Current Affairs based
Model Questions
For Civils Prelims 2020 GS Paper
TEST 3
( 19 04 2020 )
Prepared by: Praturi
Potayya Sarma
1)Consider the following pairs :
Harappan Site : Location
1.Harappa Situated
on river Ravi in Montegomery district of Punjab (Pakistan)
2.Kalibangan Rajasthan
3.Mohenjodaro Sind-Pakistan.
Situated in Larkana district of Sind (Pakistan)
Which of the pairs given above is/are correct matched ?
(a)1 only
(b)1 and 2 only
( c ) 2 and 3 only
(d) 1,2 and 3
Ans: d
2)Consider the following pairs :
(located in Gujarat)
Harappan Site : Excavated / Discovered by
1.Rangapur Excavated
by Vats and S.R.Rao
2.Surkotada Excavated
by Jagapathi Joshi
3.Lothal Discovered
by S.R.Rao
Which of the pairs given above is/are correct matched ?
(a)1 only
(b)1 and 2 only
( c ) 2 and 3 only
(d) 1,2, 3
Ans: d
3)Consider the following pairs :
Place /Site : Location/Excavated by
1.Banwali Rajasthan
. Excavated by R.S.Bist
2.Rupar Punjab
. Excavated by Y.D.Sharma
3.Alamgirpur Western
UP. (Meerut District).Y.D.Sharma
Which of the pairs given above is/are correct matched ?
(a)1 only
(b)1 and 2 only
( c ) 2 and 3 only
(d) 1,2 and 3
Ans: d
4) One important characteristic of Indian
agriculture is that it is mainly small holders’ farming with an average
landholding size of 1.08 hectares. The small and marginal farmers account for
86 per cent of all holdings and 47 percent of the operated area. They
contribute more than 50% of the total agricultural and allied output.
Consider the following :
1) The contribution of agriculture to GDP has
been declining from 52% in the 1950s to 30% in the 1990s and further below 20%
from 2010 onwards as per data from Ministry of Statistics and Programme
Implementation (MoSPI).
2) In 2018-19, the share of Agriculture &
Allied Gross Value Added (GVA) in overall GVA was 16% (Ministry of Agriculture
and Farmers’ Welfare (MoA&FW) Annual Report 2018-19 )
3) Economic Survey 2018-19 suggests that the
growth rate in GVA (at 2011-12 prices) over past five-six years has been higher
for livestocks, fishing and aquaculture as compared to crops.
4)
Allied activities contribute approximately 40% to agricultural output,
whereas only 6-7% of agricultural credit flows towards allied activities. ; All
the above
Which of the above is correct about agriculture sector in India ?
(a)1 only (b) 2 only
(c ) 1,2,3,4 ( d) 4 only
Ans: c
5) In India , who are the major
players in supplying credit to agriculture sector ?
a)
scheduled commercial banks (79%) are the major players in supplying
credit to agriculture sector
b) rural cooperative banks (15%),
c) regional rural banks (5%); micro finance
institutions (1%).
d) All the above
Ans: d
6) Consider the following :
1)As per the
reports, out of the total
agricultural households in India, approximately 30% still avail credit from
non-institutional sources.
2)The problem of financial exclusion gets
aggravated due to lack of legal framework for landless cultivators as the
absence of documentary evidence becomes a major hindrance for extending credit
to this segment of the farming community, who take up cultivation work on oral
lease.
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
Ans: c
7) The strategic pillars of the financial
inclusion strategy would include universal access to financial services,
providing basic bouquet of financial services, access to livelihood and skill
development, financial literacy and education, customer protection and
grievance redressal. The Financial Inclusion
(FI) strategy aims for what ?
a) giving lottery tickets
b) sustainable financial inclusion by
leveraging technology and adopting a multi-stakeholder approach.
c) donations
d) gifts
Ans: b
8) What is Microfinance ?
1) It involves extension of small loans and other
financial services to low income groups,
2) It is a very important economic conduit
designed to facilitate financial inclusion and assist the poor to work their
way out of poverty.
3) It is argued that microfinance can
facilitate the achievement of national policies that target poverty reduction, empowerment
of women, assisting vulnerable groups, and improving standards of living.
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
9) The
Bharat Microfinance Report 2019 prepared by whom ?
a) Sa-Dhan, [According to its report, Micro
Finance Institutions ( MFIs ) operate in about 570 districts in India ]
b) Nasscom
c) FICCI
d) Assocham
Ans: a
10) Which of the following is
correct about Framework on Currency Swap Arrangement for SAARC countries ?
