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Chapter 14. Poverty Finance Planning & Economic Social Development (UPSC IAS CSE Civil Services CSAT Prelims Paper-1 Topicwise Previous Year Papers)

Chapter 14. Poverty Finance Planning & Economic Social Development (UPSC IAS CSE Civil Services CSAT Prelims Paper-1 Topicwise Previous Year Papers)

1. Which one of the following Five Year Plans recognised human development as the core of all development efforts?(1995)
(a) The Third Five Year Plan
(b) The Fifth Five Year Plan
(c) The Sixth Five Year Plan
(d) The Eighth Five Year Plan
2. Which of the following are among the non-plan expenditures of the Government of India?(1995, 1997)
1. Defence expenditure
2. Subsidies
3. All expenditures linked with the previous plan periods
4. Interest payment
Codes:
(a) 1 and 2
(b) 1 and 3
(c) 2 and 4
(d) 1, 2, 3 and 4
3. What is the annual rate aimed in the Eighth Five Year Plan(1995)
(a) 5. 6%
(b) 6%
(c) 6. 5%
(d) 7%
4. The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from: (1995)
(a) balance from current revenue
(b) contribution of public enterprises
(c) government borrowings
(d) deficit financing
5. The New Exim Policy announced in 1992, is for period of :(1995)
(a) 3 years
(b) 4 years
(c) 7 years
(d) 5 years
6. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) .
Assertion (A) : An important policy instrument of economic liberalization is reduction in import duties on capital goods.
Reason (R) : Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct?(1996)
(a) Both A and R are true and R is the correct explanation
(b) Both A and R are true R is not a correct explanation
(c) A is true but R is false
(d) A is false but R is true
7. The Eighth Five Year Plan is different from the earliest ones.
The critical difference lies in the fact that: (1996)
(a) it has a considerably larger outlay compared to the earlier plans
(b) it has a major thrust on agricultural and rural development
(c) considerable emphasis is placed on infrastructure growth
(d) industrial licensing has been abolished
8. Consider the following statements :
Most international agencies which find Development Programme in India on intergovernmental bilateral agreements, mainly provide:(1996)
1. Technical assistance
2. Soft loans which are required to be paid back with interest
3. Grants, not required to be paid back
4. Food assistance to be paid back
(a) 2 and 4 are correct
(b) 1, 2 and 3 are correct
(c) 1, 2 and 4 are correct
(d) 3 and 4 are correct
9. Consider the following items imported by India:(1996)
1. Capital goods
2. Petroleum
3. Pearls and precious stones
4. Chemicals
5. Iron and Steel
The correct sequence of the decreasing order of these items (as per 94-95 figures) , in terms of value is:
(a) 1, 2, 3, 4, 5
(b) 1, 2, 4, 3, 5
(c) 2, 1, 3, 4, 5
(d) 2, 1, 4, 5, 3
10. The Sixth and the Eighth Five Year Plans covered the period 1980-1985 and 1992-1997 respectively. The Seventh Five Year Plan covered the period:(1997)
(a) 1987-1992
(b) 1986 -1991
(c) 1985-1990
(d) 1988 -1994
11. Economic Survey in India is published officially, every year by the:(1998)
(a) Reserve Bank of India
(b) Planning Commission of India
(c) Ministry of Finance, Govt. of India
(d) Ministry of Industries, Govt. of India
12. Which one of the following regions of the world supplies the maximum of our imported commodities (in terms of rupee value) ?(1998)
(a) Africa
(b) America
(c) Asia and Oceania
(d) Europe
13. The planning process is the industries sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is not true in this regard?(1999)
(a) With the advent of liberalisation, industrial investment development have largely been placed within the domain of private and multinational sectors
(b) With market assuming a central place, the role of central planning in many sectors has been rendered redundant
(c) The focus of planning has shifted to sectors like human resource
(d) The nation’s priorities have shifted away from industrial development to rural development
14. Which one of the following is the objective of National Renewal Fund?(1999)
(a) To safeguard the interests of workers who may be affected by technological upgradation of industry or closure of sick units
(b) To develop the core sector of the economy
(c) For the development of infrastructure such as energy, transport communications and irrigation
(d) For human resource development such as full literacy, employment population control, housing and drinking water
15. The Employment Assurance Scheme envisages financial assistance to rural areas for guaranteeing employment to at least:(1999)
(a) 50 percent of the men and women seeking jobs in rural areas
(b) 50 percent of the men seeking jobs in rural areas
(c) one man and one woman in a rural family living below the poverty line
(d) one person in a rural landless household living below the poverty line
16. A rise in ‘SENSEX’ means:(2000)
(a) a rise in prices of shares of all companies registered with Bombay Stock Exchange
(b) a rise in prices of shares of all companies registered with National Stock Exchange
(c) an overall rise in prices of shares of group up companies registered with Bombay Stock Exchange
(d) a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange
17. Assertion (A) : The rate of growth of India’s exports has shown an appreciable increase after 1991. (2000)
Reason (R) : The Govt. of India has resorted to devaluation.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
18. Match List I with List II and select the correct answer using the codes given below the lists: (2000)

List-IList-II
A.UN Development1.UN India Human
ProgrammeDevelopment Report
B.National Council
of Applied Economic
2.India Development
Report
Research
C.Indira Gandhi Institute of3.World Development
Research
Development Research
D.World Bank4.Human Development
Report

Codes:
(a) A-1; B-2; C-3; D-4
(b) A-4; B-2; C-1; D-3
(c) A-2; B-3; C-4; D-1
(d) A-2; B-1; C-4; D-3
19. “. . . instil into the vast millions of workers, men and women, who actually do the job, a sense of partnership and of cooperative performance. . . ” The above passage relates to:(2000)
(a) Planned Development
(b) Community Development
(c) Panchayati Raj System
(d) Integrated Development Programme
20. Economic liberalisation in India started with: (2000)
(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates
21. Consider the following statements: (2000)
The Indian rupee is fully convertible:
1. in respect of Current Account of Balance of payment
2. in respect of Capital Account of Balance of payment
3. into gold
Which of these statements is/are correct ?
