Target Prelims 2021

Indian Economy based Current Affairs: 3

Q1. Consider the following statements regarding e-₹UPI:
1. It is a new methodology under DBT, where the benefits are directly transferred into
the bank accounts of the beneficiary.
2. Has been developed by NPCI.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q2. Consider the following statements regarding fertilisers subsidy:

1. Govt provides subsidy for all the three - Urea, DAP and MoP - based on the NBS
regime.
2. Fertiliser subsidy is administered by Ministry of agriculture.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q3. The ‘e-Urvarak’ portal often appearing in newspaper is related to:

a) Portal related to taxpayer charter
b) Portal related to promotion of MSMEs
c) Portal related to DBT in fertilisers
d) Portal related to ease of doing business
Q4. Consider the following statements regarding WMA:
1. The facility is to provide short term loans of duration up to a year for the government.
2. The central bank charges a bank rate on such lending.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q5. Consider the following statements:

1. The state governments need to take the consent of the central govt. for borrowings.
2. The debt of the all-state governments put together is higher than that of the central
government.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q6. Consider the following statements:

1. The state finance commissions are set up under art 280.
2. The state finance commission is appointed by the governor of the state.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q7. Consider the following statements regarding CSS:
1. Core of core schemes are implemented for social inclusion and social protection.
2. The allocations under the core of core schemes has increased in for the last three
years.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q8. Which of the following are part of the CSS:

1. National Social Assistance Program.
2. Mahatma Gandhi National Rural Employment Guarantee Program.
3. Umbrella Programme for Development of Minorities.
4. Umbrella Programme for Development of Scheduled Tribes.
Choose the correct option:
a) 1 and 2
b) Only 2
c) 2, 3 and 4
d) 1, 2, 3 and 4

Q9. Consider the following statements regarding small saving schemes (SSS):
1. SSS comprise of 12 instruments.
2. The interest rates on these is linked to market interest rates and are revised
periodically by RBI.
Which of the statements given above is/are correct?
 a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q10. Consider the following statements regarding Consumption Expenditure Survey

(CES):
1. It is a quinquennial survey.
2. It is conducted by Ministry of consumer affairs.
3. The data collected reflects the expenditure on food as well as non-food expenses.
Which of the statements given above is/are correct?
a) Only 1
b) 1 and 2
c) 1 and 3
d) 1, 2 and 3

Q11. Consider the following statements regarding disinvestment:

1. Disinvestment commission was set up in 1996 headed by C RANGARAJAN.
2. The revenues collected through disinvestment are part of consolidated fund.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
 Disinvestment Policy
 Strategic Sector
 Atomic energy, Space and Defence
 Transport and Telecommunications
 Power, Petroleum, Coal and other minerals
 Banking, Insurance and financial services

Non- Strategic Sector:

In this sector, CPSEs will be privatised, otherwise shall be closed.

Q12. Consider the following statements regarding Leave Travel Concession (LTC)
Voucher Scheme:
1. Under this all central government employees would be receiving same amount of
cash payment.
2. This cash payment can be used for purchasing anything from the market, which
would be spurring the demand.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q13. Consider the following statements regarding Festival Advance Scheme:

1. This scheme introduced based on the recommendation of the 7th Pay commission.
2. Govt charges very negligible rate of interest under this scheme.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q14. Consider the following statements regarding 15th FC:

 1. It has recommended sector specific grants.
2. The aggregate transfers to states is estimated to remain just above 50% of the
divisible pool during 2021-26 period.
3. Weightage given for population is the highest compared to the previous two finance
commission.
Which of the statements given above is/are correct?
a) Only 1
b) 1 and 2
c) 1 and 3
d) 1, 2 and 3

Q15. Which of the following are part of criteria for horizontal devolution recommended by
15th FC:
1. Population of 1971
2. Area
3. Forest and Ecology
4. Income Distance
5. Fiscal Capacity distance
6. Demographic performance
Choose the correct option:
a) 1, 2, 3 and 4
b) 2, 3, 5 and 6
c) 1, 3, 5 and 6
d) 2, 3, 4 and 6

Gross tax collections ₹ 135.2 lakh Cr

Divisible pool ₹ 103 lakh Cr
States’ share ₹ 42.2 lakh Cr
Total grants ₹ 10.33 lakh Cr
Total transfer to
₹ 52 lakh Cr (around 50.9% of the divisible pool)
states
Q16. Consider the following statements regarding sovereign gold bonds (SGBs):
1. On maturity the investor is paid physical gold based on the existing market value.
2. These bonds do not provide any kind of interest.
3. Eligible investors include individuals, Hindu Undivided Families (HUFs), trusts,
universities and charitable institutions.
Which of the statements given above is/are correct?
a) Only 1
b) 1 and 2
c) Only 3
d) 1, 2 and 3
Q17. Consider the following statements regarding SPAC:
1. These are also known as blank cheque companies.
2. These companies do not have any commercial operations.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q18. Consider the following statements regarding AIFs:

1. These are regulated by SEBI.
2. The SEBI registered AIF or VCF are not permitted to invest in overseas market.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q19. The terms ‘Draft Red Herring Prospectus’, ‘Green Shoe Option’ often appearing in
the news are related to:
a) Paris Climate Agreement
b) Global Minimum Corporate Tax
c) IPO
d) None of the above

Q20. Consider the following statements regarding IPO:

1. In this the company issues the shares in the secondary market.
2. All the subscribers are allocated the shares.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q21. Consider the following statements regarding covered bonds:
1. These are backed by pool of assets.
2. These bonds generally offer lower coupon rate than the normal bonds.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q22. Consider the following statements regarding ETFs:

