Answers of UPSC-IAS General Studies Free Quiz- Test Paper No.4

General Studies Free Quiz- Test Paper No.4

Evaluate Yourself:

    1. In context of five year plans, which of the following are sources of its financing?
      1. Central Budget
      2. State Budget
      3. Public Sector Enterprises
      4. Domestic Private Sector
      5. FDI

      Which of the above mentioned statement(s) is/are correct?

      • Only 1,3 and 5
      • Only 1,2 and 5
      • Only 1,2,4 and 5
      • All of the above

      Answer:
      D

    2. Serious Fraud Investigation Office has been accorded statutory status recently. Under which of the following acts it was done?
      • Prevention of Corruption Act
      • Companies Act
      • Securities and Exchange Board of India Act
      • Fiscal Responsibility and Budget Management Act

      Answer:
      B

    3. Deficit financing leads to inflation in general, but it can be checked if:
      1. Government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
      2. Aggregate demand is increased
      3. All the expenditure is denoted national debt payment

      Which of the above statement(s) is/are correct?

      • Only 1 & 3
      • Only 3
      • 1, 2 & 3
      • Only 1

      Answer:

      DExp.: Aggregate demand leads to higher expenditure. Debt payment by government lead to more money supply in the market.

    4. Gross domestic capital formation is defined as:
      1. Expenditure devoted to increase or maintain the capital stock
      2. Expenditure incurred on formation of physical assets only
      3. Net addition to stock after depreciation
      • Only 1 & 2
      • Only 1 & 3
      • Only 2
      • Only 1

Answer:
D

    1. Consider the following statements:
      1. In general revenue expenditure is synonymous with consumption with consumption and non-development expenditure
      2. In India, social sector expenditureflagship schemes like NREGS is shown under revenue expenditure.

Which of the above mentioned statements is/are correct?

      • Only 1
      • Only 2
      • Both 1 and 2
      • None of the above

Answer:

C

Explanation:

Revenue expenditure is essentially non-plan expenditure that does not create assets, i.e., interest payments, defense, subsidies and public administration. It is synonymous with maintenance and consumption expenditure as also welfare expenditure.