Financial Institutions in India Mock Test
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1
Consider the following statements regarding the Reserve Bank of India (RBI):
1. It was established under the RBI Act, 1934 and was nationalized in 1949.
2. It has the sole authority to issue all currency notes in India.
3. It manages the country's foreign currency reserves under the Foreign Exchange Management Act (FEMA), 1999.
Which of the statements given above is/are correct?
1. It was established under the RBI Act, 1934 and was nationalized in 1949.
2. It has the sole authority to issue all currency notes in India.
3. It manages the country's foreign currency reserves under the Foreign Exchange Management Act (FEMA), 1999.
Which of the statements given above is/are correct?
2 and 3 only
1 and 3 only
1 only
1, 2 and 3
Explanation: Statement 1 is correct. Statement 3 is also correct. Statement 2 is incorrect because the one-rupee note is issued by the Ministry of Finance, not the RBI.
2
The Securities and Exchange Board of India (SEBI) is described as having quasi-legislative, quasi-executive, and quasi-judicial powers. Which of the following functions falls under its 'Protective Function'?
Promoting investor education and training of intermediaries.
Registering and regulating intermediaries like stockbrokers.
Prohibiting fraudulent practices like insider trading and price rigging.
Governing company takeovers.
Explanation: Prohibiting fraudulent practices like insider trading and price rigging is a key Protective Function of SEBI. The other options fall under developmental and regulatory functions.
3
Which institution was established in 1982 on the recommendation of the B. Sivaraman Committee to serve as an apex development bank for promoting sustainable agriculture and rural development?
Small Industries Development Bank of India (SIDBI)
Reserve Bank of India (RBI)
Regional Rural Bank (RRB)
National Bank for Agriculture and Rural Development (NABARD)
Explanation: NABARD was established on July 12, 1982, based on the recommendations of the B. Sivaraman Committee, under the NABARD Act, 1981.
4
What is the principal mandate of the Small Industries Development Bank of India (SIDBI)?
To act as the principal financial institution for the promotion, financing, and development of the MSME sector.
To regulate and supervise the securities market in India.
To finance and promote India's foreign trade.
To supervise Regional Rural Banks and Cooperative Banks.
Explanation: SIDBI, set up in 1990, is the main institution dedicated to the MSME sector's growth and financing.
5
The Export-Import Bank of India (EXIM Bank) offers Lines of Credit (LOCs) to overseas entities. What is the primary purpose of these LOCs?
To import goods and services into India.
To fund domestic infrastructure projects.
To provide direct loans to Indian MSMEs.
To promote the export of Indian goods and services.
Explanation: EXIM Bank provides LOCs to overseas financial institutions, foreign governments, and their agencies specifically to promote the export of Indian goods and services.
6
Consider the following statements about the Green Revolution in India:
1. It led to a significant increase in the production of wheat and rice.
2. It primarily benefited farmers in all regions of India equally.
3. It promoted the use of indigenous crop varieties over High-Yielding Variety (HYV) seeds.
Which of the statements given above is/are correct?
1. It led to a significant increase in the production of wheat and rice.
2. It primarily benefited farmers in all regions of India equally.
3. It promoted the use of indigenous crop varieties over High-Yielding Variety (HYV) seeds.
Which of the statements given above is/are correct?
1 only
1 and 2 only
2 and 3 only
1, 2 and 3
Explanation: Statement 1 is correct. Statement 2 is incorrect as it created inter-regional disparity, mainly benefiting Punjab, Haryana, and Western UP. Statement 3 is incorrect as it led to the neglect and disappearance of indigenous varieties due to the widespread adoption of HYV seeds.
7
Which of the following were negative environmental impacts of the Green Revolution as mentioned in the text?
1. Groundwater depletion
2. Increased soil fertility due to organic farming
3. Water pollution from chemical runoff
4. Enhancement of biodiversity
Select the correct answer using the code given below.
1. Groundwater depletion
2. Increased soil fertility due to organic farming
3. Water pollution from chemical runoff
4. Enhancement of biodiversity
Select the correct answer using the code given below.
1 and 2 only
2 and 4 only
1 and 3 only
1, 3 and 4
Explanation: The Green Revolution led to groundwater depletion and water pollution. It caused soil degradation (loss of fertility), not an increase, and led to a loss of biodiversity, not enhancement.
8
The concept of an "Evergreen Revolution" was proposed to address the shortcomings of the Green Revolution. Which of the following is a key tenet of the Evergreen Revolution?
Increased use of chemical fertilizers to boost yields further.
Focusing exclusively on the wheat-rice cycle for food security.
Emphasizing sustainable farming practices like organic farming and water conservation.
Promoting farm mechanization for wealthy farmers.
Explanation: The Evergreen Revolution, advocated by Dr. M. S. Swaminathan, focuses on increasing productivity in perpetuity without ecological harm, emphasizing practices like organic farming, integrated pest management, and water conservation.
9
Who is regarded as the "Father of the Green Revolution in India"?
William S. Gaud
B. Sivaraman
Dr. M. S. Swaminathan
Norman Borlaug
Explanation: The text explicitly states that Dr. M. S. Swaminathan is regarded as the "Father of the Green Revolution in India." William S. Gaud coined the term.
10
One of NABARD's key functions is to support financial inclusion. Which specific initiative mentioned in the text is associated with this role?
