INSIGHT UPSC QUIZ

Deviations from the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 are allowed under which of the following cases?

1. Implementation of the Core of the Core Schemes of the Union Government.

2. Collapse of agriculture severely affecting farm output and incomes.

3. Structural reforms in the economy with unanticipated fiscal implications.

4. Decline in real output growth of a quarter by at least three per cent points below its average of the previous four quarters.

Select the correct answer using the code given below.

Consider the following statements: 

1. It acts as a medium of exchange. 

2. It acts as a convenient unit of account.

3. It act as a store of value for individuals. 

4. It helps to preserve the purchasing power against the rising price level.

Which of the statements mentioned above are the functions of ‘Money’? Select the correct answer using the codes given below:

With reference to the state of Indian economy, consider the following statements:

1. Tax incentives provided to foreign investors reduces the scope for raising tax revenues.

2. Tax imposition on the private sector has negative impact on developmental and welfare expenditures. 

3. Tariff reductions results in higher revenue through custom duties. 

Select the correct answer using the code given below:

Consider the following components: 

1. Foreign Direct Investments.

2. Foreign Institutional Investments. 

3. Remittances.

4. External Commercial Borrowings.

Which of the components of capital inflow mentioned above form part of ‘Capital Account’? 

 Open Market Operations are defined as purchase and sale by central bank of variety of assets such as:

1. Foreign exchange.

2. Gold.

3. Government securities.

4. Treasury bills.

5. Company shares.

Select the correct answer using the code given below.

Read the following statements carefully with reference to ‘Factor Cost, Basic Price and Market Price’: 

1. Factor cost includes only the payment to factors of production. It does not include any tax. 

2. Market price is the factor cost including total indirect taxes but excluding total subsidies. 

3. Basic price includes production taxes (less production subsidies) but not product taxes (less product subsidies). 

In reference to the concepts of ‘Factor Cost, Basic Price and Market Price’, which of the statements given above are correct? 

Which among the following are the examples of ‘indirect taxes’? 

1. Wealth tax 

2. Excise taxes 

3. Corporation tax

4. Customs duties 

5. Service tax 

Select the correct answer using the code given below.

 Which of the following types of deposits are regarded as part of money supply?

1. Currency (notes plus coins) held by the public.

2. Net demand deposits held by commercial banks. 

3. Net time deposits of commercial banks.

4. Savings deposits with Post Office savings banks.

5. Interbank deposits which a commercial bank holds in other commercial banks.

Select the correct answer using the code given below.

 Which of the following are the examples of ‘Capital Receipts’? 

1. Loans received from foreign Governments.

2. Cash grants-in-aid from foreign countries and international organisations.

3. Recoveries of loans from the government of States and Union Territories.

4. Loans raised by the Government from public.

5. Borrowings from the Reserve Bank of India through the sale of Treasury Bills.

Select the correct answer using the code given below.

The term “liquidity trap” in an economy refers to:

1. People preferring to hold their wealth in money balance.

2. Additional money injected is unable to increase the demand for bonds.

3. Increase in money supply is unable to lower the rate of interest.

Which of the statements given above are correct?