Plus IAS

Telegram: https://t.me/PlusIAS

MCQS on Budget 2020-21

1) Important for prelims

2) Questions also framed on data, facts and figures –very important for GS-3, Geography
optional (Economic Geography), Economics optional. Try to mug up the facts.

1. What are the achievements/benefits of the Goods and Services Tax regime?
1) It has consolidated numerous taxes and cesses to one tax and facilitated formalization
of economy.
2) The turnaround time for trucks has witnessed a substantial reduction to the tune of 20%
due to abolition of check posts in GST.
3) The role of Inspector-Raj is still there, but decreased considerably.

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

a) 1 and 2 only
b) 2 only
c) 3 only
d) All of the above

Correct answer: a

Only statements 1 and 2 are correct. ‘a’ is the answer.

The Goods and Services Tax has been gradually maturing into a tax that has integrated the
country economically. It has consolidated numerous taxes and cesses to one tax and facilitated
formalization of economy.

It has resulted in the efficiency gains in logistic and transport sectors. The turnaround time for
trucks has witnessed a substantial reduction to the tune of 20% due to abolition of check posts
in GST. The dreaded Inspector-Raj has also vanished.

1
It has also led to significant benefits to MSME by way of enhanced threshold and composition
limits. The effective tax incidence on almost every commodity came down substantially.
Through several rate reductions, an annual benefit of ` one lakh crore has been extended to
consumers. It amounts to 10% reduction in overall tax incidence. An average household now
saves about 4% on its monthly spends on account of reduced GST rates.

During this phase of maturing, GST did face certain challenges. This was natural as transition
was daunting. GST Council has been proactive in resolving issues during transition. In the last
two years we have added more than 60 lakh new taxpayers, a total of about 40 crore returns
were filed, 800 crore invoices were uploaded, and 105 crore e-way bills were generated. There
has been extensive engagement with stakeholders. A simplified new return system is being
introduced from April 1, 2020.

2. Consider the following statements:

1) The inflation rate of Indian economy during 2014-2019 was 4.5%.
2) During 2006-16, India was able to raise 371 million people out of poverty.
3) Currently, the Central Government debt is more than 50% of GDP.

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

a) 1 only
b) 2 only
c) 2 and 3 only
d) All of the above

Correct answer: c

Statements 2 and 3 are incorrect. ‘c’ is the answer.

We have moved on from a growth rate of just over 4% in 1950s to 6% in 1980s and1990s.
However, during 2014-19 we clocked growth of 7.4% on average with inflation, averaging
around 4.5%. It is worthwhile to note that inflation was close to 9% in the last two decades of
the last millennium and ranged 10.5% during 2009-14. Between 2006-16, India was able to raise
271 million people out of poverty.

We are now the fifth largest economy of the world. India’s foreign direct investment got
elevated to the level of US$ 284 billion during 2014- 19 from US$ 190 billioin that came in
2
during the years 2009-14. The Central Government debt that has been the bane of our
economy got reduced, in March 2019, to 48.7% of GDP from a level of 52.2%in March 2014.

3. Which of the following are prominent themes of Union Budget 2020-21?

1) Aspirational India
2) Economic Development for all
3) Geriatric care

Select the correct answer using the codes given below.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: a

Geriatric care is not among the three themes. 3rd theme is ‘Caring Society’. ‘a’ is the answer.

Three prominent themes of the Budget:

1) Aspirational India - better standards of living with access to health, education and better
jobs for all sections of the society
2) Economic Development for all - “Sabka Saath , Sabka Vikas , Sabka Vishwas”.
3) Caring Society - both humane and compassionate; Antyodaya as an article of faith.

4. Consider the following statements about the National Infrastructure Pipeline:

1) It is the investment plan unveiled by the Central Government for enhancing
infrastructure in identified sectors for a period of five years from 2020-25.
2) The funding will be jointly made by the Centre, states and the private sector in the
proportion of 39:39:22 (39 % each by the centre and states and 22% by the private
sector).

3
 3) Under this, Rs 102 lakh crores will be invested.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: d

All the statements are correct. ‘d’ is the answer.

National Infrastructure Pipeline is the investment plan unveiled by the Central Government for
enhancing infrastructure in identified sectors for a period of five years from 2020-25.

Finance Minister Nirmala Sitharaman announced Rs 102 lakh crore ($1.4 trillion) National
Infrastructure Pipeline to spend in the infrastructure sector over a five-year period (2020-25).
The plan will help India to reach $5 trillion economy by 2025.

Funding of the scheme

The funding of the National Infrastructure Pipeline will be jointly made by the Centre, states
and the private sector in the proportion of 39:39:22 (39 % each by the centre and states and
22% by the private sector).

It consists of more than 6500 projects across sectors and are classified as per their size and
stage of development. These new projects will include housing, safe drinking water, access to
clean and affordable energy, healthcare for all, world-class educational institutes, modern
railway stations, airports, bus terminals, metro and railway transportation, logistics and
warehousing, irrigation projects, etc.

The National Infrastructure Pipeline envisions improving the ease of living for each individual
citizen in the country. It’s also will bring in generic and sectoral reforms in development,
operation and maintenance of these infrastructure projects. A huge employment opportunity
exists for India’s youth in construction, operation and maintenance of infrastructure. National
Skill Development Agency will give special thrust to infrastructure-focused skill development
opportunities.

4
 5. What are pillar of the ‘Ease of Living’ according to the budget, 2020-21?
1) Aspirational India
2) Economic Development for all
3) Caring Society

Select the correct answer using the codes given below.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: d

All three are the pillar of the ‘Ease of Ling’. ‘d’ is the answer.

Excerpt from the budget speech:

“To Summarize my introductory remarks, this Budget Speaker Sir, is dedicated to provide “Ease
of Living” to all citizens. As mentioned, a little earlier, the details under the three broad themes
– Aspirational India, Economic Development and Caring India are the flowers in the bouquet
that is Ease of Living. Holding this bouquet together are two hands – one, Corruption free,
policy-driven good governance and two, clean and sound financial sector.