Rural Infrastructure Development Fund (RIDF)
Pradhan Mantri MUDRA Yojana (PMMY)
SHG-Bank Linkage Programme
Refinancing commercial banks
Explanation: The text mentions that NABARD supports financial inclusion initiatives like the SHG-Bank Linkage Programme.
11
Match the following modes of mineral occurrence with their description:
Select the correct match:
| Mode | Description |
| A. Lodes | 1. Alluvial deposits in valley floors containing non-corroded minerals. |
| B. Placer Deposits | 2. Minerals formed by evaporation in arid regions. |
| C. Beds or Layers | 3. Larger occurrences of minerals in cracks of igneous and metamorphic rocks. |
A-1, B-2, C-3
A-2, B-3, C-1
A-3, B-1, C-2
A-3, B-2, C-1
Explanation: Lodes are larger occurrences in cracks (igneous/metamorphic rocks). Placer deposits are alluvial deposits. Minerals like potash salt and sodium salt are formed in beds from evaporation.
12
Bauxite, the ore from which aluminium is obtained, is formed through which specific process?
Deposition and accumulation in horizontal strata in sedimentary rocks.
Solidification of molten minerals in the crevices of igneous rocks.
Accumulation as alluvial deposits in the sands of valley floors.
Decomposition of surface rocks, leaving a residual mass of weathered material.
Explanation: The text clearly states that bauxite is formed by the decomposition of surface rocks, which removes soluble constituents and leaves behind a residual mass containing the ore.
13
Consider the following statements regarding the distribution of minerals in India:
1. The alluvial plains of North India are rich in a wide variety of economic minerals.
2. Most of India's petroleum deposits are found in the Peninsular rocks.
3. The Peninsular rocks contain most of the reserves of coal, metallic minerals, and mica.
Which of the statements given above is/are correct?
1. The alluvial plains of North India are rich in a wide variety of economic minerals.
2. Most of India's petroleum deposits are found in the Peninsular rocks.
3. The Peninsular rocks contain most of the reserves of coal, metallic minerals, and mica.
Which of the statements given above is/are correct?
1 and 2 only
3 only
2 and 3 only
1, 2 and 3
Explanation: Statement 3 is correct. Statement 1 is incorrect; the North Indian alluvial plains are almost devoid of economic minerals. Statement 2 is incorrect; petroleum deposits are in the sedimentary rocks on the western and eastern flanks of the peninsula (Gujarat and Assam), not the Peninsular rocks themselves.
14
The Durg-Bastar-Chandrapur iron ore belt is known for its super high-grade hematite ore. The ore from the Bailadila range of hills in this belt is primarily exported to which two countries?
China and USA
Japan and South Korea
Germany and France
Singapore and Malaysia
Explanation: The text states that iron ore from the Bailadila range is exported to Japan and South Korea via the Vishakhapatnam port.
15
The Kudremukh mines in Karnataka are a 100% export unit. What is the unique method used to transport the iron ore from these mines to a port near Mangalore?
By a dedicated railway line.
As a slurry through a pipeline.
By road using large trucks.
Via inland waterways.
Explanation: The text specifies that the ore from Kudremukh is transported as a slurry through a pipeline to a port near Mangalore.
16
Mica is considered indispensable in the electric and electronic industries primarily due to its...
High malleability and ductility.
Excellent magnetic qualities.
Excellent dielectric strength and insulating properties.
Ability to be split into thin sheets and its metallic luster.
Explanation: The text highlights mica's excellent dielectric strength, low power loss factor, insulating properties, and resistance to high voltage as the reasons for its indispensability in these industries.
17
What is 'Rat-hole' mining?
A form of coal mining done by family members in long, narrow tunnels in Meghalaya.
A technique for extracting manganese nodules from the ocean beds.
A method of mining for placer deposits in alluvial sands.
An illegal mining practice common in the Chota Nagpur plateau.
Explanation: 'Rat-hole' mining is described as coal mining in long, narrow tunnels by family members in tribal areas of North-East India, particularly Meghalaya, where mineral ownership lies with individuals or communities.
18
Which of the following is NOT a recommended strategy for the conservation of minerals mentioned in the text?
Using mineral resources in a planned and sustainable manner.
Recycling of metals and use of scrap metals.
Evolving technologies to use low-grade ores at low costs.
Increasing mineral exports to boost the economy.
Explanation: The text lists sustainable use, improved technology, and recycling/substitution as conservation strategies. Increasing exports would accelerate depletion, not conserve resources.
19
Coal in India occurs in two main geological ages. Which of the following coalfields belongs to the older Gondwana age and is known for metallurgical coal?
Neyveli in Tamil Nadu
Coalfields in Meghalaya and Assam
Jharia, Raniganj, and Bokaro
Coalfields in Nagaland
Explanation: The text identifies the Damodar Valley coalfields (Jharia, Raniganj, Bokaro) as being of Gondwana age (over 200 million years old) and containing metallurgical coal. The others are Tertiary coal deposits.
20
What is the primary mode of occurrence for petroleum in India?
In the lodes and veins of igneous rocks.
In beds and layers of sedimentary rocks formed from evaporation.
In anticlines and fault traps in Tertiary age rock formations.
As placer deposits in the sands of valley floors.
Explanation: The text explicitly states that most petroleum occurrences in India are associated with anticlines and fault traps in the rock formations of the Tertiary age.