(a) 1 alone
(b) 3 alone
(c) 1 and 2
(d) 1, 2 and 3
22. The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of :(2000)
(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate
23. Consider the following:(2001)
1. Market borrowing
2. Treasury bills
3. Special securities issued to RBI
Which of these is/are components(s) of internal debt?
(a) 1 only
(b) 1 and 2
(c) 2 only
(d) 1, 2 and 3
24. Global capital flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?(2002)
(a) Commercial loans
(b) Foreign Direct Investment
(c) Foreign Portfolio Investment
(d) External Commercial borrowings
25. Five Year Plan in India is finally approved by:(2002)
(a) Union Cabinet
(b) President on the advice of Prime Minister
(c) Planning Commission
(d) National Development Council
26. A country is said to be a debt trap if :(2002)
(a) it has to borrow to make interest payments on outstanding loans
(b) It has to abide by the conditionalities imposed by the International Monetary fund.
(c) it has been refused loans or aid by creditors abroad
(d) the World Bank charges a very high rate of interest on outstanding as well as new loans
27. Which one of the following is the correct statement?
Service tax is a/an:(2006)
(a) direct tax levied by the Central Government.
(b) indirect tax levied by the Central Government.
(c) direct tax levied by the State Government.
(d) indirect tax levied by the State Government.
28. During which Five Year Plan was the Emergency clamped, new elections took place and the Janata Party was elected?(2009)
(a) Third
(b) Fourth
(c) Fifth
(d) Sixth
29. Consider the following statements regarding Indian Planning:(2009)
1. The Second Five-Year Plan emphasized on the establishment of heavy industries.
2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization.
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
30. Which one of the following brings out the publication called “Energy Statistics” from time to time?(2009)
(a) Central Power Research Institute
(b) Planning Commission
(c) Power Finance Corporation Ltd.
(d) Central Statistical Organization
31. In the context of independent India’s economy, which one of the following was the earliest event to take place? (2009)
(a) Nationalization of Insurance companies
(b) Nationalization of State Bank of India
(c) Enactment of Banking Regulation Act
(d) Introduction of First Five-Year Plan
32. The SEZ Act, 2005 which came, into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of exports of services only.
Which of the above are the objectives of this Act?
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
33. A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why? (2010)
(a) India has preference for certain countries as regards receiving FDI
(b) India has double taxation avoidance agreement with Mauritius
(c) Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India
(d) Impending dangers of global climatic change prompt Mauritius to make huge investments in India
34. India-based Neutrino Observatory is included by the Planning Commission as a mega science project under the 11th Five-Year Plan. In this context, consider the following statements:(2010)
1. Neutrinos are chargeless elementary particles that travel close to the speed of light.
2. Neutrinos are created, in nuclear reactions of beta decay.
3. Neutrinos have a negligible, but non-zero mass
4. Trillions of Neutrinos pass through human body every second.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4
(d) 1, 2, 3 and 4
35. Inclusive growth as enunciated in the Eleventh Five Year Plan does not include one of the following:(2010)
(a) Reduction of poverty
(b) Extension of employment opportunities
(c) Strengthening of capital market
(d) Reduction of gender inequality
36. Who of the following shall cause every recommendation made by the finance Commission to be laid before each House of Parliament?(2010)
(a) The President of India
(b) The Speaker of Lok Sabha
(c) The Prime Minister of India
(d) The Union Finance Minister
37. Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?(2010)
(a) Department of Revenue
(b) Department of Economic Affairs
(c) Department of Financial Services
(d) Department of Expenditure
38. Consider the following actions by the Government: (2010)
1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies in the context of economic recession
Which of the above actions can be considered a part of the “fiscal stimulus” package?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
39. In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in(2010)
(a) Fourth Plan
(b) Sixth Plan
(c) Eighth Plan
(d) Tenth Plan
40. With reference to the Nationa1 Investment Fund to which the disinvestment proceeds are routed, consider the following statements:(2010)
1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
2. The National Investment Fund is to be maintained within the Consolidated Fund of India.
3. Certain Asset Management companies are appointed as the fund managers.
4. A certain proportion of annual income is used for financing select social sectors.
Which of the statements given above is/are correct ?
