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TEST BOOKLET

GENERAL STUDIES (P) 2022 – Test – 3490

C
Time Allowed: Two Hours Maximum Marks: 200

INSTRUCTIONS

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4. This Test Booklet contains 100 items (Questions). Each item is printed in English. Each item comprises four
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feel that there is more than one correct response with you consider the best. In any case, choose ONLY ONE
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1. Which of the following statements is/are 4. Which of the following financial instruments
correct about Regional Rural Banks (RRBs)? gives the buyer the right to buy and the seller
1. They are supervised and regulated by
the obligation to sell?
NABARD.
(a) Call Option
2. Share of Central government is largest in
RRBs. (b) Put Option
3. Capital Adequacy Ratio norms are not (c) Swap
applicable to it. (d) Futures contract
Select the correct answer using the code
given below.
5. Which of the following activities is/are
(a) 1, 2 and 3
(b) 3 only outside the scope of Goods and Service Tax?
(c) 2 and 3 only 1. Functions performed by the members of
(d) 1 and 2 only Parliament and State Legislatures.
2. Services of funeral, burial, crematorium
2. Consider the following statements regarding
or mortuary.
Investor Education Protection Fund (IEPF) :
1. It is administered by the Securities and 3. Selling of lottery ticket.
Exchange Board of India (SEBI). Select the correct answer using the code
2. It is funded through annual budgetary given below.
contributions.
(a) 1 and 2 only
Which of the statements given above is/are
(b) 2 only
correct?
(a) 1 only (c) 3 only
(b) 2 only (d) 1, 2 and 3
(c) Both 1 and 2
(d) Neither 1 nor 2
6. With reference to disguised unemployment,
which of the following statements is not
3. Consider the following statements with
regards to the Revenue Expenditure in correct?
budget 2021-22: (a) It refers to a situation where any
1. It includes payment of salaries and individual or a segment of a population
pensions.
is not employed at full capacity.
2. It does not result in the creation of
assets. (b) It is unemployment that does not affect

3. Capital expenditure in India is higher aggregate output.

than revenue expenditure. (c) Engagement of surplus in the labor force
Which of the statements given above is/are in a given work leads to disguised
correct?
unemployment.
(a) 1 and 2 only
(b) 2 only (d) A housewife working on daily chores

(c) 1 and 3 only without a wage can be characterised as

(d) 1, 2 and 3 disguised unemployment.
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7. Recently seen in the news InFinity Forum is 10. Consider the following statements regarding
related to: the 'transaction demand' for money in an
(a) Meeting of leaders and industrialists to economy:
curb post CoVID effects in global 1. It is directly proportional to the real

workforce GDP.
2. It is inversely proportional to the price
(b) Forum held in the backdrop of Indian
level.
Science Congress highlighting the
Which of the statements given above is/are
evolution of black body radiations
correct?
(c) Leadership forum to promote Fintech's
(a) 1 only
role in inclusive growth (b) 2 only
(d) NASA's program to promote scientific (c) Both 1 and 2
temperament amongst the tribal children (d) Neither 1 nor 2
in India and Africa
11. Which of the following could lead to
8. Recently seen in the news 'Apretude' is inflation in the Indian economy?
related to: 1. Rising global inflation
(a) First injectable drug for reducing risk to 2. Hike in interest rates in the economy
3. Devaluation of Indian rupee
acquiring HIV.
Select the correct answer using the code
(b) Recently developed RADAR system by
given below.
Defence Research Development
(a) 1 only
Organization.
(b) 2 and 3 only
(c) Asteroid protection missile launched by
(c) 1 and 3 only
European Space Agency (d) 1, 2 and 3
(d) A Malware detected in website of
Ministry of Power. 12. Recently, the Securities and Exchange Board
of India (SEBI) has approved the framework
9. For income accounting, the domestic for Social Stock Exchange. In this context,
territory of a country includes which of the consider the following statements:
following? 1. Social enterprises having social intent

