Q1. Consider the following statements regarding Dispute Settlement Board (DSB) of WTO
1. The General Council of WTO acts like a Dispute Settlement Board.
2. DSB takes up the dispute only after 60 days of time is given to the disputants to resolve the dispute among themselves
3. Its decision is final and cannot be challenged
4. It does not pronounce any specific punishment if, after ruling, the erring nation does not rectify the issues.
Which of the following statements given above is/are correct?
a) 1 and 2 only
b) 1, 2 and 4 only
c) 1, 3 and 4 only
d) 2 and 3 only
Ans: b) Statement 2 is false. The decision of DSB can be challenged in an appellate board. Rest all the statements are correct.
Q.2 Identify the correct statement regarding Masala Bonds:
a) They are dollar denominated overseas bonds
b) The are rupee denominated domestic bonds
c) Currency risk lies with the investor
d) None of these
Ans c) Masala bond are rupee dominated overseas bonds. Since they are rupee dominated, the currency risk lies with the investor.
Q.3 Which of the following are a part of the Capital Expenditure by the govt.?
1. Loans disbursed by the government.
2. Grants given by the govt. to the foreign countries.
3. Loans repayable by the government
4. Interest repayment by the govt. on the borrowings made in the past.
Select the correct option using the codes given below:
a) 1, 2 and 3 only
b) 2, 3 and 4 only
c) 1 and 3 only
d) 1, 2 and 4 only
Ans c) Loans disbursed and repayable come under the head of capital expenditure. 2 and 4 come under revenue expenditure
Q.4 The twin balance sheet problem is related to:
a) Banking sector and Corporate sector
b) Fiscal Deficit and Current Account Deficit
c) Stressed sectors
d) Manufacturing and Services sector
Ans: a) The twin balance sheet problem mentioned in economic survey is related to the balance sheet issues of banking as well as the corporate sector.
Q.5) Consider the following problems:
1. Identification of beneficiary
2. Transfer of money to the beneficiary
3. Easy access to the money for the beneficiary
Which of the above can be solved using the JAM trinity:
a) 2 and 3 only
b) 1and 2 only
c) 1 and 3 only
d) 1, 2 and 3
Ans: d) To identify the beneficiaries, govt needs database of people which can be provided using
the Aadhar card. Hence, Statement 1 is correct
For transfer of money, bank accounts are needed. Jan Dhan Yojana has created millions of bank
accounts. So statement 2 is correct.
Easy access to money can be achieved by the use of mobile technology. Hence statement 3 is
Q.6) Which of the following organizations release Global Financial Stability Report
b) World Bank
d) World Economic Forum
Q.7) Which of the following statements best represent the term ‘Primary Deficit’
a) It is the difference between the total revenues and the total expenditure
b) It is the difference between fiscal deficit and the loans given abroad
c) It is the difference between the revenue receipts and the revenue expenditure
d) It is the difference between the fiscal deficit and interest payments
Ans:d) Primary deficit refers to the deficit without including interest payments on loans taken out
to finance the operation of the government.