General Studies Free Quiz- Test Paper No.5 Questions & Answers:

Evaluate Yourself:

An additional fiscal indicator, namely, Effective Revenue Deficit (ERD), has been prescribed by an amendment to the FRBM Act by the Finance Act, 2012. It has been defined as the difference between “revenue deficit and grants for creation of capital assets”. Grants-in-aid to which of the following entities are NOT included under ERD?
- State Governments
- Constitutional authorities
- Autonomous bodies
- Infrastructure Special Purpose Vehicles

Answer:

In India, rural incomes are generally lower than the urban incomes, which of the following reasons account for this?
1. Prices of primary products are lower than those of manufactured products
2. Investment in agriculture has been low when compared to investment in industry
Which of the above statement(s) is/are correct?
- Only 1
- Only 2
- Both
- None
Answer:

D
Fiscal deficit in the Union Budget means:
1. The difference between total expenditure and total revenue
2. Net increase in Union Governments borrowings from the Reserve Bank of India
3. The sum of deficit excluding net increase in internal and external borrowings
Which of the above statement(s) is/are correct?
- Only 1 & 3
- Only 3
- Only 2 & 3
- All of the above
Answer:

C
ERD would mean:
1. Expenditure made on asset creation from revenue receipts.
2. Difference between revenue receipts and revenue expenditure
3. Difference between all receipts and all the expenditure
Which of the above statement(s) is/are correct?
- Only 1 & 2
- Only 1 & 3
- Only 2
- Only 1
Answer:

D
ICOR is used to measure directly
1. Inefficiency of Governance
2. Productivity of Capital
3. Productivity of Labor
Which of the above mentioned statements is/are correct?
- Only 1 & 3
- Only 1
- Only 1 & 2
- All of the above
Answer:

C