Mock Test IAS

Mock Test Series 2015
General Studies
2015-Mock-3
Solution and Notes
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2015 - Mock Test -3
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2015 - Mock Test -3

1. Consider the following:
1. Stamp Duty
2. Property Tax
3. Excise Duty
Which among the above is / are "production taxes"?
Answer: Only 1 & 2
Notes:
Kindly understand the difference between Production
and Product taxes and subsidies.
Production taxes and subsidies are different from
product taxes and subsidies. Production taxes are
imposed even if the products are not produced, such
as stamp duty and property taxes. On the other hand,
the excise duty, value added tax etc. are all product
taxes. Production subsidy also differs from Product
subsidy. Interest subsidy is not a product subsidy but is
a production subsidy.
2. With reference to the current trends in Indian
exports, consider the following regions:
1. Europe
2. America
3. Asia
4. Africa
There has been a consistent increase in India's exports
to which among the above in recent years?
Answer: Only 3 & 4
Notes:
Economic Survey 1.54:
There has been significant market diversification in
Indias trade in recent yearsa process that has helped
cope with the sluggish global demand, which owes to
a great extent to the weakness in the Eurozone.
Region-wise, Indias export shares to Europe and
America have declined over the years from 23.6 per
cent and 20.1 per cent respectively in 2004-05 to 18.6
per cent and 17.2 per cent respectively in 2013-14.
Conversely, shares of Indias exports to Asia and Africa
have increased from 47.9 per cent and 6.7 per cent
respectively in 2004-05 to 49.4 per cent and 9.9 per
cent respectively in 2013-14.
Lower Trade Deficit is favorable because of a lo import

bill. Similarly, both Foreign Portfolio Investments and
ECB indicate capital inflows which help in curbing CAD.
1. External Commercial Borrowings
2. NRI Deposits
3. Inward Remittances
Which among the above is / are part of India's external
debt?
Answer: Only 1 & 2
Notes:
In recent times, the rise in external debt was on
account of higher long-term debt particularly
commercial borrowings and non-resident Indian (NRI)
deposits. The main four main components of External
debt are External Assistance, Commercial Borrowings,
Short term Trade Credit and NRI deposits.
Kindly note that Inward remittances may include the
profits, earnings abroad, so this term will be simply
omitted looking at the language of the question.
5. What trends does the Human Development Index
2014 show about India?
1. India's HDI value is lowest among BRICS countries
except Brazil
2. India's Gender Development Index ranking is lower
than Bangladesh
Select the correct option from the codes given below:
Answer: Only 2
Notes:
Economic Survey: 1.92:
The 2014 Human Development Report (HDR) presents
the Human Development Index (HDI)values and
ranksfor 187 countries. Indias HDI value for 2013 is
0.586, ranking it 135 out of 187 countries and
territories, the lowest among the BRICS countries with
Russia at 57, Brazil at 79, China at 91, and South Africa
at118, and slightly ahead of Bangladesh and Pakistan.
India also ranks low with respect to the Gender
Development Index (GDI). The GDI value for India is
0.828 and it is ranked 132 among 148 nations. In
comparison, Bangladesh and China are ranked higher.
3. With reference to India, consider the following:

1. Lower Trade Deficit
6. With reference to recent trends in demography of
2. Higher Foreign Portfolio Investments
India, a unique feature is a divided between different
3. Higher External Commercial Borrowings
states. Consider the following statements with this
Which among the above help in lowering the Current respect:
Account Deficit?
1. There is a substantial fertility decline in the South
Answer: 1, 2 & 3
India in recent years in comparison to North India
Notes:
2. Average population age is greater in case of South
India in comparison to North India
2015 - Mock Test -3

Which among the above is / are correct?
Answer: Both 1 & 2
Notes:
Economic Survey : 1.94:
A unique feature of India is the lag in demographic
transition between different states. Due to the
substantial fertility decline in the south during the last
two decades, the south is ahead in the demographic
transition compared to the north.
For instance, the projected average age of population
in 2020 of 29 years has already been surpassed in
some states like Kerala (33 years), Goa (32.3), Tamil
Nadu (31.3), Himachal Pradesh (30.4), Punjab (29.9),
Andhra Pradesh (29.3) and West Bengal (29.1).
More Information This Link
9. The introduction of the GST is projected to be a

significant step in the field of indirect tax reforms in
India. How the proposed GST regime is different from
the current concept of taxation in India?
1. GST is a destination-based tax as against the present
concept of origin-based tax
2. GST will be levied only by central government as
against present system of dual levy
Answer: Only 1
Notes:
Below information comes from the Survey Documents
Broad Features of the GST Model

The introduction of the GST would be a significant step
in the field of indirect tax reforms in India. By
7. With reference to CO2 emissions of India in subsuming a large number of central and state taxes
comparison to other nations around the world, into a single tax, it would mitigate cascading or double
taxation in a major way and pave the way for a
consider the following observations:
1. In terms of total CO2 emissions, India is one of the common national market. From the consumers point
of view, the biggest advantage would be in terms of a
top 10 countries around the world
2. In terms of per capita CO2 emissions, India is one of reduction in the overall tax burden on goods, which is
currently estimated at 25 per cent-30 per cent.
the top 20 countries around the world
Introduction of the GST is also expected to make
Indian products competitive in domestic and
Answer: Only 1
international markets. Studies show that this would
Notes:
instantly spur economic growth. Because of its
Economic Survey: 1.97
There are substantial variations in total and per capita emissions of transparent character, it is expected that the GST
different countries. In terms of absolute CO2 emissions in 2013, would be easier to administer.
China, the USA, and EU hold the first three positions respectively The broad features of the proposed GST model are as
with India a distant fourth. However, in terms of per capita CO2
follows:
emissions in 2013, countries like India, Brazil, and South Africa fall
1. GST would be applicable on supply of goods or
in the bottom 100 among 196 countries.
services as against the present concept of tax on
8. With reference various sources of the tax revenue of
the manufacture or on sale of goods or on
the Government of India, consider the following
provision of services.
observations:
2. GST would be a destination-based tax as against
1. The contribution of Corporation Tax is significantly
the present concept of origin-based tax.
larger in comparison to the contribution of Income Tax
3. It would be a dual GST with the centre and the
2. The contribution of Custom Duty is significantly
states simultaneously levying it on a common
larger in comparison to the contribution of Service Tax
base. The GST to be levied by the centre would be
Which among the above observations is / are correct?
called central GST (CGST) and that to be levied by
Answer: Only 1
the states would be called state GST (SGST).
Notes:
4.
An integrated GST (IGST) would
be levied on inter-state supply
(including stock transfers) of
goods or services. This would
be collected by the centre so
that the credit chain is not
disrupted.
5.
Import of goods or services
would be treated as inter-state
2015 - Mock Test -3

