iasbaba 60 day plan: day 45- economics and current affairsethics for managerial personnel applicable...
TRANSCRIPT
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 1
Q.1) Which of the following can be the objectives behind setting up Public Sector
Undertakings (PSUs)?
1. To build a self reliant economy
2. To prevent or reduce concentration of private economic power
3. Establish sound economic infrastructure
4. Assist in ancillarisation and spread the benefits of industrialisation.
Select the correct answer
a) 1, 2 and 3 only
b) 1, 2 and 4 only
c) 1, 3 and 4 only
d) All of the above
Q.1) Solution (d)
All the above are objectives along with following
(i) To promote rapid economic development by filing critical gaps in the industrial structure
(ii) To provide basic infra-structural facilities for the growth of the economy;
(iii) To undertake economic activity strategically important for the growth of the country,
which, if left to private initiative, would distort the national objectives;
(iv) To achieve balanced regional development and dispersal of economic activity through
growth and diversification of economic activity in less developed areas by providing adequate
infra-structure and undertaking programmes of conservation and development of national
resources;
(v) To reduce disparities in income;
(vi) To avoid concentration of economic powder in a few hands;
(vii) To exercise social control and regulation of long-term finance through public financial
institutions;
(viii) To control over sensitive areas, i.e., allocation of scarce imported commodities; control
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 2
over the distribution system in relation to essential goods in order to reduce the margin
between prices obtained by the producers and those paid by the consumers;
(ix) To attain self-reliance in different technologies through development of capacity for design
and development of machinery, equipment and instruments and elimination of dependence of
foreign agencies for these services;
(x) To enhance the employment opportunities by heavy investment in industry and mining,
transport and communication; and
(xi) To increase exports and earn foreign exports and earn foreign exchange to ease the
pressure of Balance of Payments.
Q.2) Which of the following are correct w.r.t. Public Sector Undertakings (PSUs)?
1. The government-owned corporations are termed as Public Sector Undertakings (PSUs)
in India.
2. In a PSU majority (51% or more) of the paid up share capital is held by central
government or by any state government or partly by the central governments and partly
by one or more state governments.
3. The Comptroller and Auditor General of India (CAG) doesn’t audit government
companies.
4. In respect of government companies, CAG has the power to appoint the Auditor and to
direct the manner in which the Auditor shall audit the company's accounts.
Select the correct answer
a) 1 and 2 only
b) 1, 2 and 4only
c) 2, 3 and 4 only
d) All of the above
Q.2) Solution (b)
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 3
It is the CAG which audits the PSUs and the audit reports are verified by the Committee on
Public Sector Undertakings.
Q.3) Which of the following is incorrect about Public Enterprises Selection Board (PESB)?
a) The Public Enterprises Selection Board [P.E.S.B] is a high powered body constituted by
Government of India Resolution.
b) The P.E.S.B has been set up with the objective of evolving a sound managerial policy for
the Central Public Sector Enterprises and, in particular, to advise Government on
appointments to their top management posts.
c) To advise the Government on formulation and enforcement of a code of conduct and
ethics for managerial personnel applicable to PSEs and all government services.
d) To advise the Government on a suitable performance appraisal system for both the PSEs
and the managerial personnel in such enterprises
Q.3) Solution (c)
The code of conduct designed by PESB is applicable only to PSEs and not all services.
Further reading: http://pesb.gov.in/
Q.4) Consider the following about industrial policy 1991.
1. One of the major objectives was to liberalise the industry from regulatory devices such
as licenses and controls.
2. Ensuring PSUs are not exposed to competition and protected from private sector push.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.4) Solution (a)
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 4
Introducing competition and ensuring PSUs are run on business lines with no undue protection
was the major objective of the industrial policy 1991.
Q.5) Consider the following about MRTP (Monopolies and Restrictive Trade Practices)Act.
1. The act came into force from 1st June, 1970 aiming to prevent concentration of
economic power, provide for control of monopolies, and protect consumer interest.
