Q21. Consider the following statements:
Statement I- Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement II- InvITs are recognised as borrowers under the “Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002”.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and statement 2 is the correct explanation for statement one.
(b) Both Statement-I and Statement-II are correct and statement 2 is not the correct explanation for statement one.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct
Answer: (d)
InvITs have to mandatorily distribute at least 90% of the income through dividends and interest payouts on a bi-annual basis.
The dividend and Interest income from InvITs is completely taxable as per the slab rate of the investor.
With InvITs and REITs now recognised as borrowers under the SARFAESI Act, lenders to these trusts, shall have adequate statutory enforcement options, absence of which was earlier becoming a constraint for bankers to lend directly at trust level.
Q22. Consider the following statements:
Statement I- In the post pandemic recent past, many central banks worldwide had carried out interest rate hikes.
Statement II-Central banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and statement 2 is the correct explanation for statement one.
(b) Both Statement-I and Statement-II are correct and statement 2 is not the correct explanation for statement one.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct
Answer: (a)
Central Banks Hike Interest Rates in Sync to Tame Inflation Pressures. The monetary policy cycle is now increasingly synchronized around the world.
Importantly, the pace of tightening is accelerating in several countries, particularly in advanced economies, in terms of both frequency and magnitude of rate hikes.
Monetary policy can slow overall demand to address demand-related inflationary pressures, so a tightening of financial conditions is the goal.
Q23. Consider the following statements:
Statement I : Carbon markets are likely to be one of the most widespread tools in the fight against climate change.
Statement II: Carbon markets transfer resources from the private sector to the state.
Which one of the following is correct in respect of the above statements?
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and statement 2 is the correct explanation for statement one.
(b) Both Statement-I and Statement-II are correct and statement 2 is not the correct explanation for statement one.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct
Answer (c)
For decades, carbon markets have been seen as part of the solution to climate change. They have mostly been dominated by the private sector, but this will soon change. More than two thirds of countries are planning to use carbon markets to meet their Nationally Determined Contributions (NDCS) to the Paris Agreement.
Carbon markets help mobilize resources and reduce costs to give countries and companies the space to smooth the low-carbon transition. This statement shows that carbon markets help both private companies and the State to mobilise resources rather than transfer resources between them.
Q24. Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?
(a) Conducting Open Market Operations
(b) Oversight of settlement and payment systems
(c) Debt and cash management for the Central and State governments
(d) Regulating the functions of Non Banking Financial Institutions
Answer (a)
Sterilization is a monetary action used by central banks in order to stem the negative effects emerging from capital inflows or outflows from a country’s economy. This may include open market operations conducted by the central bank aimed at neutralizing the impact of the foreign exchange operations associated with it.
Q25. Consider the following markets:
- Government Bond Market
- Call Money Market
- Treasury Bill Market
- Stock Market
How many of the above are included in capital markets?
(a) Only one
(b)Only Two
(c) All Three
(d)All Four
Answer (b)
A capital market is a financial market where money is borrowed or invested for a long-term meaning more than a year. Some capital market instruments are equity, preference share, debenture, bonds, etc.
A money market is a financial market where money is borrowed or invested for a short-term, meaning less than a year. Some money market instruments are treasury bills, commercial bills, commercial paper, cal money, certificate of deposit, etc.
Q26. Which one of the following best describes the concept of ‘Small Farmer Large Field’?
(a) Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce.
(b) Many marginal farmers in an area organise themselves into groups and synchronise and harmonise selected agricultural operations.
(c) Many marginal farmers in the area together make a contract with the corporate body and surrender the land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers.
(d) The company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production.
Answer (b)
Collective action model “Small Farmers Large Field (SFLF)”
This model is participatory and flexible and allows small farmers to benefit from achieving economies of scale by organizing themselves into groups and synchronizing and harmonizing selected operations.
It was piloted in two villages of Odisha, an eastern Indian state, with 112 farmers (35 females and 77 males).
These farmers organized themselves into groups and synchronized their operations such as nursery bed management, transplanting, and harvesting collectively to achieve economies of scale.
Overcomes the disadvantages faced by millions of small and marginal farmers due to diseconomies of scale and lack of bargaining power in the supply chain.
Q27. Consider the following statements:
- The Government of India provides a minimum support price for niger (Guizotia abyssinica) seeds.
- Niger is cultivated as a kharif crop.
- Some tribal people in India use Niger seed oil for cooking.
How many of the above statements are correct?
(a) Only one
(b)Only Two
(c) All Three
(d)None
Answer: (c)
Niger is a minor oilseed crop that is grown predominantly under rainfed conditions.
In India, niger is grown on an area of 2.61 lakh ha mainly during kharif.
One of the 14 kharif crops for which the Centre releases a minimum support price (MSP) every year is an unlikely plant called niger or ramtil (Guizotia abyssinica). This lesser known oilseed commands one of the highest MSPs, fixed on the basis of the cost of production and market demand.
Q28. Consider the investments in the following assets:
- Brand recognition
- .Inventory
- Intellectual property
- Mailing list of clients
How many of the above are considered intangible investments?
(a) Only one
(b)Only Two
(c) All Three
(d)All Four
Answer (c)
An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.
Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.
Additionally, financial assets such as stocks and bonds, which derive their value from contractual claims, are considered tangible assets.
Client list or customer list is also considered an intangible asset.
Q29. Consider the following:
- Demographic performance
- Forest and ecology
- Governance reforms
- Stable government
- Tax and fiscal efforts
For the horizontal tax devolution, the fifteenth finance Commission used how many of the above as criteria other than population area and income distance?
(a) Only two
(b)Only three
(c) All four
(d)All five
Answer: (b)
Criteria for Horizontal Devolution
- Income Distance
- Area
- Population (2011)
- Demographic Performance
- Forest and Ecology
- Tax and fiscal efforts
Q30. Consider the following infrastructure sectors:
- Affordable housing
- Mass rapid transport
- Healthcare
- Renewable energy
On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) focus for its investments?
(a) Only one
(b)Only Two
(c) All Three
(d)All Four
Answer: (c)
Sustainable Investments in Infrastructure and Innovation (‘S3i’): In March 2020, Sustainable Investments in Infrastructure and Innovation (S3i) was formally established as a stand-alone business unit in the UNOPS (United Nations Office for Project Services) governance structure, making UNOPS the first United Nations organization able to make direct investments from its own balance sheet.
In line with the UNOPS Strategic Plan, 2022-2025, the S3i office will seek to enhance and accelerate the effort of engaging public and private sector investors to work collectively to scale up infrastructure investments and consider co-creating innovative financing options. The UNOPS S3i will continue rolling out the initiative across its three focus-areas: (a) affordable housing; (b) renewable energy; and (c) health infrastructure.
Question 6 Answer is option (d) Titanium in explanation it is correct, in Answer it is mentioned as option (b) kindly rectify it ,it will useful for others