Target Prelims 2023 Current Affairs Crash Course

Indian Economy - 3

Q37. How many of the following regarding e₹- Retail is/are correct ?
1. The amount kept in the wallet would not be earning any interest
2. The e₹ is a fungible legal tender
3. It will be a bearer instrument just like the bank notes
Choose the correct option
a. Only one
b. Only two
c. All the three
d. None of the statements

Q41. Consider the following regarding taxation

1. The Goods and Services Tax provides for the concurrency of taxation
2. Concurrency of taxation is there in direct and indirect taxes
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q42. ________ is when higher tax rate will lead to higher tax revenues.
a. Tax buoyancy
b. Tax elasticity
c. Tax expenditure
d. None of the above

Q43. Which of the following may result in higher tax to GDP ratio?
1. Widening of tax base
2. More incidences of Tax evasion
3. Increasing tax rates
Choose the correct option
a. Only 1
b. 1 and 3
c. 2 and 3
d. 1, 2 and 3

Q44. Consider the following statements regarding the windfall taxes

1. Will promote export competitiveness of fuels
2. Will add to the tax receipts of the government
3. Will increase the profits of the OMCs
Which of the statement/s is/are correct?
a. Only 2
b. 1 and 2
c. 2 and 3
d. 1, 2 and 3

Q45. Which of the following are the components of the public debt?
1. Internal debt
2. External debt
3. Extra Budgetary resources
4. Public account
Choose the correct option
a. 1 and 2
b. 2, 3 and 4
c. 2 and 3
d. 1, 2, 3 and 4

Q46. Assuming all other things remain unchanged, which of the following may
lead to increase in the debt to gdp ratio of the centre?
1. Rising domestic market borrowings
2. Upward revision of GDP
3. Increased loans from world bank
4. Lower fiscal deficit
Which of the above statement/s is/are true?
a. Only 2
b. 1 and 3
c. 1, 2 and 3
d. 1, 2, 3 and 4

Q47. Consider the following statements regarding the public debt of the
government
1. Majority of the debt is external debt
2. Majority of the debt has a maturity period of less than 5 years
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q48. Which of the following is/are responsible for the inflow of remittances
into India?
1. Shift from informal labour to the skilled labour in the global market by Indian
migrants
2. Rupee depreciation
3. Higher crude oil prices
Choose the correct option
a. Only 1
b. 1 and 2
c. 2 and 3
d. 1, 2 and 3

Q49. Which of the following have been announced in the budget for FY24?
1. The Angel tax for domestic investors has been introduced for the first time
2. The GST Appellate tribunals
3. Debt mutual funds to lose indexation benefit
Which of the above statement/s is/are true?
a. Only 1
b. 1 and 3
c. 2 and 3
d. 1, 2 and 3

Q50. Consider the following regarding Angel Tax

1. The Section 56 (2) of the Income Tax Act is regarding Angel Tax
2. It is applicable to listed as well as unlisted companies
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q51. The term internationalization of rupee often appearing in news is

associated with
1. The domestic currency can be used by residents and non-residents freely
2. The domestic currency can be used for settling any transactions including
goods but not financial instruments
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q52. Which of the following have contributed to decline in Indian exports in

recent months?
1. Rupee depreciation
2. Government Policies restricting exports
3. Higher inflation in global markets
4. Festivals in India
How many of the above statement/s is/are true?
a. Only one
b. Only two
c. Only three
d. All the four
Q53. What are the likely implications of the Indian rupee appreciation?
1. Exports becoming more competitive
2. Imported inflation in India
3. Higher imports
4. Affects the revenue of service sector companies such as IT and ITeS
How many of the above statement/s is/are true?
a. 1, 3 and 4
b. 3 and 4
c. 2, 3 and 4
d. 1, 2, 3 and 4

Q54. Consider the following regarding ASBA

1. It has been introduced only in case of secondary market
2. The amount blocked under this does not earn any interest
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q55. Consider the following regarding Municipality bonds

1. The issuance of these bonds has consistently increased in the last five years
2. Indore has become the first municipality to raise money from retail investors
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q56. How many of the following are the tools are available against hostile
takeover?
1. Poison pill
2. Green mail
3. Pac man defence
4. White knight
Choose the correct option
a. Only one
b. Only two
c. Only three
d. All the four

Q57. Consider the following statements regarding masala bonds

1. In case of rupee appreciation, the Indian borrower will be benefitting
2. In these bonds the investors bears the exchange rate risk
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q58. Consider the following statements

1. The Zero Coupon Zero Principal Bonds are the bonds issued by the
government to public sector banks for recapitalisation purposes
2. The issuer of Zero Coupon Zero Principal Bonds neither pays back principal
nor interest/coupon
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q59. With higher fiscal deficit which of the following are likely to happen ?
1. Crowding out of private sector
2. Higher Interest burden for the government
3. Upgrading of sovereign credit rating
4. Higher debt
Choose the correct options
a. Only 1
b. 1 and 3
c. 1, 2 and 4
d. 1, 2, 3 and 4

Q60. Arrange the following parameters in descending order of their weightage

in horizontal devolution
1. Population
2. Income distance
3. Demographic performance
4. Tax and fiscal efforts
Choose the correct option
a. 1-2-3-4
b. 2-1-3-4
c. 4-3-2-1
d. 3-1-4-2

Q61. Consider the following statements regarding the Finance Commission

1. The recommendations of the FC are binding on the government
2. The actual tax devolution under the tenure of 15th FC so far has been 41% of
the divisible pool
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q62. As per the BE for FY24, arrange the following incomes/receipts in

declining order of their contribution
1. GST
2. Corporate tax
3. Union excise
4. Customs
Choose the correct option
a. 1-2-3-4
b. 2-4-1-3
c. 4-3-2-1
d. 3-1-4-2

Q63. Consider the following statements regarding LRS

1. It is available to HUF, corporates and individuals
2. If the limit on LRS is removed, it will help in moving towards full capital
account convertibility
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q64. The term twin deficit often appearing in newspaper is associated with
1. Fiscal deficit
2. Effective Revenue deficit
3. Current Account Deficit
4. BoP Deficit
Which of the above statement/s is/are true?
a. 1 and 2
b. 2 and 3
c. 1 and 3
d. 3 and 4

Q65. Consider the following regarding the peace clause

1. The provision is available for all the member countries under WTO
2. This will protect eligible member countries to cross the threshold limits on
the red box subsidies
Which of the above statement/s is/are true?
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2