1. ETFs are regulated by SEBI.
2. These are traded like stocks on the stock exchanges.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q23. Consider the following statements regarding P-notes:

1. Are issued by the central banker.
2. These are offshore derivative instruments.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q24. Consider the following statements regarding Green bonds:
1. The first issue of green bonds was done in 2007.
2. Partial credit enhancement is applicable to these bonds.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q25. Consider the following statements regarding Masala Bonds:

1. These are bonds issued by the companies in the food processing sector in the
domestic market.
2. The funds raised through this can be used for real estate activities, investing in capital
market, lending to other activities among other things.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q26. Consider the following statements regarding Rights Issues:

1. With rights issue the shareholders are under obligation to buy the new shares.
2. The shares issued under this has to be purchased at existing market prices.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q27. Consider the following statements regarding bilateral netting:
1. It is a legally-binding agreement.
2. The bilateral netting has come into force in India.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q28. Consider the following statements regarding AT1 bonds:

1. AT 1 bonds have a “call option” which must to be exercised by the issuer after 5
years.
2. Coupon rate of AT 1 bonds are same as the G-securities of same maturity.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q29. Consider the following statements regarding mutual funds:

1. These are regulated by SEBI.
2. The NAV of the mutual funds changes day by day.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q30. Consider the following statements regarding municipal bonds:

1. Those issued by Lucknow Municipal Corporation (LMC) is the first from north India
to get listed on the Bombay Stock Exchange (BSE).
2. For a municipality to issue the bonds, it should not have a negative net worth in any
of the three preceding financial years.
Which of the statements given above is/are correct?
 a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q31. Consider the following statements:

1. So far no diaspora bonds have been issued by the government or by an entity owned
by it.
2. India has the largest diaspora population in the world.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q32. Consider the following statements regarding EPFO:
1. Employees with a salary lesser than ₹ 15000 must mandatorily be registered under
EPF.
2. Under EPF scheme, employee has to make a certain contribution which is matched
by the employer.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q33. Consider the following statements regarding ABRY (ATMA NIRBHAR BHARAT
ROZGAR YOJANA):
1. Will be covering all the establishments.
2. EPF contributions OF BOTH THE EMPLOYER AND EMPLOYEE WILL BE
COVERED BY THE STATE GOVERNMENT UNDER THE SCHEME.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q34. The term cobweb phenomenon often appearing in the newspapers refers to:
a) Related to a computer malware.
b) Programme used for snooping.
c) Prices of certain commodities exhibit periodic fluctuations.
d) None of the above.

Q25. The term “peace clause”, “amber box” often appearing in the news is related to:
a) Affairs of WTO
b) Part of peace agreement between the USA and Taliban
c) Montreal protocol
d) None of the above
Q36. Consider the following statements regarding agriculture infrastructure fund (AIF):
1. Multiple projects will be eligible for interest subvention.
2. The scheme will be implemented for 10 years i.e. period from FY20 to FY29.
3. It is a medium to long term debt financial facility.
Which of the statements given above is/are correct?
a) Only 1
b) 2 and 3
c) 1 and 3
d) 1, 2 and 3

Q37. Consider the following statements regarding Food and Agriculture Organization
(FAO):
1. It is a specialized agency of WTO.
2. India is a founding member.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q38. Consider the following statements regarding Basic Price Scheme implemented by the
state of Kerala:
1. It is the first state in India to have such scheme.
2. This has been notified under the state APMC act.
3. If the market prices of notified commodities falls below the base price then
government would be procuring these commodities.
Which of the statements given above is/are correct?
a) Only 1
b) 2 and 3
c) 1 and 3
d) 1, 2 and 3
Q39. Consider the following statements regarding National Food Security Act:
1. The beneficiaries under this are identified by the central government.
2. The central issue prices under this are revised annually.
3. Antyodaya Anna Yojana households will be covered under this.
Which of the statements given above is/are correct?
a) Only 3
b) 1 and 2
c) 2 and 3
d) 1, 2 and 3

Q40. Consider the following statements regarding Sub-Mission on Agricultural

Mechanization (SMAM):
1. To purchase equipment, subsidy is provided under this scheme.
2. Promotes establishing custom hiring centers.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q41. Consider the following statements regarding e-NAM:

1. The payment of the farmers have to be made mandatorily through DBT.
2. Promotes the electronic auction as a mode of price discovery.
3. Single license will be valid across the state.
Which of the statements given above is/are correct?
a) Only 1
b) 1 and 3
c) 2 and 3
d) 1, 2 and 3
Q42. The term “off-budget borrowing” often appearing in the new refers to:
a) Total borrowing of the central and state government.
b) Government borrowing from other foreign governments.
c) Borrowing done by the government from international financial institutions.
d) Are loans that are taken not by the Centre directly, but by another public institution.

Q43. Consider the following statements:

1. Government under modified scheme to enhance ethanol distillation capacity
provides interest subvention for all the molasses based ethanol distilleries.
2. CACP approves the FRP for sugarcane.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

Q44. Consider the following statements regarding the Nairobi declaration/package under
WTO:
1. Was outcome of 10th ministerial conference.
2. The member countries shall ensure that any export subsidies have at most minimal
trade distorting effects and do not displace or impede the exports of another member.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q45. Which of the following are associated with increasing edible oil production in India:
1. Rashtriya Krishi Vikas Yojana
2. National Food Security Mission
3. Technology Mission on Oilseeds
4. Oil Palm Development Programme
Choose the correct option:
a) 1, 2 and 3
b) 2 and 3
c) 1, 2 and 4
d) 1, 2, 3 and 4

Q46. Consider the following statements:

1. The value of vegetable oil imports have consistently increased in the last five years.
2. The domestic consumption of the edible oils have consistently increased in the last
five years.
Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2