UPSC CSE PRELIMS 2020 STUDY PLAN – DAY 105

prelims 2020

UPSC CSE PRELIMS 2020 STUDY PLAN – DAY 105

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day 105

UPSC PRELIMS 2020 STUDY PLAN  (Click Here For Full Timetable)

 

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MOCK PRELIMS QUIZ ON TODAY’S TOPIC

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Economic and Social Development – Day 105 Quiz (Click Here)

 

QUIZ QUESTIONS 

1. Consider the following statements:

  1. India is a founder-member of BIMSTEC.
  2. BIMSTEC has no written charter but has a permanent secretariat.

Which of the above statements is/are correct?

  • a. 1 only
  • b. 2 only
  • c. Both 1 and 2
  • d. Neither 1 nor 2

 

2. The Union Cabinet has decided the disinvestment process for the state-owned carrier Air India. Consider the following statements about disinvestment:

  1. Disinvestment is the process when Government sells its shares of a PSU, to private sector company / individual.
  2. The Department of Disinvestment and Public Assets Management falls under the Ministry   of Heavy Industries.

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

 

3. Which of the following constituted payments made as a part of Drain of Wealth?

  1. Annuities on account of railway and irrigation works
  2. Remittances to England by Europeans to their families
  3. Remittances for purchase of British Goods for consumption of British employees in India.
  4. Interest charges on public debt held in Britain

Select the correct code

  • a. 1, 2 and 3
  • b. 2, 3 and 4
  • c. 1, 3 and 4
  • d. 1, 2, 3 and 4

 

4. Money supply in the economy is controlled by
  • a. Finance Ministry
  • b. Finance commission
  • c. NITI Aayog
  • d. RBI

 

5. Which of the following statements are correct regarding Reserve Bank of India (RBI)?

  1. It was created through Reserve Bank of India Act 1934.
  2. Initially it was owned by the British Government in India.
  3. It was nationalized after independence in 1949.

Select the code from below:

  • a. 1 and 2
  • b. 2 and 3
  • c. 1 and 3
  • d. All of the above

 

6. RBI is called the Government’s bank. The reason for this is:

  1. Central and all state Governments have to maintain an account with RBI.
  2. It lends to government.
  3. It manages governments borrowing program through sale and purchase of government securities.

Which of the above statements are correct?

  • a. 1 only
  • b. 1 and 2
  • c. 2 and 3
  • d. All of the above

 

7. RTGS is an electronic money transfer system maintained by RBI. Which of the following statements are NOT correct regarding RTGS?

  1. RTGS stands for Real Time Gross Settlement.
  2. Through RTGS, a person can transfer money between different banks across the  World.
  3. Minimum amount that can be transferred through RTGS is 5 lakh.

Select the code from following:

  • a. 1 only
  • b. 2 and 3
  • c. 1 and 3
  • d. None of the above

 

8. Which of the following categories form the FOREX reserves of India?

  1. Foreign Currency
  2. Gold
  3. Special Drawing Rights (SDRs)
  4. Reserve Tranche position in IMF

Select the code from below:

  • a. 1 and 2
  • b. 1,2 and 3
  • c. 1 only
  • d. All of the above

 

9. According to Urjit Patel Committee on Monetary Policy Framework
  • a. The CPI target should be set at a) 4% (band of +/- 2 per cent)
  • b. 2% (band of +/- 2 per cent)
  • c. 6% (band of +/- 2 per cent)
  • d. 3% (band of +/- 2 per cent)

 

10. Consider the following statements:

  1. When Repo Rate increases, borrowing from RBI becomes more expensive.
  2. Increase in Reverse Repo decreases the liquidity in the market.
  3. Reverse Repo is fixed 5 percent points more than Repo.

Which of the above statements are correct?

  • a. 1 and 2
  • b. 2 and 3
  • c. 1 and 3
  • d. All of the above

 

11. Who’s signature is present on one rupee currency note of India?
  • a. Finance minister
  • b. Secretary, Ministry of Finance
  • c. RBI Governor
  • d. President of India

 

12. Regional Rural banks are special type of commercial banks. Which of the following statements are correct about RRBs?

  1. They are established jointly by Central Government, State Government and Public sector commercial banks.
  2. They cannot establish their branches in more than three contiguous districts.
  3. They are registered under RRB Act 1976.

Which of the above statements are correct?

