loan facilities provided by RBI to the government to enable it to meet temporary mismatches between revenue and expenditure.
2. The rate of interest for WMA is the same as the repo rate, while the tenure is three months.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor
Consider the following statements:
1 Ways and Means Advances (WMA) are temporary loan facilities provided by RBI to the government to enable it to meet temporary mismatches between revenue and expenditure.
2. The rate of interest for WMA is the same as the repo rate, while the tenure is three months.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor
Which of the following statement(s) is/are correct?
1. In rupee denominated debt the currency risk is borne by borrower.
2. Internal debt is raised by the government by issuing the Government Bonds and T-Bills.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following statements:
1. Monetary policy refers to control of money supply to achieve the objectives of economic policy.
2. Hawkish monetary policy is implemented by lowering key interest rates thus increasing market liquidity.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following statements:
1 RBI solely fixes the range of Inflation Targets.
2. If inflation is higher than the upper tolerance level for any two consecutive quarters, then it constitutes a failure.
Which of the above given statement(s) is/are incorrect?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor
Consider the following statements:
1. Overheating of the economy means demand overshoots supply and there is pressure on prices.
2. Chakravarty Committee had indicated 4 per cent as an acceptable level of inflation on a long-term basis.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following best defines the practice where, capital belonging to India goes out to tax haven country where it is used to set up Shell Company and later reinvested back in India in the form of FDI?
  • (A) Illegitimate money
  • (B) Base erosion
  • (C) Round tripping
  • (D) Money laundering

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