The three themes described earlier form the basis of my subsequent presentation. They are the
flowers of the bouquet that underline the overall concept of “Ease of Living” and need to uplift
Governance, as pronounced by our Prime Minister Shri Narendra Modi. The chapter on
Finances and subsequent Part B on Taxes provide the necessary underpinning to the Budget
that lays the guide map for next year and beyond.”

6. Three broad themes of budget, 2020-21 (Aspirational India, Economic Development for all,
and Caring Society) are held together by...?
1) Corruption free, policy-driven Good Governance.

5
 2) Clean and sound financial sector.
3) Doubling farmer’s income through various interventions.

Select the correct answer using the codes given below.

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: a

Aspirational India, Economic Development and Caring India are the flowers in the bouquet that
is Ease of Living. Holding this bouquet together are two hands (Three broad themes are held
together by):

1) Corruption free, policy-driven good governance and

2) Clean and sound financial sector.

7. Which of the following are components of Aspirational India according to the Budget,
2020-21?
1) Agriculture, Irrigation, and Rural Development
2) Empowerment of women and other vulnerable sections of society.
3) Wellness, Water, and Sanitation
4) Education and Skills

Select the correct answer using the codes given below.

a) 1 and 2 only
b) 3 and 4 only
c) 1, 3 and 4 only
d) All of the above

Correct answer: c

Three components of Aspirational India

6
 1) Agriculture, Irrigation, and Rural Development
2) Wellness, Water, and Sanitation
3) Education and Skills

8. Consider the following statements about the PM KUSUM scheme:

1) This scheme is launched by the Ministry of power.
2) It aims to make farmers “urjadata”.
3) This scheme to enable farmers to set up solar power generation capacity on their
fallow/barren lands and to sell it to the grid would be operationalized.

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

a) 1 only
b) 2 and 3 only
c) 3 only
d) All of the above

Correct answer: b

Only statement 2 and 3 are correct. ‘b’ is the answer.

Excerpt from Budget speech: “In the Budget speech of July 2019, I had stated that “annadata”
can be “urjadata” too. The PM-KUSUM scheme removed farmers’ dependence on diesel and
kerosene and linked pump sets to solar energy. Now, I propose to expand the scheme to
provide 20 lakh farmers for setting up stand-alone solar pumps; further we shall also help
another 15 lakh farmers solarise their grid-connected pump sets. In addition, a scheme to
enable farmers to set up solar power generation capacity on their fallow/barren lands and to
sell it to the grid would be operationalized.”

Ministry of New and Renewable Energy (MNRE) has launched the Pradhan Mantri Kisan Urja
Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme for farmers for installation of solar
pumps and grid connected solar and other renewable power plants in the country.

The PM KUSUM scheme had three components -- 10,000 megawatts (MW) of decentralised
ground mounted grid-connected renewable power plants (Component-A); installation of 17.50
lakh standalone solar powered agriculture pumps (Component-B); and solarisation of 10 lakh
grid-connected solar powered agriculture pumps (Component-C).

7
9. What is stated by annual financial statement, 2020-21 about the warehousing and cold
storage facilities in the country?
1) India has an estimated capacity of 162 million MT of agriwarehousing, cold storage,
reefer van facilities etc.
2) NABARD will undertake an exercise to map and geo-tag them.
3) The government of India will provide Viability Gap Funding for setting up warehouses at
the block/taluk level.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: d

All the statements are correct. ‘d’ is the answer.

Excerpt from Budget speech: “India has an estimated capacity of 162 million MT of
agriwarehousing, cold storage, reefer van facilities etc. NABARD will undertake an exercise to
map and geo-tag them. In addition, we propose creating warehousing, in line with Warehouse
Development and Regulatory Authority (WDRA) norms. Our government will provide Viability
Gap Funding for setting up such efficient warehouses at the block/taluk level. This can be
achieved, where States can facilitate with land and are on a PPP mode. Food Corporation of
India (FCI) and Central Warehousing Corporation (CWC) shall undertake such warehouse
building on their land too.”

 NABARD to map and geo-tag agri-warehouses, cold storages, reefer van facilities, etc.
 Warehousing in line with Warehouse Development and Regulatory Authority (WDRA)
norms:
 Viability Gap Funding for setting up such efficient warehouses at the block/taluk level.
 Food Corporation of India (FCI) and Central Warehousing Corporation (CWC) to
undertake such warehouse building

8
10. Consider the following statements about the Village Storage Scheme:
1) The village storage scheme will be run by Gram Panchayats.
2) It will provide holding capacity for farmers.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: b

Only statement 2 is correct. ‘b’ is the answer.

Excerpt from Budget speech: “As a backward linkage, a Village Storage scheme is proposed to
be run by the SHGs. This will provide farmers a good holding capacity and reduce their logistics
cost. Women, SHGs shall regain their position as “Dhaanya Lakshmi”.

Village Storage Scheme:

1) To be run by the SHGs to provide farmers a good holding capacity and reduce their
logistics cost.
2) Women, SHGs to regain their position as Dhaanya Lakshmi.

11. Consider the following statements:

1) The production of the Horticulture sector is 311million MT which is less than the food
grain production.
2) The purpose of the One District-One Product scheme is ‘better marketing and export in
the Horticulture sector’.

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

9
 a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: b

Only statement 2 is correct. ‘b’ is the answer.

Excerpt from Budget speech: “Horticulture sector with its current produce of 311million MT
exceeds production of food grains. For better marketing and export, we propose supporting
States which, adopting a cluster basis, will focus on “one product one district”.

12. Consider the following statements about the Kisan Rail scheme:
1) It is effort to build a seamless national cold supply chain for perishables, inclusive of
milk, meat and fish.
2) This scheme will be join initiative of the Ministry of Agriculture and Ministry of Railway.
3) Under this scheme, there will be refrigerated coaches in the Express and Freight trains.