(a) 1 and 2
(b) 2 only
(c) 3 and 4
(d) 3 only
41. In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?(2010)
(a) Service tax
(b) Personal income tax
(c) Excise duty
(d) Corporation tax
42. Which one of the following authorities makes recommendation to the Governor of a State as to the principles for determining the taxes and duties which may be appropriated by the Panchayats in that particular State?(2010)
(a) District Planning Committees
(b) State Finance Commission
(c) Finance ministry of that State
(d) Panchayati Raj Ministry of that State
43. Consider the following statements:
In India, taxes on transactions in Stock Exchanges and Futures Markets are(2010)
1. levied by the Union
2. collected by the States
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
44. India has experienced persistent and high food inflation in the recent past. What could be the reasons?
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
(2011 – I)
Which of the statements given above are correct ?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
45. In terms of economy, the visit by foreign nationals to witness the XIX commonwealth games in India amounted to (2011 – I)
(a) Export
(b) Import
(c) Production
(d) Consumption
46. Which one of the following statements appropriately describes the “fiscal stimulus” ?(2011 – I)
(a) 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.
(b) It is an intense affirmative action of the government to boost economic activity in the country.
(c) 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.
(d) It is an extreme affirmative action by the government to pursue its policy of financial inclusion.
47. Consider the following actions which the government can take :
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs. (2011 – I)
Which of the above action/actions can help in reducing the current account deficit ?
(a) 1 and 2
(b) 2 and 3
(c) 3 only
(d) 1 and 3
48. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two ?(2011 – I)
(a) FII helps bring better management skills and technology, while FDI only brings in capital.
(b) FII helps in increasing capital availability in general, while FDI only targets specific sectors.
(c) FDI flows only into the secondary market while FII targets primary market
(d) FII is considered to be more stable than FDI.
49. With reference to “Aam Admi Bima Yojana’’, consider the following statements ?
1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless house-hold.
2. The member insured must be in the age group of 30 to 65 years.
3. There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12. (2011 – I)
Which of the statements given above is/are correct?
(a) 1 only(b) 2 and 3 only
(c) 1 and 3 only(d) 1, 2 and 3
50. Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are :
1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities(2011 – I)
Select the correct answer using the codes given below the lists ?
(a) 1 only
(b) 1 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
51. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?(2011 – I)
(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household
52. With reference to the Finance Commission of India, which of the following statements is correct ?(2011 – I)
(a) It encourages the inflow of foreign capital for infrastructure development
(b) It facilitates the proper distribution of finances among the Public Sector Undertakings
(c) It ensures transparency in financial administration
(d) None of the statements (a) , (b) and (c) given above is correct in his context
53. What is the difference between “vote-on-account” and “interim budget” ?
1. The provision of a “vote-on-account’’ is used by a regular Government, while an “interim budget’’ is a provision used by a caretaker Government
2. A “vote-on-account’’ only deals with the expenditure in Government budget, while an “interim budget’’ includes both expenditure and receipts(2011 – I)
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
54. Why is the offering of “teaser loans’’ by commercial banks a cause of economic concern ?
1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. (2011 – I)
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
55. Which of the following can aid in furthering the Government’s objective of inclusive growth ?
1. Promoting Self-Help Groups. (2011 – I)
2. Promoting Micro Small and Medium Enterprises.
3. Implementing the Right to Education Act.
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1,2 and 3 only
56. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ?
1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The Government no longer intends to retain the management control of the CPSEs(2011 – I)
Which the correct statements given above is/are correct ?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
57. Economic growth is usually coupled with (2011 – I)
(a) Deflation
(b) Inflation
(c) Stagflation
(d) Hyperinflation
58. The lowering of Bank Rate by the Reserve Bank of India leads to (2011 – I)
(a) more liquidity in the market
(b) less liquidity in the market
(c) no change in the liquidity in the market
(d) mobilization of more deposits by commercial banks
59. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?(2012 – I)
1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.
2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.
4. DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 only(b) 3 and 4 only
(c) 4 only(d) 1, 2, 3 and 4
60. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?(2012 – I)
1. Deprivation of education, health, assets and services at household level
2. Purchasing power parity at national level
3. Extent of budget deficit and GDP growth rate at national level
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
61. Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?(2012 – I)
1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend
3. Devolution of a specified share of central taxes to local bodies as grants
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
62. Consider the following specific stages of demographic transition associated with economic development :
(2012 – I)
1. Low birthrate with low death rate
2. High birthrate with high death rate
3. High birthrate with low death rate
Select the correct order of the above stages using the codes given below :
(a) 1, 2, 3
(b) 2, 1, 3
(c) 2, 3, 1
(d) 3, 2, 1
63. Under which of the following circumstances may ‘capital gains’ arise?(2012 – I)
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to increase in its popularity
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
64. Which of the following measures would result in an increase in the money supply in the economy?(2012 – I)
1. Purchase of government securities from the public by the Central Bank
2. Deposit of currency in commercial banks by the public
3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
65. Which of the following would include Foreign Direct Investment in India?(2012 – I)
1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Select the correct answer using the codes given below:
(a) 1, 2, 3 and 4
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only
66. Who among the following constitute the National Development Council?(2013 – I)
1. The Prime Minister
2. The Chairman, Finance Commission
3. Ministers of the Union Cabinet
4. Chief Ministers of the States
Select the correct answer using the codes given below.
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4
67. To obtain full benefits of demographic dividend, what should India do?(2013 – I)
(a) Promoting skill development
(b) Introducing more social security schemes
(c) Reducing infant mortality rate
(d) Privatization of higher education
68. A rise in general level of prices may be caused by
(2013 – I)
1. an increase in the money supply
2. a decrease in the aggregate level of output
3. an increase in the effective demand
Select the correct answer using the codes given below.