supplies and would be subject to IGST in addition gains in GDP and exports. This would translate into
to the applicable customs duties.
enhanced economic welfare and higher returns to the
6. A non-vatable additional tax, not exceeding 1 per factors of production, viz. land, labour, and capital.
cent on inter-state supply of goods would be However, in the near term, as GST replaces a number
levied by the centre and retained by the of state-level and central taxes, revenue gains may not
originating state at least for a period of two years. be significant.
7. CGST, SGST, and IGST would be levied at rates to 10. Consider the following:
be recommended by the Goods and Services Tax 1. Recoveries of loans
Council (GSTC) which will be chaired by the Union 2. Proceeds from disinvestment
Finance Minister and will have Finance Ministers 3. Interest and dividend receipts
of states as its members.
4. Receipts from services provided by the central
8. GST would apply to all goods and services except government
alcohol for human consumption.
Which among the above is / are non-tax revenues?
9. GST on petroleum products would be applicable Answer: Only 3 & 4
from a date to be recommended by the GST Notes:
Council.
Non-tax revenue mainly consists of interest and
10. Tobacco and tobacco products would be subject dividend receipts and the receipts from services
to the GST. In addition, the centre could continue provided by the central government. Recoveries of
to levy central excise duty.
loans and disinvestment are the two main constituents
11. A common threshold exemption would apply to of non-debt capital receipts
both CGST and SGST. Taxpayers with a turnover
below it would be exempt from GST. A 11. In recent times, there is a sharp downturn in the
compounding option (i.e.to pay tax at a flat rate prices of the crude oil. What is / are reasons for this?
on turnover without credits) would be available to 1. The demand for oil has decreased in large Asian
small taxpayers below a certain threshold. economies such as China
However, a taxable person falling within the limit 2. Shale gas exploration and extraction has increased in
of threshold or compounding could opt to pay tax countries such as US and Canada
at the normal rate in order to be part of the input 3. Oil production in Iraq and Libya has increased
suddenly
tax credit chain
12. The list of exempted goods and services would be Select the correct option from the codes given below:
kept to a minimum and it would be harmonized Answer: Only 1 & 2
Notes:
for the centre and states as far as possible.
Economic Survey: Box 2.3
13. Exports would be zero-rated.
Reasons of drastic fall in Global oil prices
14. Credit of CGST paid on inputs may be used only
Global
prices of crude had stayed above $100/bbl
for paying CGST on the output and the credit of
since
2010.
However, there has been a sharp downturn
SGST paid on inputs may be used only for paying
SGST. In other words, the two streams of input tax in these prices since September 2014. From July 2014
credit (ITC) cannot be cross utilized, except in when they stood at $106.30/ bbl, they have fallen to
specified circumstances of inter-state supplies, for below $50/bbl in January 2015. This sharp fall can be
attributed to weakening of demand in the economies
payment of IGST.
Over the past four decades, the value added tax (VAT) of Asia, especially China, and Europe. In addition,
has been an important instrument
of indirect taxation, exploration of shale gas by countries like the United
with 130 countries having adopted it, resulting in one- States and Canada to reduce their dependence on oil
fifth of the worlds tax revenue. Tax reform in many of imports has led to lower demand for oil. This has also
the developing countries has focused on moving to resulted in reduced retail prices of diesel, domestic
VAT. Federal countries like Canada, New Zealand, and LPG, and kerosene.
Australia have successfully adopted the GST into their Four things are now affecting the picture.
structure. Implementation of a comprehensive GST in Demand is low because of weak economic activity,
increased efficiency, and a growing switch away
India is expected, ceteris paribus, to lead to efficient
from oil to other fuels.
allocation of factors of production thus bringing about
2015 - Mock Test -3
2. The Bali Package allows the developing countries to

continue their public stockholding programmes for
food security
Which among the above is / are correct statements?
Answer: Only 2
Notes:
Economic Survey - 4.25 to 4.28
India's Stance at WTO talks and Bali Package
The agricultural trade rules in the WTOs Agreement on
Agriculture do not bar public procurement and

stockholding for food security.
However, if food for such programmes is acquired at
administered prices and not market prices, then this is
deemed a support to farmers.
As per WTO rules negotiated in the Uruguay Round, all
such support has to be kept within a limit of 10 per
cent of the value of production of the product in
question. This cap can constrain procurement and food
12. The Asset quality of Public Sector Banks has come
aid programmes in developing countries. The WTO
under stress in recent times. What is / are reasons for
rules, made keeping the interests of the developed
the same?
countries uppermost, have overlooked the interests of
1. The public sector banks have lent high loans to
the developing countries.
infrastructure and real estate companies
The draft agriculture negotiating text of December
2. The private sector banks are offering better products
2008 seeks to change this. It contains a proposal to
/ services to general public
revise the rules, however, as the negotiations have not
concluded, this remains an unfinished agenda. India, as
Answer: Only 1
part of a coalition of developing countries known as
Notes:
the G-33, proposed an amendment to the WTOs
Economic Survy-3.12:
Agreement on Agriculture to change these rules.
Asset quality of PSBs has come under stress in recent
The G-33 proposals, as well as various alternatives
times. As per the RBIs Financial Stability Report
suggested by the Group, met with resistance.
(December 2014),the gross nonperforming advances
Negotiations continued during the Bali Ministerial
(GNPA) of scheduled commercial banks as a
Conference. The finally agreed text of the Ministerial
percentage of the total gross advances increased to 4.5
Decision provides for Members to put in place an
per cent in September 2014 from 4.1 per cent in March
interim mechanism and to negotiate on an agreement
2014. Stressed advances increased to 10.7 per cent of
for a permanent solution for adoption by the Eleventh
the total advances from 10.0 per cent between March
Ministerial Conference of the WTO.
and
September 2014.
Five subsectors,
viz.
In the interim, until a permanent solution is found and
infrastructure, iron & steel, textiles, mining (including
subject to certain conditions, Members were to be
coal), and aviation, hold 54 per cent of total stressed
protected against challenge in the WTO under the
advances of PSBs as on June 2014. Among bank
Agreement on Agriculture in respect of public
groups, exposure of PSBs to infrastructure stood at
stockholding programmes for food security purposes.
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17.5 per cent of their gross advances as of September
Post Bali, the focus of the developed countries was
2014. This was significantly higher than that of privateonly on the implementation of the TFA.
sector banks (9.6 per cent) and foreign banks (12.1 per
Concerned at this uneven progress India took the
cent).
stand in July 2014 that without a firm commitment to
13. In recent times, the Bali Package was making news. implement the other Bali Decisions, it would be difficult
Consider the following statements in this context:
to join the consensus on the Protocol of Amendment
1. The Agreement on Agriculture (AoA) bars the public to incorporate the TFA into the umbrella WTO
procurement and stockholding meant for food security Agreement. 4.27 Despite the general campaign of
Second, turmoil in Iraq and Libyatwo big oil
producers with nearly 4m barrels a day
combinedhas not affected their output. The
market is more sanguine about geopolitical risk.
Thirdly, America has become the worlds largest oil
producer. Though it does not export crude oil, it
now imports much less, creating a lot of spare
supply.
Finally, the Saudis and their Gulf allies have
decided not to sacrifice their own market share to
restore the price. They could curb production
sharply, but the main benefits would go to
countries they detest such as Iran and Russia. Saudi
Arabia can tolerate lower oil prices quite easily. It
has $900 billion in reserves. Its own oil costs very
little (around $5-6 per barrel) to get out of the
ground.
2015 - Mock Test -3