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

a) 1 only
b) 3 only
c) 1 and 3 only
d) 2 and 3 only

Correct answer: c

Only statements 1 and 3 are correct. ‘c’ is the answer.

Kisan Rail to be setup by Indian Railways through PPP:

 To build a seamless national cold supply chain for perishables (milk, meat, fish, etc.
 Express and Freight trains to have refrigerated coaches

10
Budget speech-“To build a seamless national cold supply chain for perishables, inclusive of milk,
meat and fish, the Indian Railways will set up a “Kisan Rail” – through PPP arrangements. There
shall be refrigerated coaches in Express and Freight trains as well”.

13. Consider the following statements about the Krishi Udaan scheme:
1) This scheme will be launched by the Ministry of commerce to help farmers export their
produce internationally and nationally.
2) Under this scheme, special focus will be given to the North-East and tribal districts.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: b

Only statement 2 is correct. ‘b’ is the answer.

Krishi Udaan will be launched by the Ministry of Civil Aviation on international and national
routes. This will immensely help improve value realisation especially in North-East and tribal
districts.

14. Consider the following statements:

1) Financing on Negotiable Warehousing Receipts (e-NWR) has crossed more than Rs. 6000
crore.
2) The Negotiable Warehousing Receipts (e-NWR) will be integrated with Village Storage
scheme.

11
Which of the above statement(s) is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: a

Only statement 1 is correct. ‘a’ is the answer.

Financing on Negotiable Warehousing Receipts (e-NWR) has crossed more than`6000 crore.
Financing on Negotiable Warehousing Receipts (e-NWR) to be integrated with e-NAM.

15. Which of the following proposals made by the Union Budget, 2020-21 with regard
agriculture sector?
1) Agriculture credit target for the year 2020-21 has been set at Rs. 15 lakh crore.
2) The NABARD re-finance scheme will be further expanded.
3) The PM-AASHA will be integrated with Kisan Credit Card scheme.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: a

Only statement 1 and 2 are correct. ‘a’ is the answer.

Non-Banking Finance Companies (NBFCs)and cooperatives are active in the agriculture credit
space. The NABARD re-finance scheme will be further expanded. Agriculture credit target for
the year 2020-21 has been set at ` 15 lakh crore. All eligible beneficiaries of PM-KISAN will be
covered under the KCC scheme.

12
16. Which of the following has been set up a deadline by the government of India to eliminate
Foot and Mouth disease, brucellosis in cattle and also peste des petits ruminants (PPR) in
sheep and goat?
a) 2022
b) 2025
c) 2030
d) 2021

Correct answer: b

Our government intends to eliminate Foot and Mouth disease, brucellosis in cattle and also
peste des petits ruminants (PPR) in sheep and goat by 2025.

17. Which of the following proposals are made by the Union budget, 2020-21 for the sector of
animal husbandry?
1) Coverage of artificial insemination shall be increased from the present 30% to 70%.
2) To double the milk processing capacity from 53.5 million MT to 108 million MT by 2025.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

13
Excerpt from Budget speech: “Our government intends to eliminate Foot and Mouth disease,
brucellosis in cattle and also peste des petits ruminants (PPR) in sheep and goat by 2025.
Coverage of artificial insemination shall be increased from the present 30% to 70%. MNREGS
would be dovetailed to develop fodder farms. Further, we shall facilitate doubling of milk
processing capacity from 53.5 million MT to 108 million MT by 2025.”

18. Consider the following statements:

1) The Union budget, 2020-21 propose to raise fish production to 200 lakh tones by 2022-
23.
2) The Union budget, 2020-21 propose to raise fishery exports to Rs. 5 lakh crore by 2024-
25.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: a

Only statement 1 is correct. ‘a’ is the answer.

Excerpt from Budget speech: “Youth in coastal areas benefit through fish processing and
marketing. By 2022-23, I propose raising fish production to 200 lakh tonnes. Growing of algae,
sea-weed and cage Culture will also be promoted. Our government will involve youth in fishery
extension through 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations. We hope to
raise fishery exports to Rs. 1 lakh crore by 2024-25”.

19. Rs. 2.83 lakh crore to be allocated for 16 Action Points for Agriculture, Irrigation and Rural
Development. Consider the following statements with reference to it?

14
 1) Rs. 1.60 lakh crore allocated for Agriculture, Irrigation & allied activities.
2) Rs. 1.23 lakh crore allocated for Rural development & Panchayati Raj.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

For the sector comprising of Agriculture and allied activities, Irrigation and Rural Development
an allocation of about Rs. 2.83 lakh crore has been made for the year 2020-21 . Its divided,
inter-alia;

1) For Agriculture, Irrigation & allied activities – Rs. 1.60 lakh crore
2) For Rural development & Panchayati Raj – Rs. 1.23 lakh crore

20. Consider the following statements about the Pradhan Mantri Jan Arogya Yojana (PM-JAY):
1) It is one of the two components of the Ayushman Bharat.
2) It aims at providing health insurance cover of Rs. 5 lakhs per family per year for
secondary and tertiary care hospitalization.
3) There is no cap on the family size under the scheme.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: d

All the statements are correct. ‘d’ is the answer.

15
Pradhan Mantri Jan Arogya Yojana (PM-JAY)

The second component under Ayushman Bharat is PM-JAY, which aims at providing health
insurance cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization
to over 10.74 crores poor and vulnerable families (approximately 50 crore beneficiaries). There
is no cap on the family size under the scheme. This scheme was earlier known as National
Health Protection Scheme (NHPS) before it was rechristened to PM-JAY. This scheme was
launched on 23rd September 2018 by the Hon’ble Prime Minister Shri Narendra Modi in Ranchi,
Jharkhand.