21
The Hazira-Bijaipur-Jagdishpur (HVJ) pipeline is a significant piece of energy infrastructure. What is its primary function?
To transport crude petroleum from Mumbai High to refineries.
To link offshore gas fields with industrial complexes in western and northern India.
To transport coal slurry to thermal power plants.
To distribute electricity from hydroelectric projects to urban centers.
Explanation: The 1700 km long HVJ pipeline is a gas pipeline that links offshore fields with fertilizer, power, and industrial complexes.
22
Where in India can one find large reserves of Thorium, a fuel for nuclear energy, in the form of Monazite sands?
In the Aravalli ranges of Rajasthan.
In Jharkhand.
In Kerala.
In the Gulf of Kutchchh.
Explanation: The text clearly states that the Monazite sands of Kerala are rich in thorium.
23
India has set up experimental projects to harness geothermal energy. Where are these two projects located?
Madhapur in Bhuj and Jaisalmer in Rajasthan.
Nagarcoil in Tamil Nadu and Puga Valley in Ladakh.
Parvati Valley in Himachal Pradesh and Puga Valley in Ladakh.
Gulf of Kutchchh in Gujarat and Manikaran in Himachal Pradesh.
Explanation: The two experimental geothermal projects mentioned are in the Parvati Valley near Manikaran, Himachal Pradesh, and the Puga Valley, Ladakh.
24
In the context of taxation, what is the difference between the 'incidence' and 'impact' of a tax?
Incidence refers to the final economic burden, while impact is the initial point of levy.
They are synonymous terms for the total tax burden.
Incidence is the point where a tax is imposed, while impact is where the economic burden is ultimately felt.
Incidence applies to direct taxes, while impact applies to indirect taxes.
Explanation: The text defines incidence as the point of imposition and impact as the point where the economic burden is ultimately felt. For an indirect tax, the incidence is on the producer, but the impact is on the consumer.
25
The Indian income tax system is an example of which method of taxation, where higher rates are applied to higher levels of income?
Regressive Taxation
Progressive Taxation
Proportional Taxation
Value Added Taxation
Explanation: Progressive taxation applies increasing rates of tax for increasing value or volume. The text cites Indian income tax as a typical example.
26
In September 2019, the Indian government announced a major corporate tax reform. What was the new base corporate tax rate for existing companies that chose to forgo all exemptions?
15%
30%
25.17%
22%
Explanation: The reform cut the base rate for existing companies from 30% to 22%. The effective rate, including surcharge and cess, became 25.17%.
27
What is the primary purpose of the Minimum Alternate Tax (MAT)?
To tax new manufacturing companies at a lower rate.
To tax the distribution of dividends to shareholders.
To ensure that companies showing high book profits but little taxable income pay a minimum amount of tax.
To tax the gains realized from the sale of capital assets.
Explanation: MAT is imposed on 'zero tax' companies, which show high "book profits" under the Companies Act but little to no taxable income under the Income Tax Act, to ensure they contribute a minimum tax.
28
With effect from fiscal year 2020-21, the Dividend Distribution Tax (DDT) was abolished. How are dividends taxed now?
Dividends are no longer taxed.
Dividends are taxed in the hands of the shareholders as part of their personal income.
Companies still pay DDT, but at a reduced rate of 10%.
Only foreign shareholders are required to pay tax on dividends.
Explanation: Following the abolition of DDT at the company level, the tax liability shifted to the shareholders, who now pay tax on dividend income according to their respective income tax slabs.
29
For shares and equity mutual funds, what is the tax rate on Long-Term Capital Gains (LTCG) for gains exceeding ₹1 lakh per year?
20%
15%
10%
Taxed at normal income tax slab rates.
Explanation: The text specifies that for shares and equity mutual funds, a 10% tax was introduced on LTCG exceeding ₹1 lakh per year.
30
The pre-GST indirect tax system was considered flawed primarily due to the 'cascading effect'. What does this term mean?
Taxes being levied on a value that included previous taxes (tax on tax).
The lack of a uniform tax rate across all states.
The tax burden falling disproportionately on the poor.
The inability of states to tax the services sector.
Explanation: The text defines the cascading effect as taxes being levied on a value that already included previous taxes, which inflated the final prices for consumers.
31
The implementation of GST in India required a constitutional amendment. Which article, introduced by the 101st Amendment Act, 2016, grants concurrent power to Parliament and State Legislatures to make laws regarding GST?
Article 279A
Article 269A
Article 368
Article 246A
Explanation: Article 246A was inserted into the Constitution to give both the Parliament and State Legislatures the power to legislate on GST. Article 279A mandated the formation of the GST Council.
32
What is the voting structure within the GST Council for making decisions?
Decisions require a simple majority, with each state and the Centre having one vote.
The Centre holds 2/3rd of the votes, states hold 1/3rd, and decisions require a 2/3rd majority.
The Centre holds 1/3rd of the votes, states hold 2/3rd, and decisions require a 3/4th majority.
The Chairperson (Union Finance Minister) has the final veto power.
Explanation: The text specifies that the Centre has one-third of the voting power, the states have two-thirds, and decisions must be passed by a three-fourths majority.
33
Under the dual GST model, what is the role of the Integrated GST (IGST)?
It is a separate tax levied by the Centre in addition to CGST and SGST.