misinformation that followed about missing the
deadline for the TFA and the effect of the impasse on
the future of the WTO, India stood firm.
Concerted efforts were made to explain the concerns
underlying the stand taken and India worked with
other WTO members to find a way forward. On 27
November 2014, the General Council of the WTO
adopted a Decision on Public Stockholding for Food
Security Purposes, a Decision on the TFA and a
Decision on Post Bali Work.
The General Council Decision on Public Stockholding
for Food Security Purposes makes it clear that a
mechanism under which WTO members will not
challenge the public stockholding programmes of
developing country members for food security
purposes, in relation to certain obligations under the
WTO Agreement on Agriculture, will remain in place in
perpetuity until a permanent solution regarding this
issue has been agreed upon and adopted. The decision
also includes a commitment to find a permanent
solution on public stockholding for food security
purposes by 31 December 2015 on a best endeavour
basis and has a firm commitment to engage in
negotiations for a permanent solution through an
intensified programme of work.
The decision addresses Indias concerns on the issue of
public stockholding for food security purposes. The
Tenth Ministerial Conference of the WTO (MC10) will
be held in Nairobi, Kenya, from 15 to 18 December
2015. WTO members are engaged in discussion to
finalize the work programme to conclude the
remaining issues of the Doha Development Agenda.
overall production and production per hectare has

grown considerably, but the total number of hours
worked has fallen.
There has been a large drop in the number of farmers
and farm workers, and less work is now done by
farmers families. The long-term pattern has been to
replace expenditure on labour with investment in
machinery. One of the effects of mechanisation was to
reduce the number of farm jobs available.
15. With reference to the food procurement in India,

the Decentralized Procurement (DCP) scheme has been
adopted by some state governments. What is / are
benefits of such scheme?
1. State governments can procure food grains more
suited to the local taste
2. Enhances the efficiency of procurement and
distribution
3. Saves procurement costs for government
4. Farmers get extended benefits of Minimum Support
Price Scheme
Answer: 1, 2, 3 & 4
Notes:
Economic Survey 5.45
To enhance efficiency of procurement and public
distribution and to extend the benefits of MSP to local
farmers, the Decentralized Procurement (DCP) scheme
has been adopted by some state governments. The
central government is urging all state governments to
adopt the DCP scheme so that costs of distribution can
be saved and outreach of price support mechanism to
the farmers in hitherto weaker areas can be improved.
14. Which among the following is / are benefits of Other Notes
1. This scheme was first launched in 1997-98
Agricultural mechanization?
2. Under the decentralized procurement scheme, the
1. It increases productivity per farm worker
State Government itself undertakes direct purchase of
2. It enables efficient utilization of inputs
paddy and wheat and procurement of levy rice on
3. It increases number of farm jobs available
behalf of Government of India. Purchase centres are
opened by the State Governments and their agencies
Answer: Only 1 & 2
as per their requirements.
Notes:
Economic Survey 5.35
3. The State Governments procure, store and distribute
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Agricultural mechanization
increases productivity
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foodgrains under TPDS and other welfare schemes. In
land and labour by meeting timeliness of farm the event of the total quantity of wheat and rice thus
operations and increases work output per unit time. procured falling short of the total allocation made by
Besides its paramount contribution to the multiple the Central Government for meeting the requirement
cropping
and
diversification
of
agriculture, of TPDS and other schemes, the Central Government,
mechanization also enables efficient utilization of through FCI, meets the deficit out of the Central Pool
inputs such as seeds, fertilizers, and irrigation water.
stocks.
The greatest impact of mechanisation has been an
enormous increase in productivity per farm worker
2015 - Mock Test -3

4. The Central Government undertakes to meet the
entire expenditure incurred by the State Governments
on the procurement operations as per the approved
costing. The Central Government also monitors the
quality of foodgrains procured under the scheme and
reviews the arrangements made to ensure that the
procurement operations are carried on smoothly.
16. The un-integrated and distortion ridden
agricultural market is one of the most striking
problems in agriculture growth in India. Consider the
following statements with this reference:
1. Agriculture in India is a State subject and APMC acts
are administered by states
2. A national common market for agricultural produce
can not be established in India without state's consent
Answer: Only 1
Notes:
For background information on APMC, read this:
http://www.gktoday.in/apmc-act-2003/
For survey recommendations, read this one
1. Coal Industry
2. Fertilizer Industry
3. Textile Industry
4. Cement Industry
Which among the above is / are core industries?
Answer: Only 1, 2 & 4
Notes:
A monthly index of eight core industries, viz. coal,
fertilizer, electricity, crude oil, natural gas, refinery
product, steel, and cement, comprising 38 per cent of
the weight of items in the IIP, is released to gauge the
impact on overall economic activity.
country are about 92 trillion cubic feet (TFC), of which

only 9.9 TCF has so far been established. Commercial
Production of CBM in India has now become a reality
with current production of about 0.60 million metric
standard cubic metre per day (MMSCMD).
Economic Survey - 6.33
Shale Oil and Gas: Under the first phase of assessment
of shale oil and gas, fifty Petroleum Exploration Lease
(PEL) / Petroleum Mining Lease (PML) blocks have
been awarded to ONGC and five to OIL. These blocks
are located in Assam (6), Arunachal Pradesh (1), Gujarat
(28), Rajasthan (1), Andhra Pradesh (10), and Tamil
Nadu (9). ONGC has drilled one well and spudded
another in Cambay Basin, Gujarat, for assessment of
shale gas/shale oil potential of Cambay Basin.
19. Which among the following document is presented
in the parliament as per mandate of Article 112?
Answer: Annual Financial Statement
Notes:
Annual Financial Statement (AFS), Demands for Grants
(DG), Appropriation Bill and Finance Bill are presented
in the parliament as per Art. 112,113, 114(3) and 110(a)
of the Constitution of India, respectively.
1. Rate of Inflation
2. Current Account Deficit
3. Fiscal Deficit
Which among the above is / are included in the
Macroeconomic Vulnerability Index released by
India's Ministry of Finance?
Answer: 1, 2 & 3
Notes:
Macroeconomic Vulnerability Index which adds up rate
of inflation, current account deficit and fiscal deficit of
a country is quite helpful in comparing countries across
years. In developing countries the MVI is determined
by various structural conditions which expose an
economy to financial shocks.
http://www.gktoday.in/reference/macroeconomicvulnerability-index/

