1. How is the new pension scheme different from the old pension scheme?
- In the OPS, pension is pre-determined, while in the NPS, pension is a market-linked savings product.
- While OPS is not a subject to the taxation system, the NPS is 100% taxable.
- Under both, the OPS and the NPS, retired employees received 50% of their last drawn salary as monthly pensions.
Choose the correct answer using the codes given below:
[A] Only 1
[B] Only 1 & 2
[C] Only 2 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: A [Only 1]
Notes:- Under the OPS, retired employees received 50% of their last drawn salary as monthly pensions. However, NPS is a contributory pension scheme under which employees contribute 10% of their salary (basic + dearness allowance). The government contributes 14% towards the employees’ NPS accounts.
- Old Pension Scheme (OPS) income is not a subject to the taxation system. The New Pension Scheme (NPS) gives a retirement pension fund that is 60% tax-free upon redemption while the remaining is 40%, which has to be invested in annuities that are 100% taxable.
- In the OPS, it’s predetermined how much pension an employee will get linked to her last drawn salary and length of service. NPS, on the other hand, is a market-linked savings product that has a defined contribution.
- National Pension Scheme (NPS) is a voluntary and long-term retirement investment plan administered by the Pension Fund Regulatory and Development Authority (PFRDA), Ministry of Finance, Government of India.
- The Old Pension Scheme was discontinued in 2004, however, it guaranteed life-long income after retirement.
2. Which of the following are the advantages of Liquid Natural Gas (LNG)?
- LNG has higher energy content per unit volume
- LNG is easily transportable
- LNG has low cost of production
- LNG produces less carbon dioxide than coal or oil
Choose the correct answer using the codes given below:
[A] Only 1 & 2
[B] Only 3 & 4
[C] Only 1, 2 & 4
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: C [Only 1, 2 & 4]
Notes:- LNG is natural gas reduced to a liquid state (liquefaction) through intense cooling to around -161 degrees Celsius (-259 Fahrenheit). This liquid gas is 600 times smaller than the original volume and is half the weight of water.
- LNG is a compressed fossil fuel, which is constituted almost wholly of methane.
- LNG has a higher energy content per unit volume than natural gas in its gaseous form, which means more energy can be stored and transported in the same space.
- LNG can be transported by ship, allowing for greater flexibility in sourcing and distribution.
- LNG takes up less storage space on a vehicle than CNG, and it also offers an energy density that can be compared to diesel fuel.
- When burned, LNG produces less carbon dioxide than coal or oil.
- The process of liquefying and transporting LNG is expensive.
- The extraction, liquefaction, and transport of LNG can have significant environmental impacts, including greenhouse gas emissions and disruption to local ecosystems.
- LNG is highly flammable and can pose a risk of leaks and spills during transport.
- There is currently limited infrastructure for the storage and distribution of LNG, which can make it difficult to implement on a large scale.
3. Consider the following statements regarding Online Bond Platforms (OBPs):
- They are electronic systems through which transactions in debt securities can be carried out.
- OBPs operate entirely outside the regulatory purview of SEBI.
- OBP providers are required to be companies incorporated within India.
Which of the above statements is/are correct?
[A] Only 1
[B] Only 1 and 3
[C] Only 1 and 2
[D] 1, 2 and 3
Show Answer
Correct Answer: B [Only 1 and 3]
Notes:
Statements 1 and 3 are correct: OBPs are electronic systems for trading in debt securities and providers must be companies incorporated in India. However, OBPs are now under SEBI’s regulatory framework; statement 2 is incorrect. This ensures transparency and investor protection, requiring OBPs to register as stock brokers in the debt segment, as per SEBI guidelines.
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