Good morning everyone, how is your preparation going for UPSC IAS Prelims 2016? Find the answers of Economy Quiz #7, and find out the mistakes committed in preparation.
[Solution]
Q.1)Consider the following statements:
1.Asian development bank provides soft and hard loans
2.Asian Development bank funds are provided to Asia-Pacific region only.
3.Asian Development bank provide loans to private and public players.
Select the correct statement using the codes given below.
a) 2 and 3 only
b) 1 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Ans-[D]
Explanation– The ADB offers “hard” loans on commercial terms primarily to middle income countries in Asia and “soft” loans with lower interest rates to poorer countries in the region. Based on a new policy, both types of loans will be sourced starting January 2017 from the bank’s ordinary capital resources (OCR), which functions as its general operational fund.
ADB focuses its operations on Asia Pacific region only and takes effort to make Asia Pacific poverty free.
Statement 3 is right as it provides loan to both public and private players.
Q.2) Consider the following statement about Krishi Kalyan surcharge?
1. Krishi kalyan cess is another name of krishi kalyan surcharge.
2. Finance Bill defines Krishi Kalyan surcharge as ‘a service tax on all or any of the taxable services at the rate of 0.5 percent on the value of such services for the purposes of financing and promoting initiatives to improve agriculture.’
Select the correct statement using the codes given below.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans – [D]
Explanation-Krishi Kalyan Cess is different from the Krishi Kalyan Surcharge which is announced by the Government in the same Union Budget, 2016-17. In order to provide a stable and predictable taxation regime and reduce black money, it was announced in the budget that domestic tax payers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge (means an addition to the existing tax) at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. This surchrge levied is Krishi Kalyan Surcharge.
Statement 2 talks about krishi Kalyan cess. Therefore, statement 2 is also incorrect.
Q.3)Consider the following statements about consolidation of PSBs
1. Consolidation of PSBs is proposed mainly to increase financial inclusion.
2.Consolidation of PSBs will improve NPAs.
Select the correct statement using the codes given below:
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[B]
Explanation– Main purpose of consolidation is to increase the capital base of the banks which will help them fund big infrastructure projects and improve their capital efficiency.
Q.4)Deendayal Upadhaya Swaniyojan Yojana is a rural avatar of:
a) Stand up India
b) Start up India
c) Mudra Yojana
d) Deendayal Upadhaya vidyutikaran Yojana
Ans – [B]
Explanation – It was in news recently.
Q.5) Infrastructure and urban development: Building foundations for transparency is a report published by
a) World Economic Forum
b) World Bank
c) IMF
d) BRICS bank
Ans-[A]
Explanation – It was in news recently. This report is published by WEF and main focus of report is on real estate and infrastructure projects.
Q.6) Consider the following statements:
1. Fundamentally cottage, small scale and village industry are all same.
2. Small industry units are run by family members on full or part time basis.
Which of the above statements is/are correct?
a) 1 only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
Ans-[D]
Explanation– Fundamentally they are different. Cottage industry is run by family members on full or part time basis. It possess negligible investment and production is handmade. Small industrial units employ wage earning labor and production is done by use of modern techniques.
Q.7)Which of the following parameters comes under Human Poverty Index.
1. Life span
2. Long term employment
3. Functional literacy skill
4. Standard of living
Select the correct answer using the codes given below.
a) 2, 3 and 4 only
b) 1, 3 and 4 only
c) 1 and 3 only
d) 1, 2, 3 and 4
Ans-[C]
Explanation-HPI is an indication of std of living in a country developed by UN. It has following parameters:
1. Life span
2. Functional literacy skills
3. Long term Unemployment
4. Relative poverty with reference to avg per capita income
Q.8) Which of the following countries are the members of Shanghai cooperation organization?
1. India
2. Tajikistan
3. Turkmenistan
4. Uzbekistan
5. Russia
Select the correct answer using the codes given below.
a) 1, 2, 4 and 5 only
b) 2, 3, 4 and 5 only
c) 1, 3, 4 and 5 only
d) 1, 2, 3, 4 and 5
Ans-[A]
Explanation-Member states are – Kazakhstan, China, Kyrgyzstan, Russia,Tajikistan and Uzbekistan, India and Pakistan
Q.9)8th annual summit of Brics will be held at
a) Maharashtra
b) New delhi
c) Goa
d) Sikkim
Ans-[C]
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