1. Coal Bed Methane
2. Shale Oil
3. Shale Gas
Which among the above is / are being produced in
India currently?
21. Which among the following is / are used for
Answer: Only 1
computation of the rational investor ratings index?
Notes:
Economic Survey - 6.32
1. Fiscal Deficit
Coal Bed Methane (CBM): Out of the total available 2. Current Account Deficit
coal-bearing area of 26,000 sq. km for CBM exploration 3. Inflation
in the country, exploration has been initiated in about 4. Revenue Deficit
17,000 sq. km. The estimated CBM resources in the Select the correct option from the codes given below:
2015 - Mock Test -3

Notes:
Economic Survey: Volume-1 (Page-9)
The RIRI is computed by averaging a countrys GDP
growth rate and its macro-economic indicators; the
latter measured as the average of the fiscal deficit,
current account deficit, and inflation (all with negative
signs). Thus, equal weight is given to growth and
macroeconomic stability. The greater the number, the
better should be its investor rating. Since, updated
WEO forecasts are not publicly available for all
countries, data are from Citi Group and have been
updated in January assuming an oil price in the range
of US$ 58-60 per barrel for 2015. Data from other
sources yield very similar estimates for the RIRI.
22. Which among the following is / are correct
statements with respect to the Fourteenth Finance
Commission recommendations:
1. It recommended to enhanced the share of the states
in the central divisible pool of taxes from 32 percent to
42 per cent
2. It has used forest cover and fiscal discipline in the
formula for distribution of funds among states
Answer: Only 1
Notes:
The FFC has radically enhanced the share of the states
in the central divisible pool of taxes from the current
32 percent to 42 per cent which is the biggest ever
increase in vertical tax devolution.
The second statement is partially correct. Relative to
the Thirteenth Finance Commission, the FFC has
incorporated two new variables: 2011 population and
forest cover; and excluded the variable relating to fiscal
discipline. Kindly note this.
Which of the above is / are correct statements?

Answer: Both 1 & 2
Notes:
The Economic Survey has made a case to bring down
the SLR gradually while discussing about the double
financial repression being faced by the PSU banks.
On one side, they need to keep higher protion of their
assets as SLR while on the other hand, they have to
comply with the Priority sector requirements. This is
what has been called double financial repression.
SLR
The Statutory Liquidity Ratio is a requirement on banks
to hold a certain share of their resources in liquid
assets such as cash, government bonds and gold. In
principle, the SLR can perform a prudential role
because any unexpected demand from depositors can
be quickly met by liquidating these assets.
SLR requirements have traditionally been high. From
38 per cent in the period before 1991, there was a
dramatic decline to about 25 per cent at the end of the
1990s. Since then however, the number has hovered
around the quarter century mark, only recently falling
to 22 per cent. As of Feb 4, 2015 the minimum
requirement is 21.5 per cent of total assets. Banks
typically keep more than the required SLR, the current
realised SLR is in fact over 25 per cent.
In practice, the SLR has become a means of financing
(at less than market rates presumably) a bulk of the
governments fiscal deficit, suggesting that SLR cuts
are related to the governments fiscal position.
25. The central Statistical Office (CSO) has started

measuring economic growth by gross value-added
(GVA) at basic prices, replacing the practice of
measuring it by GDP at factor cost. What is the
difference between GDP at factor cost and GVA at
23. Which among the following commodities
basic prices?
displays characteristics of inferior goods?
Answer: Production taxes are included and production
Answer: Kerosene
subsidies excluded from GVA at basic prices
Notes:
Kerosene consumption tends to decline as incomes Notes:
rise. As households get richer, they consume less of it The difference between GDP at factor cost and GVA at
because they substitute to cleaner, higher quality but basic prices is that production taxes are included and
production subsidies excluded from the latter.
more expensive fuels like LPG.
24. With reference to the Statutory Liquidity Ratio
(SLR), consider the following observations:
1. Banks can keep cash, government bonds as well as
gold to meet their SLR requirements
2. SLR is one of the means to finance government's
fiscal deficit

1. Consolidated Fund of India
2. Contingency Fund of India
3. Public Account
No amount can be drawn from which among the
above without prior authorisation from Parliament?
2015 - Mock Test -3

Answer: Only 1
Notes:
Please note that the Contingency Fund is placed at the
disposal of the President to facilitate Government to
meet urgent unforeseen expenditure pending
authorization from Parliament. Thus, in case of the
contingency fund, the Parliamentary approval is
obtained, post-facto, and an equivalent amount is
drawn from the Consolidated Fund to recoup the
Contingency Fund.
In case of Public Account, Prior authorization is
required in some cases and NOT required in other
cases.
Moneys held by Government in Trust as in the case of
Provident Funds, Small Savings collections, income of
Government set apart for expenditure on specific
objects like road development, primary education,
Reserve/Special Funds etc. are kept in the Public
Account. Public Account funds do not belong to
Government and have to be finally paid back to the
persons and authorities who deposited them.
Parliamentary authorization for such payments is,
therefore, not required, except where amounts are
withdrawn from the Consolidated Fund with the
approval of Parliament and kept in the Public Account
for expenditure on specific objects, in which case, the
actual expenditure on the specific object is again
submitted for vote of Parliament for drawl from the
Public Account for incurring expenditure on the
specific object.
the normal running of Government departments and

various services, interest payments on debt, subsidies,
etc. Broadly, the expenditure which does not result in
creation of assets for Government of India is treated as
revenue expenditure. All grants given to State
Governments/Union Territories and other parties are
also treated as revenue expenditure even though some
of the grants may be used for creation of assets.
28. Consider the following states:
1. Himachal Pradesh
2. Jharkhand
3. Maharashtra
Which among the above have Schedule V areas?
Answer: 1, 2 & 3
Notes:
This question has been framed on details of
Vanbandhu Kalyan Yojana. Vanbandhu Kalyan Yojana
has been launched by Central Government of India for
holistic development and welfare of tribal population
of India. The scheme as outlined by the Ministry of
Tribal Affairs is launched on a pilot basis and will be
implemented in only 1 block in each of the 10 states
having schedule V areas being selected for the scheme.
The states which have been picked are Andhra

