Indian Economy MCQs
41. What is the correct full form of CRIS?
[A] Comparative Rating Index for Sovereigns
[B] Cumulative Rating Index for States
[C] Comparative Rating Index for States
[D] Comparative Rating Index of Societies
Show Answer
Correct Answer: A [Comparative Rating Index for Sovereigns]
42. What are the General Anti-Avoidance Rules?
[A] GAAR is a set of rules aimed at curbing aggressive tax planning
[B] GAAR is a set of rules aimed at curbing money laundering by Indians to Foreign countries
[C] GAAR is a set of rules aimed at regulating investments by Indians in foreign Countries
[D] GAAR is a set of rules aimed at regulating investments by Foreigners in India
Show Answer
Correct Answer: A [GAAR is a set of rules aimed at curbing aggressive tax planning]
Notes:
General Anti-Avoidance Rule or GAAR is a broad set of rules aimed at curbing aggressive tax planning. These rules will empower tax authorities to disregard any arrangement if its main purpose is to obtain tax benefit. The arrangement as a whole or in part may be disregarded and tax benefit denied.
43. Which among the following is the core method of stabilizing the markets under the Market Stabilisation Scheme (MSS) ?
[A] Issuing Treasury Bills and/ or dated securities
[B] Purchasing Treasury Bills and/ or dated securities
[C] Conducting Open Market Operations
[D] All the above
Show Answer
Correct Answer: B [Purchasing Treasury Bills and/ or dated securities]
44. Which among the following is not an indirect tax?
[A] Corporation Tax
[B] Service Tax
[C] Custom Duty
[D] Excise duty
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Correct Answer: A [Corporation Tax]
45. The Direct Taxes Code is related to which among the following?
[A] Income Tax
[B] Sales tax
[C] Excise Duty
[D] Service tax
Show Answer
Correct Answer: A [Income Tax]
46. Which among the following industry generates invisible exports?
[A] Fishing
[B] Travel & Tourism
[C] Jewellery
[D] Handicrafts
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Correct Answer: B [Travel & Tourism]
47. Which among the following is correct in context with the White ATMs (Automated Teller Machines) ?
[A] ATMs owned by Foreign Companies
[B] ATMs not owned by banks but by private ATM service providers.
[C] Outsourced ATM Service by Banks – The ATM named under a brand sponsor bank but ATM machine not owned by the Bank
[D] ATMs owned by Government
Show Answer
Correct Answer: B [ATMs not owned by banks but by private ATM service providers.]
Notes:
‘White label ATM’: These are ATM’s which are not owned by banks but by private ATM service providers. Customers from any bank can deposit or
withdraw money from such ATMs. They will provide ATM services to customers of all banks. Such ATMs will be White Label Automated Teller Machines-WLAs and will provide ATM services to customers of all banks. WLA cannot charge customers.
48. Which among the following is correct in context with the Brown ATMs (Automated Teller Machines) ?
[A] ATMs owned by Foreign Companies
[B] ATMs not owned by banks but by private ATM service providers.
[C] Outsourced ATM Service by Banks – The ATM named under a brand sponsor bank but ATM machine not owned by the Bank
[D] ATMs owned by Government
Show Answer
Correct Answer: C [Outsourced ATM Service by Banks – The ATM named under a brand sponsor bank but ATM machine not owned by the Bank]
Notes:
The ATM named under a brand sponsor bank but ATM machine not owned by the Bank
‘Brown Label’ ATM: Outsourcing of ATM services by banks. The ATM is named under the brand of the sponsor bank but the ATM machine is not owned by the bank. In such cases, the hardware as well as lease is under the ownership of the service provider, while connectivity and cash handling and management is the responsibility of the sponsor bank
49. Foreign Direct Investment(FDI) and Foreign Institutional Investment(FII) are distinct in terms of?
[A] FDI brings capital, technology & management and FII brings only capital
[B] FDI targets specific sectors and FII help in increasing foreign capital availability
[C] FII is considered more stable
[D] FII targets both primary and secondary market while FDI targets only primary.
Show Answer
Correct Answer: A [FDI brings capital, technology & management and FII brings only capital]
50. Which among the following was not Stipulated in the Fiscal Responsibility And Budget Management Act 2003?
[A] Elimination of revenue deficit
[B] Elimination of primay deficit
[C] Non-borrowing by the central government from RBI except in certain situations
[D] Fixing government guarantees in any financial year as a percentage of GDP
Show Answer
Correct Answer: B [Elimination of primay deficit]