It is a mechanism to coordinate taxes on inter-state supplies, levied by the Centre.
It is levied by states on goods imported from other states.
It is a tax levied by local bodies on goods entering their jurisdiction.
Explanation: The text describes IGST not as a tax itself but as a system to coordinate state and union taxes. It is levied by the Centre on inter-state supplies and imports.
34
Which of the following items are currently kept outside the purview of GST?
1. Alcoholic liquor for human consumption
2. Tobacco products
3. Five specified petroleum products
4. Service Tax
Select the correct answer using the code given below.
1. Alcoholic liquor for human consumption
2. Tobacco products
3. Five specified petroleum products
4. Service Tax
Select the correct answer using the code given below.
1 and 4 only
2 and 3 only
1, 2 and 3 only
1, 2, 3 and 4
Explanation: Alcoholic liquor for human consumption, five petroleum products (Crude, Petrol, Diesel, ATF, Natural Gas), and tobacco products are mentioned as being outside GST. Service Tax was a central tax that was subsumed into GST.
35
A cess is levied on demerit and luxury goods under the GST regime. What is the primary purpose of this cess?
To fund central government infrastructure projects.
To make these goods prohibitively expensive for consumers.
To compensate states for any revenue loss for the first 5 years of GST implementation.
To directly fund local bodies and municipalities.
Explanation: The text explicitly states that the cess is used to compensate states for revenue loss for the first five years following the implementation of GST.
36
GST is described as a "destination-based consumption tax". What does this principle imply?
The tax revenue goes to the state where the goods or services are produced.
The tax is levied only at the final point of sale to the consumer.
The tax rates are determined by the destination country for exports.
The tax revenue accrues to the state where the goods or services are consumed.
Explanation: The destination-based principle means the tax is collected in the state of consumption rather than the state of origin (production). This is a key feature of GST that favors consuming states.
37
Which of the following is identified as a major challenge of the GST system?
States have reduced fiscal autonomy as they cannot alter tax rates independently.
It has made Indian products less competitive in the international market.
It has complicated the tax regime by adding more taxes.
It has led to a decrease in the number of indirect taxpayers.
Explanation: The text lists reduced fiscal autonomy for states as a challenge, alongside revenue loss for manufacturing states and the complexity of the system. The other options are contrary to the stated benefits of GST.
38
The GST regime has an electronic system for monitoring the movement of goods to deter tax evasion. What is this system called?
GST Suvidha Portal
Vivad se Vishwas
Faceless Assessment
E-Way Bill
Explanation: The E-Way Bill is described as an electronic bill required for transporting goods, designed to deter misreporting and tax evasion.
39
The 'Vivad se Vishwas' scheme was launched in 2020-21. What was its primary objective?
To reduce litigation in indirect taxes like GST.
To reduce litigation in direct taxes by allowing settlement on payment of the disputed tax amount.
To build trust between GST authorities and businesses.
To encourage voluntary disclosure of undisclosed income.
Explanation: The text explicitly states that the 'Vivad se Vishwas' scheme was launched to reduce litigation in direct taxes.
40
Which of the following are classified as All-India Financial Institutions (AIFIs) or Development Banks?
1. Securities and Exchange Board of India (SEBI)
2. National Bank for Agriculture and Rural Development (NABARD)
3. Small Industries Development Bank of India (SIDBI)
4. Regional Rural Banks (RRBs)
Select the correct answer using the code given below.
1. Securities and Exchange Board of India (SEBI)
2. National Bank for Agriculture and Rural Development (NABARD)
3. Small Industries Development Bank of India (SIDBI)
4. Regional Rural Banks (RRBs)
Select the correct answer using the code given below.
1 and 4 only
2 and 3 only
1, 2 and 3
2, 3 and 4
Explanation: NABARD and SIDBI are listed as examples of AIFIs/Development Banks. SEBI is a regulatory body, and RRBs are banking institutions.
41
The Green Revolution led to inter-personal disparity. What does this refer to?
The widening development gap between irrigated and rainfed regions.
Health problems in farm communities due to pesticide use.
The increasing gap between wealthy farmers and small/marginal farmers.
The loss of indigenous crop varieties.
Explanation: Inter-personal disparity refers to the gap between people. The text states that the revolution favored wealthy farmers who could afford expensive inputs, thus increasing the gap between rich and small/marginal farmers.
42
What type of iron ore is considered the finest due to its high iron content (up to 70%) and excellent magnetic qualities?
Hematite
Limonite
Magnetite
Siderite
Explanation: The text identifies Magnetite as the finest iron ore with up to 70% iron content and excellent magnetic qualities valuable for the electrical industry.
43
Nearly 10 kg of __________ is required to produce one tonne of steel.
Copper
Bauxite
Limestone
Manganese
Explanation: The text states that nearly 10 kg of manganese is needed to manufacture one tonne of steel.
44
India is critically deficient in the reserves and production of which of these non-ferrous minerals, which is essential for electrical cables and electronics?
Copper
Bauxite
Mica
Limestone
Explanation: The passage explicitly states, "India is critically deficient in the reserve and production of copper."
45
The Koderma-Gaya-Hazaribagh belt in Jharkhand is the leading producer of which non-metallic mineral?
Limestone
Mica
Potash
Bauxite
Explanation: The text identifies the Koderma-Gaya-Hazaribagh belt in Jharkhand as the leading producer of mica.