Pradesh, Madhya Pradesh, Himachal Pradesh,
Telangana, Orissa, Jharkhand, Chattisgarh, Rajasthan,
Maharashtra and Gujarat. The areas in the states have
been selected based on recommendations of the
respective state governments.
29. If a company has "Trade Receivables", this implies

27. Consider the following statements:
that __:
1. The expenditure which does not result in creation of Answer: It has made a sale but yet to collect payments
assets for Government of India is generally treated as Notes:
revenue expenditure
If a company has receivables, this means it has made a
2. All grants given to State Governments/Union sale but has yet to collect the money from the
Territories are treated as revenue expenditure
purchaser.
From Budget Speech:
Answer: Both 1 & 2
A significant part of the working capital requirement of
Notes:
a MSME arises due to long receivables realization
Revenue Budget consists of the revenue receipts of cycles. We are in the process of establishing an
Government (tax revenues and other revenues) and the electronic Trade Receivables Discounting System
pandurangchormale
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ID: 801 | pandurangchormale@gmail.com
expenditure met from these
revenues. Tax
revenues
(TReDS) financing of trade receivables of MSMEs, from
comprise proceeds of taxes and other duties levied by corporate and other buyers, through multiple
the Union. The estimates of revenue receipts shown in financiers. This should improve the liquidity in the
the Annual Financial Statement take into account the MSME sector significantly.
effect of various taxation proposals made in the
Finance Bill. Other receipts of Government mainly 30. Which among the following is / are correct
consist of interest and dividend on investments made statements with respect to the Pradhan Mantri
by Government, fees, and other receipts for services Suraksha Bima Yojana?
rendered by Government. Revenue expenditure is for
10
2015 - Mock Test -3

1. This scheme is available for people in the age group
of 18-70 years
2. The premium for this scheme is only Rs. 12 per
month
3. The scheme provides accidental death and full
disability cover of Rs. 2Lakh
Answer: 1 & 3
Notes:
The soon-to-be-launched Pradhan Mantri Suraksha
Bima Yojna will cover accidental death risk of Rs. 2 lakh
for a premium of just Rs. 12 per year. Link
31. With reference to the social security schemes
announced
recently,
consider
the
following
comparisons between Pradhan Mantri Suraksha Bima
Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY):
1. While PMSBY is a General Insurance Scheme, PMJJBY
is a Life Insurance scheme
2. While a small premium has to be paid in case of
PMSBY, all premium is borne by the government in
case of PMJJBY
Answer: Only 1
Notes:
Link 1
Link 2
2. Sale and Purchase of Bonds

3. Monitor the utilisation of external and domestic
public debt
Answer: 1, 2 & 3
Notes:
From Budget Speech
I intend to begin this process this year by setting up a
Public Debt Management Agency (PDMA) which will
bring both Indias external borrowings and domestic
debt under one roof.
Other Notes:
This agency will structure the debt requirement,
monitor the utilization and the cost of the debt. It will
collect and publish information of public debt. Then it
will purchase and re-issue various bonds. This agency
will be further responsible to make payment of interest
and repayment also to the bond holders.
34. Which among the following indicates the total
borrowing requirements of Government from all
sources?
Answer: Fiscal Deficit
Notes:
Revenue deficit refers to the excess of revenue

expenditure over revenue receipts.
Effective revenue deficit is the difference

between revenue deficit and grants for creation
of capital assets.
Fiscal deficit is the difference between the

revenue receipts plus non-debt capital receipts
and the total expenditure including loans, net of
repayments. This indicates the total borrowing
requirements of Government from all sources.
Primary deficit is measured by fiscal deficit less

interest payments.
32. In recent times, the concept of "plug-and-play"

projects was making news. Consider the following
statements with this respect:
1. All statutory clearances will be obtained by
government before awarding the project
2. Plug and Play model ensures that infrastructure
projects don't get delayed
Answer: Both 1 & 2
35. Which among the following is / are objectives of
Notes:
the Pradhan Mantri Krishi Sinchai Yojana (PMKSY):
In a bid to ensure that infrastructure projects don't get 1. To ensure access to water to every agricultural farm
stalled and later turn up as non-performing assets, a 2. To increase efficient use of water
concept of plug-and-play projects has been conceived 3. To provide end to end solutions in irrigation supply
where only implementation-ready projects having all chain
clearances in place would be allocated through a Select the correct option from the codes given below:
transparent auction process in the way coal blocks are Answer: 1, 2 & 3
being given out.
Notes:
33. Which among the following is / are objectives of
the Public Debt Management Agency (PDMA), which
the government intends to set up?
1. Streamline the debt requirement of the government
Pradhan Mantri Krishi Sinchai Yojana (PMKSY) will

provide end to end solutions in irrigation supply chain,
viz. water sources, distribution network and farm level
application. This programme will mainly focus and
ensure access to water to every agriculture farm (Har
11
2015 - Mock Test -3

Khet Ko Pani) and increase agricultural productivity by
increasing availability and efficient use of water.
PMKSY has 3 components viz. PMKSY (per drop more
crop), watershed management (as part of land
resources) and AIBFMP (as part of Ministry of Water
Resources,
River
development
and
Ganga
Rejuvenation).
36. As per the current norms, which among the
following is a measure of headline growth rate in
India?
Answer: GDP at factor cost at constant prices
Notes:
Economic Survey:
Headline growth rate will now be measured by GDP at
constant market prices, which will henceforth be
referred to as 'GDP', as is the practice internationally.
Earlier, growth was measured in terms of growth rate
in GDP at factor cost at constant prices.
38. Which among the following is / are the Transfer

Payments?
1. Subsidies
2. Social Security expenditure done by Government
3. Pensions delivered via National Social Assistance
Programme
4. Government contribution in the New Pension
Scheme
Choose the correct statements from the above:
Answer: 1, 2, 3 & 4
1.The salaries of both the high court and Supreme
Court judges are charged from Consolidated Fund of
India
2.The charged expenditure on consolidated fund of
India cannot be voted or discussed in the house
Which among the above statements is / are correct?
Answer: Both 1 & 2
Notes:
Both the statements are incorrect. The salaries of high
court judges are charged from Consolidated Funds of
States while their pension comes from Consolidated
Fund of India.
37. For the national accounting purpose, which among