PM-JAY has been rolled out for the bottom 40% of poor and vulnerable population. The
households included are based on the deprivation and occupational criteria of Socio-Economic
Caste Census 2011 (SECC 2011) for rural and urban areas respectively. The scheme subsumed
then existing Rashtriya Swasthya Bima Yojana (RSBY), launched in 2008. Therefore, the
coverage mentioned under PM-JAY also includes families that were covered in RSBY but were
not present in the SECC 2011 database. PM-JAY is completely funded by the Government, and
cost of implementation is shared between Central and State Governments.

21. Consider the following statements about the Jal Jeevan Mission:
1) It aims to provide piped water supply to all tribal and hill districts with special focus on
5th and 6th schedule areas.
2) During the year 2020-21 the scheme would be provided budget of Rs. 11,500 crore.
3) It is an initiative of the Ministry of Rural Development.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: c

Only statement 1 and 3 are incorrect. ‘c’ is the answer.

The government’s ambitious programme to provide tap-water to all households in the country
by 2024 may cost a sum of ₹ 3.6 lakh crore, but the scheme was allocated ₹11,500 crore in the
16
current Budget. This is an increase of 15 per cent over ₹10,000 crore allocated in the previous
Budget.

The rest of the funding would be mobilised over the next few years.

Jal Jeevan Mission is aimed at increasing water available to households. To do this, the
government plans to augment local water sources, recharge existing sources and promote
water harvesting and de-salination wherever required. The programme will focus on delivering
water supply on regular basis, in adequate quantity and of prescribed quality.

Ministry- Ministry of Jal Shakti.

22. Consider the following statements about the ‘TB Harega Desh Jeetega’ Campaign:
1) Multi-stakeholder and community participation to form the pivot of this campaign.
2) Campaign aims to improve and expand the reach of TB care services across the country,
by 2022.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

Excerpt from Budget speech: “TB Harega Desh Jeetega” campaign has been launched. I
propose to strengthen these efforts realise our commitment to end Tuberculosis by 2025.”

‘TB Harega Desh Jeetega’ Campaign:

1) Campaign aims to improve and expand the reach of TB care services across the country,
by 2022.

17
 2) Three pillars of the campaign- clinical approach, public health component and active
community participation.
3) Supporting aspects of the campaign – patient support, private sector engagement,
political and administrative commitment at all levels.
4) The government will ensure that all patients, at private or public hospitals, receive free-
of-cost and high-quality TB care.

23. Consider the following statements about the Jan Aushadhi Kendra Scheme:
1) It aims to make quality medicines available at affordable prices for all, particularly the
poor and disadvantaged, through exclusive outlets "Jan Aushadhi Medical Store".
2) Union budget 2020-21 offers 2000 medicines and 300 surgicals in all districts by 2024
through Jan Aushadhi Kendra Scheme.
3) It is an initiative of the Ministry of Health and Family welfare.
Which of the above statement(s) is/are correct?

a) 1 only
b) 1 and 2 only
c) 1 and 3 only
d) All of the above

Correct answer: b

Excerpt from Budget speech: “I propose to expand Jan Aushadhi Kendra Scheme to all districts
offering 2000 medicines and 300 surgicals by 2024. I have provided for the health sector about
`69,000 crores that is inclusive of ` 6400 crores for Prime Minister Jan Arogya Yojana (PMJAY).”

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is a campaign launched by the

Department of Pharmaceuticals to provide quality medicines at affordable prices to the masses.
PMBJP stores have been set up to provide generic drugs, which are available at lesser prices but
are equivalent in quality and efficacy as expensive branded drugs. It was launched by the
Department of Pharmaceuticals in November 2008 under the name Jan Aushadi Campaign.
Bureau of Pharma PSUs of India (BPPI) is the implementation agency for PMBJP.

18
24. Which of the following steps are proposed in the Union Budget 2020-21 with respect the
education and skill sector?
1) Sourcing External Commercial Borrowings and FDI so as to able to deliver higher quality
education.
2) About 150 higher educational institutions will start apprenticeship embedded
degree/diploma courses by March 2021.
3) To start a programme whereby urban local bodies and rural local bodies across the
country would provide internship opportunities to fresh engineers for a period up to
one year.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: a

Only statement 1 and 2 are correct. ‘a’ is the answer.

Excerpt from Budget speech: “ It is felt that our education system needs greater inflow of
finance to attract talented teachers, innovate and build better labs. Therefore steps would be
taken to enable sourcing External Commercial Borrowings and FDI so as to able to deliver
higher quality education.

Students in the general stream (vis-à-vis services or technology stream) need their
employability improved. About 150 higher educational institutions will start apprenticeship
embedded degree/diploma courses by March 2021.

The government proposes to start a programme whereby urban local bodies across the country
would provide internship opportunities to fresh engineers for a period up to one year.”

19
25. The Union Budget 2020-21 proposed to start degree level full-fledged online education
programme. Consider the following statements with reference to it:
1) The objective of this initiative is to provide quality education to students of deprived
section of the society as well as those who do not have access to higher education.
2) Only IITs and IGNOU will be allowed to launch this initiative.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: a

Excerpt from Budget speech: “In order to provide quality education to students of deprived
section of the society as well as those who do not have access to higher education, it is
proposed to start degree level full-fledged online education programme. This shall be offered
only by institutions who are ranked within top 100 in the National Institutional Ranking
framework. Initially, only a few such institutions would be asked to offer such programmes.”

26. Consider the following statements about the ‘Study in India’ programme:
1) It is a joint initiative of the Ministry of Human Resources Development (HRD) and
Ministry of External Affairs.
2) Under “Study in India” programme, Ind-SAT is proposed to be held in Asian and African
countries.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: c

20
Both statements are correct. ‘c’ is the answer.

The Ministry of Human Resources Development (HRD) in collaboration with Ministry of External
Affairs has approved ‘Study in India’ programme to attract foreign students to pursue higher
education in India. The programme is similar to initiative launched by Australia, Malaysia,
Singapore and Canada. It aims at boosting country’s share of international students and
subsequently, improve global reputation and rankings of Indian educational institutions.