1. Territory within the political frontiers and impact can utilize the Social Stock
Exchange platform for their funding
2. Oil and natural gas rigs operated by the
requirements.
country in international waters
2. Social audit shall be mandated for social
3. Embassies of other countries located on
enterprises raising funds on Social Stock
its own territory
Exchange.
Select the correct answer using the code Which of the statements given above is/are
given below. correct?
(a) 1 only (a) 1 only
(b) 1 and 2 only (b) 2 only
(c) 2 and 3 only (c) Both 1 and 2
(d) 1 and 3 only (d) Neither 1 nor 2
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13. Consider the following pairs: 16. Which among the following is/are the
Reports Published by method to calculate the National Income in
1. World Migration : Amnesty an economy?
Report International (a) Measuring the aggregate value of factor
2. World Inequality : Oxfam payments
Report (b) Measuring the aggregate value of goods
3. Worldwide Cost of : Economic and services produced by firms
Living Index Intelligence Unit (c) Measuring the aggregate value of
Which of the pairs given above is/are spending received by the firms
correctly matched? (d) All statements (a), (b), (c) and (d) are
(a) 2 and 3 only correct.
(b) 1, 2 and 3
(c) 1 only 17. Consider the following statements:
(d) 3 only 1. Nominal GDP is the value of GDP at the
current prevailing prices.
14. Which of the following is entrusted with the 2. Real GDP is calculated in a way such
responsibility of preparation of outcome that the goods and services are evaluated
budget for all Central Ministries/ at constant prices.
Departments in India? Which of the statements given above are
(a) Budget division under Department of correct?
Economic Affairs (a) 1 and 2 only
(b) Public Finance Division under (b) 2 and 3 only
Department of Expenditure (c) 1 and 3 only
(c) Financial Intelligence Unit, India (FIU- (d) 1, 2 and 3
IND)
(d) Department of Revenue, Ministry of 18. With reference to Fiscal policy in India,
Finance consider the following statements:
1. It primarily deals with the supply of
15. Recently seen in the news Log4Shell is money in the economy and the
related to: prevailing rates of interest.
(a) Initiative of the Ministry of Corporate 2. While the Government deals with fiscal
affairs against the Shell companies. policy, the RBI is responsible for
(b) Collaborative effort to boost shellfish Monetary Policy.
productivity under the Pradhan Mantri Which of the statements given above is/are
Matsya Sampada Yojana. correct?
(c) Recently detected software based (a) 1 only
computer vulnerability. (b) 2 only
(d) Latest bank accounting method under (c) Both 1 and 2
the BASEL norms. (d) Neither 1 nor 2

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19. Which of the following best describes 22. Consider the following statements regarding
Skewflation? the 'Retail Direct scheme' launched by the
Reserve Bank of India (RBI):
(a) It refers to a sustained, across-the-board
1. This scheme facilitates a person to
price increase in an economy.
directly open an account with RBI for
(b) It is the change in the costs of goods and
purchasing government securities.
services excluding most volatile 2. Under this scheme access to primary
components. issuance of government securities will
(c) It refers to the inflation caused when be given to the account holders.

aggregate demand in an economy Which of the statements given above is/are

correct?
strongly outweighs the aggregate supply.
(a) 1 only
(d) It is a situation in which price levels of a
(b) 2 only
few goods increase at a faster rate (c) Both 1 and 2
compared to others. (d) Neither 1 nor 2

20. Recently seen in the news VIHANGAM is 23. With reference to the Global Health Security
Index 2021, Consider the following
related to:
statements:
(a) Cultural exchange program signed
1. The Global Health Security Index is
between India and Nepal. released annually by the World Health
(b) Ayurvedic treatment proposed for the Organization.
mutated coronavirus. 2. China has the lowest index score

(c) Supersonic cruise control missile amongst the BRICS countries.

Which of the statements given above is/are
developed by DRDO.
correct?
(d) Portal for real time monitoring of mining
(a) 1 only
activities. (b) 2 only
(c) Both 1 and 2
21. Consider the following statements regarding (d) Neither 1 nor 2

Sweat Equity shares:

24.
1. Sweat Equity shares are shares issued by
a company to its directors or employees
for non-cash consideration.
2. In India, companies are prohibited from
issuing sweat equity shares.
Consider the following statements about the
speculative demand for money in the
economy:
1. It is inversely related to the rate of
interest.
2. In a situation of liquidity trap, it is

Which of the statements given above is/are infinite.

