CURRENT AFFAIRS-VALUE ADDITION (CA-VA)

PRELIMS MICRO TEST (PMT) - 23

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1. Consider the following: 3. Consider the following policy measures:

1. Not-for-profit companies 1. Setting up of Production-Linked
2. Regional Rural Banks (RRBs) Incentive (PLI) schemes to
3. Societies registered under the Societies
enhance domestic manufacturing
Registration Act, 1860
4. Payment Banks competitiveness.
2. Cutting subsidies on fertilizers and food
How many of the above entities is/are
classified as a Micro Finance Institution as per grains.
RBI guidelines? 3. Imposition of a windfall tax on oil
(a) Only one companies during periods of high crude
(b) Only two prices to boost government revenues.
(c) Only three 4. Rationalization of corporate tax rates to
(d) All four attract foreign direct investment (FDI).
2. Consider the following items in India’s 5. Mandating Priority Sector Lending
Balance of Payments: (PSL) targets for banks to boost credit
Transaction Classification in availability to agriculture and MSMEs.
BoP How many of the above statements can be
1. Software exports by Autonomous categorized as structural economic reforms to
Indian IT firms Transaction
ensure long-term sustainable growth in India?
2. Import of gold for Accommodating
(a) Only two
private consumption Transaction
(b) Only three
3. RBI selling USD in Current Account
open market (c) Only four
(d) All five
4. Net portfolio inflows Reserve Asset
by FIIs (Foreign 4. Consider the following statements:
Institutional
investor) into Indian Statement-I: The Reserve Bank of India (RBI)
equity markets often intervenes in the foreign exchange
How many of the above pair(s) is/are correctly market to stabilize the Indian Rupee.
matched? Statement-II: Central banks typically use
(a) Only one foreign exchange reserves to influence the
(b) Only two
demand and supply of domestic currency in
(c) Only three
(d) All of the above the Forex market.

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 Which one of the following is correct in of specific agricultural and plantation
respect of the above statements? commodities.
(a) Both Statement-I and Statement-II are 3. They are subject to audits by the
correct and Statement-II is the correct Comptroller and Auditor General
explanation for Statement-I (CAG).
(b) Both Statement-I and Statement-II 4. They have the authority to impose
are correct but Statement-II is not the cess on the production or export of
correct explanation for Statement-I commodities.
(c) Statement-I is correct but Statement-II
is incorrect How many of the statement(s) given above is/
(d) Statement-I is incorrect but Statement-II are correct?
is correct (a) Only one
5. Which of the following could be a potential (b) Only two
consequence of Co-location Trading in the (c) Only three
financial market? (d) All four
(a) Enhanced market transparency for all 8. Consider the following:
investors 1. Cash Management Bills
(b) Equal access to market data for retail 2. Treasury Inflation-Protected Securities
and institutional investors 3. Treasury Bills
(c) Creation of an unfair advantage for
4. Capital Indexed Bonds
certain market participants
5. Dated Securities
(d) Reduction in market volatility due to
faster trade execution How many of the above are classified as short-
6. Consider the following statements regarding term G-Secs?
the Standing Deposit Facility (SDF): (a) Only two
1. It allows banks to deposit excess funds (b) Only three
with the RBI without the need for (c) Only four
collateral. (d) All five
2. It is a pure deposit mechanism that does 9. Which one of the following international
not impact RBI’s securities portfolio. organizations issued the ‘Trading with
3. It replaced the fixed reverse repo rate
Intelligence’ report?
as the floor of the Liquidity Adjustment
Facility corridor. (a) World Bank
(b) World Trade Organization (WTO)
Which of the above statement(s) is/are
(c) United Nations Conference on Trade
correct?
and Development (UNCTAD)
(a) 1 and 2
(d) World Economic Forum (WEF)
(b) 1 and 3
(c) 2 and 3 10. With reference to Bull and Bear Markets in
(d) 1, 2 and 3 financial terminology, consider the following
7. Consider the following statements related to statements:
Commodity Boards in India: 1. A bull market is characterized by rising
1. All Commodity Boards in India are investor confidence and increasing stock
statutory bodies established by Acts of prices, while a bear market is marked by
Parliament. pessimism and declining asset prices.
2. They are statutory organizations set 2. During bull market phases, defensive
up by the government to promote the stocks such as utilities outperform
production, development, and export growth and technology stocks.

