Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
Dear students,
1. In the comments section, share your score and also let everyone know the logic you’ve used to mark certain answers. This will trigger intelligent discussions benefitting everyone.
2. Completing the test should be your top priority. Focus on accuracy rather than simply attempting more questions. Give enough thought to each question, we have increased the time limit so you can do this.
3. At the end of the test, click on ‘View Questions’ button to check the solutions.
*You can attempt the test multiple times for your own practice but only your first attempt will be counted for rankings.
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly.
Time has elapsed
You have reached 0 of 0 points (0).
Average score |
|
Your score |
|
Categories
- Not categorized 0%
Pos. | Name | Entered on | Points | Result |
---|---|---|---|---|
Table is loading | ||||
No data available | ||||
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
1 points‘Monetary Base’, managed by the Reserve Bank of India, consists of
1. Deposits held by the Government of India with RBI
2. Sum total of the capital of all financial institutions regulated by RBI
3. Notes and coins in circulation with the public
Select the correct answer codeCorrect
1 and 3 are correct.
Monetary Base is also called as High powered money.
It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the Government of India and commercial banks with RBI.
If a member of the public produces a currency note to RBI the latter must pay her value equal to the figure printed on the note.
Similarly, the deposits are also refundable by RBI on demand from deposit-holders. These items are claims which the general public, government or banks have on RBI and hence are considered to be the liability of RBI.Incorrect
1 and 3 are correct.
Monetary Base is also called as High powered money.
It consists of currency (notes and coins in circulation with the public and vault cash of commercial banks) and deposits held by the Government of India and commercial banks with RBI.
If a member of the public produces a currency note to RBI the latter must pay her value equal to the figure printed on the note.
Similarly, the deposits are also refundable by RBI on demand from deposit-holders. These items are claims which the general public, government or banks have on RBI and hence are considered to be the liability of RBI. -
Question 2 of 5
2. Question
1 pointsWhich of the following form a part of revenue expenditure?
1. Salaries
2. Defence expenditure
3. Major Subsidies
4. Expense towards new infrastructure projects
Select the correct answer codeCorrect
1, 2 and 3 are correct.
Revenue expenditure is expenditure for the normal running of government departments and various services, interest charges on debt incurred by government, subsidies and so on. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure. All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets.
Capital expenditure usually denotes funds used by a company (government) to acquire, maintain or upgrade physical assets such as property, new infrastructural projects or buying new equipment. When a government spends money on big-ticket projects, the expenses incurred are usually categorised as capital expenditure. Such expenses are not recurring in natureIncorrect
1, 2 and 3 are correct.
Revenue expenditure is expenditure for the normal running of government departments and various services, interest charges on debt incurred by government, subsidies and so on. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure. All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets.
Capital expenditure usually denotes funds used by a company (government) to acquire, maintain or upgrade physical assets such as property, new infrastructural projects or buying new equipment. When a government spends money on big-ticket projects, the expenses incurred are usually categorised as capital expenditure. Such expenses are not recurring in nature -
Question 3 of 5
3. Question
1 pointsWhich of the following measures can be adopted to promote the Fiscal Consolidation?
1. Increasing subsidies
2. Increasing the tax base
3. Supporting export oriented industries
Select the correct answer codeCorrect
2 and 3 are correct.
Fiscal Consolidation refers to the policies undertaken by Governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock.
Increasing the subsidies increases the expenditure of government. Thus, it will go against the principle of fiscal consolidation.
Increasing the tax base increases the tax collection. Thus, it increases the revenue for the government and promotes the fiscal consolidation.
Supporting the export oriented industries help in increasing the forex reserves of the country. Thus, help in promoting the fiscal consolidation.Incorrect
2 and 3 are correct.
Fiscal Consolidation refers to the policies undertaken by Governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock.
Increasing the subsidies increases the expenditure of government. Thus, it will go against the principle of fiscal consolidation.
Increasing the tax base increases the tax collection. Thus, it increases the revenue for the government and promotes the fiscal consolidation.
Supporting the export oriented industries help in increasing the forex reserves of the country. Thus, help in promoting the fiscal consolidation. -
Question 4 of 5
4. Question
1 pointsWhich of the following measures is/are likely to increase the taxation base in India?
1. Bringing agriculture income into the purview of Income tax.
2. Encouraging entrepreneurial activity
3. Promoting cash transactions
Select the correct answer codeCorrect
1 and 2 are correct.
A tax base is the total amount of assets or revenue that a government can tax. To increase the tax base India should bring more sectors into the purview of tax regime. Thus, bringing agriculture sector into the purview of income tax likely to increase the tax base.
Encouraging entrepreneurial activity will increase the profit of existing companies as well as encourage the mushrooming of new companies. Thus, it is likely to increase the tax base. Promoting cash transaction will increase the unaccounted money in the economy. Thus, lead to increase in the black money. Therefore, it is unlikely to increase the tax base.Incorrect
1 and 2 are correct.
A tax base is the total amount of assets or revenue that a government can tax. To increase the tax base India should bring more sectors into the purview of tax regime. Thus, bringing agriculture sector into the purview of income tax likely to increase the tax base.
Encouraging entrepreneurial activity will increase the profit of existing companies as well as encourage the mushrooming of new companies. Thus, it is likely to increase the tax base. Promoting cash transaction will increase the unaccounted money in the economy. Thus, lead to increase in the black money. Therefore, it is unlikely to increase the tax base. -
Question 5 of 5
5. Question
1 pointsConsider the following statements about Most-favoured-nation (MFN) principle.
1. MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners.
2. Countries cannot set up a free trade agreement that applies only to goods traded within the group.
3. Countries can give developing countries special access to their markets.
Which of the above statements is/are correct?Correct
1 and 3 are correct.
MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.
Some exceptions are allowed. For example, countries can set up a free trade agreement that applies only to goods traded within the group — discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions.Incorrect
1 and 3 are correct.
MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.
Some exceptions are allowed. For example, countries can set up a free trade agreement that applies only to goods traded within the group — discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions.
Leaderboard: 4th Nov 2023 | Prelims Daily with Previous Year Questions
Pos. | Name | Entered on | Points | Result |
---|---|---|---|---|
Table is loading | ||||
No data available | ||||
UPSC 2024 countdown has begun! Get your personal guidance plan now! (Click here)