46
Which mineral is the basic raw material for the cement industry and is essential for smelting iron ore in a blast furnace?
Mica
Gypsum
Limestone
Bauxite
Explanation: Limestone is mentioned as the basic raw material for the cement industry and for smelting iron ore.
47
Match the type of coal with its characteristic:
| Coal Type | Characteristic |
| A. Peat | 1. The most popular coal for commercial use. |
| B. Lignite | 2. The highest quality hard coal. |
| C. Bituminous | 3. Low carbon, high moisture, low heating capacity. |
| D. Anthracite | 4. Low-grade brown coal, soft with high moisture. |
A-1, B-2, C-3, D-4
A-2, B-4, C-1, D-3
A-3, B-4, C-1, D-2
A-4, B-3, C-2, D-1
Explanation: Peat has low carbon and high moisture. Lignite is low-grade brown coal. Bituminous is the most popular commercial coal. Anthracite is the highest quality hard coal.
48
According to the provided data, which area accounts for the largest share (63%) of India's petroleum production?
Mumbai High
Gujarat
Assam
Krishna-Godavari basin
Explanation: The text provides a breakdown of petroleum production shares, stating Mumbai High contributes 63%.
49
Which of the following is an example of a non-conventional source of energy?
Coal
Petroleum
Tidal energy
Natural Gas
Explanation: The text classifies solar, wind, tidal, geothermal, biogas, and atomic energy as non-conventional sources. Coal, petroleum, and natural gas are conventional.
50
The largest wind farm cluster in India is located in which state?
Gujarat
Rajasthan
Maharashtra
Tamil Nadu
Explanation: The text states that the largest wind farm cluster is in Tamil Nadu, stretching from Nagarcoil to Madurai.
51
Biogas plants, especially 'Gobar gas plants', offer a "twin benefit". What are these two benefits?
Providing energy and improved quality of manure.
Generating electricity and providing clean drinking water.
Reducing air pollution and water pollution.
Providing fuel for cooking and for transportation.
Explanation: The text mentions that these plants provide the twin benefits of energy and improved manure quality.
52
Consider the following statements regarding Capital Gains Tax in India:
1. Short-Term Capital Gain on the sale of shares is taxed at 15%.
2. For an asset to be considered long-term (other than shares), the holding period must be more than 12 months.
3. Long-Term Capital Gain on assets is taxed at a flat rate of 20%.
Which of the statements given above is/are correct?
1. Short-Term Capital Gain on the sale of shares is taxed at 15%.
2. For an asset to be considered long-term (other than shares), the holding period must be more than 12 months.
3. Long-Term Capital Gain on assets is taxed at a flat rate of 20%.
Which of the statements given above is/are correct?
1 only
1 and 3 only
2 and 3 only
1, 2 and 3
Explanation: Statement 1 is correct. Statement 3 is also correct. Statement 2 is incorrect; for assets other than shares, the holding period for long-term is more than 36 months, not 12.
53
Under the new simplified personal income tax regime (FY 2020-21), what is the tax rate for an individual with an income of ₹9 lakh?
10%
20%
25%
15%
Explanation: According to the table, the income slab of ₹7.5 lakh - ₹10 lakh under the new regime has a tax rate of 15%.
54
What was CENVAT?
A comprehensive tax that replaced all state-level taxes.
The Central Value Added Tax, where the central government collected excise duty on the VAT method starting in 1996.
A cess levied on central excise duty for a specific purpose.
The precursor to Personal Income Tax in India.
Explanation: The text defines CENVAT as the Central Value Added Tax, introduced in 1996, where the central government started collecting its excise duty using the VAT method.
55
How many central and state taxes in total were subsumed under GST?
15
20
12
17
Explanation: The text states, "A total of 17 central and state taxes were merged into GST," and provides lists of 8 central and 9 state taxes.
56
Which of the following Central taxes was NOT subsumed under GST?
Central Excise Duty
Service Tax
Basic Customs Duty
Special Additional Duty of Customs (SAD)
Explanation: The text mentions that Customs duty is still collected on imports alongside IGST, meaning it was not subsumed. Central Excise, Service Tax, and SAD were all merged into GST.
57
Which of the following State taxes was subsumed under GST?
Entry Tax (all forms)
Stamp Duty
Electricity Taxes
Excise duty on liquor
Explanation: The table shows that Entry Tax was subsumed under GST. The text mentions that excise duty on liquor, stamp duty, and electricity taxes are outside GST.
58
Which of the following is a key benefit of GST for the states?
It allows them to set their own tax rates independently.
It simplifies tax administration for goods only.
It guarantees no revenue loss for manufacturing states.
It broadens their tax base by allowing them to tax the fast-growing services sector.
Explanation: The text lists "Access to tax revenue from the fast-growing services sector" as a key advantage for states, as they previously could not tax services.
59
Which of the following statements about the GST input tax credit mechanism is correct according to the text?
Input credit between CGST and SGST cannot be cross-utilized.
Input credit from CGST can be used to pay SGST.
Input credit from SGST can be used to pay CGST.
There are no restrictions on the cross-utilization of input tax credits.
Explanation: Under the "Challenges of GST" section, the text mentions as a complexity that "Input credits between CGST and SGST cannot be cross-utilized."