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
69. Which one of the following is likely to be the most inflationary in its effect?(2013 – I)
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
70. Supply of money remaining the same when there is an increase in demand for money, there will be(2013 – I)
(a) a fall in the level of prices
(b) an increase in the rate of interest
(c) a decrease in the rate of interest
(d) an increase in the level of income and employment
71. Economic growth in country X will necessarily have to occur if(2013 – I)
(a) there is technical progress in the world economy
(b) there is population growth in X
(c) there is capital formation of X
(d) the volume of trade grows in the world economy
72. If the interest rate is decreased in an economy, it will
(2014 – I)
(a) decrease the consumption expenditure in the economy
(b) increase the tax collection of the Government
(c) increase the investment expenditure in the economy
(d) increase the total savings in the economy
73. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?(2014 – I)
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1, 2, 3 and 4
(d) None
74. The sales tax you pay while purchasing a toothpaste is a(2014 – I)
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government
75. What does venture capital mean?(2014 – I)
(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries
76. With reference to ‘Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) ‘, consider the following statements:(2015-I)
1. It was established very recently in response to incidents of piracy and accidents of oil spills.
2. It is an alliance meant for 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
77. With reference to inflation in India, which of the following statements is correct?(2015-I)
(a) Controlling the inflation in India is the responsibility of the Government of India only
(b) The Reserve Bank of India has no role in controlling the inflation
(c) Decreased money circulation helps in controlling the inflation
(d) Increased money circulation helps in controlling the inflation
78. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?(2015-I)
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2, 3 and 4
79. The Fair and Remunerative Price (FRP) of sugarcane is approved by the(2015-I)
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
80. ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for(2015-I)
(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities
81. With reference to the Fourteenth Finance Commission, which of the following statements is/ are correct?(2015-I)
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
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
82. Convertibility of rupee implies(2015-I)
(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India
83. The Government of India has established NITI Aayog to replace the(2015-I)
(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
(d) Planning Commission
84. With reference to ‘Financial Stability and Development Council’, consider the following statements :(2016-I)
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
85. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? (2016-I)
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
86. With reference to ‘Stand up India scheme’, which of the following statement is/are correct?(2016-I)
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
87. Pradhan Mantri MUDRA Yojana is aimed at (2016-I)
(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
88. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?(2016-I)
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household 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
89. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?(2016-I)
1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licences for mineral exploration
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
90. ‘SWAYAM’, an initiative of the Government of India, aims at (2016-I)
(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
91. Regarding DigiLocker, sometimes seen in the news, which of the following statements is/are correct?
(2016-I)
1. It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
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
92. ‘Mission Indradhanush’ launched by the Government of India pertains to(2016-I)
(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
93. Consider the following statements:(2017-I)
1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.
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
94. Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI) ‘?(2017-I)
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace the physical currency in about two decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become very effective.
95. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) ?
(2017-I)
1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only
96. What is the purpose of setting up of Small Finance Banks (SFBs) in India?(2017-I)
1. To supply credit to small business units
2. To supply credit to small and marginal farmers
3. To encourage young entrepreneurs to set up business particularly in rural areas.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
97. Who among the following can join the National Pension System (NPS) ?(2017-I)
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004
98. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST) ‘?
(2017-I)
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.
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
99. With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) ‘, consider the following statements:(2017-I)
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 2 and 3 only
100. Consider the following statements:(2017-I)
1. Tax revenue as a per cent of GDP of India has steadily increased in the last decade.
2. Fiscal deficit as a per cent of GDP of India has steadily increased in the last decade.
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
101. What is the aim of the programme ‘Unnat Bharat Abhiyan’?(2017-I)
(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.
(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.
(c) Strengthening India’s scientific research institutions in order to make India a scientific and technological power.
(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.
102. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?(2017-I)
1. It is an organ of NITI Aayog.
2. It has a corpus of Rs 4, 00,000 crore at present.
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
103. Which of the following are the objectives of ‘National Nutrition Mission’?(2017-I)
1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
2. To reduce the incidence of anemia among young children, adolescent girls and women.
3. To promote the consumption of millets, coarse cereals and unpolished rice.
4. To promote the consumption of poultry eggs.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1, 2 and 4 only
(d) 3 and 4 only
104. What is the purpose of Vidyanjali Yojana’?
(2017-I)
1. To enable the famous foreign educational institutions to open their campuses in India.
2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.
Select the correct answer using the code given below:
(a) 2 only
(b) 3 only
(c) 1 and 2 only
(d) 2 and 3 only
 

Solutions

1. (d) In the eight five year plan (1992-1997) , the top priority was given to the development of the human resources i. e. , employment, education, and public health.
2. (d) Non-plan expenditures include non-developmental expenditure (interest payment, subsidies, defence expenditure, civil administration) , developmental expenditure and expenditure incurred on projects which remained unfinished in the earlier plans.
3. (a) The targeted annual growth rate was 5. 6% but the actual growth rate was 6. 7%.
4. (b) Financing of Eighth five year plan outlay In the Public sector (Rupees in crores)

img_ext_export_ifTODKtJou_1015.png
Source: GOI. , Planning Commission, various plan documents. Economic survey GOI, 1999-2000.
5. (d) The New Exim Policy was for five years (April 1, 1992 – March 31, 1997) .