Excerpt from Budget speech: “India should be a preferred destination for higher education.
Hence, under its “Study in India” programme, Ind-SAT is proposed to be held in Asian and
African countries. It shall be used for benchmarking foreign candidates who receive
scholarships for studying in Indian higher education centres.”

27. Consider the following statements about the National Board of Examinations (NBE):
1) It is established in 1975 as statutory and autonomous body under the Ministry of Health
and Family Welfare.
2) The postgraduate degree awarded by the National Board of Examinations is called the
Diplomate of National Board (DNB).
3) The National Board of Examinations conducts the largest portfolio of examinations in
the field of medicine in India and perhaps at a Global level.

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

a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All of the above

Correct answer: b

Only statement 2 and 3 are correct. ‘b’ is the answer.

National Board of Examinations (NBE) is an autonomous body under the Ministry of Health and
Family Welfare (India), Government of India, and established in 1975 at New Delhi as a Society
under Delhi Society registration act, to standardizing postgraduate medical education and
examination in India.

21
The postgraduate degree awarded by the National Board of Examinations is called the
Diplomate of National Board (DNB). The list of recognised qualifications awarded by the Board
in various specialties and super-specialties are approved by the Government of India and are
included in the First Schedule of Indian Medical Council Act, 1956.

The National Board of Examinations conducts the largest portfolio of examinations in the field
of medicine in India and perhaps at a Global level.

Excerpt from Budget speech: “National Board of Examination imparts PG medical

qualifications ; Diploma and fellow of National Board (DNB/FNB). The Government will,
therefore encourage large hospitals with sufficient capacity to offer resident doctors DNB/FNB
courses under the National Board of Examinations.”

28. Consider the following statements:

1) The union budget 2020-21 proposed to provide about Rs. 99,300 crore for education
sector in 2020-21 and about Rs. 3,000 crores for skill development.
2) The union budget 2020-21 proposes to establishe multiple Police and forensic
universities.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: b

Excerpt from Budget speech: “A National Police University and a National Forensic Science
University are being proposed in the domain of policing science, forensic science, cyber-
forensics etc.

Our Government proposes to provide about Rs. 99,300 crore for education sector in 2020-21
and about Rs. 3,000 crores for skill development.”

22
29. Consider the following statements about the ‘Investment Clearance Cell’ proposed in
budget 2020-21:
1) It will speed up the foreign direct investment process in the country.
2) It aims to provide pre-investment advisory, information related to land banks and
facilitates clearances.
3) The ‘Investment Clearance Cells’ will be created at the capitals of every state.

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

a) 1 and 2 only
b) 2 only
c) 3 only
d) All of the above

Correct answer: b

Only statement 2 is correct. ‘b’ is the answer.

Excerpt from Budget speech: “Entrepreneurship has always been the strength of India. Even
today, young men and women have given up greener pastures elsewhere to contribute to
India’s growth. They are risk-taking and come up with disruptive solutions to festering
challenges. Equally, established old industries are resetting themselves in a changing global and
domestic situation. We recognise the knowledge, skills and risk-taking capabilities of our youth.
He is no longer the job seeker. He is creator of jobs. Now we wish to create more opportunities
and remove road-blocks from his path.

I propose to set up an Investment Clearance Cell that will provide “end to end” facilitation and
support, including pre-investment advisory, information related to land banks and facilitate
clearances at Centre and State level. It will work through a portal.”

Finance Minister Nirmala Sitharaman proposed to set up an investment clearance cell for
entrepreneurs to provide pre-investment advisory, information related to land banks and
facilitate clearances.

23
30. Consider the following statements about the technical textiles:
1) India imports significant quantity of technical textiles worth US$ 16 billion every year.
2) The union budget 2020-21 proposed National Technical Textile Mission with an outlay of
Rs 1,480 crore over four years to cut down imports.

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

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

Excerpt from Budget speech: “India imports significant quantity of technical textiles worth
US$ 16 billion every year. To reverse this trend and to position India as a global leader in
Technical Textiles, a National Technical Textiles Mission is proposed with a four-year
implementation period from 2020-21 to 2023-24 at an estimated outlay of ` 1480 crore.”

31. The “Zero Defect-Zero Effect” manufacturing implies …?

1) Production mechanisms wherein products have no defects.

2) Production process which has zero adverse environmental and ecological effects.

Select the correct answer using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

24
 d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

Excerpt from the budget speech: “From the Red Fort, our Prime Minister spoke about quality
and standards when he spoke of “Zero Defect-Zero Effect” manufacturing. In September last
year, I had called for a time-bound adoption by industry of all necessary, mandatory technical
standards and their effective enforcement. All Ministries, during the course of this year, would
be issuing quality standard orders.”

The slogan “Zero Defect Zero Effect” was given by Prime Minister Narendra Modi and it signifies
two things: Production mechanisms wherein products have no defects. Production process,
which has zero adverse environmental and ecological effects.

32. What are the objectives of the NIRVIK scheme?

1) To provide higher insurance coverage.

2) To reduce in premium for small exporters.

3) To simplify procedure for claim settlements.

Select the correct answer using the codes given below.

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

Correct answer: d

Excerpt from the budget speech: “To achieve higher export credit disbursement, a new
scheme, NIRVIK is being launched, which provides for higher insurance coverage, reduction in
premium for small exporters and simplified procedure for claim settlements.”

25
New scheme NIRVIK to be launched to achieve higher export credit disbursement, which
provides for:

1) Higher insurance coverage

2) Reduction in premium for small exporters

3) Simplified procedure for claim settlements.

33. Read the following passage carefully.

“It is proposed to digitally refund to exporters, duties and taxes levied at the Central, State and
local levels, such as electricity duties and VAT on fuel used for transportation, which are not
getting exempted or refunded under any other existing mechanism.”