Which of the statements given above is/are
correct?
correct?
(a) 1 only
(a) 1 only
(b) 2 only (b) 2 only
(c) Both 1 and 2 (c) Both 1 and 2
(d) Neither 1 nor 2 (d) Neither 1 nor 2
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25. In the context of the recent initiative towards 28. With reference to the 'Dare to Dream'
tokenization of card payments by RBI, Challenge, consider the following
consider the following statements regarding statements:
tokenization: 1. It is a global contest to support startups
1. Tokenisation and de-tokenization can be and innovations in space technology.
performed only by the authorized card 2. It is a collaborative effort between
network. NASA and ISRO.
2. It is mandatory for transactions on e- Which of the statements given above is/are
commerce platforms. correct?
Which of the statements given above is/are (a) 1 only
correct? (b) 2 only
(a) 1 only (c) Both 1 and 2
(b) 2 only (d) Neither 1 nor 2
(c) Both 1 and 2
(d) Neither 1 nor 2 29. How does the Reserve Bank of India
discharge its statutory obligation of being
26. With reference to the National Oxygen 'Banker to Government'?
Stewardship Program, consider the 1. It maintains the Principal Accounts of
following statements: Central as well as State Governments.
1. The initiative aims to empower all 2. It is the aggregator for accounting of all
healthcare workers engaged in oxygen GST collections.
management and administration. Select the correct answer using the code
2. It is launched by the NITI Aayog under
given below.
Atal Innovation Mission.
(a) 1 only
Which of the statements given above is/are
(b) 2 only
correct?
(c) Both 1 and 2
(a) 1 only
(d) Neither 1 nor 2
(b) 2 only
(c) Both 1 and 2
30. Consider the following pairs:
(d) Neither 1 nor 2
Term Meaning
1. Tax : Illegal practice of not
27. With reference to the Government Securities
avoidance paying taxes, by not
Acquisition Programme (G-SAP), consider
reporting income.
the following statements:
2. Tax : Enforcing the tax law on
1. Under this program, RBI purchases the
evasion the general public in a
Government Securities from the market
harsh manner.
irrespective of the market sentiment.
3. Tax : Legitimate act of
2. It may reduce borrowing cost of the
terrorism minimizing taxes, using
government.
methods approved by the
3. It tends to depreciate the value of the
Government.
Indian currency.
Which of the statements given above is/are Which of the pairs given above is/are not
correct? correctly matched?
(a) 1 and 2 only (a) 1 and 2 only
(b) 2 only (b) 1 and 3 only
(c) 1 and 3 only (c) 2 and 3 only
(d) 1, 2 and 3 (d) 1, 2 and 3
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31. Consider the following statements: 34. In the context of economics, Kuznets Curve
1. Disinflation is a situation of the general shows the relationship between
(a) Unemployment and Inflation
decline of the price levels of goods and
(b) Tax rates and tax revenue
services in an economy.
(c) Inequality and Income per capita
2. Reflation aims to stop deflation in an (d) Inflation and GDP Growth
economy.
Which of the statements given above is/are 35. Recently seen in news "Puneet Sagar
Abhiyan" is related to:
correct?
(a) Counter piracy exercise hosted by the
(a) 1 only Indian Navy
(b) 2 only (b) Deep Seabed Mining project of the
(c) Both 1 and 2 Ministry of Earth Sciences
(d) Neither 1 nor 2 (c) NCC's awareness campaign about clean
seashores and beaches
(d) Consortium of the Indian coastal states
32. Which one of the following best defines a for disaster preparedness and prevention.
Regressive tax?
(a) A tax that takes a larger percentage of 36. Which of the following statements is/are
income from high-income groups than correct about RBI?
1. It receives and pays money on behalf of
from low-income groups.
the various Government departments.
(b) A tax that takes the same percentage of 2. It act as banker to both central and state
income from all income groups. governments.
(c) A tax that takes a larger percentage of 3. It acts as the ‘lender of last resort’ to the
government.
income from low-income groups than
Select the correct answer using the code
from high-income groups.
given below.
(d) None of the above (a) 1 and 3 only
(b) 1 and 2 only
33. Which of the followings can be categorised (c) 3 only
(d) 1, 2 and 3
as high powered money?
1. Currency and coins held by the public
37. With reference to Union Budget, which of
2. Deposits held by commercial banks with the following forms part of Revenue
RBI Receipts?
3. Deposits held by the Government of 1. Disinvestment of Public Sector
undertakings.
India with RBI
2. Income from sale of spectrum.
4. Vault cash of commercial banks 3. Grants-in-aid from foreign
Select the correct answer using the code Governments.
given below. Select the correct answer using the code
(a) 1 and 2 only given below.
(a) 2 and 3 only
(b) 2 and 3 only
(b) 1, 2 and 3
(c) 3 and 4 only (c) 1 and 3 only
(d) 1, 2, 3 and 4 (d) 1 and 2 only

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38. Consider the following statements regarding 41. Sterilization operations are likely to be
progressive taxation: carried out by RBI under which of the
1. It is a tax that takes a larger percentage following conditions?
of income from high-income groups than 1. Huge inflow of foreign currency
from low-income groups. 2. Huge demand for forex by Indian
2. It helps in reducing inequalities of business to invest abroad
income and wealth. 3. Significant increase in domestic