60
The text estimates India's internal trade to be about what percentage of its GDP, based on data from GST filings?
30%
40%
60%
75%
Explanation: Under the "GST Performance and Impact" section, it is stated that "internal trade... is estimated to be about 60% of GDP."
61
Fill in the blank: SIDBI was set up in 1990 as a wholly-owned subsidiary of ___________.
RBI
IDBI
NABARD
State Bank of India
Explanation: The text states that SIDBI was set up as a wholly-owned subsidiary of IDBI (Industrial Development Bank of India), though it has since been delinked.
62
What was the primary role of the Food Corporation of India (FCI) in the Green Revolution framework?
To provide credit to farmers.
To develop High-Yielding Variety seeds.
To manage the storage of food grains.
To manufacture chemical fertilizers.
Explanation: Under "Institutional Support," the text mentions the development of storage infrastructure by the Food Corporation of India (FCI).
63
Ocean waters and beds are a vast source of minerals. Which of the following is NOT mentioned as being derived largely from ocean waters?
Common salt
Magnesium
Bauxite
Bromine
Explanation: The text states that common salt, magnesium, and bromine are largely derived from ocean waters. Bauxite is formed from the decomposition of surface rocks on land.
64
According to the 2003-04 state-wise production share data, which state was the largest producer of Bauxite?
Gujarat
Jharkhand
Orissa
Maharashtra
Explanation: The table for Bauxite production shows Orissa with the highest share at 45%.
65
What is the guiding principle of energy conservation mentioned at the end of the text?
"Energy is power."
"A penny saved is a penny earned."
"Sustainable energy for a sustainable future."
"Energy saved is energy produced."
Explanation: The text concludes the section on energy conservation by stating, "...'Energy saved is energy produced'."
66
Which method of taxation is characterized by a fixed rate for every level of income or production and is considered neutral from a wealth perspective?
Proportional Taxation
Progressive Taxation
Regressive Taxation
Ad Valorem Taxation
Explanation: Proportional taxation is described as having a fixed rate of tax for every level of income, making it neutral from a wealth perspective.
67
What is MAT Credit?
A refund given to companies that pay MAT.
An exemption from paying MAT for a certain number of years.
The ability to carry forward tax paid under MAT and set it off against regular tax payable in future years.
A government subsidy given to companies subject to MAT.
Explanation: The text explains that tax paid under MAT can be carried forward for up to 15 years and set off against regular tax payable in subsequent years. This is known as MAT Credit.
68
For Short-Term Capital Gains on assets *other than shares*, how is the gain taxed?
At a flat rate of 15%.
At a flat rate of 20%.
At the individual's normal income tax slab rates.
It is exempt from tax.
Explanation: The text states that for assets other than shares, the short-term gain is taxed at normal income tax slab rates.
69
The GST Council is chaired by the ___________.
Prime Minister of India
President of India
Union Finance Minister
Governor of the RBI
Explanation: The text specifies that the GST Council is chaired by the Union Finance Minister.
70
Which of the following is NOT listed as a benefit of GST for Trade & Industry?
Simpler tax regime with fewer exemptions.
Increased ease of doing business.
Guaranteed reduction in tax liability for all businesses.
Elimination of cascading effects.
Explanation: The benefits listed include a simpler regime, ease of business, and elimination of cascading effects. A guaranteed reduction in tax liability is not mentioned and is not a universal outcome.
71
Which All-India Financial Institution acts as the nodal agency for the Pradhan Mantri MUDRA Yojana (PMMY)?
NABARD
SIDBI
EXIM Bank
NHB
Explanation: The text mentions that SIDBI acts as the nodal agency for various government schemes for MSMEs, such as the Pradhan Mantri MUDRA Yojana (PMMY).
72
The term 'Green Revolution' was coined by ____________.
William S. Gaud
Dr. M. S. Swaminathan
B. Sivaraman
Norman Borlaug
Explanation: The text explicitly states, "The term was coined by William S. Gaud."
73
Which mineral property is NOT mentioned as a basis for classification by geologists?
Color
Hardness
Weight
Luster
Explanation: Geologists classify minerals based on properties like color, hardness, luster, and density. Weight is not listed as a primary classification property in the text.
74
The Maharashtra-Goa iron ore belt exports its ore, which is not of very high quality, through which port?
Vishakhapatnam port
Port near Mangalore
Marmagao port
Kandla port
Explanation: The text says the ores from the Maharashtra-Goa belt are exported through Marmagao port.
75
According to the 2003-04 data, which state was the leading producer of copper?
Rajasthan
Madhya Pradesh
Jharkhand
Karnataka
Explanation: The production data for copper shows Madhya Pradesh with a 58% share, making it the leading producer.
76
Which of the following is NOT a hazard of mining mentioned in the text?
Collapsing mine roofs and inundation.
Pulmonary diseases due to dust and noxious fumes.
Increased biodiversity in surrounding areas.
Contamination of water sources and land degradation.
Explanation: Mining leads to land degradation and pollution, which harms biodiversity, not increases it. All other options are listed as hazards.
77
The principal reserves of Lignite, a low-grade brown coal, are found in _________ and are used for electricity generation.
Jharia, Jharkhand
Raniganj, West Bengal
Bokaro, Jharkhand
Neyveli, Tamil Nadu
Explanation: The text states, "Principal reserves [of Lignite] are in Neyveli (Tamil Nadu), used for electricity generation."
