Daily UPSC MCQs

28TH NOVEMBER,2020 : DAILY 10.30 A.M UPSC PRELIMS(10 QUESTIONS) MCQs

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1. Which of the following transfers are made by the Center from its own resources and do not constitute the share of the state governments in the divisible pool of tax revenue as recommended by the Finance Commission?

  • 1. Assistance to states from National Disaster Response Fund
  • 2. Externally aided project loans
  • 3. Schemes for north-east council
  • 4. Schemes under Article 275 (1) of the Constitution
  • Select the correct answer using the code given below:
 
 
 
 

2. Recently, NITI Aayog favored imposing a border adjustment tax (BAT). Consider the following statements in this regard:

  • 1. It is proposed to be imposed on imports to provide a level-playing field to domestic industries.
  • 2. It is proposed to be imposed on imported goods in addition to the customs levy that gets charged at the port of entry.
  • Which of the statements given above is/are correct?
 
 
 
 

3. Reports suggest that several Indian companies plan to raise funds through rights issue amidst the Covid-19 pandemic. Consider the following statements in this regard:

  • 1. There is investor appetite in the market for good companies with strong credentials at a good price.
  • 2. Securities and Exchange Board of India (SEBI) has undertaken certain reforms over the last one year that has made rights issue a more efficient process.
  • 3. Securities and Exchange Board of India (SEBI) has provided temporary relaxations to companies in order to ease raising of funds.
  • Which of the statements given above are correct?
 
 
 
 

4.  Consider the following statements about the ‘rights issue’:

  • 1. A rights issues is a mechanism by which companies can raise additional capital from existing shareholders. 
  • 2. A rights issue is a more democratic and more efficient approach to raising funds.
  • 3. For a rights issue, approval from the shareholders and the board of directors is a must.
  • Which of the statements given above are correct?
 
 
 
 

5. Recently, the Central Pollution Control Board (CPCB) has decided to classify railway stations under the red, orange and green categories based on the:

 
 
 
 

6. Which of the following is the most desirable scenario for a struggling economy to come back to the path of recovery?

 
 
 
 

7. Which of the following are correctly matched?

  • 1. L-shaped Recovery: The economy fails to regain the level of GDP even after years go by. 
  • 2. W-shaped Recovery: The GDP actually overshoots the trend path.
  • 3. V-shaped Recovery: The economic disruption lasts longer resulting in several activities being forgone instead of being deferred.
  • Select the correct answer using the code given below:
 
 
 
 

8. Recently, a major rating agency downgraded India from Baa2 to Baa3. Which of the following can be the negative consequences of a rating downgrade? 

  • 1. Foreign institutional investors can flee in droves. 
  • 2. The stock and bond markets can take a severe beating. 
  • 3. The rupee can depreciate hugely.
  • 4. A foreign exchange crisis can occur. 
  • Select the correct answer using the code given below:
 
 
 
 

9. Consider the following statements: 

  • 1. ‘Discretionary fiscal stimulus’ refers to an increase in the fiscal deficit caused by government policy as distinct from an increase caused by slowing growth.
  • 2. Open Market Operations (OMO) is a ‘temporary’ expansion in the central bank’s balance sheet whereas direct monetization is ‘permanent’.
  • Which of the statements given above is/are correct?
 
 
 
 

10.  India’s foreign exchange reserves are rising and are slated to hit the $500 billion mark soon. Why are forex reserves rising despite the slowdown in the economy?

  • 1. There is a rise in investment in foreign portfolio investors in Indian stocks and foreign direct investments (FDIs). 
  • 2. The prices of crude oil are falling. 
  • 3. Growth in India’s exports was much more than that in the imports.
  • 4. Overseas remittances and foreign travels have fallen steeply.
  • Select the correct answer using the code given below:
 
 
 
 

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