Currently, the MRTP Act has been renamed as the Competition Act, 2002, with a few
changes to it.
2. A Monopolistic Trade Practice is that which represents abuse of market power in
production and marketing of goods and services by eliminating potential competitors,
charging unreasonably high prices, preventing or reducing competition, limiting
technical development, deteriorating product quality, etc.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.5) Solution (c)
Self Explanatory
Further reading: http://www.slideshare.net/Dread_95/mrtpmonopolies-and-restrictive-trade-
practices-act (content verified)
Q.6) Which of the following is incorrect about Competition Commission of India (CCI)?
a) CCI is a statutory body established under the Competition Act 2002.
b) The Act prohibits anti-competitive agreements, abuse of dominant position by
enterprises and regulates combinations (acquisition, acquiring of control and M&A),
which causes or likely to cause an appreciable adverse effect on competition within
India applicable only for state and centre owned establishments.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 5
c) The Commission is also required to give opinion on competition issues on a reference
received from a statutory authority established under any law and to undertake
competition advocacy, create public awareness and impart training on competition
issues.
d) To promote and sustain an enabling competition culture through engagement and
enforcement that would inspire businesses to be fair, competitive and innovative;
enhance consumer welfare; and support economic growth.
Q.6) Solution (b)
CCI applicable across India not limiting to government owned or private; Competition is a larger
concept is well understood.
Q.7) Corporate Governance refers to the way a corporation is governed. Consider the
following.
1. Narayan Murthy Committee was set up by SEBI in 2003 w.r.t Corporate governance.
2. Whistle blower policy was a key recommendation of the committee.
3. The committee observed nominee of the Government on public sector companies shall
be elected and shall be subject to the same responsibilities and liabilities as other
directors.
Select the correct answer
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3only
d) All of the above
Q.7) Solution (d)
A question of such nature can be not attempted until one has knowledge of the same. But the
concept of corporate governance is important for this year.
Further reading:
http://shodhganga.inflibnet.ac.in/bitstream/10603/8683/11/11_chapter%203.pdf
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 6
Q.8) Which of the following are Maharatnas?
1. Bharat Heavy Electricals Limited
2. Coal India Limited
3. GAIL (India) Limited
4. Indian Oil Corporation Limited
5. NHPC Limited
6. Oil & Natural Gas Corporation Limited
7. Steel Authority of India Limited
Select the correct answer.
a) 1, 2 ,3, 4, 6 and 7 only
b) 2 ,3, 4, 5, 6 and 7 only
c) 1, 2 ,3, 4, 5 and 7 only
d) All of the above
Q.8) Solution (a)
It is not NHPC but NTPC. (oh!!!! No!!!!)
Further reading: http://dpe.nic.in/publications/list_of_maharatna_navratna-and_miniratna
Q.9) The Department of Disinvestment has been renamed as Department of Investment and
Public Asset Management (DIPAM). Consider the following.
1. It is a department under the ministry of Heavy Industries and Public Enterprises.
2. The new department has been mandated to "advise the government in the matters of
financial restructuring of central public sector enterprises and for attracting investment
through capital markets".
3. The Cabinet Committee on Economic Affairs(CCEA), chaired by the Prime Minister gives
its approval for the procedure and mechanism for strategic disinvestment.
Select the correct answer
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 7
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3only
d) All of the above
Q.9) Solution (c)
It is a department under Ministry of Finance. Be careful with the ministry departments.
Further reading: http://pib.nic.in/newsite/PrintRelease.aspx?relid=137044
Q.10) Strategic sale is a part of disinvestment. Consider the following.
1. The NITI Aayog will identify the CPSE for strategic sale.
2. The previous NDA government had between 1999 and 2004 privatised about a dozen
state-owned firms and hotels including Videsh Sanchar Nigam Ltd (VSNL), Bharat
Aluminium Company Ltd (BALCO), CMC Ltd and Hindustan Zinc (HZL).