What is name of the scheme discussed in passage?

a) Scheme for Reversion of duties and taxes on exported products

b) Merchandise Exports from India Scheme

c) Export Promotion Capital Goods Scheme

d) None of the above

Correct answer: a

Excerpt from the budget speech: “It is proposed to digitally refund to exporters, duties and
taxes levied at the Central, State and local levels, such as electricity duties and VAT on fuel used
for transportation, which are not getting exempted or refunded under any other existing
mechanism. This Scheme for Reversion of duties and taxes on exported products will be
launched this year.”

34. Consider the following statements about the Government e-Marketplace (GeM):

1) It is a one stop portal to facilitate online procurement of common use Goods & Services
required by various Government Departments / Organizations / PSUs.

2) Due to computations from big E-commerce giants, it neglect the Medium, Small and
micro Enterprises (MSMEs).

26
Which of the above statement(s) is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: a

Only statement 1 is correct. ‘a’ is the answer.

Excerpt from the budget speech: “Government e-Marketplace (GeM) is moving ahead for
creating a Unified Procurement System in the country for providing a single platform for
procurement of goods, services and works. It offers a great opportunity for Medium, Small and
micro Enterprises(MSMEs). 3.24 lakh vendors are already on this platform. Its proposed to take
its turnover to ` 3lakh crores.”

Government e-Marketplace (GeM) is a one stop portal to facilitate online procurement of

common use Goods & Services required by various Government Departments / Organizations /
PSUs. GeM aims to enhance transparency, efficiency and speed in public procurement.

Government e-commerce portal GeM has launched a national outreach programme called
‘GeM Samvaad’, to bring on-board more local sellers. The outreach programme will take place
from 19 Dec 2019 to 17 Feb 2020 and will cover all States and Union Territories (UTs) of the
country.

Government e-Marketplace (GeM) is initiative of the Commerce Ministry.

35. Consider the following statements about the National Skill Development Agency (NSDA):

1) The National Skill Development Agency (NSDA) attempts to increase Employability of

Youth in India.

2) It is statutory body under the Ministry of Skill Development & Entrepreneurship (MSDE).

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

a) 1 only

b) 2 only

27
 c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: a

Only statement 1 is correct. ‘a’ is the answer.

The National Skill Development Agency (NSDA) attempts to increase Employability of Youth in
India.

The National Skill Development Agency (NSDA), an autonomous body, (registered as a Society
under the Society's Registration Act 1860) was created with the mandate to co-ordinate and
harmonise the skill development activities in the country, is part of the Ministry of Skill
Development & Entrepreneurship (MSDE).

Excerpt from the budget speech: “A huge employment opportunity exists for India’s youth in
construction, operation and maintenance of infrastructure. National Skill Development Agency
will give special thrust to infrastructure-focused skill development opportunities.”

Don’t confuse NSDA and NSDC:

NSDA is basically a regulatory body. The primary role of NSDA is to anchor and operationalise
the National Skills Qualifications Framework (NSQF) and to ensure that quality and standards
meet sector-specific requirements. It is an autonomous body under Ministry of Skill
Development. Recently, it has been merged with National Council for Vocational Training
(NCVT), another regulatory body for vocational training, to form the single regulator called
National Council for Vocational Education and Training (NCVET). This has been done to avoid
duplication of roles and responsibilities by different agencies.

NSDC is a NBFC established under Companies Act 2013. It was established initially under
Ministry of Finance, but now, the Ministry of Skill Development holds 49% stake in the
company, and the rest 51% is held privately. Since it is a company, and not a regulator, its
primary role is to incubate private standalone Vocational Training Providers (VTP) to conduct
training of youth through 3–4 month courses. It must raise private sector funding and not be
dependent only on government funding, as it has done in the past.

36. Consider the following statements with reference to the ‘project preparation facility’ as
proposed in the budget 2020-21:

1) This programme will specially focus on the green field projects.

28
 2) This programme would actively involve young engineers, management graduates and
economists from various universities.

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

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: a

Only statement 1 is incorrect. ‘a’ is the answer.

Excerpt from the budget speech: “I propose to set up a project preparation facility for
infrastructure projects. This programme would actively involve young engineers, management
graduates and economists from our Universities.

It is also proposed to direct all infrastructure agencies of the government to involve youth-
power in start-ups. They will help in rolling out value added services in quality public
infrastructure for citizens.”

37. A National Logistics Policy will include…?

1) Clarification of the roles of the Union Government, State Governments and key
regulators.

2) A single window e-logistics market.

Select the correct answer using the codes given below.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: c

29
As of the now, the budget speech only mentions about the National Logistics Policy proposal.
Our logistic capacity is one of biggest hindrances to economic growth.

Keep watch on the announcement of the National Logistics Policy.

Excerpt from the budget speech: “A National Logistics Policy will be released soon. Inter alia; it
will clarify the roles of the Union Government, State Governments and key regulators. It will
create a single window e-logistics market and focus on generation of employment, skills and
making MSMEs competitive.”

38. Consider the following statements:

1) The Jal Vikas Marg project will build on national waterway -2.

2) The national waterway-2 (890 Km Dhubri-Sadiya) will be completed by 2022.

3) The ‘Arth Ganga’ model to energise economic activity along river banks Ganga River.

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

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) Al of the above

Correct answer: b

Only statements 2 and 3 are correct. ‘b’ is the answer.

Excerpt from the budget speech: “Inland Waterways received a boost in the last five years.
The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890 Km Dhubri-
Sadiya connectivity will be done by 2022.

Developing waterways has its impact on the eco-system on both the banks of the river. Our
Prime Minister has conceptualised “Arth Ganga”. Plans are afoot to energise economic activity
along river banks.”

39. Consider the following statements with reference to the Union Budget, 2020-21:

30
 1) One hundred more airports would be developed by 2024 to support Udaan scheme.

2) Budget provides about Rs. 1.70 lakh crore for transport Infrastructure in 2020-21.

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

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

Excerpt from the budget speech: “Air traffic has been growing rapidly in the country as
compared to global average. One hundred more airports would be developed by 2024 to
support Udaan scheme. It is expected that the air fleet number shall go up from the present
600 to 1200 during this time.

