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Question 1 of 5
1. Question
Which one of the following statements appropriately describes the “fiscal stimulus”?
Correct
(b) It is an intense affirmative action of the Government to boost economic activity in the country
Fiscal stimulus is a government policy that uses taxation and spending to stimulate economic activity during a recession or economic downturn. It’s based on Keynesian economics and the idea that government policy can encourage a response from the private sector.
Keynesian economics is a school of thought that focuses on how government intervention can stabilize the economy and achieve optimal economic performance. It is based on the idea that aggregate demand, or total expenditures, strongly influences economic output and inflation, and that it doesn’t necessarily equal the economy’s productive capacity.
Incorrect
(b) It is an intense affirmative action of the Government to boost economic activity in the country
Fiscal stimulus is a government policy that uses taxation and spending to stimulate economic activity during a recession or economic downturn. It’s based on Keynesian economics and the idea that government policy can encourage a response from the private sector.
Keynesian economics is a school of thought that focuses on how government intervention can stabilize the economy and achieve optimal economic performance. It is based on the idea that aggregate demand, or total expenditures, strongly influences economic output and inflation, and that it doesn’t necessarily equal the economy’s productive capacity.
Question 2 of 5
2. Question
Corporation tax
Correct
(c) Is levied by the Union and shared by the Union and the States
The Corporation tax is imposed by the Union and distributed between the Union and the States. Corporation Tax, also known as Corporate Tax, is a direct tax imposed on the net income or profits of corporate entities, whether derived from domestic or foreign business activities. This tax falls within the Union List and is distributed according to the provisions outlined in Article 270. Tolls, sales taxes, land revenue, and vehicle taxes are among the taxes imposed and allocated by the States.
Incorrect
(c) Is levied by the Union and shared by the Union and the States
The Corporation tax is imposed by the Union and distributed between the Union and the States. Corporation Tax, also known as Corporate Tax, is a direct tax imposed on the net income or profits of corporate entities, whether derived from domestic or foreign business activities. This tax falls within the Union List and is distributed according to the provisions outlined in Article 270. Tolls, sales taxes, land revenue, and vehicle taxes are among the taxes imposed and allocated by the States.
Question 3 of 5
3. Question
Which one of the following is not an instrument of selective credit control in India? (1995)
Correct
(d) Variable cost reserve ratios
Among the provided options, Variable cost reserve ratios, which in India is also referred to as Statutory Liquidity Ratio (SLR), is not employed as an instrument of selective credit control in India. Selective or Qualitative Credit Control is utilized to channel credit towards certain activities while restricting and rationing it for others based on priorities and objectives, without altering the total volume of credit. Conversely, Bank Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Open Market Operations are instruments of quantitative credit control under monetary policy.
Incorrect
(d) Variable cost reserve ratios
Among the provided options, Variable cost reserve ratios, which in India is also referred to as Statutory Liquidity Ratio (SLR), is not employed as an instrument of selective credit control in India. Selective or Qualitative Credit Control is utilized to channel credit towards certain activities while restricting and rationing it for others based on priorities and objectives, without altering the total volume of credit. Conversely, Bank Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Open Market Operations are instruments of quantitative credit control under monetary policy.
Question 4 of 5
4. Question
Consider the following statements,
1. A high capital / output ratio may lead to the thriving of resources, resulting in faster growth.
2. Therefore, high savings and capital formation do necessarily bring about growth if the capital/output ratio is high.
Which of these statements is/are correct?
Correct
(d) Neither 1 nor 2
A high capital-output ratio (COR) indicates that it takes a lot of capital to produce a unit of output, and that the output may not be worth the amount of capital invested. This can be a sign of inefficient production technology or cheap capital
High capital / output ratio may lead to wastage of resources resulting in slower growth. Therefore, high savings and capital formation do not necessarily bring about growth if the capital/output ratio is high. It indicates ineffective use of invested capital, thus stifling economic growth.
Incorrect
(d) Neither 1 nor 2
A high capital-output ratio (COR) indicates that it takes a lot of capital to produce a unit of output, and that the output may not be worth the amount of capital invested. This can be a sign of inefficient production technology or cheap capital
High capital / output ratio may lead to wastage of resources resulting in slower growth. Therefore, high savings and capital formation do not necessarily bring about growth if the capital/output ratio is high. It indicates ineffective use of invested capital, thus stifling economic growth.
Question 5 of 5
5. Question
Consider the following statements about inland drainage?
1. These rivers drain their waters in a lake or an inland sea.
2. They experience flash floods during rainy season.
3. The basins formed by inland drainage are known as rapids.
Which of the above statements is/are correct?
Correct
(b) 1 and 2 only
The basins formed by inland drainage are called playas. Rapidsare formed in youthstage of river. They are alsofound in Aksai Chin and in some parts ofcalcareous region in eastern coast.
Incorrect
(b) 1 and 2 only
The basins formed by inland drainage are called playas. Rapidsare formed in youthstage of river. They are alsofound in Aksai Chin and in some parts ofcalcareous region in eastern coast.