Economics- taxation and international organisation MCQS for CSEET
1.when we Consider the following statements related to GST bill, which of the statements are true
1. 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
a) Only 1
b) Only 2
c) Both
d) None
ANSWER: 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,
2.Which of the statements are true when we Consider the following statements related to SEZ
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.
a) 1,2
b) 2,3
c) 1,3
d) All the above
ANSWER: a) 1,2
A SEZ does not require a license for imports.
3. What is MAT?
a) Minimum Alternate Tax
b) Maximum Alternate Tax
c) Multiple Alternate Tax
d) None of the above
ANSWER: 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.
4.Identify the correct statement/s from the following statements
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).
a) 1,2
b) 1,3
c) 2,3
d) All
ANSWER: d) All
5. Consider the following statements
1. 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
ANSWER: c) Both
6. In the case of full capital account convertibility, Which of the following is not an advantage ?
a) Encourages import
b) Boosts exports
c) Easy access to forex
d) Promotes trade and capital flows between nations
ANSWER: 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.
7. Financial Sector Legislative Reforms Commission has various working groups dedicated to in depth analysis of different sectors. Match the pairs of different working groups and their chairman.
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
ANSWER: c) i-5, ii-4, iii-2, iv-1, v-3
8. Which of the following is part of priority sector lending?
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
ANSWER: c) 1,3,4,5,6,7
9. Consider the following statements about priority sector lending
1.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
ANSWER: c) Both
10. which of the following statements are correct about GST
1. 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.
a) Only 1
b) Only 2
c) Both
d) None
ANSWER: c) Both
11. Consider the following statements and identify the right ones.
i. IMF came into existence as an outcome on Bretton Woods agreement
ii. France was the 1st country to borrow from IMF
a. I only
b. ii only
c. both
d. none
ANSWER: c. both
IMF oversees the international monetary system.
12. Consider the following statements and identify the right ones.
i. The executive board is the highest decision making body of IMF
ii. The Board of Governors meets twice a year.
a. I only
b. ii only
c. both
d. none
ANSWER: d. none
The Board of Governors is the highest decision making body of IMF. The Board of Governors meets once a year.
13. Consider the following statements and identify the right ones.
i. Executive board conducts the business of the IMF
ii. It meets once in a year
a. i only
b. ii only
c. both
d. none
ANSWER: a. I only
Executive board conducts the business of the IMF. It functions in continuous session and meets several times in a week.
14. Consider the following statements and identify the right ones.
i. The day to day work of IMF is conducted by the board of governors
ii. Selected nations who are members of IMF are given a quota
a. i only
b. ii only
c. both
d. none
ANSWER: b. ii only
The day to day work of IMF is conducted by the executive board. All the nations are assigned a quota.
15. Consider the following statements and identify the right ones.
i. The quota does not decide voting power in IMF’s decisions
ii. Quota subscription constitutes most of the financial resources of IMF
a. i only
b. ii only
c. both
d. none
ANSWER: b. ii only
The quota decides voting power in IMF’s decisions. Quota subscription constitutes most of the financial resources of IMF.
16. Consider the following statements and identify the right ones.
i. SDRs cannot voluntarily be exchanged among members for currencies
ii. US is the largest member of the IMF
a. I only
b. ii only
c. both
d. none
17. Which of the following is an institution of World Bank?
a. IBRD
b. IDA
c. IFC
d. All the above
ANSWER: d. All the above
World Bank has five institutions- IBRD, IDA, International Finance Corporation, MIGA and ISCID.
18. Consider the following statements and identify the right ones.
i. Low income countries are eligible to receive low interest loans from IDA
ii. India is eligible for a blend of financial assistance from IDA and IBRD
a. I only
b. ii only
c. both
d. none
ANSWER: c. both
IBRD aims at reducing poverty in middle income and credit-worthy poor countries.
19. Which of the following is not an objective of World Bank?
a. To provide guarantee on private loans
b. To develop production facilities in underdeveloped countries
c. To rehabilitate war ruined economies
d. None of the above
ANSWER: d. None of the above
World Bank provides long term capital to member countries for economic reconstruction and development.
20. Which of the following is known as soft loan window of the World Bank?
a. IDA
b. IFC
c. IBRD
d. MIGA
ANSWER: a. IDA
IDA was established in 1960. It aims at reducing poverty by providing interest free credits and grants for economic growth.
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