6. (a) Both statements are correct and explain one of the instruments to liberalise the Indian economy .
7. (a) Eighth Five Year Plan (1992-97) had a bigger outlay with energy being given 26. 6% of total outlay to a cheque a targeted growth rate of 6. 78% per annum.
8. (b) A soft loan is a loan with a below market rate of interest. It also includes concessions to borrowers such as long repayment periods or interest holidays.
Technical assistance is aid involving highly educated or trained personnel, such as doctors, who are moved into a developing country to assist with a program of development. Food assistance is given to countries in urgent need of food supplies, especially if they have just experienced a natural disaster. Grant is usually given to governments through individual countries, international aid agencies and through multilateral institutions such as the world Bank and by through development charities.
9. (c) Value of import in India as per 94-95 figures
1. Petroleum oils and oils – US$ 3,285,560. 58 millionobtained from bituminou
2. Petroleum oils oils, etc. -US $ 2,642,351. 87 millions(excl. crude) , Preparation
3. Diamonds non-industrial-US $ 1,500, 668. 80 million unworked or simply swan
10. (c) Period between 1990-92 was second plan holiday. The first plan holiday was between 1966-69.
11. (c) Economy Survey in India is published officially, every year by the Ministry of Finance, Govt. of India. and issued before the annual budget. It reviews the development in the Indian economy over the previous 12 months.
12. (c)
13. (d) Statement (a) , (b) and (c) are true which explain the declining important position of industries sector after nineties in the planning process.
14. (a) The concept of the National Renewal Fund was announced by the Government as a part of the New Industrial Policy, 1991. The Government established the National Renewal Fund (NRF) by a Government of India resolution on 3rd February , 1992.
15. (c) Employment Assurance scheme was launched on 2nd October, 1993. It is open to all adult rural poor who are in need of wage employment. A maximum of two adults per family would be provided wage employment, when there is demand during lean agricultural season, subject to availability of funds.
16. (c) Increase in Sensex reflects the overall mood of the economy. A rise in it means that investors and FIIs are positive about the growth of Indian economy and expect that it will be sustained in future.
17. (a) Devaluation of currency is conscious decision taken by Central bank of country to lower the external value of domestic currency. As a result of this Indian goods become cheaper for Foreigners. Import decrease and exports increases.
18. (a) UN Development programme brings out UN India Human Development Report. National council of Applied Economic Research brings out India Development Report. Human Development Report is bring out by world Bank. World Development Research is carried out by Indira Gandhi Institute of Development Research.
19. (b) Community Development is a process where community members come together to take collective action and generate solutions to common problems.
It seeks to empower individuals and groups of people with the skills they need to effect change within their communities.
20. (a) Economic liberalization in India started with industrial de-licensing.
21. (a) In respect of capital account of balance of payment, the indian rupee is partially convertible after 1991.
22. (b) The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because current prices are influenced by the effect of price inflation
23. (d) Internal debt is that part of the total debt that is owed to lenders within the country. Market borrowings, Treasury bills and special securities issued to RBI are all sources of internal borrowings
24. (b) FDI is defined as investment by a foreign multinational or its subsidiary or a foreign company in terms of setting up a project in another country either by way of a 100% subsidiary or by way of a joint venture. Thus, FDI investment is long term in nature. Thus, it can not be pulled out of the country at short notice. It is also non-debt creating.
25. (d) In India plans are formulated by Planning Commission and are finally approved by National Development Council. All state chief ministers are members of NDC. The NDC is headed by prime minister of India.
26. (a) Debt Trap is a situation where you add on a new debt in order to repay an existing debt.
27. (b) All taxes which are the personal liability of an assessee come under direct taxes. They include income tax, professional tax, wealth tax, securities transaction tax, commodity transaction tax and the like. On the other hand, the taxes which a person can recover from some other person but the liability of which remains of the person collecting such taxes are indirect taxes. These are custom duty, excise, service tax, vat, CST and the like.
28. (c) This all happened from 1975-78 during fifth five year plan the period of which is (1974-78)
29. (a) The second five-year plan emphasized on the development of the public sector and “rapid industrialization. The third five –year plan, stressed on agriculture and improvement in the production of food grains with long term development
30. (d) It is published by Ministry of Statistics and Programme Implementation, Central Statistical Organization.
31. (c) Nationalization of State Bank of India – 1955; Introduction of First Five-Year Plan – 1951; Enactment of Banking Regulation Act – 1949; Nationalization of Insurance Companies – 1955-56
32. (a) The objectives of establishing SEZs Special export Zones include making available goods and services free of taxes and duties supported by an integrated infrastructure for export production, and single window approval mechanism and a package of incentives to attract foreign and domestic investments for promoting export-led growth.
33. (b) India has comprehensive Double Taxation Avoidance Agreements (DTAA) with 23 countries. This means that there are agreed rates of tax and jurisdiction on specified types of income arising in a country to a tax resident of another country. Under the Income Tax Act 1961 of India, there are two specific provisions, Section 90 and Section 91, which provide specific relief to taxpayers to save them from DTAA. Section 90 is for taxpayers who have paid the tax in a country with which India has signed DTAA, while Section 91 provides relief to taxpayers who have paid tax to a country with which India has not signed a DTAA. Thus, India gives relief to both kind of taxpayers Mauritius by itself is a low tax counting.