I propose to provide about Rs. 1.70 lakh crore for transport Infrastructure in 2020-21.”

40. Union budget,2020-21 talks about promoting the “smart” metering. Consider the following
statements about the smart metering:

1) These meters can transmit energy consumption information to the utility.

2) Smart meters certainly are tamper proof.

3) For consumers, smart meters help in monitoring and managing electricity consumption
and save money; it can be like your mobile pre-paid connection.

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

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

31
Correct answer: d

All the statements are correct. ‘d’ is the answer.

Excerpt from the budget speech: “Taking electricity to every household has been a major
achievement. However, the distribution sector, particularly the DISCOMS are under financial
stress. The Ministry intends to promote “smart” metering. I urge all the States and Union
Territories to replace conventional energy meters by prepaid smart meters in the next 3 years.
Also, this would give consumers the freedom to choose the supplier and rate as per their
requirements.

Further measure to reform DISCOMs would be taken.

I propose to provide about Rs. 22,000 crore to power and renewable energy sector in 2020-21”

Smart Meters: These digital meters can transmit energy consumption information to the utility
(as it is connected to the internet) in frequent intervals, and can monitor consumption more
precisely, thereby enabling more informed energy choices.

For consumers, smart meters help in monitoring and managing electricity consumption and
save money. It can be like your mobile pre-paid connection.

It can reduce billing errors. Smart meters help power distribution companies (discom) to
conduct power-quality analysis in near-real time, taking into consideration factors such as
maximum demand, voltage fluctuation, outage detection etc.

Smart meters certainly are not tamper proof. The meters can be rigged. Also, smart meters
come with their own set of challenges, most notable being it prone to cyber-attacks, which can
cause power shutdown or steal customer information.

41. Which of the following are the proposals made by the Union Budget, 2020-21 with respect
to new technology?

1) To bring out soon a policy to enable private sector to build Data Centre parks
throughout the country.

2) Fibre to the Home (FTTH) connections through Bharatnet will link 10,000 gram
panchayats this year.

3) It is proposed to provide Rs. 6000 crore to Bharatnet programme in 2020-21.

32
Which of the above statement(s) is/are correct?

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

Correct answer: c

Only statements 1 and 3 are correct. ‘c’ is the answer.

Excerpt from the budget speech: “It is now a cliché – “data is the new oil” and it is true that
Analytics, Fintech and Internet of Things (IOT) are changing the way we deal with our lives. To
take advantage of this, I propose:

To bring out soon a policy to enable private sector to build Data Centre parks throughout the
country. It will enable our firms to skilfully incorporate data in every step of their value chains.

Our vision is that all “public institutions” at Gram Panchayat level such as Anganwadis, health
and wellness centres, government schools, PDS outlets, post offices and police stations will be
provided with digital connectivity. So, Fibre to the Home (FTTH) connections through Bharatnet
will link 100,000 gram panchayats this year.

It is proposed to provide Rs. 6000 crore to Bharatnet programme in 2020-21.”

42. Which of the following initiatives are proposed by the Union Budget for IPR?

1) Centre would be established in an Institute of Excellence.

2) Knowledge Translation Clusters would be set up across different technology sectors

including new and emerging areas.

Select the correct answer using the codes given below.

a) 1 only

a) 2 only

b) Both 1 and 2

c) Neither 1 nor 2

33
Correct answer: c

Excerpt from the budget speech: “A digital platform would be promoted that would facilitate
seamless application and capture of IPRs. Also, in an Institute of Excellence, a Centre would be
established that would work on the complexity and innovation in the field of Intellectual
Property.

Knowledge Translation Clusters would be set up across different technology sectors including
new and emerging areas.”

43. Which of the following archaeological sites would be developed as iconic sites with onsite
Museums?

1) Hastinapur (Uttar Pradesh)

2) Dholavira (Gujarat)

3) Shivsagar (Assam)

Select the correct answer using the codes given below.

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

Correct answer: d

Five archaeological sites would be developed as iconic sites with onsite Museums. They are:
Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh) Shivsagar (Assam), Dholavira (Gujarat) and
Adichanallur (Tamil Nadu).

44. A maritime museum would be set up at Lothal …?

a) Mumbai

b) Dholavira

c) Lothal

34
 d) Kolkata

Correct answer: c

A maritime museum would be set up at Lothal - the Harrapan age maritime site near
Ahmedabad, by Ministry of Shipping.

45. Consider the following statements about the Travel & Tourism Competitive Index:

1) It is published by the World Tourism Organization.

2) India has moved up from rank 65 in 2014 to 34 in 2019 in the Travel & Tourism
Competitive Index.

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

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: b

Only statement 2 is correct. ‘b’ is the answer.

The Travel and Tourism Competitiveness Index (TTCI) is produced by the World Economic
Forum (WEF) and measures the factors and policies that make a country a viable place to invest
within the Travel and Tourism sector.

Budget speech: “India has moved up from rank 65 in 2014 to 34 in 2019 in the Travel & Tourism
Competitive Index (World Economic Forum). Foreign exchange earnings grew 7.4% to `1.88 lakh
crores for the period January to November 2019 from `1.75 lakh crores.”

46. Consider the following statements about the Coalition for Disaster Resilient Infrastructure
(CDRI):

1) It is an international coalition of countries, United Nations (UN) agencies, multilateral

development banks, the private sector, and academic institutions.

2) It aims to promote disaster-resiliant infrastructure.

35
 3) It is located in New Delhi.

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

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

Correct answer: d

All the statements are correct. ‘d’ is the answer.

The Coalition for Disaster Resilient Infrastructure (CDRI) is an international coalition of

countries, United Nations (UN) agencies, multilateral development banks, the private sector,
and academic institutions, that aims to promote disaster-resiliant infrastructure. Its objective is
to promote research and knowledge sharing in the fields of infrastructure risk management,
standards, financing, and recovery mechanisms. It was launched by the Indian Prime Minister
Narendra Modi at the 2019 UN Climate Action Summit in September 2019.