78
According to the text, what are the twin planks for achieving a sustainable path for energy?
Increasing coal imports and building more thermal power plants.
Promotion of energy conservation and increased use of renewable energy.
Nationalizing all energy resources and subsidizing electricity for all.
Expanding nuclear energy and hydropower exclusively.
Explanation: The text explicitly mentions, "The twin planks for sustainable energy are the promotion of energy conservation and the increased use of renewable energy."
79
Which of the following statements about the corporate tax reform of 2019 is correct?
It applied only to existing companies with turnover less than ₹400 cr.
It increased the corporate tax rate to be competitive with the USA.
New manufacturing companies registered after Oct 1, 2019, were offered a lower base rate of 15%.
It made it mandatory for all companies to forgo exemptions.
Explanation: The table and text show that a new, lower base rate of 15% was offered to new manufacturing companies. Forgoing exemptions was an option, not mandatory, for existing companies to avail the 22% rate.
80
Tax paid under Minimum Alternate Tax (MAT) can be carried forward as MAT Credit for up to how many years?
5 years
10 years
15 years
20 years
Explanation: The text states that "Tax paid under MAT can be carried forward for up to 15 years."
81
Consider the following taxes:
1. Luxury Tax
2. Central Sales Tax
3. Entertainment Tax (by local bodies)
4. Purchase Tax
Which of the above state-level taxes were subsumed under GST?
1. Luxury Tax
2. Central Sales Tax
3. Entertainment Tax (by local bodies)
4. Purchase Tax
Which of the above state-level taxes were subsumed under GST?
1, 2, and 3 only
1, 2, and 4 only
3 and 4 only
1, 2, 3, and 4
Explanation: Luxury Tax, Central Sales Tax, and Purchase Tax are on the list of subsumed state taxes. Entertainment Tax was subsumed *except* for that levied by local bodies.
82
The text mentions that GST has accelerated the formalization of the economy. What is the primary reason for this?
The government offers subsidies for formal registration.
The penalties for being in the informal sector are very high.
Many small enterprises voluntarily register to avail input tax credits.
The GST registration process is simpler than any previous registration.
Explanation: The text explains that formalization has accelerated because "many small enterprises are voluntarily choosing to register to be part of the input tax credit chain."
83
What is the core difference between a Banking Institution and a Non-Banking Financial Company (NBFC) as per the text?
NBFCs cannot provide loans.
Banking Institutions are all publicly owned.
NBFCs primarily serve the rural sector.
NBFCs provide bank-like services but do not hold a banking license.
Explanation: The text defines NBFCs as entities that "provide bank-like financial services but do not hold a banking license."
84
NABARD provides refinancing facilities for rural and agricultural loans to which of the following institutions?
1. Commercial Banks
2. Regional Rural Banks (RRBs)
3. Cooperative Banks
4. Micro, Small and Medium Enterprises (MSMEs) directly.
Select the correct answer using the code given below.
1. Commercial Banks
2. Regional Rural Banks (RRBs)
3. Cooperative Banks
4. Micro, Small and Medium Enterprises (MSMEs) directly.
Select the correct answer using the code given below.
1, 2 and 3 only
1 and 2 only
4 only
1, 2, 3 and 4
Explanation: The text states NABARD provides refinancing to Commercial Banks, RRBs, and Cooperative Banks. It does not provide refinancing directly to MSMEs.
85
Which institutional support mechanism was introduced during the Green Revolution to ensure remunerative prices for farmers?
The SHG-Bank Linkage Programme
The Rural Infrastructure Development Fund (RIDF)
The Minimum Support Price (MSP)
Provision of loans through EXIM Bank
Explanation: The introduction of the Minimum Support Price (MSP) is listed as an institutional support mechanism to ensure remunerative prices for farmers.
86
Fill in the blank: The smaller occurrences of minerals in cracks, crevices, faults, or joints of igneous and metamorphic rocks are known as _________.
Lodes
Veins
Beds
Placer Deposits
Explanation: The text states, "Smaller occurrences are known as veins, and larger ones are called lodes."
87
Which of the following statements about India's mineral distribution is correct?
The northern alluvial plains hold most of the petroleum deposits.
Rajasthan has reserves of many non-ferrous minerals.
The Peninsular rocks are devoid of non-metallic minerals.
Coal is primarily found in the sedimentary rocks of Gujarat.
Explanation: The text mentions that "Rajasthan has reserves of many non-ferrous minerals." The other statements are incorrect based on the provided information.
88
Which type of electricity generation uses a renewable resource?
Thermal electricity from coal.
Thermal electricity from petroleum.
Hydroelectricity from fast-flowing water.
Thermal electricity from natural gas.
Explanation: The text describes hydroelectricity as being generated from fast-flowing water, which is a renewable resource. The others use non-renewable fossil fuels.
89
A 900 MW tidal energy plant is set up by the National Hydropower Corporation in which location that provides ideal conditions for tidal energy?
Puga Valley, Ladakh
Parvati Valley, Himachal Pradesh
The Gulf of Kutchchh
The coast from Nagarcoil to Madurai
Explanation: The text specifies that "In India, the Gulf of Kutchchh provides ideal conditions" and a 900 MW plant is set up there.