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 3. A bear market is generally confirmed How many of the above statement(s) is/are
when major indices fall 10% or more correct?
from their recent peaks. (a) Only one
Select the correct answer using the code given (b) Only two
below. (c) Only three
(d) All four
(a) 2 only
(b) 2 and 3 only 13. Consider the following statements regarding
(c) 1 only the Liberalised Remittance Scheme (LRS):
(d) 1, 2 and 3 1. The LRS is applicable to corporates,
11. Consider the following statements: partnerships, and trusts for making
overseas investments.
Statement-I: 2. Any remittance made under the LRS
Perpetual bonds are treated as a part of a requires prior approval from the Reserve
bank’s Tier 1 capital. Bank of India (RBI).
3. Tax Collected at Source (TCS) is
Statement-II: applicable on all LRS transactions with
Perpetual bonds provide a permanent capital rates varying based on the remittance
base to banks without an obligation to repay amount and purpose.
the principal. Which of the statements given above are not
correct?
Which one of the following is correct in
(a) 1 and 2 only
respect of the above statements?
(b) 2 and 3 only
(a) Both Statement-I and Statement-II are
(c) 1 and 3 only
correct, and Statement-II is the correct
(d) 1, 2 and 3
explanation for Statement-I
(b) Both Statement-I and Statement-II 14. Consider the following:
are correct, but Statement-II is not the 1. Funds raised by leasing railway stations
correct explanation for Statement-I to private entities under PPP mode.
(c) Statement-I is correct, but Statement-II 2. A non-repayable financial aid from
is incorrect Japan for infrastructure development.
(d) Statement-I is incorrect, but Statement- 3. Sukanya Samriddhi Account (SSA) &
II is correct Public Provident Fund (PPF) Deposits
4. Corporate tax received from Infosys and
12. Consider the following statements regarding Tata Group.
Social Stock Exchange (SSE):
How many of the above are considered as
1. Its primary objective is to promote
Capital Receipts for the Government of India?
corporate social responsibility (CSR)
(a) Only one
spending by companies.
(b) Only two
2. For-profit social enterprises with a clear
(c) Only three
social impact objective can list on the
(d) All four
SSE.
3. It is open for investments from Foreign 15. Which of the following correctly explains
Portfolio Investors (FPIs). “Geo-Economic Fragmentation (GEF),”
4. Zero Coupon Zero Principal (ZCZP) recently seen in the news?
bonds are one of the financial instruments (a) A phenomenon where developing
used for fundraising on the SSE. economies align with regional financial

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 institutions rather than global ones, 3. PM Formalisation of Micro Food
reducing reliance on the IMF and World Processing Enterprises (PMFME)
Bank. Scheme gives branding and marketing
(b) A situation where blockchain-based grants to individual micro-entrepreneurs
finance reduces the role of traditional for exporting district-specific products.
banking institutions, leading to How many of the statement(s) given above is/
technology-driven economic divisions. are correct?
(c) A trend where global economic (a) Only one
interdependence is reducing due to trade (b) Only two
protectionism, sanctions, and reshoring (c) All three
of industries. (d) None
(d) A strategy adopted by multinational
18. With reference to the Tonnage Tax Scheme
corporations to decentralize their
(TTS) in India, consider the following
manufacturing hubs to mitigate statements:
geopolitical risks and economic shocks.
1. It is an optional taxation regime under
16. Consider the following statements regarding the Income Tax Act, 1961 introduced
the recent Prompt Corrective Action (PCA) following recommendations of
framework for Urban Co-operative Banks the Rakesh Mohan Committee on
(UCBs): infrastructure.
1. The PCA framework is restricted to 2. The scheme is available to both Indian
Scheduled UCBs having deposits above and foreign shipping companies
₹1000 crore. operating in Indian waters.
2. The Supervisory Action Framework 3. It can also be availed by companies
(SAF) applies only to Public Sector operating vessels for inland water
Banks. transport.
3. Unlike SAF, the PCA framework for Which of the statements given above are
UCBs is legally enforceable under the correct?
Banking Regulation (Amendment) Act, (a) 1 and 2 only
2020. (b) 2 and 3 only
How many of the above statement(s) is/are (c) 1 and 3 only
(d) 1, 2 and 3
correct?
(a) Only one 19. Consider the following statements regarding
(b) Only two India’s employment trends:
(c) All three 1. Worker Population Ratio (WPR) has
(d) None shown a consistent decline in the last
five years across all categories of
17. With reference to the Food Processing
population, reflecting jobless growth.
Industry (FPI) in India, consider the following
2. India’s workforce remains low-skilled,
statements: with over nine-tenths possessing
1. FPI contributes more to exports than educational attainment no higher than
to employment generation in the the secondary level.
manufacturing sector. 3. The share of self-employment has
2. PM Kisan SAMPADA Yojana aims increased in both rural and urban areas,
to reduce agri-waste and enhance indicating a rise in entrepreneurial
processing infrastructure. activity.

