MCQs on Indian Year Book 2017 – Finance

MCQs on Indian Year Book 2017 – Finance

(UPSC CIVIL SERVICES EXAMINATION & OTHER COMPETITIVE EXAMINATIONS)

Q1. Consider the following Statements regarding Department of Economic Affairs:

  1. All the external, financial and technical assistance received by India, except through specialized international organizations and under international bilateral specific agreement are monitored by it.
  2. It is responsible for preparation and presentation of Union Budget to the Parliament and the budget for the state governments under President’s Rule and union territory administrations.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q2. Consider the following Statements regarding Contingency ‘Fund’:

  1. It is an imprest placed at the disposal of the Finance Minister to incur such expenditure.
  2. The corpus of the Fund authorised by the Parliament, at present, is 500 crore.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q3. Consider the following Statements regarding Public Account of India:

  1. Parliamentary approval is required for withdrawal of moneys kept relating to transactions in which govt. acts as banker like provident funds, small savings collections and other deposits, etc
  2. Amounts withdrawn from Consolidated fund of India for road development, primary education etc. and kept in the Public Account requires Parliamentary approval for actual expenditure incurred.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q4. Consider the following Statements regarding Demands for Grants:

  1. Generally, one Demand for Grant is presented in respect of each Ministry or Department.
  2. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q5. Consider the following Statements regarding Public Debt of India:

  1. Public Debt of India is classified into two categories – internal debt and external debt.
  2. Internal debt for Government of India largely consists of fixed tenure and fixed rate government papers while External debt represents loans received from foreign governments and multilateral institutions.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q6. Consider the following Statements regarding Revised Monetary Policy Framework:

  1. As per the revised Monetary Policy Framework, the government has fixed the inflation target of 4 per cent with tolerance level of +/ – 2 per cent for the period beginning from August, 2016 to March 2021.
  2. If the average inflation is more than or lower than the prescribed tolerance level for three consecutive quarters it would mean a failure to achieve the inflation target.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q7. Which of following are part of India’s foreign exchange reserves:

  1. Foreign currency assets (FCAs)
  2. Gold
  3. SDRs
  4. reserve tranche position (RTP) in the IMF

Identify the correct statements:
a) 1 & 3 only
b) 1, 2 & 3 only
c) All are correct
d) 2, 3 & 4 only

Q8. Consider the following Statements regarding Security Printing and Minting Corporation of India Ltd:

  1. Security Printing and Minting Corporation of India Ltd. is the only PSU under the Department of Economic Affairs.
  2. The Company supplies currency/bank notes and coins to RBI, non-judicial stamp papers to various state governments; postal stationery and stamps to postal department; passports, visa stickers and other travel documents to Ministry of External Affairs.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q9. Consider the following Statements regarding Financial Stability and Development Council

  1. With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up.
  2. The Chairman of the Council is the Union Finance Minister and its members include the heads of financial sector regulator.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q10. Consider the following Statements regarding FDI policy of India:

  1. The FDI policy is published by Department of Industrial Policy and Promotion (DIPP).
  2. FDI under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India (RBI).

Investors are only required to notify and file documents the regional office concerned of RBI.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q11. Consider the following Statements regarding Global Environment Facility:

  1. GEF provides grants to eligible countries in its five focal areas: biodiversity, climate change, land degradation, international waters, chemicals and waste.
  2. It also serves as financial mechanism for the CBD, UNFCCC & Stockholm convention on POPs
  3. India has been actively involved with GEF and is one of the donors to the fund.

Identify the correct statements:
a) 1 & 2 only
b) 2 & 3 only
c) All are correct
d) 1 & 3 only

Q12. Consider the following Statements regarding Controller General of Accounts:

  1. It functions under Deptt of Economic Affairs.
  2. It is the principal Accounting Adviser to the Government of India

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q13. Consider the following Statements regarding Kisan Credit Card:

  1. The Kisan Credit Card (KCC) scheme was introduced in 1998-99, as an innovative credit delivery system aiming at adequate and timely credit support from the banking system to the farmers.
  2. NABARD monitors the scheme in respect of commercial banks and RRBs and RBI in respect of cooperative banks.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q14. Consider the following Statements regarding Atal Pension Yojana:

  1. The APY is focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA).
  2. Any Indian citizen between 18-60 years of age can join APY.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Q15. Consider the following Statements regarding Pradhan Mantri Mudra Yojana:

  1. Under the guidelines of Pradhan Mantri MUDRA Yojan (PMMY), MUDRA has launched three innovative products namely Shishu, Kishor, and Tarun, which signifies the stage of growth and funding needs of the micro units or entrepreneur.
  2. Micro Units Development and Refinance Agency Limited (MUDRA), is a refinance institution set-up by the Government of India for development of micro units by extending funding support to encourage entrepreneurship.

Identify the correct statements:
a) 1 only
b) 2 only
c) All are correct
d) None

Solutions:

Ques.Sol.Explanation
1c
2bIt is an imprest placed at the disposal of the President to incur such expenditure.
3bParliamentary approval is not required for withdrawal of moneys kept relating to transactions in which govt. acts as banker like provident funds, small savings collections and other deposits, etc
4cThe estimates of expenditure from the Consolidated Fund included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants in pursuance of Article 113 of the Constitution.
5bPublic Debt of India is classified into three categories – internal debt, external debt and other liabilities. “Other” liabilities category includes other interest bearing obligations of the government, such as post office saving deposits, deposits under small savings schemes, loans raised through post office cash certificates, provident funds etc.
6c
7c
8c
9cThe Chairman of the Council is the Union Finance Minister and its members include the heads of financial sector regulator, Reserve bank of India (RBI), Securities Board of India (SEBI), Pension and Fund Regulatory and Development Authority and Insurance Regulatory and Development Authority of India (IRDAI), Finance Secretary and / or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services and Chief Economic Adviser.
10cFDI under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India (RBI). Investors are only required to notify and file documents the regional office concerned of RBI.
11c
12bIt functions under Deptt of Expenditure.
13aNABARD monitors the scheme in respect of cooperative banks and RRBs and RBI in respect of commercial banks.
14aAny Indian citizen between 18-40 years of age can join APY.
15c

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