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Prelims -Economy

Question:

Consider the following statements regarding 'Prompt Corrective Action' (PCA) Framework:

1. It allows the RBI to place certain restrictions such as halting branch expansion and stopping dividend payment.

2. The RBI can also supersede the bank’s board under PCA.

3. Banks will not be allowed to enter into new lines of business under PCA framework.

Which of the statement given above is/are correct?

-View

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Check Answer:

Answer: D
Explanation

https://economictimes.indiatimes.com/markets/stocks/news/what-is-prompt-corrective-action/articleshow/58139512.cms

Question:

Consider the following statements regarding 'Most Favoured Nation' (MFN) status:

1. It is the first clause in the General Agreement on Tariffs and Trade (GATT).

2. The most favoured nation clause can also be included in an agreement between a state and a company or an investor.

3. In providing MFN status, the host nation does not breach MFN treatment if it provides different privileges to different investors.

Which of the statements given above is/are correct?

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(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Check Answer:

Answer: D
Explanation

https://indianexpress.com/article/explained/explained-what-is-mfn-status-how-can-india-hurt-pakistan-by-withdrawing-it-following-pulwama-attack-5585409/

Question:
Which of the following are correct regarding angel investors?
 
1. Angel investment generally comes from well-off investors, investment banks and any other financial institutions.
 
2. Angel investors and venture capitalists are one and the same.
 
3. Angel investors are individuals who invest their personal income in start-ups .
 
Select the correct answer from the given codes:
 
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(a) 1 and 2 only

(b) 3 only

(c) 1 and 3 only

(d) 2 and 3 only

Check Answer:

Answer: B
Explanation

Question:
Consider the following statements:
 
1. Generalised System of Preferences is a trade package given to India by USA in 2010.
 
2. As per the package, India can export certain products at relatively lower or zero tariffs. 
 
Which of the above statements is/are incorrect? 
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(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Check Answer:

Answer: A
Explanation

https://economictimes.indiatimes.com/news/economy/foreign-trade/india-requests-us-to-maintain-gsp-beneficiary-status/articleshow/64653060.cms

Question:
Consider the following statements:
 
1. As per the current budget, the Fiscal deficit is 3.4% of our GDP.
 
2. The current rate of fiscal deficit is well below the target fixed in Financial Responsibility and Budget Management Act (FRBM). 
 
Which of the above statements is/are correct? 
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(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Check Answer:

Answer: A
Explanation

Question:
Consider the following statements:
 
1. The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to companies in India.
 
2. Insolvency and Bankruptcy Code, 2016 (Bankruptcy Code) provides wide powers to the NCLT to adjudicate upon the ‘insolvency resolution process’ and liquidation of corporate debtors.
 
Which of the above statements is/are correct? 
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(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Check Answer:

Answer: C
Explanation

Question:
Consider the following statements regarding 'Minimum Support Price' (MSP):
 
1. The MSP are announced by the government at the beginning of the sowing season for 22 crops.
 
2. Decision taken to increase MSP by 1.5 times the production cost for all 22 crops in the interim budget 2019.
 
3. MSP announced on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). 
 
Which of the statement given above is/are correct?
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(a) 1 and 2 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) None of the above

Check Answer:

Answer: C
Explanation

Question:

What do you mean by the term 'Circular Economy'?

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(a) It is an economy in which GDP potential of previous year is added to the current year's GDP calculation.

(b) It is an economy among a group of countries in which growth figure of one country affects the other countries in that group.

(c) It is a regenerative economy which aims to retain as much value as possible of products, parts, materials and minimize waste.

(d) It is an economy in which all the goods and services produced in a country is circulated evenly among its citizens.

Check Answer:

Answer: C
Explanation

https://www.indiatoday.in/impact-feature/story/embracing-growth-with-energy-efficiency-and-sustainability-by-moving-towards-a-circular-economy-1454078-2019-02-12

Question:
Consider the following statements regarding 'International Financial Service Centre' (IFSC) located in GIFT City, Gujarat :
 
1. IFSC is treated as a 'deemed foreign territory' physically located on Indian soil. 
 
2. No Indian financial sector regulations shall apply to a unit located in IFSC, subject to certain provisions.
 
Which of the statements given above is/are correct?
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(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Check Answer:

Answer: C
Explanation

Question:

Consider the following statement regarding ‘Economic Survey’ of India:

1. The Economic Survey is prepared by Ministry of Statistics and Programme Implementation

2. India’s first economic survey was published in the year 1950 – 1951

3. It is binding on the Government to present the Economic Survey every year

Which of the statements given above is/are correct? 

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(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Check Answer:

Answer: B
Explanation

Economic Survey is the flagship annual document of the Ministry of finance. It gives a detailed account of the various sectors of the economy and overall economic scenario of the country in the past years and provides an outline for the year ahead. India’s first economic survey was presented for the financial year 1950- 51. While budget is a constitutional obligation for Union government, Economic Survey is neither a constitutional nor statutory obligation.