34. (d) A neutrino is an elementary particle that usually travels close to the speed of light, is electrically neutral, and is able to pass through ordinary matter almost undisturbed. This makes neutrinos extremely difficult to detect. Neutrinos have a very small, but nonzero rest mass. Neutrinos are affected only by a ‘weak’ sub-atomic force of much shorter range than electromagnetism, and are therefore able to pass through great distances in matter without being affected by it.
35. (c) Inclusive growth is ‘broad-based growth’, ‘shared growth’, and ‘pro-poor growth’. It excludes the capital markets which is left to operate by itself in the open market.
36. (a) As per provisions given under Article 281 of the Indian Constitution the recommendations of the finance commission go to the president who is constitutionally bound to place it before the two houses of the parliament.
37. (b) The DEA or the Department of Economic Affairs is responsible for preparation and presentation to the Parliament of Central Budget and the Budgets for the State Governments under President’s Rule and Union Territory Administration.
38. (a) Abolishing the subsidies will lead to higher prices of goods and services which are subsidzed. A reduction in the tax rate would be a stimulus. While increase in government expenditure would increase the level of demand in the economy.
39. (c) It was during eighth plan period (1992-97) that emphasis was put on infrastructure development.
40. (c) On 27 January 2005, the Government had decided to constitute a ‘National Investment Fund’ (NIF) into which realization from sale of minority shareholding of the Government in CPSEs would be channelised. This fund is managed by professionals and a part of it is used for use in social sector – like education, health care and employment.
41. (c) The excise duty’s share in the total tax revenue, which was 41. 3 percent in 1992-93, declined to 25. 1 percent in 2006-07. The customs duty’s share in the total tax revenue, which was 31. 9 percent in 1992-93, fell to 17. 5 percent in 2006-07, as a result of massive structuring on excise and customs.
42. (b) State Finace Commission governs the distribution between the State and the Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Panchayats at all levels of their respective shares of such proceeds; the determination of the taxes, duties, tolls and fees which may be assigned as, or appropriated by, the Panchayats; the grants-in-aid to the Panchayats from the Consolidated Fund of the State.
43. (a)
44. (b) Notwithstanding some moderation, food price inflation has remained persistently elevated for over a year now, reflecting in part the structural demand-supply mismatches in several commodities. The trend of food inflation was pointing at not only structural demand-supply mismatches in commodities comprises the essential consumption basket but also at changing consumption patterns.
45. (a) Income from “tourism” is an invisible export and brings foreign exchange in the country.
46. (b) Governments use fiscal policy to influence the level of aggregate demand in the economy. It is an effort to achieve economic objectives of price stability, full employment, and economic growth.
47. (d) Current Account deficit is excess of Exports over imports. After devaluation of domestic currency, domestic goods would become cheaper which will create additional demand for countries products in the world markets.
Rising capital Inflow through FDI and FII may appreciate the domestic currency and can worsen a country’s current account by increasing more imports and reducing exports, FDI and FII represents non-debt liabilities.
48. (b) Foreign Direct Investment only targets a specific enterprise. It aims to increase the enterprises capacity or productivity or change its management control. The FII investment flows only into the secondary market. It helps in increasing capital availability in general rather than enhancing the capital of a specific enterprise. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor. FDI not only brings in capital but also helps in good governance practises and better management skills and even technology transfer.
49. (c) The statements 1st and 3rd are correct, but 2nd statement is wrong because, the member should be aged between 18 and 59 years not 30 and 65 years.
50. (d) Microfinance is a movement whose object is “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers. “
51. (d) All adult members of the household who registered can apply for work. To register, they have to:
Be local residents
52. (d) The Commission shall make recommendations as to the following matters, namely :
(i) The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds;
(ii) The principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States which are in need of assistance by way of grants-in-aid of their revenues under article 275 of the Constitution for purposes other than those specified in the provisions to clause (1) of that article; and
(iii) The measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the State on the basis of the recommendations made by the Finance Commission of the State.
53. (b) Statement 1 is not correct as caretaker Government is the government which is ready to Go, it does not present the Interim Budget. The Interim Budget is presented by the Incoming Government or new Government which has different fiscal and revenue plans from the outgoing Government.

img_ext_export_ifTODKtJou_1021.png
54. (a) The statement 1 is correct because it includes the definition of teaser loans but the statement (2) is not correct, because in India teaser loan is provided to the home buyers not setting up manufacturing or export units.
55. (d) The concept of the inclusive growth is based on both economic and social empowerment of ordinary and under privileged individuals. Thus all the statement are correct.
56. (d) When we say “Mainly” the money is to be used to pay the external debt, it is not correct to say so. Government though “may intend” to retain the management control, but there are fiscal constraints, that induce the government to go for disinvestment. Both statements are NOT correct.
57. (b) Inflation and economic growth are parallel lines and can never meet. Inflation reduces the value of money and makes it difficult for the common people. Inflation and economic growth are incompatible because the former affects all sectors as indicated by CPI or Consumer Price Index.
58. (a) Bank rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial/cooperative banks, development banks etc. when RBI lowers the bank rate, the cost of borrowing for banks decreases and the credit volume gets increased leading to increase in money and more liquidity in the market.
59. (b) DRDA has traditionally been the principal organ at the district level to oversee the implementation of anti-poverty programmes of the Ministry of Rural Development. It does not acts as Panchayati Raj Institutions.