Which of the statements given above is/are borrowings by the Union Government

correct? Select the correct answer using the code

given below.
(a) 1 only
(a) 1 only
(b) 2 only
(b) 2 and 3 only
(c) Both 1 and 2
(c) 1 and 3 only
(d) Neither 1 nor 2
(d) 1, 2 and 3

39. In India, government securities can be

42. Consider the following:
bought and sold in the secondary market
1. Clothes bought by kids
through
2. Coffee machines in the cafeteria
1. Negotiated Dealing System-Order
3. Tea leaves purchased by a restaurant
Matching (NDS-OM)
Which of the above are examples of Capital
2. Over the Counter (OTC)
Goods?
3. Stock exchanges (a) 1 only
Select the correct answer using the code (b) 2 only
given below. (c) 2 and 3 only
(a) 1 only (d) 1, 2 and 3
(b) 1 and 2 only
(c) 2 and 3 only 43. With reference to the Sovereign Gold Bonds
(d) 1, 2 and 3 (SGBs), consider the following statements:
1. They are government securities issued
40. Expenditures on which of the following are by commercial banks on behalf of the
considered Transfer expenditure of the Reserve Bank of India.
Government? 2. Only Indian citizens are eligible to
1. Pension Schemes invest in the SGBs.
2. Subsidies 3. Besides market-linked returns, it offers a
3. Unemployment allowances fixed interest income to the investor.
Select the correct answer using the code Which of the statements given above is/are

given below. correct?

(a) 1 and 2 only (a) 1 and 2 only

(b) 1 and 3 only (b) 2 and 3 only

(c) 3 only
(c) 2 and 3 only
(d) None
(d) 1, 2 and 3
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44. With reference to the Usual Status approach 47. Recently seen in the news "The Global
to measuring unemployment in India, Gateway" is an initiative of:
consider the following statements: (a) UNESCO
1. This approach to measuring (b) European Union
unemployment uses seven days (c) BRICS
preceding the date of the survey as the (d) World Bank
reference period.
48. Net National Product (NNP) is obtained
2. It fails to capture the short term
from GDP by
fluctuations in unemployment caused
(a) Deducting Net factor income from
due to seasonality in labour markets.
abroad and adding Depreciation
Which of the statements given above is/are
(b) Adding Net factor income from abroad
not correct? and deducting Depreciation
(a) 1 only (c) Adding Net factor income from abroad
(b) 2 only and adding taxes
(c) Both 1 and 2 (d) Adding Net factor income from abroad
(d) Neither 1 nor 2 and deducting taxes

45. Which of the following is the objective of 49. Arrange the following sources of income of
SRESHTA Yojana? the government in Budget 2021-22
(a) It aims to enhance residential high according to their share in decreasing order.
school education for SC children. 1. Corporation tax
(b) It aims to enhance the capabilities of 2. Goods and Services Tax (GST)
3. Borrowings and Liabilities
MSME sector in India.
4. Customs
(c) It aims to create awareness around safe
Select the correct answer using the code
mining procedures.
given below.
(d) It aims to revamp the jute industry.
(a) 1-3-2-4
(b) 3-2-1-4
46. With reference to the India Young Water (c) 1-2-3-4
Professional Program, consider the (d) 3-1-4-2
following statements:
1. The India Young Water Professional 50. Which of the following best describes 'Twin
Program is a part of the National Balance sheet Problem' often seen in news?
Hydrology Project. (a) It refers to the deficits faced by public
2. The program aims to focus on gender sector banks and state governments
equality-based sustainable water because of various farmer's loan waiver
management. schemes.
3. It is a collaborative effort of the World (b) It is the high fiscal deficit of both
Bank and the Ministry of Jal Shakti. Central and state governments.
(c) It is a problem due to elimination of
Which of the statements given above is/are
planned and unplanned categorization of
correct?
government expenditures.
(a) 1 only
(d) It is two-fold problems for Indian
(b) 3 only
economy which deals with
(c) 1 and 2 only overleveraged companies and bad-loan-
(d) 1, 2 and 3 encumbered-banks.
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51. While following a counter-cyclical fiscal 54. With reference to the Vernacular Innovation
policy, which of the following steps are Program, consider the following statements:
taken by the government during a recession? 1. The program is an initiative by the
1. It increases expenditure on public Ministry of Culture to protect languages
projects. across the country.
2. All 22 scheduled languages in the Indian
2. It strives to raise taxes on individual
Constitution are under the ambit of the
income.
Vernacular Innovation Program.
3. It increases total spending as a
Which of the statements given above is/are
percentage of GDP.
correct?
Select the correct answer using the code (a) 1 only
given below. (b) 2 only
(a) 1 and 3 only (c) Both 1 and 2
(b) 2 and 3 only (d) Neither 1 nor 2
(c) 1 and 2 only
(d) 1, 2 and 3 55. With reference to the recently conducted
Targeted Long-Term Repo Operations
52. Consider the following statements regarding (TLTRO) by the RBI, consider the following
GDP deflator: statements:
1. If the value of the GDP deflator is 1. It is a type of repo operation to ensure
long-term liquidity for specific sectors.
greater than 1 then it means that the real
2. Funds raised by banks under TLTROs
GDP is higher than the nominal GDP.
are exempted from the regulatory
2. GDP deflator takes into account all the
requirement of the cash reserve ratio.
goods and services that are used by the
Which of the statements given above is/are
consumers of the country. correct?
Which of the statements given above is/are (a) 1 only
not correct? (b) 2 only
(a) 1 only (c) Both 1 and 2
(b) 2 only (d) Neither 1 nor 2
(c) Both 1 and 2
(d) Neither 1 nor 2 56. Recently, the Securities and Exchange Board
of India (SEBI) has introduced an optional
53. In the context of banking, which of the T+1 settlement cycle for the markets. It
following statements best describes the means
(a) settlements will have to be cleared
‘bank spread’?
within one day of the actual transactions
(a) It is the profit that is appropriated by the
taking place.
RBI through open market operations.
(b) settlements will have to be cleared
(b) It is the difference between repo rate and
within one hour of the actual
reverse repo rate. transactions taking place.
(c) It is the difference between the (c) settlements will have to be cleared
borrowing and lending interest rates of within one week of the actual
the bank. transactions taking place.
(d) It is the profit that is appropriated by the (d) settlements will have to be cleared
bank through investment in Government within half day of the actual transactions
securities. taking place.
10 www.visionias.in ©Vision IAS
57. Recently Consumer Price Index (CPI) has 59. With reference to the Imaging X-ray
been declining but the Wholesale Price Polarimetry Explorer (IXPE), consider the
Index (WPI) has been rising, with reference following statements:

to inflation and its targeting in India, 1. The observatory aims to study supernova
remnants and black holes by orbiting
consider the following statements:
around Earth's equator.
1. Increase in inflation indicates a decrease
2. IXPE is a collaborative mission of
in purchasing power of a given currency
NASA and the Italian Space Agency.
over time.
Which of the statements given above is/are
2. The Reserve Bank of India (RBI) uses correct?
Consumer Price Index (CPI) for inflation (a) 1 only
targeting in India. (b) 2 only
Which of the statements given above is/are (c) Both 1 and 2
correct? (d) Neither 1 nor 2
(a) 1 only
(b) 2 only 60. Which of the following activities is/are
freely permitted under the Liberalized
(c) Both 1 and 2
Remittance Scheme of RBI?
(d) Neither 1 and 2
1. Trading in international foreign
exchange abroad
58. Which of the following statement best 2. Gifts or donations
describes the difference between Near 3. Education abroad
money and Dear money? Select the correct answer using the code
(a) Near money is readily and easily given below.
available for borrowing owing to low (a) 1 and 2 only
interest rates; Dear money is money that (b) 2 and 3 only
turns expensive to borrow owing to high (c) 3 only
(d) 1, 2 and 3
interest rates.
(b) Near money is when money turns
61. Consider the following statements with
expensive for borrowing owing to high
regards to Zero Based Budgeting:
interest rates; Dear money is highly
1. It is a method of budgeting in which all
liquid assets that can be easily converted expenses must be justified for each new
into cash. period starting from a zero base.
(c) Near money is highly liquid assets that 2. Unspent money allocated to a particular
can be easily converted into cash; Dear ministry is allowed to be carried forward
money is when money turns expensive in next financial year.
to borrow owing to high interest rates. Which of the statements given above is/are

(d) Near money is highly liquid assets that correct?

(a) 1 only
can be easily converted into cash; Dear
(b) 2 only
money is hard assets such immovable
(c) Both 1 and 2
property.
(d) Neither 1 nor 2
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62. Which of the following are the central level 65. With reference to ASIGMA (Army Secure
taxes that have been subsumed under Goods IndiGeneous Messaging Application),
and Service Tax (GST)? consider the following statements:
1. Octroi and Entry tax 1. ASIGMA is being deployed as a
2. Additional Excise Duty replacement of the Army Wide Area
3. Additional Customs Duty Network.
Select the correct answer using the code 2. The web-based application has been
given below.
designed and developed by the National
(a) 1 and 2 only
Informatics Centre, Ministry of
(b) 2 and 3 only
Electronics and Information
(c) 1 and 3 only
Technology.
(d) 1, 2 and 3
Which of the statements given above is/are
correct?
63. Which of the following statements are
correct regarding payment banks in India? (a) 1 only