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.10) Solution (c)
The above two statements are correct. In the strategic sale of a company, the transaction has
two elements:
Transfer of a block of shares to a Strategic Partner and
Transfer of management control to the Strategic Partner
Q.11) Consider the following regarding Central Pay Commission:
1. It is a statutory body formed after Pay Commission’s Act 1947.
2. It is constituted in every five years.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 8
3. It is set to review and make recommendations on the work and pay structure of all civil
and military divisions of the Government of India.
Which of the above statements are correct?
a) 1 and 2
b) 3 only
c) 2 and 3
d) 1 and 3
Q.11) Solution (b)
Pay Commission is set up intermittently by Government of India, and gives its
recommendations regarding changes in salary structure of its employees. Since India's
Independence, seven pay commissions have been set up on a regular basis to review and make
recommendations on the work and pay strcture of all civil and military divisions of the
Government of India. Headquartered in Delhi, the Commission is given 18 months from date of
its constitution to make its recommendations.
Q.12) Which of the following dimensions are included in calculating Social Progress Index
(SPI)?
1. Basic needs for survival
2. Access to the building blocks to improve living conditions
3. Access to opportunity to pursue goals and ambitions
Select the code from below:
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Q.12) Solution (d)
The Social Progress Index measures the extent to which countries provide for the social and
environmental needs of their citizens. Fifty-four indicators in the areas of basic human needs,
foundations of wellbeing, and opportunity to progress show the relative performance of
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 9
nations. The index is published by the nonprofit Social Progress Imperative, and is based on the
writings of Amartya Sen, Douglass North, and Joseph Stiglitz.[1] The SPI measures the well-being
of a society by observing social and environmental outcomes directly rather than the economic
factors. The social and environmental factors include wellness (including health, shelter and
sanitation), equality, inclusion, sustainability and personal freedom and safety.
The Index combines three dimensions
1. Basic Human Needs 2. Foundations of Well-being, and 3. Opportunity
Q.13) Consider the following statements regarding the Expenditure Management
Commission:
1. The commission was set up by the Government under the Chairmanship of Dr. Bimal
Jalan.
2. It objective is to suggest ways of meeting development expenditure needs without
compromising on Fiscal Discipline.
Which of the above statements are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.13) Solution (c)
The government in September 2014 decided to constitute an expenditure Management
Commission under the Chairmanship of Dr. Bimal Jalan.
The commission was asked to:
Review major areas of Central Government expenditure, the institutional arrangements
(Such as budgeting process)
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 10
Suggest ways of meeting development expenditure needs without compromising on
Fiscal Discipline.
Suggest a strategy to improve allocative efficiency, to meet reasonable proportion of
expenditure on services through user charges,etc.
Consider any other relevant issue concerning public expenditure management.
Recommendations of the report have not been made public yet.
Q.14) The Ministry of Micro, Small and Medium enterprises released a draft framework for
revival of MSMEs order,2015. Which of the following statements regarding the draft
framework are correct?
1. Banks are required to classify MSMEs into three categories, based on overdue principle
or interest payments.
2. MSMEs that predict a failure of business or inability to pay debts can voluntarily initiate
proceedings under the proposed Framework.
Select the code from the following:
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.14) Solution (c)
The draft framework seeks to enable sick MSMEs to obtain financial support.
Key provisions for draft framework include:
Classification of Sick MSMEs
Committees for distressed MSMEs
Corrective Action plan
Do read it in detail.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 11
Q.15) The action plan for the Start Up India initiative was released by the Prime Minister, Mr.
Narendra Modi in Jan 2016. The initiatives seeks to encourage start-ups in India, with the aim
of promoting sustainable economic growth and generating large scale employment. Which of
the following statements are correct about Start Up India initiative?
1. Start Ups will be allowed to self certify their compliance with six labour laws.
2. In case of Labour Laws and environmental Laws, inspections will not be conducted for
three years, unless a complaint is received.
Select the code from below:
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.15) Solution (a)
In case of Labour Laws inspections will not be conducted for three years, unless a
complaint is received.