60. (a) Deprivation of education, health, assets and services at household level
61. (a) The 13th finance commission has an elaborate design for the GST. Statement 1 is correct. Statement 2 is incorrect. Report basically discusses the improved implementation of the existing schemes. The third statement is correct. The report in its para 10. 44 mentions: “Taking into account the demand of local bodies that they be allowed to benefit from the buoyancy of central taxes and the constitutional design of supplementing the resources of Panchayats and municipalities through grants-in-aid, we recommend that local bodies be transferred a percentage of the divisible pool of taxes cover and above the share of the states, as stipulated by us, after converting this share to grant-in-aid under Article 275. ”
62. (c) Demographic Transition is the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic System.
63. (b) Capital gain is an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is the difference between a higher selling price and a lower purchase price. The increase in the sales of a product does not mean increase the selling price of the product.
64. (c) 1. Purchase of government securities from the public by the Central Bank
3. Borrowing by the government from the Central Bank
65. (d) A Foreign direct investment (FDI) involves establishing a direct business interest in a foreign country, such as buying or establishing a manufacturing business, while foreign Portfolio Investment (FPI) refers to investing in financial assets such as stocks or bords in a foreign country. Hence, FDI does not involve portfolio Investment.
66. (b) The National Development Council includes the Prime Minister, Union ministers, Chief ministers of all states, administrative heads of the Union Territories and members of the planning commission.
67. (a) To reap the benefits of demographic dividend, skills have to be developed because a relatively larger portion of population fall under the category of productive labour force when there is a demographic dividend.
68. (d) General Price rise may be caused by an increase in the money supply as the real value of the money reduces. The higher aggregate price level will reduce the purchasing power subsequently reducing the consumer spending. Effective demand also increases when there is less purchasing power due to inflation.
69. (d) Extremely high rates of inflation are generally associated with high rates of money growth. It is often the result of financing large deficits by printing money.
70. (c) Supply of money remaining the same when there is an increase in demand for money, there will be an increase in the rate of interest and vice-versa.
71. (c) A country’s economic growth is reflected through capital formation, which in turn encourages private enterprises in enhancing the growth of a country’s economy.
72. (c) When interest rates decreases then investment expenditure by businesses on capital goods like factories and equipment will increase in an economy.
73. (c) Non-plan expenditure covers interest payments, subsidies (mainly on food and fertilisers) , wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
74. (d) Taxes on tooth paste come under GST which is administered by State government. Sales tax is paid to sales tax authority in the state from where the goods are moved.
75. (b) Venture capital (VC) is a long term financial capital provided to early-stage, high-potential, growth startup companies or new companies.
76. (d) IOR-ARC is a regional cooperation initiative of the Indian Ocean Rim countries which was established in Mauritius in March 1997 with the aim of promoting economic and technical cooperation. IOR-ARC is the only pan-Indian ocean grouping. It brings together countries from three continents having different sizes, economic strengths, and a wide diversity of languages, cultures. It aims to create a platform for trade, socio-economic and cultural cooperation in the Indian Ocean rim area, which constitutes a population of about two billion people. Presently it has 19 members- Australia, Bangladesh, India, Indonesia, Iran, Kenya, Malaysia, Madagascar, Mauritius, Mozambique, Oman, Seychelles, Singapore, South Africa, Sri Lanka, Tanzania, Thailand, UAE and Yemen.
Six priority areas were identified to take forward the cooperation under IOR-ARC:
(i) Maritime Safety and Security;
(ii) Trade and Investment Facilitation;
(iii) Fisheries Management;
(iv) Disaster Risk Reduction;
(v) Academic and S&T Cooperation; and
(vi) Tourism Promotion and Cultural Exchanges.
77. (c) When inflation becomes very high, the RBI decreases supply of money (to check inflation) by adopting tight monetary policy. Decreasing the money circulation decreases the demand of goods and services, which helps in controlling the inflation. It is mainly effective in case of demand pull inflation.
78. (a) To reduce the budget deficit, the government has to increase income and reduce Expenditure. Introducing new welfare schemes and Expanding industries will increase the government expenditure.
79. (a) The Fair and Remunerative Price (FRP) of sugarcane is approved by Cabinet Committee on Economic Affairs.
80. (c) Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
81. (a) Union Government accepted the 14th Finance Commission’s recommendation to devolve an unprecedented 42 per cent of the divisible pool to states during 20015-16 to 2019-20, against 32 per cent suggested by the previous commission.
82. (c) Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa. Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.
83. (d) The Government of India has established NITI Aayog to replace the Planning Commission. The Union Government of India announced formation of NITI Aayog on 1 January 2015 and the first meeting of NITI Aayog was held on 8 February 2015.
84. (c) (i) Financial Stability and Development Council is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
(ii) It falls under Dep. Of economic affairs and FM is the chairman. So, 1 is wrong and 2 is right. By elimination, we are left with answer “c”.
85. (c) There is no restriction as such that only one member of a family can join the scheme.
Ref: Given in Disha Publication’s Mega Yearbook 2016, page-84.