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 4. Female Labour Force Participation Rate How many of the pair(s) given above is/are
(FLFPR) has increased significantly correctly matched?
in recent years due to formal sector (a) Only one
absorption. (b) Only two
How many of the statement(s) given above is/ (c) Only three
are correct? (d) All four
(a) Only one 22. Consider the following statements with
(b) Only two respect to ‘Bond Central’.
(c) Only three
1. It is a centralized database portal for
(d) All four
corporate bonds in India.
20. With reference to the Electronics Component 2. The platform also facilitates real-time
Manufacturing Scheme (ECMS), consider the trading of listed bonds in addition to
following statements:
providing static information.
1. Unlike the Production Linked Incentive 3. The platform is maintained jointly by
(PLI) scheme, ECMS provides viability SEBI and RBI and is accessible only to
gap funding for research and design of
institutional investors.
core electronics components.
2. It focuses particularly on both active Which of the statement(s) given above is/are
and passive electronic components. correct?
3. It is implemented by the Ministry of (a) 1 only
Electronics and Information Technology (b) 2 only
(MeitY) in collaboration with private (c) 3 only
sector stakeholders. (d) 1, 2 and 3 only
4. Only greenfield projects are eligible
under this scheme; brownfield projects 23. With reference to the e-invoicing system
are not covered. under GST (Goods and Services Tax) in
India, which of the following statements is
Which of the statements given above are
not correct?
correct?
(a) It aims to curb tax evasion by ensuring
(a) 1 and 2 only
real-time reporting of B2B (business-to-
(b) 2 and 3 only
(c) 1 and 3 only business) invoices to the GST Network
(d) 2, 3 and 4 only (GSTN).
(b) It is mandatory for all businesses
21. Consider the following pairs:
registered under GST, regardless of
Type of Tariff / Real World their turnover.
Measure Examples (c) Modifying or canceling an e-invoice
A. Anti-Dumping Solar cells imports after Invoice Registration Portal (IRP)
Duty validation is not allowed.
B. Countervailing Imports of (d) Banks, financial institutions, and
Duty aluminium foil from Special Economic Zone (SEZ) units are
China. exempt from the e-invoicing mandate,
C. Safeguard Duty Rubber chemicals irrespective of their turnover.
from EU 24. With reference to the Indian economy,
D. Tariff Rate Agricultural imports consider the following statements:
Quota (TRQ) like milk powder or 1. ‘Commercial Paper’ is a short-term
pulses.
unsecured promissory note.

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 2. ‘Certificate of Deposit’ is a long-term 25. Which of the following activities constitute
instrument issued by the Reserve Bank real sector in the economy?
of India to a corporation. 1. Farmers harvesting their crops
3. ‘Call Money’ is a short-term finance 2. Textile mills converting raw cotton into
used for interbank transactions. fabrics
4. ‘Zero-Coupon Bonds are the interest 3. A commercial bank lending money to a
bearing short-term bond issued by trading company
the Scheduled Commercial Banks to 4. A corporate body issuing Rupee
corporations. Denominated Bonds overseas
Which of the statements given above is/are Select the correct answer using the code given
correct? below:
(a) 1 and 2 only (a) 1 and 2 only
(b) 4 only (b) 2, 3 and 4 only
(c) 1 and 3 only (c) 1, 3 and 4 only
(d) 2, 3 and 4 only (d) 1, 2, 3 and 4

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