For Environmental laws, random checks would be carried out to ensure compliance.
Q.16) Consider the following statements with regard to index of Industrial Production (IIP)
1) IIP conveys the status of production in the industrial sector of an economy in a given period of
time, in comparison with a fixed reference point in the past.
2) In the IIP index, the maximum weightage is given to Basic goods, followed by Consumer Goods,
followed by Intermediate and Capital Goods.
Select the correct code:
a) Only 1 is correct
b) Only 2 is correct
c) Both 1 and 2 is correct
d) Neither 1 nor 2 is correct
Q.16) Solution (c)
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 12
Explanation:
Index of Industrial Production (IIP) is an abstract number, the magnitude of which represents the
status of production in the industrial sector for a given period of time as compared to a reference
period of time It is a statistical device which enables us to arrive at a single representative figure to
measure the general level of industrial activity in the economy.
Strictly speaking the IIP is a short term indicator measuring industrial growth till the actual result of
detailed industrial surveys become available. This indicator is of paramount importance and is being
used by various organisations including Ministries/Departments of Government of India, Industrial
Associations, Research Institutes and Academicians.
In India, IIP is a representative figure which measures the general level of Industrial activity in the
country. Being an abstract number, it does not show volume of activity and only shows the
magnitude which represents the status of production in the industrial sector for a given period of
time as compared to a reference period of time.
The maximum weightage is given to Basic goods, followed by Consumer Goods, followed by
Intermediate and Capital Goods. Among Consumer goods, the weightage of consumer non-durables
is much more than of durables.
Q.17) Which of the following statements is true about 'P-Notes' in India?
1) These are issued by SEBI in India.
2) They cannot be used within the country.
3) Investors in P-Notes are not required to register with SEBI.
4) Due to the issue of money laundering, P-Notes are banned in India.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 13
Select the correct answer using the code given below.
a) 1, 2 and 3 only
b) 2 and 3 only
c) 1 and 4 only
d) 1, 2, 3 and 4
Q.17) Solution (b)
Explanation:
Participatory Notes commonly known as P-Notes or PNs are instruments issued by registered
foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock
markets without registering themselves with the market regulator, the Securities and Exchange
Board of India - SEBI.
SEBI permitted foreign institutional investors to register and participate in the Indian stock market in
1992. PNs have decreased but not completely banned.
A Participatory Note (PN or P-Note) in the Indian context, in essence, is a derivative instrument
issued in foreign jurisdictions, by SEBI and a registered Foreign Institutional Investor (FII) or its sub-
accounts or one of its associates, against underlying Indian securities. PNs are also known as
Overseas Derivative Instruments, Equity Linked Notes, Capped Return Notes, and Participating
Return Notes etc.
For more: 5 things to know about P-notes
Q.18) Consider the following statements regarding Universal Service Obligation Fund (USOF):
1) It is a statutory fund.
2) It is used to extend basic telephony services to the rural areas.
3) It is maintained as a part of Consolidated Fund of India.
4) Resources for USOF are raised exclusively through Universal Service Levy on revenues of all
Telecom Service Providers.
Which of the statements given above is/are correct?
a) 1 and 2 only
b) 2, 3 and 4 only
c) 2 and 4 only
d) 1, 2, 3 and 4
Q.18) Solution (a)
Explanation:
USOF is a statutory fund under Indian Telegraph Act, 2003. The objective is to extend basic telecom
services to the rural areas. For this purpose National Optical Fiber Network (NOFN) is being funded
by USOF. Hence, 1st and 2nd statements are correct.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 14
USOF is maintained outside the Consolidated Fund, and is maintained by the Department of
Telecommunication, Ministry of Communication. Hence, 3rd statement is incorrect.
Apart from the Levy the resources are provided by the Central Government in the form of grants
and loans. Hence, 4th statement is incorrect.