Budget speech: “In September 2019, the Prime Minister has launched the Coalition for Disaster
Resilient Infrastructure (CDRI) with its Secretariat in Delhi. This global partnership is the second
such international initiative after the launch of International Solar Alliance in 2015. This Global
Partnership will help in addressing a number of Sustainable Development Goals (SDGs), as also
the aims of Sendai framework. It will enhance climate change adaptation with a focus on
disaster resilient infrastructure.”

47. Consider the following statements about the ‘taxpayer charter’:

1) It is aimed at boosting trust between the citizens and the authorities, in order to
improve the efficiency of tax administration.

2) The charter, which would enumerate taxpayer’s rights, would be enacted through the
finance act.

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

a) 1 only

b) 2 only

36
 c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: a

Only statement 1 is correct. ‘a’ is the answer.

Finance Minister Nirmala Sitharaman proposed a new ‘taxpayer’s charter’ aimed at boosting
trust between the citizens and the authorities, in order to improve the efficiency of tax
administration.

“Our Prime Minister has laid before us Ease of Living as a goal to be achieved on behalf of all
citizens. An important aspect of both ease of living and ease of doing business is fairness and
efficiency of tax administration,” Ms. Sitharaman said in her Budget speech.

“We wish to enshrine in the statutes a “taxpayer charter”... government would like to reassure
taxpayers that we remain committed to taking measures so that our citizens are free from
harassment of any kind.”

The charter, which would enumerate taxpayer’s rights, would be incorporated in the Income
Tax Act through suitable amendments, the minister said.

“I propose to amend the provisions of the Income Tax Act to mandate the Central Board of
Direct Taxes (CBDT) to adopt a Taxpayers’ Charter. The details of the contents of the charter
shall be notified soon.”

48. Consider the following statements about the Deposit Insurance and Credit Guarantee
Corporation:

1) Deposit Insurance and Credit Guarantee Corporation is a wholly owned subsidiary of

Reserve Bank of India.

2) Under the Union Budget, 2019-20 Deposit Insurance and Credit Guarantee Corporation
(DICGC) have been permitted to increase Deposit Insurance Coverage for a depositor,
which is now Rs. 1 lakh to Rs. 5 lakh per depositor.

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

a) 1 only

b) 2 only

37
 c) Both 1 and 2

d) Neither 1 nor 2

Correct answer: c

Both statements are correct. ‘c’ is the answer.

Deposit Insurance and Credit Guarantee Corporation is a wholly owned subsidiary of Reserve
Bank of India. It was established on 15 July 1978 under the Deposit Insurance and Credit
Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and
guaranteeing of credit facilities.

Budget Speech: “I wish to inform this august House that robust mechanism is in place to
monitor the health of all Scheduled Commercial Banks and that depositors’ money is safe.

Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted
to increase Deposit Insurance Coverage for a depositor, which is now Rs. one lakh to Rs. five
lakh per depositor.”

49. As per budget, Pension Fund Regulatory Development Authority of India (PFRDAI) Act to be
amended to…?

1) Strengthen regulating role of PFRDAI.

2) Facilitate separation of NPS trust for government employees from PFRDAI.

3) Enable establishment of a Pension Trust by the employees other than Government.

Select the correct answer using the code given below.

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) All of the above

Correct answer: d

All are proposed amendments. ‘d’ is the answer.

Pension Fund Regulatory Development Authority of India Act to be amended to:

38
 1) Strengthen regulating role of PFRDAI.

2) Facilitate separation of NPS trust for government employees from PFRDAI.

3) Enable establishment of a Pension Trust by the employees other than Government.

50. Factor Regulation Act 2011 to be amended to…?

a) Remove permission clauses from RBI for NBFC for certain businesses.

b) Give more power to RBI to makes rules and regulations to regulate factoring business of
NBFCs.

c) Enable NBFCs to extend invoice financing to the MSMEs through TReDS.

d) Create special cell within RBI to provide for and regulate assignment of receivables.

Correct answer: c

Factor Regulation Act 2011 to be amended to Enable NBFCs to extend invoice financing to
the MSMEs through TReDS.

Budget speech: “I propose to make necessary amendments to the Factor Regulation Act 2011.
This will enable NBFCs to extend invoice financing to the MSMEs through TReDS, thereby
enhancing their economic and financial sustainability.”

51. Consider the following statements about the Debt-based Exchange Traded Fund (ETF):

1) It takes the advantage of the of debt investments.

2) It exploits the opportunity provided by the flexibility of stock investment.

3) It takes the benefits of the simplicity of mutual funds.

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

a) 1 and only

b) 2 only

c) 3 only

d) All of the above

Correct answer: d

39
All the statements are correct. ‘d’ is the answer.

Debt Exchange Traded Funds (ETFs) are simple investment products that allow the investors to
take an exposure to the fixed income securities. These debt ETFs combine the benefits of debt
investments with the flexibility of stock investment and the simplicity of mutual funds.

Budget Speech: “The Debt-based Exchange Traded Fund (ETF) recently floated by the
government was a big success. Government proposes to expand this by floating a new Debt-ETF
consisting primarily of government securities. This will give retail investors access to
government securities as much as giving an attractive investment for pension funds and long-
term investors.”

52. The government proposed to set up an international bullion exchange at…?

a) IFSC in GIFT City, Gujarat

b) National Stock Exchange

c) Bombay Stock Exchange

d) At the head office of SEBI

Correct answer: a

Budget Speech: “GIFT IFSC has an approved Free Trade zone for housing vaults. It already has
19 insurance entities, 40 banking entities. It has also provided for setting up of precious metals
testing laboratories and refining facilities. With the approval of the regulator, GIFT City would
set up an International Bullion exchange(s) in GIFT-IFSC as an additional option for trade by
global market participants. This will enable India to enhance its position worldwide, create jobs
in India and will lead to better price discovery of gold.”

Plus IAS

Telegram: https://t.me/PlusIAS

40
41