1) On November 15, 2012, the
SAARC Currency Swap Facility came into operation
2) Initially its intention
is to to provide a backstop line of funding for short term foreign
exchange liquidity requirements or balance of payment crises till longer term
arrangements are made
3) To further financial
stability and economic cooperation within the SAARC region, the Reserve Bank of
India, with the concurrence of the Government of India, has decided to put in
place a revised Framework on Currency Swap Arrangement for SAARC countries
2019-2022.
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
11) What is ‘Tri-party repo’ ?
1) It means a repo contract where a third entity
(apart from the borrower and lender), called a Tri-Party Agent, acts as an
intermediary between the two parties to the repo
2) Services like collateral
selection, payment and settlement, custody and management during the life of
the transaction are provided through it
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
Ans: c
12) Consider the following :
1)All women Self Help Groups
(SHGs) will be eligible for interest subvention on credit upto Rs. 3 lakhs at
7% per annum.
2)The Commercial Banks will
lend to all the women SHGs in Rural areas at the rate of 7% in the 250
districts
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
Ans: c
13) What is “Open banking” ?
1) It is a framework under which
consumers can share their own banking information with other financial service
providers, such as financial aggregators or other fintech firms.
2) In a nutshell, ‘open
banking’ makes personal banking data portable.
3) On the technical side, the
sharing of information is made possible by the use of publicly available APIs
(application programing interfaces) that allow one application (e.g., an online
banking app) communicate directly with another (e.g., a financial aggregator app).
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
14) Kristalina Georgieva is the new Managing Director of which of the
following ?
a) ECB
b) IMF
c) ADB
d) AIIB
Ans: b
15) Documentation Identification Number (DIN) system of Central Board of
Direct Taxes (CBDT) has come into existence from which date ?
a) 1.10.2019
b) 1.4.2019
c) 1.7.2018
d)1.1.2015
Ans: a
16) What is ‘cryptocurrency ‘ ?
1) A cryptocurrency is a digital or virtual currency that uses
cryptography for security
2) A cryptocurrency is difficult to counterfeit because of the security
feature
3) The first blockchain-based cryptocurrency with was Bitcoin, which
still remains the most popular and most
valuable
Which of the statements given
above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
17) ‘Kerala Bank’ would be formed by amalgamating which of the following
?
a) the district co-operative banks (DCBs) with Kerala State Co-operative
Bank in Kerala state
b) SBI,SBH,SBM
c) Canara Bank, Syndicate Bank
d) Bank of Baroda, Vijaya Bank
Ans: a
18) Which country topped the 2019 Hurun Global Unicorn List ?
a) India
b) China
c) South Korea
d)North Korea
Ans: b
19) What is ‘derivative’ in banking sector terminology?
a) “Derivative” means an instrument, to be settled at a future date,
whose value is derived from change in interest rate, foreign exchange rate,
credit rating or credit index, price of securities (also called “underlying”),
or any other underlying or a combination of more than one of them and includes
interest rate swaps, forward rate agreements, foreign currency swaps, foreign
currency rupee swaps, foreign currency options, foreign currency rupee options
or any other instrument, as may be specified by the Reserve Bank from time to
time
b) Satellite name
c) Radio name
d) Cell phone name
Ans: a
20) What is “Open banking” ?
1) It is a framework under which
consumers can share their own banking information with other financial service
providers, such as financial aggregators or other fintech firms.
2) In a nutshell, ‘open
banking’ makes personal banking data portable.
3) On the technical side, the
sharing of information is made possible by the use of publicly available APIs
(application programing interfaces) that allow one application (e.g., an online
banking app) communicate directly with another (e.g., a financial aggregator
app).
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
21) At end-June 2019, India’s external debt witnessed an increase
of 2.6 per cent over its level at end-March 2019, primarily on account of an
increase in which of the following ?
a) commercial borrowings
b) non-resident deposits
c) short-term trade credit
d)All the above
Ans: d
22) The Reserve Bank of India
in consultation with Government of India will continue to have the flexibility
to modify the notified amount and timing for auction of ________ depending upon
the requirements of the Government of India, evolving market conditions and
other relevant factors, after giving due notice to the market.
a) Treasury Bills
b) Companies shares
c) Companies debentures
d) ESOPs
Ans: a
23) Government’s cash account is maintained with the RBI. The cash flow
mismatches of the Central Government are largely managed through which of the following ?