1. They are required to invest minimum (b) 2 only

75% of its demand deposit balances in (c) Both 1 and 2
Government securities. (d) Neither 1 nor 2
2. They are registered as a public limited
company under the Companies Act, 66. Which of the following statements best
2013. describes the 'seigniorage'?
3. They can not issue credit cards. (a) Profits government make by minting
Select the correct answer using the code currency.
given below. (b) Cost incurred by govt for printing
(a) 1 and 3 only currency.
(b) 3 only (c) Operational cost incurred by RBI on
(c) 1 only
‘Open Market Operations’.
(d) 1, 2 and 3
(d) Cost incurred by government on printing
new currency due to demonetisation.
64. Consider the following statements regarding
a company looking to raise capital from the
67. Consider the following statements with
market:
reference to the Consumer Price Index:
1. In an Initial Public Offering (IPO) of a
1. Consumer Price Index excludes the
company no intermediaries are involved
and shares are sold directly to the public. prices of imported goods.
2. Direct Listing as a method to raise 2. The weights of goods measured in the
capital is generally riskier than the IPO Consumer Price Index differ according
method. to the production level of goods.
Which of the statements given above is/are Which of the statements given above is/are
correct? correct?
(a) 1 only (a) 1 only
(b) 2 only (b) 2 only
(c) Both 1 and 2 (c) Both 1 and 2
(d) Neither 1 nor 2 (d) Neither 1 nor 2
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68. With reference to Equalization Levy in 71. Which of the following statements is/are
India, consider the following statements: correct regarding Scheduled Banks in India?
1. Equalization Levy was introduced to tax 1. They are listed in the second schedule of
payments for digital advertisement
the Banking Regulation Act, 1949.
services received by resident companies
2. To qualify as a scheduled bank, a bank
with a permanent establishment in India.
must have a reserve capital of Rs 5 lakh.
2. Equalization Levy of 5% is levied on all
e-commerce operators providing e- 3. Non-scheduled banks are not entitled to
commerce supply to a person resident in borrow from the RBI for normal banking
India. purposes in all circumstances.
Which of the statements given above is/are Select the correct answer using the code
correct? given below.
(a) 1 only
(a) 1, 2 and 3
(b) 2 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 (c) 2 and 3 only
(d) 1 only
69. Consider the following statements with
reference to the broad money (M3 and M4) 72. In the context of the budget of India, which
in India: of the following constitutes Non-debt
1. It is most liquid and easiest for
Capital Receipts?
transactions.
1. Recoveries of loans given to foreign
2. Coins in circulation can be categorised
governments
as broad money.
3. It is more than 80% of GDP. 2. Receipts from Strategic Disinvestment
Which of the statements given above is/are of PSUs
correct? 3. Borrowings through issuance of
(a) 2 and 3 only Treasury Bills.
(b) 3 only Select the correct answer using the code
(c) 1 and 2 only
given below.
(d) 1, 2 and 3
(a) 1 and 2 only

70. Which of the following are classified as the (b) 2 only

Centralised Payment Systems (CPS)? (c) 1 and 3 only
1. Real Time Gross Settlement (RTGS) (d) 1, 2 and 3
2. Immediate Payment Service (IMPS)
3. National Electronic Fund Transfer 73. The relationship between tax rates and the
(NEFT) amount of tax revenue collected by the
4. Cheque Truncation System (CTS)
Government is depicted in which of the
Select the correct answer using the code
following curves?
given below.
(a) 1, 2 and 3 only (a) Laffer Curve
(b) 2 and 4 only (b) Phillips Curve
(c) 1 and 3 only (c) Lorenz Curve
(d) 1, 2, 3 and 4 (d) Kuznets curve
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74. Consider the following statements regarding 77. Consider the following statements:
International Financial Services Centres 1. Unlike structural unemployment,
Authority (IFSCA):
frictional unemployment is a direct
1. Finance Minister is the Ex-Officio
result of shifts in the economy.
Chairman of IFSCA.
2. IFSCA is a unified authority for the 2. Generally, structural unemployment is a
development and regulation of financial temporary phenomenon, whereas
products, financial services, and frictional unemployment can last for
financial institutions in the International
years.
Financial Services Centre in India.
Which of the statements given above is/are
Which of the statements given above is/are
correct? correct?
(a) 1 only (a) 1 only
(b) 2 only (b) 2 only
(c) Both 1 and 2
(c) Both 1 and 2
(d) Neither 1 nor 2
(d) Neither 1 nor 2