86. (c) (i) Prime Minister launched the ‘Stand up India Scheme’ aimed at promoting entrepreneurship among Scheduled Castes/Scheduled Tribes and women by giving loans in the range of Rs 10 lakh to Rs 1 crore for setting up a new enterprise. There would be a Rs 10,000 crore refinance window through Small Industries Development Bank of India (SIDBI) and the National Credit Guarantee Trustee Company Ltd (NCGTC) will create a corpus of Rs 5,000 crore.
(ii) Both statements are correct as per : Press Information Bureau (PIB) Government of India
Ministry of Finance/03-April-2016.
Ref : http://pib. nic. in/newsitePrintRelease. aspx?relid =138523
87. (a) (i) Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency (MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. It was announced by the Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non corporate small business sector.
Ref: Given in Disha Mega Yearbook page-A-83. MUDRA Yojana aims to help small businessmen who’re unable to get loans from formal financial system. Hence (a) is the answer.
88. (d) Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.
Ref: Economic Survey Vol. 2, page 125.
89. (b) District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners. Its manner of operation comes under the jurisdiction of the relevant State Government.
Ref: Economic Survey Vol. 2, page 141.
90. (d) SWAYAM or Study Webs of Active–Learning for Young Aspiring Minds programme of Ministry of Human Resource Development, Government of India. Professors of centrally funded institutions like IITs, IIMs, central universities will offer online courses to citizens of India. All courses would be offered free of cost under this.
Ref: Press Information Bureau (PIB. ) 2016, Government of India. Ministry of Human Resource Development;
http://pib. nic. in/newsite/PrintRelease. aspx?relid= 148515.
91. (c) DigiLocker is a “digital locker” service launched by the Government of India in February 2015 to provide a secure dedicated personal electronic space for storing the documents of resident Indian citizens.
Ref: Indianexpress /November 17, 2015.
http://indianexpress. com/article/india/india-news-india/digital-lockers-put-your-documents-in-a-safe-on-secure-cloud/
92. (a) (i) The Government of India launched Mission Indradhanush in December 2014 with the ultimate goal to ensure that all children under the age of two years and pregnant women are fully immunized with all available vaccines.
(ii) This mission aims to achieve 100% vaccination of children and pregnant women by 2020.
Ref: Disha Publication’s Mega Yearbook 2016, page B-484
93. (c) NPCI is a not-for-profit company formed by various banks, with primary objective of providing cost-effective payment solutions to the banks. NPCi’s solutions such as IMPS, BHIM, RuPay, AEPS etc. have indeed helped in financial inclusion. So first is correct. And second is correct- NPCi launched Rupay card in 2012, as 7th payment gateway in the world.
94. (a) “A” is the most appropriate choice. Mobile wallets will not be necessary, because your mobile number is directly linked with the bank account using bank’s ‘customized app’ which is built on the UPI platform.
95. (a) MPC has 6 members, not 12; and it’s headed by RBI governor and not Finance Minister. So statement 2 and 3 are wrong, hence by elimination, we reach answer (A) only 1 correct.
96. (a) While directly or indirectly all three will be encouraged because of Small Finance banks. But when RBI invited applications, the specific purpose were 1 and 2 only.
97. (c) NPS was compulsory for new central govt recruits (except armed forces) WEF 1/1/2004. so “D” is wrong. Any Indian between 18 to 55 can join NPS. So “B” is wrong. NRIs are allowed to open NPS account as per PFRDA norms.
So we are left with answer “C”.
98. (a) Exports will become ZERO RATED under GST, so statements 2 and 3 would have been correct If examiner had used moderate words “GST will help”. But he has used ‘extreme’ words. GST is unlikely to ‘drastically’ reduce CAD Because of crude oil import and OPEC cartel that manipulates its prices. Similarly, GST is unlikely to enormously increase size of oureconomy (IMF projection ~1-1. 5% addition in growth rate. ) and we can’t overtake China in near future, because unlike China we are keeping our currency undervalued against dollar. Hence statement 2 and 3 are wrong. We are left with Answer A.
99. (b) Act provides is an appellate tribunal, and they’re required to finish case within one year. So #3 is wrong, by elimination, we are left with A and B. So, B is most appropriate because IT dept (=therefore Government) can seize the benami properties.
100. (d) From the official Economic Survey 2014-15, we get following data
If we go only by the strict interpretation of above graph then answer should be “D”
101. (a) Answer is “A” as per the Press Information Bureau.
102. (d) NIIF is under Department of Economic Affairs. So first statement is wrong. It was setup in Budget 2015, with Rs. 40k crores, but even if counting the recent allotments till Budget 2017, the 4 lakh amount is unrealistic. So, second statement is also wrong.
103. (c) As per the press information bureau brief, the third statement is wrong, remaining are correct. Hence C is the answer.
104. (a) •Indianexpress June 2016: HRD Ministry has launched an initiative called ‘Vidyanjali’ to encourage youngsters to volunteer their services at any neighborhood government school. So accordingly “A” is the most appropriate choice.
•What about statement “3”? While the mygov. in portal guidelines mention that Vidyanjali will cover initiatives under CSR, PPP, PSU. But mobilization of voluntary monetary contribution is not the primary and explicit ‘purpose’ of the scheme.
•And the scheme is targeted at primary (Class 1 to 5) and upper primary classes (Class 6 to 8) so ‘secondary schools’ infrastructure facilities’ are beyond its scope of work. HRD ministry’s other schemes specifically count class 9 onwards as ‘secondary education’
Hence 3 is wrong. Therefore, Answer is “A”.
 

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