the following activities is considered to classified as
"Investment" in the GDP:
1.Purchasing a new house
2.Purchasing Shares of a Company
40. Which among the following is / are correct
3.Purchasing Debentures of a company
statements with respect to the cut motions?
4.Purchase of software
1. Cut motion represents disapproval of the Budget
Choose the correct option:
Provisions
Answer: Only 1 & 4
2. Cut motion if passed, is equivalent to no-confidence
Notes:
motion
From GKToday's Archive Documents
Investment includes construction of a new mine, Select the correct option from the codes given below:
purchase of software, or purchase of machinery and Answer: Both 1 & 2
equipment for a factory. Spending by households (not http://www.gktoday.in/answer/what-is-a-cut-motion/
government) on new houses is also included in 41. Consider the following statements:
Investment.
1. No cut motion can be moved on charged
Here, we must note that buying Financial Instruments expenditures
or putting money in saving account is not investment 2. A cut motion is allowed only if it is related to only
in this context but is a 'saving. For national accounting one demand
purpose, the reason to put financial investments in Which among the above is / are correct statements?
savings is to avoid double-counting. If one buys shares Answer: Both 1 & 2
in a company, and the company uses the money Notes:
received to buy plant, equipment, etc., the amount will The Cut Motions are mostly defeated due to Number
be counted toward GDP when the company spends the strength of the ruling party or coalition. As the cut
money on those things; to also count it when one gives motion is a veto power given to the member of the
it to the company would be to count two times an Lok Sabha to oppose a demand in the financial bill
amount that only corresponds to one group of discussed by the government, it is seen as an effective
products. Buying bonds or stocks is a swapping of tool to test the strength of the government. If a cut
deeds, a transfer of claims on future production, not
motion is adopted by the House and the government
directly an expenditure on products.
does not have the numbers, it is obliged to resign.
12
2015 - Mock Test -3

The cut motion can be admitted to the house only if it
is related to only one demand and not many. No cut
motion can be moved on charged expenditures. The
cut motions are important because they facilitate the
constructive discussion on each demand and uphold
the principle of democratic government, by giving the
members power to veto the demands.
46. Under which among the following headings, the

proceeds of government bonds come in the budget ?
Answer: Capital receipts
47. Which among the following is / are Capital
Expenditure of the Government:
1. Loan given by Government of India to other parties
2. Loan which government had borrowed in past but
now has repaid
3. Expenditure on Planned development of Union and
States
Answer: 1, 2 & 3
48. Consider the following transactions:
1. Government of India borrowed money from World
Bank on low interest
2. Government of India borrowed money from market
by issuing bonds
3. World Bank gives grant to Government of India
Which among the above is / are capital receipts?
Answer: Only 1 & 2
Notes:
1. Government of India borrowed money from World
Bank on low interest : Capital Receipt
2. Government of India borrowed money from market
by issuing bonds : Capital Receipt
3. World Bank gives grant to Government of India:
Revenue Receipt
42. With reference to the Vote on Account, which

among the following statements is / are correct?
1.The Vote on Account can be presented by only a
caretaker government
2.Vote on Account has provisions of only expenditure
side of budget
3.Vote on Account can be valid only for 2 months
4.No appropriation bill is passed for Vote on Account
Answer: Only 2
1. Revenue receipts of the government represent
income without accompanied liability
2. Revenue expenditure of the government represent
consumption without accompanied asset
Answer: Both 1 & 2
44. Which among the following can be used by the
Government of India to raise its revenue receipts?
1. increasing Tax Rates
1. Corporation Tax
2. getting more grants from abroad
2. Grants Received from a foreign country
3. increasing Tax-GDP Ratio
3. Loans from International Fund
4. increasing debt-GDP Ratio
4. Interest free loans from IDA
Which among the above are the Revenue Receipts of
45. Which among the following would be advisable to the Government?
Answer: Only 1 & 2
curb the revenue deficit?
50. Money received by the government on which
1. Cutting expenditures on subsidy
among the following is deposited in the Consolidated
2. Cutting social expenditures
Fund of India?
3. Imposing import controls
Choose the correct option from the codes given below: 1. Money received as external grant
2. Money invested by public in National Saving
Answer: Only 1 & 2
Certificates
Notes:
pandurangchormale
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ID: 801
The government can curb
the revenue deficit
either
by | pandurangchormale@gmail.com
Choose the correct option from the codes given below:
increasing revenue receipts or by decreasing revenue Answer: Only 1
expenditure. Revenue expenditure can but reduced by Notes:
a cut in social expenditures and subsidies. Since both Money invested by public in National Saving
ways have their own economic and political Certificates Public Account
ramifications, government could never achieve what it
was supposed to achieve as per the FRBM act.
51. Which among the following statements in context
with the Planned Expenditures is / are correct?
13
2015 - Mock Test -3

1. They are generally the routine administrative The role of the Finance Commission has widened after
the 73rd and 74th Constitutional amendments to
expenditures of the Government
2. They are generally routed through the central recognise the rural and urban local bodies as the third
tier of government. Article 280 (3) (bb) and Article 280
ministries to state governments
(3) (c) of the Constitution mandate the Commission to
3. They are generally incurred in the name of Planning
recommend measures to augment the Consolidated
Choose the correct option:
Fund of a State to supplement the resources of
Answer: Only 2 & 3
52. Consider the following observations regarding Panchayats and Municipalities based on the
recommendations of the respective State Finance
taxation in India:
1.The share of Direct Taxes in total tax collection is Commissions (SFCs). This also includes augmenting the
resources of Panchayat and municipalities.
more than that of indirect taxes
2.The share of corporation tax in total direct taxes is For example, the FC-XII identified fourteen best
practices, which included the following:
more than that of income tax
1. measures for augmenting resources of panchayats
Which among the above observations is / are correct?
such as compulsory levy of major taxes and exploring
Answer: Both 1 & 2
53. With reference to the public debt in India, consider all non-tax revenue sources;
2. obligatory levy of user charges
the following statements:
1. The Internal Debt is substantially higher than the 3. insistence on collection of minimum revenue and
providing incentive grants for collections beyond this
external debt
2. Maximum share of the external debt on India is of prescribed minimum amount
4. identifying revenue generating common property
money borrowed from IMF and World Bank
resources and ensuring adequate income from them;
Which among the above statement is / are correct?
and
Answer: Only 1
54. The Finance Commission recommends measures 5. giving powers to intermediate or district panchayats
to levy tax or cess or surcharge on agricultural
to__:
1. augment the consolidate fund of India
holdings.
2. augment the Consolidated Fund of a State
55. The Finance Commission, through the system of tax
3. augment the resources of Panchayats and devolution and grants-in-aid, addresses the __:
Municipalities
1. Horizontal imbalance among states
2. Inter-state inequality
Answer: Only 2 & 3
3. Intra-state inequality
Notes:
Regarding Union
Answer: Only 1 & 2
Finance Commission does not tell the Union Notes:
Government on how to increase its funds. Its work is to From Finance Commission Report
make recommendations on distribution between the Many States, in their submissions, suggested that intraUnion and the States of the net proceeds of taxes and state inequality should be factored into the devolution
the principles which should govern the grants-in-aid of formula or in determining grants, instead of only broad
the revenues of the States out of the Consolidated indicators such as per-capita income being considered.
Fund of India and the sums to be paid to the States In this context, some of these States also highlighted
which are in need of assistance by way of grants-in-aid the areas within the States as identified in Article 371
of their revenues.
of the Constitution. We are of the view that intra-state
Regarding States
inequality is within the policy jurisdiction of the States
Finance Commission suggests the measures needed to and provisioning of adequate resources through tax
augment the Consolidated Fund of a State to devolution should enable them to address intra-state
supplement the resources of the Panchayat and inequalities in an effective manner.
Municipalities in the State on the basis of the
recommendations made by the Finance Commission of 56. The expansionary fiscal policy by the government
leads to __:
the State.
1. Increased money supply
On Panchayat and Municipalities
14
2015 - Mock Test -3

