- Which of these is not an example of "non-tax revenue"
- Receipts from a spectrum auction
- Receipts from income tax
- Dividend from a public sector undertaking
- Fees and fines
Show answer
Answer: (B) Receipts from income tax
Income tax is a direct tax, so it falls under tax revenue, not under non-tax revenue.
- In which year did the Maharatna rank begin
- 1997
- 2004
- 2010
- 2015
Show answer
Answer: (C) 2010
Maharatna began in 2010; both Navratna and Miniratna have been running since 1997.
- Without prior government approval, how much can a Navratna company invest at most
- ₹250 crore, or 50 percent of net worth
- ₹500 crore, or equal to net worth
- ₹1,000 crore, or 15 percent of net worth
- ₹5,000 crore, or 15 percent of net worth
Show answer
Answer: (C) ₹1,000 crore, or 15 percent of net worth
A Navratna company gets the freedom to invest up to ₹1,000 crore, or 15 percent of its net worth; the limit for Maharatna is higher still.
- When the government sells a stake in a PSU but still keeps more than 50 percent for itself, what is this called
- Majority disinvestment
- Strategic disinvestment
- Minority disinvestment
- Full privatisation
Show answer
Answer: (C) Minority disinvestment
In minority disinvestment the government keeps more than half its stake, so control also stays in its hands.
- What was the main reason disinvestment began in India
- The balance of payments crisis of 1991
- The global recession of 2008
- The Covid-19 pandemic
- The rollout of GST
Show answer
Answer: (A) The balance of payments crisis of 1991
Disinvestment began under the New Industrial Policy that followed the balance of payments crisis of 1991.
- In strategic disinvestment, who were BALCO and Hindustan Zinc sold to
- The Tata Group
- The Reliance Group
- Sterlite Industries
- Hindustan Unilever
Show answer
Answer: (C) Sterlite Industries
Both companies were sold to Sterlite Industries; VSNL went to the Tata Group and Modern Foods to Hindustan Unilever.
- When did the CPSE ETF begin, and how many PSUs did it include
- 2010, with 14 PSUs
- 2014, with 11 PSUs
- 2004, with 6 PSUs
- 2021, with 5 PSUs
Show answer
Answer: (B) 2014, with 11 PSUs
The CPSE ETF was launched in 2014, and it held shares of 11 PSUs including ONGC, Coal India and NTPC.
- What was the Department of Disinvestment renamed to
- The Department of Financial Services
- The Department of Investment and Public Asset Management (DIPAM)
- The Department of Economic Affairs
- The Department of Public Enterprises
Show answer
Answer: (B) The Department of Investment and Public Asset Management (DIPAM)
The Department of Disinvestment was renamed DIPAM — the Department of Investment and Public Asset Management.
- Under the New Public Sector Enterprise Policy 2021, PSUs were sorted into which two sectors
- Profitable and loss-making
- Strategic and non-strategic
- Central and state
- Maharatna and Navratna
Show answer
Answer: (B) Strategic and non-strategic
A limited number of PSUs will be kept in the strategic sector, and the non-strategic sector is meant to be privatised.
- What did the Rangarajan Committee (1993) recommend
- 100 percent disinvestment at once
- Disinvesting in steps up to 49 percent
- Stopping disinvestment entirely
- Only strategic disinvestment
Show answer
Answer: (B) Disinvesting in steps up to 49 percent
The Rangarajan Committee recommended disinvesting in steps up to 49 percent — this was the first structured approach.
- What is the nature of a Treasury Bill
- It carries a coupon rate
- It is zero-coupon, issued at a discount
- It is tied to gold
- It is tied to inflation
Show answer
Answer: (B) It is zero-coupon, issued at a discount
A Treasury Bill is zero-coupon — it is issued at a discount to its face value.
- What is the maturity period of dated government securities
- 91 to 364 days
- 1 to 3 years
- 5 to 40 years
- More than 50 years
Show answer
Answer: (C) 5 to 40 years
Dated government securities are issued for a long tenure of 5 to 40 years.
- In which year did Floating Rate Bonds begin, and what was their purpose
- 2013, to protect against inflation
- 2001, to protect against interest-rate risk
- 2015, to cut gold imports
- 1991, to raise disinvestment
Show answer
Answer: (B) 2001, to protect against interest-rate risk
Floating Rate Bonds began in 1995; their purpose was to lower the risk of the interest rate moving against the investor.
