Q1. Which of the following is generally not an activity carried out by shell companies:

Diverting money or money laundering.
Manufacturing products and rendering services
Make financial transactions.
None of the above are the activities of Shell companies.

Solution:
(B)

Typically shell companies include multiple layers of companies that have been created for the purpose of diverting money or for money laundering.
Most shell companies do not manufacture any product or deal in any product or render any service.
They are mostly used to make financial transactions.
Generally, these companies hold assets only on paper and not in reality.
These companies conduct almost no economic activity.

Q2. Consider the following statements regarding Banks Board Bureau (BBB):

1)Banks Board Bureau (BBB) is an autonomous body of the Government of India tasked to recommend selection of chiefs of government owned banks and financial institutions.
2)The BBB works as step towards governance reforms in Public Sector Banks (PSBs) as recommended by P.J. Nayak Committee.
3)It also aims to lessen the Government of India’s burden of fiscal deficit and current account deficit.

Which of the above statement is/are correct:

1, 3
2, 3
1, 2
1, 2, 3

Solution:
(C)

Banks Board Bureau (BBB) is an autonomous body of the Government of India tasked to improve the governance of Public Sector Banks, recommend selection of chiefs of government owned banks and financial institutions and to help banks in developing strategies and capital raising plans.
The BBB works as step towards governance reforms in Public Sector Banks (PSBs) as recommended by P.J. Nayak Committee.
The BBB was the part of Indradhanush Plan of government.

Q3. A shortage of investible capital in an economy can result from:

1)Low savings
2)Very high and erratic inflation
3)Low borrowing costs

Select the correct answer code:

1, 3
2, 3
1, 2
1, 2, 3

Solution:
(C)

High and erratic inflation deters investors from making investment decisions because real returns on investments are uncertain.
Savings forms the base of the money that is borrowed for infrastructure building in the economy.
Low savings and high demand of capital lead to high borrowing costs and deter investors.

Q4. Aggregate demand is an important economic indicator. It can be increased by:

1)More investments
2)Higher Taxation
3)Increasing bank rate by RBI

Select the correct answer code:

1 only
1, 2
1, 3
2, 3

Solution:
(A)

Aggregate demand is the total demand for final goods and services in an economy at a given time.
Investment creates infrastructure, generates demand for raw material, labor, provides employment and adds to the productive capacity of the economy.
It is one of the most potent factors in increasing Aggregate demand (AD).
The government has some ability to impact AD.
It can give fiscal stimulus or increase taxes in order to influence how consumers spend or save.
An expansionary fiscal policy (higher spending, lower taxes) causes AD to increase, while a contractionary monetary policy (e.g. high bank rates) causes AD to decrease.

Q5. ‘Economic efficiency’ as used by economists and policymakers is related to which of the following:

1)Equal allocation of goods and services to all consumers and corporations.
2)Resource efficient production

Select the correct answer code:

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Solution:
(B)

Economic efficiency is when goods and services are distributed according to consumer preferences and needs of corporations.
It is when the maximum number of goods and services are produced with a given amount of inputs.

Q6. International Covenant on Civil and Political Rights (ICCPR) does not cover which of these rights:

Freedom of assembly
Right to fair trial
Electoral rights
Right to livelihood and employment

Solution:
(D)

The International Covenant on Civil and Political Rights (ICCPR) is a multilateral treaty adopted by United Nations General Assembly Resolution 2200A (XXI) on 16 December 1966, and in force from 23 March 1976 in accordance with Article 49 of the covenant.
The covenant commits its parties to respect the civil and political rights of individuals, including the right to life, freedom of religion, freedom of speech, freedom of assembly, electoral rights and rights to due process and a fair trial.
The ICCPR is part of the International Bill of Human Rights, along with the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the Universal Declaration of Human Rights (UDHR).
The ICCPR is monitored by the United Nations Human Rights Committee (a separate body to the United Nations Human Rights Council), which reviews regular reports of States parties on how the rights are being implemented. India is a party to the convention.

Q7. World Sustainable Development Summit (WSDS) is the annual flagship event of:

International Energy Agency (IEA)
World Bank
The Energy and Resources Institute (TERI)
World Economic Forum

Solution:
(C)

World Sustainable Development Summit:
It is the annual flagship event of The Energy and Resources Institute (TERI).
It is the sole Summit on global issues taking place in the developing world.
It provides a platform for global leaders and practitioners to discuss and deliberate over climatic issues of universal importance.
It strives to provide long-term solutions for the benefit of the global community by assembling the world’s most enlightened leaders and thinkers on a single platform.

Q8. Consider the following statements regarding United Nations specialized agencies:

1)Specialized Agencies are legally independent international organizations with their own rules, membership, organs and financial resources.
2)None of these agencies existed before the First World War, but some were associated with the League of Nations.

Which of the above statements is/are correct:

1 only
2 only
Both 1 and 2
Neither 1 nor 2

Solution:
(A)

Specialized Agencies are legally independent international organizations with their own rules, membership, organs and financial resources, were brought into relationship with the United Nations through negotiated agreements.
Some of the agencies existed before the First World War, some were associated with the League of Nations, others were created almost simultaneously with the United Nations and yet others were created by the United Nations itself to meet emerging needs.

Q9. Tibet Policy and Support Act, recently seen in news is the policy of:

China
United States of America
India
Japan

Solution:
(B)

The Tibet Policy and Support Act is a federal law that outlines United States policy on Tibet.
The Tibetan Policy and Support Act would make it official United States policy that the succession of Tibetan Buddhist leaders, including the succession of the Dalai Lama, be left solely to Tibetan Buddhists to decide, without interference from the Chinese government.

Q10. Consider the following statements:

1)United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body that aims to maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis.
2)An ‘investment trends monitor’ issued by UNCTAD provides the details of the global Foreign Direct Investment (FDI) growth.
3)Only India and China recorded positive FDI growth in 2020.

Which of the above statements is/are correct:

1, 2
1, 3
2, 3
1, 2, 3

Solution:
(D)

The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body.
UNCTAD is the part of the United Nations Secretariat dealing with trade, investment, and development issues.
The organization’s goals are to: “maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis”.
Marking a major achievement globally, India recorded a 13% growth in Foreign Direct Investment (FDI) in 2020 at a time when fund flows declined most strongly in major economies such as the UK, the US and Russia.
Amidst global collapse, China is the only other country that has shown remarkably high FDI growth.

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