1) issuance of Treasury Bills,
2) Cash Management Bills
3) access to the Ways and Means Advances facility from RBI
Which of the statements given
above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
24) How many Scheduled Commercial Banks are there as on Current Fortnight: September
13,2019?
a) 100
b)142
c) 50
d) 70
Ans: b
25)
Indian Financial System consisting of which of the following ?
1) RBI
(CRR, SLR), Commercial Banks
2) NBFCs,
PDs, FIs, Cooperative Banks
3) Equity
& Debt Market; IRDA
Which of the statements given
above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
26)Recently(2nd half of 2019) which steps are taken in banking sector to boost economic growth?
1) Another Rs.5 Lakh crores will be released in a phased manner
2)Banks decided to pass on any MCLR rate cut in full
3) Banks to launch repo-linked loan products; Banks to issue improved,
transparent processes for one-time loan settlements
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
27) To create demand in Auto Sector, what are the measures announced by
Ministry of Finance ?
1) BS-IV vehicles purchased upto March 31,2020 will all remain
operational for their entire period of registration
2) Revision of one-time registration fee deferred till June 2020
3) Additional 15% depreciation to be allowed on any vehicles acquired
from now till March 2020, raising it to 30 % in totoal ; Both EVs and ICVs will
continue to be registered
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
28) Which of the following are called capital-intensive sector industries
?
a) Steel
b) Infrastructure
c) Engineering
d) All the above
Ans: d
29) Central Government has slashed the corporate tax to _____ % from 30
% for existing companies, and to 15% from 25 % for new manufacturing companies.
Including a surcharge and cess, the effective tax rate for existing companies
would now come down to 25.17% from 35%. Companies can opt for the higher tax
rates or the new ones.
a) 22 %
b) 50%
c) 70%
d) 60 %
Ans: a
30) ‘Structural changes’ in the Indian economy ushered in because of which of the following ?
1) demonetisation
2) hasty and faulty implementation of GST
3) collapse of IF & FS
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
31) Corporate Tax is paid by whom ?
a) Corporate companies (financial and non-financial)
b) Individuals
c) Farmers
d) JLFs
Ans: a
32) Which of the following is correct about the
currency demanded by the Public or Currency in Circulation (CiC)?
1) The currency demanded by the public or Currency in Circulation (CiC) grows as the
economy expands and is broadly a function of nominal GDP growth.
2) In the case of India, CiC follows a seasonal
pattern whereby the demand is tepid during the first half of the financial year
and
3) It picks up during the second half, coinciding
with the pick-up in economic activity during the festive season
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
33) Which of the following is correct ?
a) MMO : Money Market Operations
b) OMOs: Open Market Operations
c) CRR : Cash Reserve Ratio : BIS : Bank of International Settlements
d) All the above
Ans: d
34) Liquidity is of paramount importance for a
well-functioning and sound financial system. The term ‘liquidity’, however, has
many different meanings, and the specific sense in which it is used is
determined by the context. Broadly, the term ‘liquidity’ is used in three
senses . What are they ?
1) funding liquidity
2) market liquidity
3) central bank liquidity
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
35) Which of the
following is correct about Market Stabilisation Scheme (MSS) ?
1) The Market Stabilisation
Scheme (MSS) was institutionalised in April 2004 following an MoU signed
between Government of India and the Reserve Bank.
2) Thereafter, securities
issued under MSS have been used from time to time to sterilise excessive
capital flows and most recently to tackle surplus liquidity during the
demonetisation period.
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
Ans: c
36) The liquidity management framework of the
Reserve Bank has evolved through progressive refinements since _______ in response
to changing domestic conditions and global developments. In April 1999, ILAF
was introduced under which liquidity was injected against collateral of GoI
securities at various interest rates, but surplus liquidity was absorbed at a
fixed rate.
a) 1972
b) 1999
c) 1975
d) 1986
Ans: b
37) A Collateralised Lending Facility
(CLF) was established alongside an Additional Collateralised Lending Facility
(ACLF), with export credit refinance and liquidity support to PDs linked to the
Bank Rate. When the transition from ILAF
to a full-fledged LAF took place ?
a) June 2000
b) 1969
c)1980
d) 1991
Ans: a
38) How many types of ‘liquidity frameworks’ are
there ? Give details.
1) There are broadly two types of liquidity
frameworks – the ‘corridor’ system and the ‘floor’ system.
2) In a corridor system, the central bank has
standing facilities to lend reserves and accept deposits from banks.
3) The deposit rate establishes a ‘floor’ for
the overnight money market rate, as no bank will lend money in the market at a
lower interest rate than what it can get from the central bank.