- What is the return on an Inflation Indexed Bond (IIB) tied to
- The repo rate
- The price of gold
- The CPI (Consumer Price Index)
- The GDP growth rate
Show answer
Answer: (C) The CPI (Consumer Price Index)
An IIB's return is adjusted against the CPI, which protects investors from the effect of inflation.
- How much extra interest does the government pay on a Sovereign Gold Bond, and when were fresh issues stopped
- 1.5%, stopped in 2020
- 2.5%, stopped in 2024
- 3%, stopped in 2022
- 2%, stopped in 2019
Show answer
Answer: (B) 2.5%, stopped in 2024
The government paid an extra 2.5 percent interest; fresh issues of it have been stopped since 2024.
- What is the tenure of the Public Provident Fund (PPF)
- 5 years
- 8 years
- 15 years
- 21 years
Show answer
Answer: (C) 15 years
PPF has a 15-year tenure, and the deposit, the interest and the maturity amount are all three free of tax.
- At 7.5% compound interest, in how many months does a Kisan Vikas Patra investment double
- 91 months
- 100 months
- 115 months
- 180 months
Show answer
Answer: (C) 115 months
A Kisan Vikas Patra investment doubles in 115 months.
- What is the maximum that can be deposited in a Sukanya Samriddhi Yojana account in one financial year
- ₹50,000
- ₹1 lakh
- ₹1.5 lakh
- ₹2 lakh
Show answer
Answer: (C) ₹1.5 lakh
The maximum deposit allowed in Sukanya Samriddhi Yojana is ₹1.5 lakh per financial year; the minimum is ₹250.
- When did the Senior Citizens Savings Scheme (SCSS) begin
- 1988
- 2004
- 2015
- 1968
Show answer
Answer: (B) 2004
SCSS began in 2004, and its tenure is 5 years.
- Under the Hybrid Annuity Model (HAM), what share of the total cost does the government bear during construction
- 25 percent
- 40 percent
- 60 percent
- 100 percent
Show answer
Answer: (B) 40 percent
Under HAM the government pays roughly 40 percent of the cost during construction, and the private side puts in the remaining 60 percent.
- What is the biggest mark of the EPC model
- The private side ends up owning the whole project
- The government funds the whole project, and the private contractor is limited to building it, not running it
- Users pay a toll directly
- The government pays in instalments
Show answer
Answer: (B) The government funds the whole project, and the private contractor is limited to building it, not running it
Under EPC the entire money is the government's; the private contractor's job stops at designing, procuring and constructing, with no part in running it.
- Under the annuity model and the toll model, who bears the traffic risk
- The government under annuity, the private side under toll
- The government under both
- The private side under both
- The private side under annuity, the government under toll
Show answer
Answer: (A) The government under annuity, the private side under toll
Under the annuity model the government carries the traffic risk, while under the toll model that risk falls on the private side.
- What is the very first step under the Swiss Challenge model
- The government draws up a proposal itself
- A private company comes forward on its own with a proposal
- The RBI fixes the interest rate
- Parliament passes a law
Show answer
Answer: (B) A private company comes forward on its own with a proposal
The Swiss Challenge begins with a private company putting forward its own proposal; only after that does the government invite other companies to bid.
- Which method did the Vijay Kelkar Committee (2015) advise avoiding, for PPP reform
- The BOT model
- The HAM model
- The Swiss Challenge method
- The EPC model
Show answer
Answer: (C) The Swiss Challenge method
The Kelkar Committee advised avoiding this method, and setting up a separate body called 3PI in its place.
- In India, every proposal for foreign aid passes through which department
- The Department of Revenue
- The Department of Economic Affairs (DEA)
- The Department of Expenditure
- The Department of Investment and Public Asset Management
Show answer
Answer: (B) The Department of Economic Affairs (DEA)
Every proposal for foreign aid first reaches the Department of Economic Affairs (DEA), inside the Ministry of Finance — this is the nodal agency.
- Which country is India's largest bilateral donor
- The USA
- Japan
- Germany
- France
Show answer
Answer: (B) Japan
On the list of bilateral donors, Japan sits at the very top for India, and this aid reaches India through JICA.
More chapters in this subject
- The Tax System and GST25 questions
- Fiscal Policy25 questions
- Fiscal Federalism26 questions
- Infrastructure: Transport and Energy26 questions
- Communication and Digital Infrastructure24 questions
- Agricultural Development26 questions