Latest Economics Questions for IAS Prelims - Set 2
1.Consider the following statements related to GST bill1. The Centre will have one third weight in the GST Council while the states will have the remaining two-thirds and decisions will have to be passed with 75% vote.
2. Petroleum and Alcohol is excluded from GST
Which of the above statements is/are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide AnswerANSWER: c) Both
GST is an indirect tax levied on manufacture, sale and consumption of goods as well as services at a national level. The decision to keep petroleum out of GST for the time being will also lower the revenue neutral rate (RNR), at which both the Centre and states will not make a loss. Alcohol will also be excluded from GST,
1. It is a duty free enclave to be treated as foreign territory for the purpose of trade operations and duties and tariffs.
2. The corporation in SEZs will not have to pay any income tax on their profits for the first five years and only 50% of the tax for 2 more years thereafter.
3. A SEZ does not require a license for exports.
Which of the above statements are true?a) 1,2
b) 2,3
c) 1,3
d) All the above
View Answer / Hide AnswerANSWER: a) 1,2
A SEZ does not require a license for imports.
a) Minimum Alternate Tax
b) Maximum Alternate Tax
c) Multiple Alternate Tax
d) None of the above
View Answer / Hide AnswerANSWER: a) Minimum Alternate Tax
Minimum Alternate Tax (MAT) is direct tax system levied on companies having large profits and declaring substantial dividends to shareholders but are not paying corporate tax, by taking advantage of the various incentives and exemptions provided in the Income-tax Act.
1.The Index of Eight Core Industries (ICI) measures performance of eight infrastructure industries, viz Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity
2. It has the base year of 2004-05.
3. The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP).
Which of the above statements are correct?a) 1,2
b) 1,3
c) 2,3
d) All
View Answer / Hide Answer5. Consider the following statements1. The Financial Sector Legislative Reforms Commission (FSLRC) is a body set up by Ministry of Finance in 2011, to review and rewrite the legal-institutional architecture of the Indian financial sector.
2. This Commission is chaired by a former Judge of the Supreme Court of India, Justice B. N. Srikrishna
Which of the above statements are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide Answer6. Which of the following is not advantage of full capital account convertibility ?a) Encourages import
b) Boosts exports
c) Easy access to forex
d) Promotes trade and capital flows between nations
View Answer / Hide AnswerANSWER: a) Encourages import
Imports become expensive and results in import substitution. Import substitution industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production.
i. Banking -------------------------------- 1. P.J Nayak
ii. Insurance,Pension, Small saving ------- 2. Dr. Govind Rao
iii. Public debt management --------------- 3. Jayant Verma
iv. Payment-------------------------------- 4. Dhirendra Swarup
v. Securities ----------------------------- 5. K.J.Udshi
a) i-4 ,ii-3, iii-1, iv-2, v-3
b) i-3, ii-4, iii-2, iv-5, v-1
c) i-5, ii-4, iii-2, iv-1, v-3
d) i-5, ii-3, iii-2, iv-4, v-1
View Answer / Hide AnswerANSWER: c) i-5, ii-4, iii-2, iv-1, v-3
1. Education
2. renewable energy
3. Personal loans
4. social infrastructure
5. Medium enterprises
6. Export Credit
7. Housing
8. Credit cards
a) 1,2,5,7,8
b) 1,2,3,7,8
c) 1,3,4,5,6,7
d) 1,2,3,5,7,8
View Answer / Hide Answer9. Consider the following statements about priority sector lending1.All banks have to lend at least 40% of their net credit to the priority sector
2.Foreign banks with less than 20 branches will move to total priority sector target of 40 percent by 2019-20.
Which of the above statements are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide Answer10. Consider the following statements about GST1. Both Central and State taxes will be collected at the point of sale.
2. The Central and State GST will be charged on the manufacturing cost.
Which of the above statements are correct?a) Only 1
b) Only 2
c) Both
d) None
View Answer / Hide Answer