Which of the statements given
above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
39) Which of the following is correct about capital expenditure
(capex)plan ,as per latest news (in October,2019) ?
1) ONGC has a capex plan of Rs. 32921
crore for FY 2019-20; Indian Oil Corporation has a capex plan of Rs. 25,083
crore of which 8,173 crore ( 32%) has been spent
2) NTPC has made CAPEX of Rs. 8490 crore
(42%) out of a plan of Rs. 20,000 crore
3) The CPSEs which participated in
the meeting have plans of making capital expenditure of Rs. 50,000 crore in the
next quarter.
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
40) The gross fiscal deficit (GFD) of the Central Government for 2019-20
has been budgeted, in the Regular Budget, at Rs.7,03,760 crore or 3.3 per cent
of GDP as compared to Rs.6,34,398 crore or ______ per cent of GDP in 2018-19
RE.
a) 3.4
b) 5
c)6
d)7
Ans: a
41) Government’s cash account is maintained with whom ?
a) RBI
b) money lenders
c) chit funds companies
d) company promoters
Ans: a
42) Reserve Bank conducts
purchase/sale of _________under Open Market Operations, whenever required,
based on its assessment of prevailing and evolving liquidity conditions.
a) G-Secs
b) Companies Debentures
c) private individuals Promissory
notes
d) private companies shares
Ans: a
43) Who is bringing out a quarterly report on public debt management on
a regular basis ?
a) Since Apr-June (Q1) 2010-11, the Public Debt Management Cell (PDMC)
(earlier Middle Office), Budget Division, Department of Economic Affairs,
Ministry of Finance
b) SBI
c) Allahabad Bank
d) PNB
Ans: a
44) India’s current account
deficit (CAD) at US$ _____ billion (2.0 per cent of GDP) in Q1 of 2019-20
narrowed from US$ 15.8 billion (2.3 per cent of GDP) in Q1 of 2018-19 but was
higher than US$ 4.6 billion (0.7 per cent of GDP) in the preceding quarter.
a) 10
b) 14.3
c) 5
d) 4
Ans: b
45) US dollar denominated debt
continued to be the largest component of India’s external debt, with a share of
51.5 per cent at end-June 2019, followed by which of these ?
1) Indian rupee (34.7 per cent )
2) Yen (5.1 per cent)
3) SDR (4.7 per cent) ; the
euro (3.2 per cent).
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
46) A noteworthy feature
of public finances of states during 2014-19 is the strong drive
towards__________, a trend continuing from the preceding five-year period
(2009- 14)
a) consideration
b) consolidation
c) condensation
d)determination
Ans: b
47) The year 2018-19, marks a
watershed, with some state governments opting for income support schemes as the
preferred policy tool over conventional policies like enhancing minimum support
prices (MSP) and farm loan waivers to alleviate agricultural distress. While
the broad objective of all the three policies is to stabilise farmers’ incomes,
income support schemes have certain advantages over the rest.
Consider the following objectives of it :
1) First, income support schemes are more inclusive as even landless
farmers and farmers having no access to bank credit can be covered, whereas
farm loan waivers benefit only those farmers who have borrowed from banks.
2) Second, the problem of moral
hazard, which is typically associated with farm loan waivers, does not exist in
the case of income support schemes
3) Furthermore, direct benefit transfers are the fastest and most
effective way to reach farmers, by contrast, benefits of Minimum Support Prices
(MSPs) reach the farmers only indirectly and are mostly appropriated by traders
who bring the produce to the market
Which of the statements given above is / are correct ?
(a)1 only (b) 2 only
( c ) Both 1 and 2 ( d ) 1,2,3
Ans: d
48) GST was enacted with the Constitution (One Hundred and First
Amendment) Act, 2016, giving way to which of the following ?
a) Central Goods and Services Tax (CGST)
b) State Goods and Services Tax
(SGST)
c) Integrated Goods and Services
Tax (IGST); Compensation Law
d) All the above
Ans: d
49) Power sector is a concurrent subject under Article ________of the
Indian Constitution, and states came to play the pivotal role following the
passage of the Electricity Supply Act 1948 (ESA) that mandated the setting up
of State Electricity Boards (SEBs)
a) 356
b) 246
c) 65
d) 165
Ans: b
50) RBI decided, in
consultation with the Government of India, that the limits for Ways and Means
Advances (WMA) for the second half of the financial year 2019-20 (October 2019
to March 2020) will be Rs. ______crore.(as per news in the end of 2019)
a) 25,000
b) 35,000
c) 15,000
d) 10,000
Ans: b
No comments:
Post a Comment