90
Based on the provided table, which ASEAN country has the lowest corporate tax rate?
Singapore
Timor
Brunei
Vietnam
Explanation: The comparison table shows Timor with a tax rate of 10%, which is the lowest among the listed countries.
91
The new simplified income tax regime introduced in FY 2020-21 offered lower tax rates but at a cost. What was the main condition for opting for this new regime?
The taxpayer must have an income below ₹15 lakh.
The taxpayer must invest in specific government bonds.
The taxpayer had to forgo around 70 of the existing exemptions and deductions.
The taxpayer had to file their return within the first month of the assessment year.
Explanation: The text states, "Under the new regime, around 70 of the existing exemptions and deductions were removed..."
92
Which institution is responsible for supervising Regional Rural Banks (RRBs) and Cooperative Banks?
RBI
SEBI
NABARD
SIDBI
Explanation: One of the key functions of NABARD listed is the supervision of Regional Rural Banks (RRBs) and Cooperative Banks.
93
The mineral deposits found in the sands of valley floors and at the base of hills, containing minerals not corroded by water like gold and platinum, are known as ___________.
Lodes
Veins
Placer deposits
Residual mass
Explanation: The text defines these alluvial deposits as ‘placer deposits’.
94
Where is the oldest oil-producing state in India, with key fields like Digboi and Naharkatiya?
Gujarat
Assam
Maharashtra (Mumbai High)
Andhra Pradesh
Explanation: The text identifies Assam as the "oldest oil-producing state" and mentions Digboi, Naharkatiya, and Moran-Hugrijan as its key fields.
95
Which technology converts sunlight directly into electricity and is becoming popular in rural and remote areas of India?
Geothermal technology
Hydro turbine technology
Photovoltaic technology
Biogas technology
Explanation: The section on Solar Energy mentions that India can tap solar energy through photovoltaic technology, which converts sunlight directly into electricity.
96
What is the composition of the GST Council?
It is chaired by the Prime Minister with all state Chief Ministers as members.
It consists only of finance experts nominated by the President.
It is chaired by the Union Finance Minister, with state-nominated ministers as members.
It consists of the Union Finance Minister and the Governors of all states.
Explanation: The text clearly states the composition: "Chaired by the Union Finance Minister, with state-nominated ministers as members."
97
What is a direct tax?
A tax where the incidence and impact fall on different points.
A tax where the incidence and impact fall on the same person.
A tax levied only on goods and not on services.
A tax with a fixed rate for all income levels.
Explanation: The text defines a Direct Tax as "A tax where the incidence and impact fall on the same person."
98
SEBI was given statutory powers to regulate the securities market through which Act?
The RBI Act, 1934
The Companies Act, 1956
The SEBI Act, 1992
The FEMA Act, 1999
Explanation: Although established in 1988, SEBI was given statutory powers in 1992 through the SEBI Act, 1992.
99
The crop diversification proposed under the "Evergreen Revolution" concept involves moving beyond the wheat-rice cycle to include which other crops?
Sugarcane, cotton, and jute.
Fruits and vegetables only.
Maize, barley, and oats.
Pulses, oilseeds, and millets.
Explanation: The tenets of the Evergreen Revolution include crop diversification to include pulses, oilseeds, and millets.
100
Based on the 2003-04 data, which three states had an equal production share of 15% for Limestone?
Andhra Pradesh, Gujarat, Tamil Nadu
Andhra Pradesh, Madhya Pradesh, Karnataka
Madhya Pradesh, Rajasthan, Gujarat
Madhya Pradesh, Rajasthan, Andhra Pradesh
Explanation: The data provided shows Madhya Pradesh and Rajasthan with 15% each. The provided data actually lists Andhra Pradesh (16%), Madhya Pradesh (15%), Rajasthan (15%), and Gujarat (11%). The closest correct option based on the text is Madhya Pradesh and Rajasthan having 15%. Re-reading the text: Andhra Pradesh: 16%, Madhya Pradesh: 15%, Rajasthan: 15%, Gujarat: 11%, Tamil Nadu: 9%. Therefore, Madhya Pradesh and Rajasthan both had a 15% share. The question asks for three states. Let's re-examine the prompt data. Ah, the data is: Andhra Pradesh: 16%, Madhya Pradesh: 15%, Rajasthan: 15%, Gujarat: 11%, Tamil Nadu: 9%, Others: 34%. There are only two states with 15%. This question reveals a slight ambiguity in the prompt's source data or its framing. Let's assume a slight typo in the question and choose the best fit. The provided option "Madhya Pradesh, Rajasthan, Gujarat" is incorrect as Gujarat is 11%. Let's create a more accurate question based on the data. Recreating the question and options to be accurate to the source.
Correction: Let's re-frame the question based on the provided text.
New Question: Based on the 2003-04 data, which two states were the leading producers of Limestone after Andhra Pradesh?
Correction: Let's re-frame the question based on the provided text.
New Question: Based on the 2003-04 data, which two states were the leading producers of Limestone after Andhra Pradesh?
Gujarat and Tamil Nadu
Madhya Pradesh and Rajasthan
Gujarat and Karnataka
Madhya Pradesh and Gujarat
Explanation: According to the state-wise production share for limestone in 2003-04, Andhra Pradesh was the leader with 16%. The next two largest producers were Madhya Pradesh and Rajasthan, both with a 15% share.
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