2. Increase government spending
3. Increased tax revenue
Answer: Only 1 & 2
Notes:
A macroeconomic policy that seeks to expand the
money supply to encourage economic growth or
combat inflation (price increases). One form of
expansionary policy is fiscal policy, which comes in the
form of tax cuts, rebates and increased government
spending. Expansionary policies can also come from
central banks, which focus on increasing the money
supply in the economy.
57. Which among the following activities can result in
widening of revenue deficit of the government?
1. Government approves the revised pay scale as per
7th Pay commission
2. Government announces a waiver of farm loans
3. Oil prices decrease sharply
4. Government launches successful auction of coal
mines
Answer: Only 1 & 2
Notes:
From Finance Commission Report
Union
Government
undertook
several
fiscal
expansionary measures such as revision of pay scales
based on the recommendations of the Sixth Pay
Commission, waiver of farm loans and the expansion of
the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) to all districts from the 200
districts it was originally slated to cover. In addition, oil
prices escalated sharply, leading to a rise in subsidy.
It then rose to 5.2 per cent in 2009-10 because of a
substantial increase in revenue expenditures on
subsidies, interest payments and salaries and pensions.
3. External Commercial Borrowings

Which among the above is / are included in Balance of
Payments?
Answer: 1, 2 & 3
Each of them represents India's economic interaction
with rest of the world.
60. With reference to taxation in India, consider the
following statements regarding the powers of taxation
of states and centre:
1. While centre can levy taxes on production, tax on
sale / purchase of goods has to be levied by States
2. While only states can levy taxes on farm income,
only centre can levy taxes on non-farm income
Answer: Both 1 & 2
Notes:
The center can levy taxes on production (excise duty)
whereas, the tax on sale or purchase of goods has to
be levied by the States. Similarly, only the States can
levy the taxes on agricultural incomes and only Central
governments can levy taxes on non-agricultural
incomes. {Kindly note that first statement is related to
indirect taxes, while second statement pertains to
direct taxes (income tax)}
61. Consider the following terms and their meanings:

1. JAM number trinity : Jan Dhan, Aadhaar and Mobile
number trinity
2. Jeans Model : Low skilled manufacturing model of
East Asian Countries
Answer: Both 1 & 2
Notes:
From Economic Survey
Historically, there have been three modes of escape
from under-development: geology, geography, and
jeans (code for low-skilled manufacturing).
58. Consider the following sectors:
In recent years West Asia, Botswana and Chile, and
further back in time Australia and Canada, exploited
1. Construction
their natural resources endowed by geology to
2. Mining and Quarrying
improve their standards of living.
3. Electricity, gas and water supply
Which among the above is / are secondary sectors of Some of the island successes (Barbados, Mauritius, and
others in the Caribbean) have exploited their
Indian Economy?
geography by developing tourism to achieve high
Answer: Only 1 & 3
rates of growth.
Notes:
In the early stages of their success, East Asian countries
Use this link for simple explanation.
(China, Thailand, Indonesia, Malaysia etc) relied on
relatively low-skilled manufacturing, typically textiles
and clothing, to motor economic growth. Later on they
1. Inward remittances
diversified into more sophisticated manufacturing but
2. Outward Remittances
15
2015 - Mock Test -3

jeans offered the vehicle for prosperity early on. No
country has escaped from underdevelopment using
relatively skill-intensive activities as the launching pad
for sustained growth as India seems to be attempting.
Put differently, India seems to have defied its natural
comparative advantage, which probably lay in the
jeans mode of escape because of its abundant
unskilled and low-skilled labor. Instead, it found or
createdthanks to historical policy choices and
technological accidentssuch advantage in relatively
skilled activities such as information technologies and
business process outsourcing (Kochhar et. al., 2007)
62. The 14th Finance Commission has recommended
an increase in states' share in central taxes to 42%,
which is largest ever change in percentage of
devolution. Which among the following is / are
included in the divisible pool of central taxes?
1. Direct taxes
2. Indirect Taxes
3. Cess
4. Surcharges
Answer: Only 1 & 2
Notes:
Kindly note that the cess and surcharges are not part
of the divisible pool of central taxes.
The share of cess and surcharges in gross tax revenue
of the Union government increased from 7.53% in
2000-01 to 13.14% in 2013-14.
From Finance Commission Report:
Almost all States have argued that cess and surcharges
should form part of the divisible pool, with some
suggesting that this should be done if cess and
surcharges continue for more than three years. A few
States have proposed a minimum guaranteed tax
devolution to insulate States' finances from the
volatility of Union revenues for the purpose of
predictability of transfer and stability in the
management of State finances
Notes:
Highest weight of 50 per cent is given to distance from
the highest per capita income district, followed by
population (1971 census) at 17.5 per cent, demography
(2011 census) at 10 per cent, area at 15 per cent and
forest cover at 7.5 per cent.
64. The 14th Finance Commission has recommended
for the creation of a "Consolidated Sinking Fund".
Which among the following is the objective of such
fund?
Answer: amortisation of debt of the Union and State
governments
Notes:
The proposal to establish such fund had first come
from 10th Finance Commission, which said that such
funds should be established as a part of fiscal
discipline and that the constitution of Consolidated
Sinking Fund (CSF) for the amortisation of debt was
relevant both for States and the Union. The logic of
constituting a CSF for States was to enable them to
tide over the roll-over risks due to their weak cash
management practices and also State Development
Loans being under-subscribed.
14th Finance Commission has reiterated this proposal.
65. The 14th Finance Commission has given a 7.5%
weight to forest cover in the formula to determine how
much different states will get from tax devolution.
What benefits the huge forest covers provide to states'
economy?
1. It serves as Carbon sink
2. It removes fiscal disability of the states
3. It provides ecological benefits
Answer: Only 1 & 3
Notes:
Second statement needs your thinking.
From Finance Commission Report:
Large forest cover provides huge ecological benefits,
but there is also an opportunity cost in terms of area
not available for other economic activities and this also
serves as an important indicator of fiscal disability.