75. Which of the following best defines

"Effective Revenue Deficit"? 78. Consider the following statements regarding
(a) It is the difference between incoming Ad Valorem tax:
imports and outgoing exports in an 1. It is taxed on goods on the basis of their
annual financial year.
measure, size and weight.
(b) It is the difference between fiscal deficit
and interest payments made by the 2. Property tax levied on real estate is a
government on loans borrowed. type of Ad Valorem tax.
(c) It is the difference between revenue Which of the statements given above is/are
deficit and grants-in-aid given for correct?
creation of capital assets.
(a) 1 only
(d) It is the difference between the total
revenue earned and total expenditure (b) 2 only
made by the government in an year. (c) Both 1 and 2
(d) Neither 1 nor 2
76. Which of the following statements is/are
correct regarding National Bank for
79. Consider the following statements regarding
Agriculture and Rural Development
(NABARD)? Tobin Tax:
1. It was established under Banking 1. It is a tax levied on spot currency
Regulation Act, 1949. conversions to reduce exchange rate
2. It is regulated by RBI under RBI, Act volatility.
1934.
2. It is a form of indirect tax.
3. It provides loans to State Governments
for developing rural infrastructure. Which of the statements given above is/are
Select the correct answer using the code correct?
given below. (a) 1 only
(a) 1, 2 and 3 (b) 2 only
(b) 1 and 3 only
(c) Both 1 and 2
(c) 1 and 2 only
(d) 3 only (d) Neither 1 nor 2
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80. Which of the following are considered as 83. In the context of Indian economy, consider
Alternative Investment Funds in India as per the following statements:
1. Unemployment Rate is the ratio of
the Securities and Exchange Board of India
number of unemployed persons to the
(SEBI)? total population.
1. Angel Funds 2. Labour Force Participation Rate is
obtained by dividing the number of
2. Social Venture Funds
persons in the labour force by total
3. Hedge Funds population.
4. Mutual Funds Which of the statements given above is/are
Select the correct answer using the code correct?
(a) 1 only
given below.
(b) 2 only
(a) 1, 2 and 3 only (c) Both 1 and 2
(b) 2, 3 and 4 only (d) Neither 1 nor 2
(c) 1, 3 and 4 only
84. With reference to Stagflation, consider the
(d) 1, 2 and 4 only
following statements:
1. Stagflation is a period of simultaneous
81. Consider the following statements: increase in inflation and stagnation of
economic output.
1. CPI covers both goods and services,
2. It is often characterized by raising
while WPI covers only goods. employment rates in the economy.
2. Food inflation is better reflected in WPI 3. Generally demand pull inflation is the
than in CPI. main cause of inflationary conditions
during this situation.
Which of the statements given above is/are
Which of the statements given above is/are
correct? correct?
(a) 1 only (a) 1 only
(b) 2 and 3 only
(b) 2 only
(c) 1 and 3 only
(c) Both 1 and 2 (d) 1 and 2 only
(d) Neither 1 nor 2
85. Which of the following statements is/are not
correct about Non-Banking Financial
82. In the context of Indian economy, which of
Company (NBFC)?
the following statements is correct about the 1. All NBFCs are registered under RBI,
fiat money? Act 1934.
2. They are not part of the payment and
(a) It has intrinsic value.
settlement system.
(b) It is backed by a physical commodity, 3. All NBFCs are regulated by SEBI.
such as gold or silver. Select the correct answer using the code
(c) It can not lose or gain value. given below.
(a) 1 and 3 only
(d) It can not be refused by citizen of the
(b) 2 only
country for settlement of any kind of (c) 1, 2 and 3
transaction. (d) 2 and 3 only
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86. With reference to Laser Communications 89. In the context of Indian economy, consider
Relay Demonstration (LCRD), recently seen the statements regarding off-budget
in the news, consider the following borrowings:
statements: 1. These are loans taken by a public
1. It is NASA's first-ever laser-based institution which borrows on the
communication system. directions of the central government.
2. It would use infrared light. 2. In India, the state governments can
3. Its payload will be hosted by a satellite resort to off-budget borrowings.
in the geosynchronous orbit above the Which of the statements given above is/are
Earth. correct?
Which of the statements given above is/are (a) 1 only
correct? (b) 2 only
(a) 3 only (c) Both 1 and 2
(b) 1 only (d) Neither 1 nor 2
(c) 1, 2 and 3
90. Consider the following statements:
(d) 1 and 3 only
1. To calculate National Disposable
Income, current transfers from the rest of
87. Which of the following is/are the functions
the world are excluded from Net
that operate through the Fiscal Policy of the
National Product.
Government?
2. Rise in tax payments decreases the
1. Allocation of public goods
Personal Disposable Income of the
2. Income distribution
public.
3. Provision of subsidies
Which of the statements given above is/are
4. Inflation targeting
correct?
Select the correct answer using the code
(a) 1 only
given below.
(b) 2 only
(a) 1, 2 and 3 only
(c) Both 1 and 2
(b) 2 and 4 only
(d) Neither 1 nor 2
(c) 3 only
(d) 1, 2, 3 and 4
91. Consider the following statements regarding
the National Stock Exchange of India:
88. Which of the following items form a part of 1. It is the third-largest stock exchange in
the Public Account of India? the world in terms of the market
1. Provident Funds capitalization of listed companies.
2. Reserve Funds Deposits made by outside 2. It is a subsidiary of National Securities
agencies Depository Limited.
3. Treasury Bills 3. NIFTY 50 is the flagship index on the
4. Small Savings Schemes National Stock Exchange of India.
Select the correct answer using the code Which of the statements given above is/are
given below. not correct?
(a) 1 and 4 only (a) 1 only
(b) 1, 2 and 4 only (b) 1 and 2 only
(c) 2 and 3 only (c) 2 and 3 only
(d) 1, 2, 3 and 4 (d) 1, 2 and 3
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92. Which of the following statements is/are 94. In the context of recently seen in news
Renukaji Dam Project, consider the
correct regarding the Demand-Pull Inflation?
following statements:
1. It exists when aggregate demand for a 1. The Renukaji Dam Project has been
constructed over River Giri in Himachal
good or service outstrips aggregate Pradesh.
supply. 2. The cost of the water and power
component of the project has been
2. In the case of demand-pull inflation, the equally shared between the Centre and
economy breaks out of the Philips curve. the basin states.
Which of the statements given above is/are
Select the correct answer using the code correct?
(a) 1 only
given below.
(b) 2 only
(a) 1 only (c) Both 1 and 2
(d) Neither 1 nor 2
(b) 2 only