Q.19) Recently, there has been large contraction in India’s trade surplus in services. It is due to:
a) sharp drop in non-software services exports
b) global economic slowdown
c) drop in software services exports
d) All of the above
Q.19) Solution (d)
Explanation:
India’s trade surplus in services has been contracting, mainly due to a sharp drop in non- software
services exports
According to economists, the global economic slowdown is finally beginning to affect India’s services
sector.
Both software services and non-software services exports are on decline due to global economic
slowdown.
Link: Slowdown hits services sector
Q.20) Identify the organization that prepared a standardised electronic format for information
exchange on Base Erosion and Profit Sharing (BEPS) to help tax authorities
a) Organisation for Economic Cooperation and Development (OECD)
b) Agency for Cooperation and Research in Development (ACORD)
c) International Bank for Reconstruction and Development (IBRD)
d) International Monetary Fund (IMF)
Q.20) Solution (a)
Explanation:
There have been concerns across the globe about companies making profits in a particular country
but not paying taxes to the local government. The Organization for Economic Cooperation and
Development (OECD) states that BEPS is of major significance for developing countries due to their
heavy reliance on corporate income tax, particularly from multinational enterprises. It also states
that estimates since 2013 conservatively indicate annual losses of anywhere from 4 to10 per cent of
global corporate income tax revenues, or $100-$240 billion annually.
The OECD, under the authority of the Group of 20 countries, has considered ways to revise tax
treaties, tighten rules, and to share more government tax information under the BEPS project, and
has issued action plans last year. One of the areas discussed was on addressing tax challenges in the
digital economy.
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 15
Link: What’s Base Erosion and Profit Shifting?
Q.21) Khankahs are—
a) A Sufi convent
b) A retreat designed specifically for gatherings of Sufi brotherhood to meet, reside, study,
and assemble and pray together as a group in the presence of a Sufi master
c) Pillars carved in red sandstone
d) A type of pottery practiced during the Neolithic period
Q.21) Solution(b)
Q.22) Identify the State hosting Raas, Sankirtana and Thang-ta as its dance-forms—
a) Meghalaya
b) Assam
c) Nagaland
d) Manipur
Q.22) Solution (d)
Raas
Exhibits the transcendental love of Krishna and Radha and the Gopis’ devotion to the Lord
Theme: Pangs of separation of the gopis and Radha— from Krishna
Sankirtana
Accompanied with congregational singing
During all festivals and social functions
Thang-Ta: Martial dance form
Q.23) Consider the following statements:
1. INCOIS is an attached office of the Government of India, under the Ministry of Earth
Sciences.
2. Prime Minister’s National Relief Fund consists of public contributions and budgetary
support in the 60:40 ratios respectively.
Choose the correct option/s:
a) Only 1
b) Only 2
c) Both 1 and 2
d) None of the above
IASbaba 60 Day plan: Day 45- Economics and Current Affairs
www.IASbaba.com Page 16
Q.23) Solution (a)
PMNRF consists of public contributions only. (CSR included)
Q.24) Where will the joint operations centre of the Islamic Military Alliance be established?
a) Hyderabad
b) Islamabad
c) Riyadh
d) Cairo
Q.24) Solution (c)
An intergovernmental military alliance of countries in the Muslim world united around
military intervention against ISIL and other counter-terrorist activities
Its primary objective is to protect the Muslim countries from all terrorist groups and
terrorist organizations irrespective of their sect and name
It would operate in line with the United Nations and Organization of Islamic Conference
(OIC) provisions on terrorism
Riyadh
The capital and largest city of the Kingdom of Saudi Arabia; also the capital of Riyadh
Province
Houses the largest all-female university in the world, the Princess Nora bint Abdul Rahman
University
Q.25) ‘On 15 January 2016, gunmen armed with heavy weapons attacked the Cappuccino
restaurant and the Splendid Hotel in the heart of Ouagadougou wherein 28 people were killed
and many were injured.’ In which country does Ouagadougou lie?
a) Burkina Faso
b) Texas
c) Florida
d) France
Q.25) Solution (a)
Burkina Faso is a landlocked country in West Africa.