  • a. 1 and 2
  • b. 2 and 3
  • c. 1 and 3
  • d. All of the above

 

13. In which of the following countries Indian rupee is a legal tender?

  1. Pakistan
  2. Bhutan
  3. Nepal
  4. Zimbabwe

Select the code from following:

  • a. 1, 2 and 3
  • b. 2, 3 and 4
  • c. 1, 3 and 4
  • d. All of the above

 

14. To reduce the current account deficit in India, which of the below actions government can take?

  1. Reduction in export subsidy
  2. Devaluing the domestic currency
  3. Adopting suitable policies which attract greater FDI and more foreign funds

Select the correct answer using the codes given below

  • a. 1 and 2
  • b. 1 and 3
  • c. 2 and 3
  • d. 1, 2 and 3

 

15. With reference to the institution of Banking Ombudsman in India, which of the statement is correct
  • a. The orders passed by the Banking Ombudsman, are final and binding on the parties concerned
  • b. The service provided by the Banking Ombudsman is chargeable
  • c. The Banking Ombudsman can consider complaints from NRI’s having accounts in India
  • d. The Banking Ombudsman is appointed by the Supreme Court

 

16. With reference to the Non-Banking Financial Companies (NBFCs) in India, consider the following statements:

  1. NBFCs do not form part of the payment and settlement system and cannot issue cheques dra wn on itself.
  2. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is  not available to depositors of NBFCs, unlike in case of banks.
  3. NBFC cannot accept demand deposits
  4. They cannot engage in the acquisition of securities issued by the government

Which of the following statements given above is/are correct?

  • a. 1, 2 and 3
  • b. 2, 3 and 4
  • c. 1, 3 and 4
  • d. 1, 2, 3 and 4

 

17. With reference to India, consider the following

  1. Nationalization of banks
  2. Formation of Regional Rural Banks
  3. Adoption of villages by Bank Branches
  4. Jan Dhan Yojana

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

  • a. 1, 2 and 3
  • b. 2, 3 and 4
  • c. 1, 2 and 4
  • d. 1, 2, 3 and 4

 

8. In the present context of GST, among the following options which one is a special purpose vehicle launched to cater the needs of GST:
  • a. GSTS
  • b. GSTC
  • c. GSTN
  • d. GSTM

 

19. The lowering of Bank Rate by the Reserve Bank of India leads to
  • a. More liquidity in the market
  • b. Less liquidity in the market
  • c. No change in liquidity in the market
  • d. Mobilization of more deposits by commercial banks

 

20. Consider the following statements related to SEZ

  1. It is a duty free enclave to be treated as foreign territory for the purpose of trade operations    and duties and tariffs.
  1. The corporation in SEZs will not have to pay any income tax on their profits for the first  five years and only 50% of the tax for 5 more years thereafter.
  1. A SEZ does not require a license for exports.

Which of the above statements are correct?

  • a. 1 and 2
  • b. 2 and 3
  • c. 1 and 3
  • d. All the above

 

21. Which term refers to a specialized firm that finances young, start-up companies
  • a. Venture Capital Firm
  • b. Finance Company
  • c. Small-Business Finance Company
  • d. Capital-Creation Company

 

22. If the RBI implements an expansionist open market operations policy, this means that it will?
  • a. Buy securities from non-government holders
  • b. Offer commercial banks more credit in open market
  • c. Sells G-securities (government securities) in open market
  • d. Openly announces to the market that it intends to expand its credit

 

23. In the context of Indian economy, which of the following statements is/are the functions of money market?

  1. Money Markets help in effective implementation of the RBI’s monetary policy
  2. Money markets help to maintain demand and supply equilibrium with regard to short term funds
  3. They cater both the short term and long term fund requirement of the governments, for which the duration might be more than a year 4. They help in maintaining liquidity in the economy

Select the correct options using the code given below:

  • a. 1, 2 and 3
  • b. 1, 3 and 4
  • c. 1, 2 and 4
  • d. 1, 2, 3 and 4

 

24. Consider the following statements about Headline inflation.

  1. It is presently measured in terms of Wholesale Price Index (PPI) in India.
  2. It excludes the prices of food and fuel that constitute the volatile component of   inflation.

Which of the above is/are correct?

  • a. 1 only
  • b. 2 only
  • c. Both 1 and 2
  • d. none

 

25. The Wholesale Price Index (WPI) is released by
  • a. Office of the Governor, RBI
  • b. Ministry of Finance
  • c. Central Statistical Organization (CSO), Ministry of Statistics and Program Implementation
  • d. Office of the Economic Adviser, DIPP

 

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