(c) Both 1 and 2 95. Consider the following statements:

(d) Neither 1 nor 2
93. Which of the following steps were recently
taken by the government with regard to
direct taxes in India to promote ease of doing
business
1. Introduction of Dividend Distribution
Tax (DDT) in budget 2020-21.
1. Both surcharges and cess are tax on
taxes levied for a specific purpose.
2. The Indian Constitution makes it an
obligation for the Centre to share the
proceeds of the surcharges and cess with
State Governments.
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

2. Exemptions from Angel-tax for certain 96. With reference to the recently launched
National Stock Exchange (NSE Prime),
start-ups.
consider the following statements:
3. Enactment of Direct Tax 'Vivad se 1. NSE Prime is a corporate governance
initiative launched by the Securities and
Vishwas' Act, 2020. Exchange Board of India.
Select the correct answer using the code 2. It is mandatory for all the NSE-listed
companies to adopt the NSE Prime
given below. framework.
(a) 1 and 2 only Which of the statements given above is/are
correct?
(b) 1 and 3 only (a) 1 only
(b) 2 only
(c) 2 and 3 only
(c) Both 1 and 2
(d) 1, 2 and 3 (d) Neither 1 nor 2
17 www.visionias.in ©Vision IAS
97. Recently seen in the news HEAT Abhyas is 99. Which of the following are the eligible
(a) Initiative of the Ministry of Environment instruments of Statutory Liquidity Ratio
to combat forest fire generated Global (SLR)?
Warming. 1. Cash with the banks
(b) Indigenous unmanned aerial target 2. Gold reserves
system. 3. Investment in State Development Loans
(c) Code on air conditioning of buildings (SDLs) of the State Governments.
under BEE framework. Select the correct answer using the code
(d) Military exercise between India and given below.
USA. (a) 1 and 2 only
(b) 2 and 3 only
98. Which of the following best describes the (c) 1 and 3 only
Work participation rate? (d) 1, 2 and 3
(a) It is the total number of people
employed or seeking employment in a 100. In the context of the recently launched
country. Pralay missile, consider the following
(b) It is defined as the percentage of total statements:
workers (main and marginal) to total 1. It is the longest range surface-to-surface
population. missile in the inventory of the Indian
(c) It is defined as the number of persons Army.
employed per thousand persons in the 2. It is a quasi- ballistic missile with a low
labour force. trajectory.
(d) It is defined as the percent of the labor 3. It was developed by the Defence
force that is without work. Research Development Organization.
Which of the statements given above is/are
correct?
(a) 1, 2 and 3
(b) 1 and 3 only
(c) 2 only
(d) 3 only

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