1. Population
2. Area
66. Which among the following is / are Alternative
3. Demography
Investment Funds?
4. Forest Cover
1. Private Investment in Public Equity Funds
Which among the following is the decreasing order of 2. Infrastructure Equity Fund
the weight given by 14th finance commission in the 3. Venture Capital Fund
formula to determine how much different states will 4. Mutual Fund
get from tax devolution?
Choose the correct option from the codes given below:
Answer: 1 3 2 4
16
2015 - Mock Test -3

Notes:
http://www.gktoday.in/reference/alternativeinvestment-funds/
67. With reference to the Public Distribution in India,
what among the following presents a correct relation
between Subsidy, Central Issue Price and Economic
Cost of food grains?
Answer: Subsidy=Economic Cost - Central Issue Price
Notes:
Subsidy is defined as the economic cost minus Central
issue price. Central issue price is the price at which the
foodgrain is allocated to States, while the economic
cost is the combination of minimum support price and
various other charges incurred by the Centre in
procuring foodgrain.
68. Which among the following schemes have been
brought under the umbrella of Krishyonnati Yojana as
per the recent budget?
1. National Food Security Mission
2. Soil Health Card
3. National Mission on Agriculture extension
Answer: 1, 2 & 3
Notes:
Krishyonnati Yojana is envisaged as umbrella
programme for focusing on food security, by merging
schemes on Soil Health Card, Integrated scheme on
agricultural co-operation and Agricultural Marketing,
National Mission on Agriculture extension, horticulture
development, price stabilization Fund, Nation Mission
on sustainable agriculture and other programmes such
as Rashtriya Krishi Vikas Yojana, National Food Security
Mission.
Answer: 15.5%
Notes:
Tax-to-GDP ratio is the total government tax
collections divided by the country's GDP. India has very
low tax-to-GDP ratio. The tax-to-GDP ratio for the
central government is 10 percent and state plus centre
is about 15.5 percent.
71. The objectives of the National Food Security
Mission (NFSM) is / are:
1. Increase production of food grains
2. Restore soil fertility in all states
3. Increase farm profits
choose the correct option:
Answer: Only 3
Notes:
Main objective of NFSM is to increase production of
Rice, Wheat and Pulses through area expansion and
productivity enhancement in sustainable manner in
identified districts; restoring soil fertility and
productivity at individual farm level; creation of
employment opportunities; and enhancing farm level
economy (i.e. Farm profits) to restore confidence
among farmers. NFSM is being implemented in 467
districts of 17 States viz. Andhra Pradesh, Assam, Bihar,
Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka,
Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab,
Rajsthan, Tamil Nadu, Uttar Pradesh and West Bengal.
About 20 million hectares of rice area and 13 million
hectares of wheat area is included in these districts
that roughly constitute about 50% of cropped area for
wheat and rice. For pulses, additional 17.5 million ha
(20% cropped area) is to be created.
72. Goods and Service Tax:

69. Which among the following is / are mainly funded 1. will be shared between Centre and States
2. will be levied by Centre as well as States
by cess and surcharges in India?
3. proposes exports to be zero rated
1. Namami Gange
4. proposed imports to be zero rated
2. National Disaster Response Fund
3. Swachh Bharat Mission
73. The Gini coefficient represents:
Answer: 1, 2 & 3
1. Income / Population Ratio
Notes:
National Ganga Plan or Namami Gange is to be 2. Income Distribution
funded by National Clean Energy Fund (NCEF), which 3. Variation in Economic Growth
itself is funded by Cess on coal etc. Similarly, NDRF is Select the correct option from the codes given below:
financed through the levy of a cess on certain items. Answer: Only 2
Swachh Bharat Mission, as we all know, is also to be Notes:
Gini coefficient represents the income distribution of a
financed via cess and surcharges.
countrys residents. It was developed by the Italian
70. As per the latest statement by finance ministry statistician and sociologist Corrado Gini. It measures
Indias tax-to-GDP ratio is about __?
17
2015 - Mock Test -3

the inequality. The coefficient ranges from zero to one,
with zero representing perfect equality and one
showing perfect inequality. The more the inequality,
the more is Gini Coefficient. The more is the value of
Gini Coefficient, the more is gap between rich and
poor.
74. The Reserve Bank of India extends its lending
facility to __:
1. Central Government
2. State Governments
3. Public Banks
4. Private Banks
5. General Public
Answer: 1 2 3 4
75. In context with the Census definition of a "worker"
in India, what is the exact meaning of a "Marginal
Worker"?
Answer: A worker who gets employment for less than
6 months
Notes:
The Census classifies Workers into two groups namely,
Main workers and Marginal workers. Main Workers are
those workers who had worked for the major part of
the reference period i.e. 6 months or more. Marginal
Workers are those workers who had not worked for the
major part of the reference period i.e. Less than 6
months.
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Mock Test Series 2015

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2015 - Mock Test -3

pandurangchormale | Unique ID: 801 | pandurangchormale@gmail.com

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2015 - Mock Test -3

Lower Trade Deficit is favorable because of a lo import

3. With reference to India, consider the following:

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2015 - Mock Test -3

9. The introduction of the GST is projected to be a

Below information comes from the Survey Documents

Broad Features of the GST Model

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2015 - Mock Test -3

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2015 - Mock Test -3

2. The Bali Package allows the developing countries to

Agriculture do not bar public procurement and

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2015 - Mock Test -3

overall production and production per hectare has

15. With reference to the food procurement in India,

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2015 - Mock Test -3

country are about 92 trillion cubic feet (TFC), of which

18. Consider the following:

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Which of the above is / are correct statements?

25. The central Statistical Office (CSO) has started

26. Consider the following:

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2015 - Mock Test -3

the normal running of Government departments and

The states which have been picked are Andhra

29. If a company has "Trade Receivables", this implies

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2015 - Mock Test -3

2. Sale and Purchase of Bonds

Revenue deficit refers to the excess of revenue

Effective revenue deficit is the difference

Fiscal deficit is the difference between the

Primary deficit is measured by fiscal deficit less

32. In recent times, the concept of "plug-and-play"

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) will

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2015 - Mock Test -3

38. Which among the following is / are the Transfer

37. For the national accounting purpose, which among

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2015 - Mock Test -3

46. Under which among the following headings, the

42. With reference to the Vote on Account, which

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2015 - Mock Test -3

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2015 - Mock Test -3

3. External Commercial Borrowings

61. Consider the following terms and their meanings:

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2015 - Mock Test -3

63. Consider the following: