DAY – 66 : Insta 75 Days Revision Plan-2025 : Economy Full Syllabus

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• Question 1 of 30 1. Question 1 points Consider the following statements regarding Windfall Tax: It is a one-off tax levied by governments on companies that have benefited from an unforeseen or extraordinary external event. The imposition of a windfall tax aims to primarily address fiscal consolidation rather than achieving price stability for consumers. The determination of what constitutes an “excessive” or “windfall” profit is based on a globally standardized formula agreed upon by the OECD. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is correct. A windfall tax is indeed a tax imposed on companies that have experienced a sudden and significant increase in profits due to external events they did not directly cause, such as a surge in commodity prices. Statement 2 is incorrect. While fiscal consolidation can be a secondary benefit, a primary objective of imposing windfall taxes, especially in sectors like energy, is often to mitigate the impact of high prices on consumers and to capture a share of the unexpected profits for public good. It can also be aimed at preventing greedy profiteering. Statement 3 is incorrect. There is no globally standardized OECD formula for determining “excessive” profits for windfall tax purposes. The definition, threshold, and rate of windfall tax are determined by individual countries based on their specific economic circumstances and policy objectives. The OECD has discussed international tax coordination but not a standardized windfall profit formula. Incorrect Solution: A Statement 1 is correct. A windfall tax is indeed a tax imposed on companies that have experienced a sudden and significant increase in profits due to external events they did not directly cause, such as a surge in commodity prices. Statement 2 is incorrect. While fiscal consolidation can be a secondary benefit, a primary objective of imposing windfall taxes, especially in sectors like energy, is often to mitigate the impact of high prices on consumers and to capture a share of the unexpected profits for public good. It can also be aimed at preventing greedy profiteering. Statement 3 is incorrect. There is no globally standardized OECD formula for determining “excessive” profits for windfall tax purposes. The definition, threshold, and rate of windfall tax are determined by individual countries based on their specific economic circumstances and policy objectives. The OECD has discussed international tax coordination but not a standardized windfall profit formula.

#### 1. Question

Consider the following statements regarding Windfall Tax:

• It is a one-off tax levied by governments on companies that have benefited from an unforeseen or extraordinary external event.

• The imposition of a windfall tax aims to primarily address fiscal consolidation rather than achieving price stability for consumers.

• The determination of what constitutes an “excessive” or “windfall” profit is based on a globally standardized formula agreed upon by the OECD.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 1 is correct. A windfall tax is indeed a tax imposed on companies that have experienced a sudden and significant increase in profits due to external events they did not directly cause, such as a surge in commodity prices.

Statement 2 is incorrect. While fiscal consolidation can be a secondary benefit, a primary objective of imposing windfall taxes, especially in sectors like energy, is often to mitigate the impact of high prices on consumers and to capture a share of the unexpected profits for public good. It can also be aimed at preventing greedy profiteering.

Statement 3 is incorrect. There is no globally standardized OECD formula for determining “excessive” profits for windfall tax purposes. The definition, threshold, and rate of windfall tax are determined by individual countries based on their specific economic circumstances and policy objectives. The OECD has discussed international tax coordination but not a standardized windfall profit formula.

Solution: A

• Question 2 of 30 2. Question 1 points Consider the following statements regarding Foreign Portfolio Investors (FPIs) in India: FPIs are restricted from investing in unlisted shares of Indian companies, and such investments fall exclusively under the Foreign Direct Investment (FDI) route. The regulatory framework for FPIs in India, as stipulated by SEBI, mandates that no single FPI can hold more than 10% of the paid-up capital of an Indian company. An FPI registration can be granted to an entity even if its home jurisdiction is not a member of the Financial Action Task Force (FATF), provided it meets enhanced due diligence norms prescribed by SEBI. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is incorrect. While FPIs primarily invest in listed securities, SEBI regulations do permit FPIs to invest in unlisted shares of Indian companies in specific circumstances, such as through private placements or with certain conditions. It is not exclusively under the FDI route for all unlisted share investments. However, if an FPI investment in unlisted shares breaches certain thresholds (e.g., 10% of post-issue paid-up capital), it may be reclassified as FDI. Statement 2 is correct. SEBI (Foreign Portfolio Investors) Regulations, 2019, stipulate that the investment by a single FPI (including its investor group) shall be less than 10% of the total paid-up equity capital on a fully diluted basis of the Indian company. If it reaches 10% or more, the FPI is required to divest the excess holding within a specified period, or the investment may be treated as FDI. Statement 3 is incorrect. SEBI regulations are quite stringent regarding the jurisdiction of FPI applicants. Generally, the applicant needs to be a resident of a country whose securities market regulator is a signatory to the IOSCO Multilateral MoU or a signatory to a bilateral MoU with SEBI, and the country should not be identified in the public statement of FATF as having strategic AML/CFT deficiencies. While enhanced due diligence is a general principle, being from a non-FATF compliant jurisdiction with strategic deficiencies is a major disqualifier. Therefore, only one statement is correct. Incorrect Solution: A Statement 1 is incorrect. While FPIs primarily invest in listed securities, SEBI regulations do permit FPIs to invest in unlisted shares of Indian companies in specific circumstances, such as through private placements or with certain conditions. It is not exclusively under the FDI route for all unlisted share investments. However, if an FPI investment in unlisted shares breaches certain thresholds (e.g., 10% of post-issue paid-up capital), it may be reclassified as FDI. Statement 2 is correct. SEBI (Foreign Portfolio Investors) Regulations, 2019, stipulate that the investment by a single FPI (including its investor group) shall be less than 10% of the total paid-up equity capital on a fully diluted basis of the Indian company. If it reaches 10% or more, the FPI is required to divest the excess holding within a specified period, or the investment may be treated as FDI. Statement 3 is incorrect. SEBI regulations are quite stringent regarding the jurisdiction of FPI applicants. Generally, the applicant needs to be a resident of a country whose securities market regulator is a signatory to the IOSCO Multilateral MoU or a signatory to a bilateral MoU with SEBI, and the country should not be identified in the public statement of FATF as having strategic AML/CFT deficiencies. While enhanced due diligence is a general principle, being from a non-FATF compliant jurisdiction with strategic deficiencies is a major disqualifier. Therefore, only one statement is correct.

#### 2. Question

Consider the following statements regarding Foreign Portfolio Investors (FPIs) in India:

• FPIs are restricted from investing in unlisted shares of Indian companies, and such investments fall exclusively under the Foreign Direct Investment (FDI) route.

• The regulatory framework for FPIs in India, as stipulated by SEBI, mandates that no single FPI can hold more than 10% of the paid-up capital of an Indian company.

• An FPI registration can be granted to an entity even if its home jurisdiction is not a member of the Financial Action Task Force (FATF), provided it meets enhanced due diligence norms prescribed by SEBI.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 1 is incorrect. While FPIs primarily invest in listed securities, SEBI regulations do permit FPIs to invest in unlisted shares of Indian companies in specific circumstances, such as through private placements or with certain conditions. It is not exclusively under the FDI route for all unlisted share investments. However, if an FPI investment in unlisted shares breaches certain thresholds (e.g., 10% of post-issue paid-up capital), it may be reclassified as FDI.

Statement 2 is correct. SEBI (Foreign Portfolio Investors) Regulations, 2019, stipulate that the investment by a single FPI (including its investor group) shall be less than 10% of the total paid-up equity capital on a fully diluted basis of the Indian company. If it reaches 10% or more, the FPI is required to divest the excess holding within a specified period, or the investment may be treated as FDI.

Statement 3 is incorrect. SEBI regulations are quite stringent regarding the jurisdiction of FPI applicants. Generally, the applicant needs to be a resident of a country whose securities market regulator is a signatory to the IOSCO Multilateral MoU or a signatory to a bilateral MoU with SEBI, and the country should not be identified in the public statement of FATF as having strategic AML/CFT deficiencies. While enhanced due diligence is a general principle, being from a non-FATF compliant jurisdiction with strategic deficiencies is a major disqualifier.

Therefore, only one statement is correct.

Solution: A

Therefore, only one statement is correct.

• Question 3 of 30 3. Question 1 points The Principal Purpose Test (PPT) is a critical anti-abuse provision in tax treaties. In the context of international taxation and India’s tax agreements, consider its implications: The PPT, as incorporated into India’s tax treaties through the Multilateral Instrument (MLI), allows tax authorities to deny treaty benefits if one of the principal purposes of an arrangement or transaction was to obtain those benefits. The application of PPT is solely at the discretion of the taxpayer, who can choose to apply it to demonstrate the bona fide nature of their transactions. The introduction of PPT through the MLI has rendered all existing specific anti-avoidance rules (SAARs) in India’s bilateral tax treaties redundant and inoperative. Which of the statements given above is/are correct? (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is correct. The Principal Purpose Test (PPT) is a key provision under the OECD’s Base Erosion and Profit Shifting (BEPS) Action 6, which India has adopted through the Multilateral Instrument (MLI). It allows tax administrations to deny treaty benefits (like reduced withholding tax rates or exemption from capital gains tax) if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the covered tax agreement. Statement 2 is incorrect. The application of PPT is a tool for tax authorities to counter treaty abuse, not for taxpayers to selectively apply. Taxpayers need to ensure their transactions have commercial substance and are not structured primarily to obtain treaty benefits. The onus is on the tax authorities to invoke PPT if they suspect abuse. Statement 3 is incorrect. While the PPT is a general anti-abuse rule, it does not automatically render all existing specific anti-avoidance rules (SAARs) in bilateral treaties redundant. The MLI allows jurisdictions to choose how the PPT interacts with existing SAARs. In many cases, both PPT and existing SAARs (like those related to permanent establishment or capital gains) can coexist and operate. Some treaties might have specific provisions overriding or complementing the PPT. Incorrect Solution: A Statement 1 is correct. The Principal Purpose Test (PPT) is a key provision under the OECD’s Base Erosion and Profit Shifting (BEPS) Action 6, which India has adopted through the Multilateral Instrument (MLI). It allows tax administrations to deny treaty benefits (like reduced withholding tax rates or exemption from capital gains tax) if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the covered tax agreement. Statement 2 is incorrect. The application of PPT is a tool for tax authorities to counter treaty abuse, not for taxpayers to selectively apply. Taxpayers need to ensure their transactions have commercial substance and are not structured primarily to obtain treaty benefits. The onus is on the tax authorities to invoke PPT if they suspect abuse. Statement 3 is incorrect. While the PPT is a general anti-abuse rule, it does not automatically render all existing specific anti-avoidance rules (SAARs) in bilateral treaties redundant. The MLI allows jurisdictions to choose how the PPT interacts with existing SAARs. In many cases, both PPT and existing SAARs (like those related to permanent establishment or capital gains) can coexist and operate. Some treaties might have specific provisions overriding or complementing the PPT.

#### 3. Question

The Principal Purpose Test (PPT) is a critical anti-abuse provision in tax treaties. In the context of international taxation and India’s tax agreements, consider its implications:

• The PPT, as incorporated into India’s tax treaties through the Multilateral Instrument (MLI), allows tax authorities to deny treaty benefits if one of the principal purposes of an arrangement or transaction was to obtain those benefits.

• The application of PPT is solely at the discretion of the taxpayer, who can choose to apply it to demonstrate the bona fide nature of their transactions.

• The introduction of PPT through the MLI has rendered all existing specific anti-avoidance rules (SAARs) in India’s bilateral tax treaties redundant and inoperative.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 1 and 2 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: A

Statement 1 is correct. The Principal Purpose Test (PPT) is a key provision under the OECD’s Base Erosion and Profit Shifting (BEPS) Action 6, which India has adopted through the Multilateral Instrument (MLI). It allows tax administrations to deny treaty benefits (like reduced withholding tax rates or exemption from capital gains tax) if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the covered tax agreement.

Statement 2 is incorrect. The application of PPT is a tool for tax authorities to counter treaty abuse, not for taxpayers to selectively apply. Taxpayers need to ensure their transactions have commercial substance and are not structured primarily to obtain treaty benefits. The onus is on the tax authorities to invoke PPT if they suspect abuse.

Statement 3 is incorrect. While the PPT is a general anti-abuse rule, it does not automatically render all existing specific anti-avoidance rules (SAARs) in bilateral treaties redundant. The MLI allows jurisdictions to choose how the PPT interacts with existing SAARs. In many cases, both PPT and existing SAARs (like those related to permanent establishment or capital gains) can coexist and operate. Some treaties might have specific provisions overriding or complementing the PPT.

Solution: A

• Question 4 of 30 4. Question 1 points Regarding the Cabinet Committee on Economic Affairs (CCEA) in India, which of the following statements is the most accurate and comprehensive? (a) The CCEA is chaired by the Union Finance Minister and its decisions are mandatorily subject to ratification by the full Cabinet. (b) The CCEA's primary mandate involves approving foreign direct investment (FDI) proposals above a certain threshold, while all other economic policy matters are decided by the NITI Aayog. (c) The CCEA, chaired by the Prime Minister, has a wide-ranging mandate that includes directing and coordinating governmental economic activities, approving significant expenditure proposals, and deciding on key economic policy issues, including certain FDI proposals. (d) The CCEA is an ad-hoc body constituted by the President of India only during periods of economic crisis to recommend emergency fiscal measures. Correct Solution: C Statement (a) is incorrect. The CCEA is chaired by the Prime Minister, not the Union Finance Minister. While its decisions are high-level, they are decisions of the government and generally do not require separate ratification by the full Cabinet in all instances, as Cabinet Committees are constituted to reduce the workload of the Cabinet. Statement (b) is incorrect. While the CCEA does approve certain FDI proposals (especially those of strategic importance or above a certain threshold not covered under the automatic route), its mandate is much broader than just FDI. NITI Aayog is primarily a policy think tank and does not have decision-making powers like the CCEA. The CCEA deals with a wide array of economic policy matters. Statement (c) is correct. The Prime Minister is the chairperson of the CCEA. Its functions are comprehensive, including: Reviewing economic trends and evolving consistent and integrated economic policies. Directing and coordinating all governmental activities in the economic field. Considering proposals for investment of Rs. 1000 crore and above. Dealing with industrial licensing policies. Considering proposals relating to fixation of prices of agricultural commodities as well as fixation of prices of industrial raw materials and products. Considering cases of increase in the f.o.b. value of exports by Rs. 50 crore or more over the value approved by the Committee earlier. Considering proposals for foreign direct investment where approval of the Government is required. Statement (d) is incorrect. The CCEA is a standing committee, not an ad-hoc body. It functions continuously to deal with economic matters as part of the regular governance structure. Incorrect Solution: C Statement (a) is incorrect. The CCEA is chaired by the Prime Minister, not the Union Finance Minister. While its decisions are high-level, they are decisions of the government and generally do not require separate ratification by the full Cabinet in all instances, as Cabinet Committees are constituted to reduce the workload of the Cabinet. Statement (b) is incorrect. While the CCEA does approve certain FDI proposals (especially those of strategic importance or above a certain threshold not covered under the automatic route), its mandate is much broader than just FDI. NITI Aayog is primarily a policy think tank and does not have decision-making powers like the CCEA. The CCEA deals with a wide array of economic policy matters. Statement (c) is correct. The Prime Minister is the chairperson of the CCEA. Its functions are comprehensive, including: Reviewing economic trends and evolving consistent and integrated economic policies. Directing and coordinating all governmental activities in the economic field. Considering proposals for investment of Rs. 1000 crore and above. Dealing with industrial licensing policies. Considering proposals relating to fixation of prices of agricultural commodities as well as fixation of prices of industrial raw materials and products. Considering cases of increase in the f.o.b. value of exports by Rs. 50 crore or more over the value approved by the Committee earlier. Considering proposals for foreign direct investment where approval of the Government is required. Statement (d) is incorrect. The CCEA is a standing committee, not an ad-hoc body. It functions continuously to deal with economic matters as part of the regular governance structure.

#### 4. Question

Regarding the Cabinet Committee on Economic Affairs (CCEA) in India, which of the following statements is the most accurate and comprehensive?

• (a) The CCEA is chaired by the Union Finance Minister and its decisions are mandatorily subject to ratification by the full Cabinet.

• (b) The CCEA's primary mandate involves approving foreign direct investment (FDI) proposals above a certain threshold, while all other economic policy matters are decided by the NITI Aayog.

• (c) The CCEA, chaired by the Prime Minister, has a wide-ranging mandate that includes directing and coordinating governmental economic activities, approving significant expenditure proposals, and deciding on key economic policy issues, including certain FDI proposals.

• (d) The CCEA is an ad-hoc body constituted by the President of India only during periods of economic crisis to recommend emergency fiscal measures.

Solution: C

Statement (a) is incorrect. The CCEA is chaired by the Prime Minister, not the Union Finance Minister. While its decisions are high-level, they are decisions of the government and generally do not require separate ratification by the full Cabinet in all instances, as Cabinet Committees are constituted to reduce the workload of the Cabinet.

Statement (b) is incorrect. While the CCEA does approve certain FDI proposals (especially those of strategic importance or above a certain threshold not covered under the automatic route), its mandate is much broader than just FDI. NITI Aayog is primarily a policy think tank and does not have decision-making powers like the CCEA. The CCEA deals with a wide array of economic policy matters.

Statement (c) is correct. The Prime Minister is the chairperson of the CCEA. Its functions are comprehensive, including:

• Reviewing economic trends and evolving consistent and integrated economic policies.

• Directing and coordinating all governmental activities in the economic field.

• Considering proposals for investment of Rs. 1000 crore and above.

• Dealing with industrial licensing policies.

• Considering proposals relating to fixation of prices of agricultural commodities as well as fixation of prices of industrial raw materials and products.

• Considering cases of increase in the f.o.b. value of exports by Rs. 50 crore or more over the value approved by the Committee earlier.

• Considering proposals for foreign direct investment where approval of the Government is required.

Statement (d) is incorrect. The CCEA is a standing committee, not an ad-hoc body. It functions continuously to deal with economic matters as part of the regular governance structure.

Solution: C

Statement (c) is correct. The Prime Minister is the chairperson of the CCEA. Its functions are comprehensive, including:

• Reviewing economic trends and evolving consistent and integrated economic policies.

• Directing and coordinating all governmental activities in the economic field.

• Considering proposals for investment of Rs. 1000 crore and above.

• Dealing with industrial licensing policies.

• Considering proposals relating to fixation of prices of agricultural commodities as well as fixation of prices of industrial raw materials and products.

• Considering cases of increase in the f.o.b. value of exports by Rs. 50 crore or more over the value approved by the Committee earlier.

• Considering proposals for foreign direct investment where approval of the Government is required.

Statement (d) is incorrect. The CCEA is a standing committee, not an ad-hoc body. It functions continuously to deal with economic matters as part of the regular governance structure.

• Question 5 of 30 5. Question 1 points Consider the following statements regarding the Pradhan Mantri Mudra Yojana (PMMY): The scheme mandates collateral-free loans only for the ‘Shishu’ category, while ‘Kishor’ and ‘Tarun’ categories may require collateral at the discretion of the lending institution. PMMY loans are exclusively disbursed through Scheduled Commercial Banks and Regional Rural Banks, excluding Micro Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs). The scheme gives overriding preference to new enterprises over existing ones for loan disbursal to foster entrepreneurship from the ground up. How many of the above statements are incorrect? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Statement 1 is incorrect. A key feature of the PMMY is the provision of collateral-free loans across all three categories: Shishu (loans up to ₹50,000), Kishor (loans above ₹50,000 and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh). Member Lending Institutions (MLIs) are not supposed to demand collateral for MUDRA loans. Statement 2 is incorrect. PMMY loans are disbursed through a wide range of institutions, including Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs) registered with the MUDRA Ltd. Statement 3 is incorrect. While PMMY aims to foster entrepreneurship, it caters to both new and existing micro-units and entrepreneurs for their non-farm income-generating activities. There is no mandated overriding preference for new enterprises; the focus is on funding the unfunded and underfunded. Incorrect Solution: C Statement 1 is incorrect. A key feature of the PMMY is the provision of collateral-free loans across all three categories: Shishu (loans up to ₹50,000), Kishor (loans above ₹50,000 and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh). Member Lending Institutions (MLIs) are not supposed to demand collateral for MUDRA loans. Statement 2 is incorrect. PMMY loans are disbursed through a wide range of institutions, including Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs) registered with the MUDRA Ltd. Statement 3 is incorrect. While PMMY aims to foster entrepreneurship, it caters to both new and existing micro-units and entrepreneurs for their non-farm income-generating activities. There is no mandated overriding preference for new enterprises; the focus is on funding the unfunded and underfunded.

#### 5. Question

Consider the following statements regarding the Pradhan Mantri Mudra Yojana (PMMY):

• The scheme mandates collateral-free loans only for the ‘Shishu’ category, while ‘Kishor’ and ‘Tarun’ categories may require collateral at the discretion of the lending institution.

• PMMY loans are exclusively disbursed through Scheduled Commercial Banks and Regional Rural Banks, excluding Micro Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs).

• The scheme gives overriding preference to new enterprises over existing ones for loan disbursal to foster entrepreneurship from the ground up.

How many of the above statements are incorrect?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

Statement 1 is incorrect. A key feature of the PMMY is the provision of collateral-free loans across all three categories: Shishu (loans up to ₹50,000), Kishor (loans above ₹50,000 and up to ₹5 lakh), and Tarun (loans above ₹5 lakh and up to ₹10 lakh). Member Lending Institutions (MLIs) are not supposed to demand collateral for MUDRA loans.

Statement 2 is incorrect. PMMY loans are disbursed through a wide range of institutions, including Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs) registered with the MUDRA Ltd.

Statement 3 is incorrect. While PMMY aims to foster entrepreneurship, it caters to both new and existing micro-units and entrepreneurs for their non-farm income-generating activities. There is no mandated overriding preference for new enterprises; the focus is on funding the unfunded and underfunded.

Solution: C

• Question 6 of 30 6. Question 1 points With reference to the Self-Reliant India (SRI) Fund, consider the following: The SRI Fund is a SEBI-registered Category II Alternative Investment Fund (AIF) that operates on a ‘fund of funds’ model, investing in daughter funds which in turn invest in MSMEs. The entire corpus of the SRI Fund is contributed by the Government of India, with no provision for participation from private institutional investors. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: A Statement 1 is correct. The SRI Fund is indeed a SEBI-registered Category II Alternative Investment Fund. It operates as a ‘fund of funds,’ meaning it does not invest directly in MSMEs but rather invests in other AIFs (daughter funds) that then make equity and quasi-equity investments into MSMEs. Statement 2 is incorrect. While the Government of India is a key anchor investor and has initiated the fund, the structure allows for participation from private sector investors, including institutional investors, to leverage government funds and expand the investible corpus. The aim is to crowd-in private capital. Incorrect Solution: A Statement 1 is correct. The SRI Fund is indeed a SEBI-registered Category II Alternative Investment Fund. It operates as a ‘fund of funds,’ meaning it does not invest directly in MSMEs but rather invests in other AIFs (daughter funds) that then make equity and quasi-equity investments into MSMEs. Statement 2 is incorrect. While the Government of India is a key anchor investor and has initiated the fund, the structure allows for participation from private sector investors, including institutional investors, to leverage government funds and expand the investible corpus. The aim is to crowd-in private capital.

#### 6. Question

With reference to the Self-Reliant India (SRI) Fund, consider the following:

• The SRI Fund is a SEBI-registered Category II Alternative Investment Fund (AIF) that operates on a ‘fund of funds’ model, investing in daughter funds which in turn invest in MSMEs.

• The entire corpus of the SRI Fund is contributed by the Government of India, with no provision for participation from private institutional investors.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: A

Statement 1 is correct. The SRI Fund is indeed a SEBI-registered Category II Alternative Investment Fund. It operates as a ‘fund of funds,’ meaning it does not invest directly in MSMEs but rather invests in other AIFs (daughter funds) that then make equity and quasi-equity investments into MSMEs.

Statement 2 is incorrect. While the Government of India is a key anchor investor and has initiated the fund, the structure allows for participation from private sector investors, including institutional investors, to leverage government funds and expand the investible corpus. The aim is to crowd-in private capital.

Solution: A

• Question 7 of 30 7. Question 1 points Regarding Small Finance Banks (SFBs) in India, consider the following statements: SFBs are mandated to extend 75% of their Adjusted Net Bank Credit (ANBC) to Priority Sector Lending (PSL), a higher threshold than that for Universal Banks. Unlike Universal Banks, SFBs are prohibited from undertaking any non-risk sharing simple financial service activities like the distribution of mutual fund units or insurance products. The minimum paid-up voting equity capital requirement for setting up an SFB has been consistently maintained at ₹100 crore since the initial licensing guidelines were issued by the RBI. Which of the above statements given above is/are incorrect? (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is correct. Small Finance Banks are required to extend 75% of their Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as Priority Sector Lending (PSL) by the RBI. This is indeed higher than the PSL target for Universal Banks (which is generally 40% of ANBC). Statement 2 is incorrect. SFBs are permitted to undertake simple non-risk sharing financial service activities, such as the distribution of mutual fund units, insurance products, and pension products, with the prior approval of the RBI. They are not completely prohibited from these activities. Statement 3 is incorrect. The initial minimum paid-up voting equity capital for SFBs was ₹100 crore. However, the RBI revised these guidelines. For SFBs aspiring to become Universal Banks, or for new SFB licenses “on tap”, the minimum paid-up voting equity capital requirement has been increased to ₹200 crore. Furthermore, existing SFBs were required to increase their minimum net worth to ₹200 crore by a specified timeline. Incorrect Solution: A Statement 1 is correct. Small Finance Banks are required to extend 75% of their Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as Priority Sector Lending (PSL) by the RBI. This is indeed higher than the PSL target for Universal Banks (which is generally 40% of ANBC). Statement 2 is incorrect. SFBs are permitted to undertake simple non-risk sharing financial service activities, such as the distribution of mutual fund units, insurance products, and pension products, with the prior approval of the RBI. They are not completely prohibited from these activities. Statement 3 is incorrect. The initial minimum paid-up voting equity capital for SFBs was ₹100 crore. However, the RBI revised these guidelines. For SFBs aspiring to become Universal Banks, or for new SFB licenses “on tap”, the minimum paid-up voting equity capital requirement has been increased to ₹200 crore. Furthermore, existing SFBs were required to increase their minimum net worth to ₹200 crore by a specified timeline.

#### 7. Question

Regarding Small Finance Banks (SFBs) in India, consider the following statements:

• SFBs are mandated to extend 75% of their Adjusted Net Bank Credit (ANBC) to Priority Sector Lending (PSL), a higher threshold than that for Universal Banks.

• Unlike Universal Banks, SFBs are prohibited from undertaking any non-risk sharing simple financial service activities like the distribution of mutual fund units or insurance products.

• The minimum paid-up voting equity capital requirement for setting up an SFB has been consistently maintained at ₹100 crore since the initial licensing guidelines were issued by the RBI.

Which of the above statements given above is/are incorrect?

• (a) 1 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

Statement 1 is correct. Small Finance Banks are required to extend 75% of their Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as Priority Sector Lending (PSL) by the RBI. This is indeed higher than the PSL target for Universal Banks (which is generally 40% of ANBC).

Statement 2 is incorrect. SFBs are permitted to undertake simple non-risk sharing financial service activities, such as the distribution of mutual fund units, insurance products, and pension products, with the prior approval of the RBI. They are not completely prohibited from these activities.

Statement 3 is incorrect. The initial minimum paid-up voting equity capital for SFBs was ₹100 crore. However, the RBI revised these guidelines. For SFBs aspiring to become Universal Banks, or for new SFB licenses “on tap”, the minimum paid-up voting equity capital requirement has been increased to ₹200 crore. Furthermore, existing SFBs were required to increase their minimum net worth to ₹200 crore by a specified timeline.

Solution: A

• Question 8 of 30 8. Question 1 points In the context of currency exchange rate determination, which of the following scenarios would most likely lead to an appreciation of the Indian Rupee (INR) against the US Dollar (USD), assuming all other factors remain constant? (a) A significant increase in India's Current Account Deficit (CAD) coupled with heightened global risk aversion. (b) The Reserve Bank of India (RBI) substantially increases its purchases of USD from the spot market. (c) Robust and sustained Foreign Direct Investment (FDI) inflows into India accompanied by a period of strong global investor confidence in emerging markets. (d) A sharp rise in global crude oil prices, given India's high import dependence on oil. Correct Solution: C (a) A significant increase in India’s Current Account Deficit (CAD) coupled with heightened global risk aversion would likely lead to a depreciation of the INR. A higher CAD means India is demanding more foreign currency (e.g., USD) than it is supplying, putting downward pressure on the INR. Heightened global risk aversion often leads to capital outflows from emerging markets like India, further weakening the INR. (b) The Reserve Bank of India (RBI) substantially increases its purchases of USD from the spot market would lead to a depreciation of the INR (or prevent its appreciation). When the RBI buys USD, it supplies INR into the market, thereby increasing the supply of INR relative to USD, which tends to lower the value of the INR. (c) Robust and sustained Foreign Direct Investment (FDI) inflows into India accompanied by a period of strong global investor confidence in emerging markets would most likely lead to an appreciation of the INR. FDI inflows mean a greater supply of foreign currency (e.g., USD being converted to INR) in the Indian forex market. Strong global investor confidence in emerging markets would reinforce these inflows. This increased supply of USD relative to INR demand would push up the value of the INR. (d) A sharp rise in global crude oil prices, given India’s high import dependence on oil, would likely lead to a depreciation of the INR. Higher oil prices mean India’s import bill increases significantly, leading to a greater demand for USD to pay for these imports. This increased demand for USD would put downward pressure on the INR. Incorrect Solution: C (a) A significant increase in India’s Current Account Deficit (CAD) coupled with heightened global risk aversion would likely lead to a depreciation of the INR. A higher CAD means India is demanding more foreign currency (e.g., USD) than it is supplying, putting downward pressure on the INR. Heightened global risk aversion often leads to capital outflows from emerging markets like India, further weakening the INR. (b) The Reserve Bank of India (RBI) substantially increases its purchases of USD from the spot market would lead to a depreciation of the INR (or prevent its appreciation). When the RBI buys USD, it supplies INR into the market, thereby increasing the supply of INR relative to USD, which tends to lower the value of the INR. (c) Robust and sustained Foreign Direct Investment (FDI) inflows into India accompanied by a period of strong global investor confidence in emerging markets would most likely lead to an appreciation of the INR. FDI inflows mean a greater supply of foreign currency (e.g., USD being converted to INR) in the Indian forex market. Strong global investor confidence in emerging markets would reinforce these inflows. This increased supply of USD relative to INR demand would push up the value of the INR. (d) A sharp rise in global crude oil prices, given India’s high import dependence on oil, would likely lead to a depreciation of the INR. Higher oil prices mean India’s import bill increases significantly, leading to a greater demand for USD to pay for these imports. This increased demand for USD would put downward pressure on the INR.

#### 8. Question

In the context of currency exchange rate determination, which of the following scenarios would most likely lead to an appreciation of the Indian Rupee (INR) against the US Dollar (USD), assuming all other factors remain constant?

• (a) A significant increase in India's Current Account Deficit (CAD) coupled with heightened global risk aversion.

• (b) The Reserve Bank of India (RBI) substantially increases its purchases of USD from the spot market.

• (c) Robust and sustained Foreign Direct Investment (FDI) inflows into India accompanied by a period of strong global investor confidence in emerging markets.

• (d) A sharp rise in global crude oil prices, given India's high import dependence on oil.

Solution: C

(a) A significant increase in India’s Current Account Deficit (CAD) coupled with heightened global risk aversion would likely lead to a depreciation of the INR. A higher CAD means India is demanding more foreign currency (e.g., USD) than it is supplying, putting downward pressure on the INR. Heightened global risk aversion often leads to capital outflows from emerging markets like India, further weakening the INR.

(b) The Reserve Bank of India (RBI) substantially increases its purchases of USD from the spot market would lead to a depreciation of the INR (or prevent its appreciation). When the RBI buys USD, it supplies INR into the market, thereby increasing the supply of INR relative to USD, which tends to lower the value of the INR.

(c) Robust and sustained Foreign Direct Investment (FDI) inflows into India accompanied by a period of strong global investor confidence in emerging markets would most likely lead to an appreciation of the INR. FDI inflows mean a greater supply of foreign currency (e.g., USD being converted to INR) in the Indian forex market. Strong global investor confidence in emerging markets would reinforce these inflows. This increased supply of USD relative to INR demand would push up the value of the INR.

(d) A sharp rise in global crude oil prices, given India’s high import dependence on oil, would likely lead to a depreciation of the INR. Higher oil prices mean India’s import bill increases significantly, leading to a greater demand for USD to pay for these imports. This increased demand for USD would put downward pressure on the INR.

Solution: C

• Question 9 of 30 9. Question 1 points With respect to SEBI’s regulations concerning ‘front-running’ in the securities market, consider the following: Front-running exclusively refers to the act of a stockbroker using prior knowledge of a large client order to trade on their own account before executing the client’s order. For an act to be considered front-running under SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, it is mandatory to prove that the accused made a quantifiable illicit profit from the transaction. SEBI’s regulatory ambit over front-running extends not only to intermediaries but also to individuals who may not be registered market participants but have access to non-public information about impending large trades. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is incorrect. While the classic definition of front-running involves a broker trading ahead of a client’s large order, the scope of front-running, as understood and regulated by SEBI, is broader. It can include any person who has access to non-public information about an impending large transaction (buy or sell) and trades on that information before the large transaction is executed, to benefit from the anticipated price movement. This is not limited to just stockbrokers acting on client orders; it could be mutual fund employees, or even individuals unrelated to the brokerage but privy to such information. Statement 2 is incorrect. While demonstrating illicit profit strengthens a case, it is not always mandatory to quantify the exact profit to establish the offence of front-running. The act of trading while in possession of non-public information about an impending transaction to take advantage of the likely price impact itself constitutes a fraudulent and unfair trade practice. The intent and the act of trading based on such information are key, though ill-gotten gains are usually disgorged. Statement 3 is correct. SEBI’s regulations against front-running (a form of market abuse/insider trading) are designed to protect market integrity. They apply to any person who indulges in such activity, irrespective of whether they are a registered market intermediary or not. If an individual, through any means, gains access to non-public information about a large trade that is likely to impact the price of a security and trades on it, they can be held liable under SEBI’s FUTP regulations. This includes employees of asset management companies, fiduciaries, and even those who are “temporary insiders.” Incorrect Solution: A Statement 1 is incorrect. While the classic definition of front-running involves a broker trading ahead of a client’s large order, the scope of front-running, as understood and regulated by SEBI, is broader. It can include any person who has access to non-public information about an impending large transaction (buy or sell) and trades on that information before the large transaction is executed, to benefit from the anticipated price movement. This is not limited to just stockbrokers acting on client orders; it could be mutual fund employees, or even individuals unrelated to the brokerage but privy to such information. Statement 2 is incorrect. While demonstrating illicit profit strengthens a case, it is not always mandatory to quantify the exact profit to establish the offence of front-running. The act of trading while in possession of non-public information about an impending transaction to take advantage of the likely price impact itself constitutes a fraudulent and unfair trade practice. The intent and the act of trading based on such information are key, though ill-gotten gains are usually disgorged. Statement 3 is correct. SEBI’s regulations against front-running (a form of market abuse/insider trading) are designed to protect market integrity. They apply to any person who indulges in such activity, irrespective of whether they are a registered market intermediary or not. If an individual, through any means, gains access to non-public information about a large trade that is likely to impact the price of a security and trades on it, they can be held liable under SEBI’s FUTP regulations. This includes employees of asset management companies, fiduciaries, and even those who are “temporary insiders.”

#### 9. Question

With respect to SEBI’s regulations concerning ‘front-running’ in the securities market, consider the following:

• Front-running exclusively refers to the act of a stockbroker using prior knowledge of a large client order to trade on their own account before executing the client’s order.

• For an act to be considered front-running under SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, it is mandatory to prove that the accused made a quantifiable illicit profit from the transaction.

• SEBI’s regulatory ambit over front-running extends not only to intermediaries but also to individuals who may not be registered market participants but have access to non-public information about impending large trades.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 1 is incorrect. While the classic definition of front-running involves a broker trading ahead of a client’s large order, the scope of front-running, as understood and regulated by SEBI, is broader. It can include any person who has access to non-public information about an impending large transaction (buy or sell) and trades on that information before the large transaction is executed, to benefit from the anticipated price movement. This is not limited to just stockbrokers acting on client orders; it could be mutual fund employees, or even individuals unrelated to the brokerage but privy to such information.

Statement 2 is incorrect. While demonstrating illicit profit strengthens a case, it is not always mandatory to quantify the exact profit to establish the offence of front-running. The act of trading while in possession of non-public information about an impending transaction to take advantage of the likely price impact itself constitutes a fraudulent and unfair trade practice. The intent and the act of trading based on such information are key, though ill-gotten gains are usually disgorged.

Statement 3 is correct. SEBI’s regulations against front-running (a form of market abuse/insider trading) are designed to protect market integrity. They apply to any person who indulges in such activity, irrespective of whether they are a registered market intermediary or not. If an individual, through any means, gains access to non-public information about a large trade that is likely to impact the price of a security and trades on it, they can be held liable under SEBI’s FUTP regulations. This includes employees of asset management companies, fiduciaries, and even those who are “temporary insiders.”

Solution: A

• Question 10 of 30 10. Question 1 points Which of the following statements accurately distinguishes Masala Bonds from other conventional offshore bond issuances by Indian entities? Masala Bonds are exclusively issued in jurisdictions with which India has a Double Taxation Avoidance Agreement (DTAA), and the interest income is always tax-exempt in India for foreign investors. Unlike Eurobonds or Yankee bonds where the currency risk is typically borne by the issuer, in Masala Bonds, the currency risk (INR exchange rate fluctuation against the foreign currency of investment) is primarily borne by the investor. The end-use restrictions for proceeds from Masala Bonds are significantly more stringent than those for External Commercial Borrowings (ECBs) raised in foreign currency. Only Indian corporates rated AAA by domestic credit rating agencies are eligible to issue Masala Bonds in offshore markets. Which of the statements given above is correct? (a) 1 and 4 only (b) 2 only (c) 2 and 3 only (d) 3 and 4 only Correct Solution: B Statement 1 is incorrect. While DTAAs can affect taxability, Masala Bonds can be issued in various jurisdictions, and the interest income earned by investors is generally taxable in India (though a lower withholding tax rate of 5% may apply under Section 194LC of the Income Tax Act, subject to conditions). It is not always tax-exempt. Statement 2 is correct. This is the defining characteristic of Masala Bonds. They are rupee-denominated bonds issued in offshore markets. This means that the Indian entity issues bonds denominated in INR to foreign investors. The investors subscribe to these bonds in a foreign currency (e.g., USD), which is converted to INR. All future coupon payments and principal repayment by the Indian issuer are in INR. Therefore, if the INR depreciates against the investor’s home currency during the bond’s tenure, the investor receives less in terms of their home currency, thereby bearing the currency risk. In conventional foreign currency bonds (like Eurobonds or Yankee bonds), the Indian issuer borrows in foreign currency and repays in foreign currency, thus bearing the currency risk. Statement 3 is incorrect. The end-use restrictions for Masala Bonds are generally aligned with the ECB framework. While there are negative lists (e.g., real estate activities, investing in capital markets), they are not necessarily significantly more stringent across the board than all forms of ECBs. The framework aims for broad parity in permitted end-uses for funds raised from abroad. Statement 4 is incorrect. There is no such mandatory requirement that only AAA-rated Indian corporates can issue Masala Bonds. While a good credit rating is beneficial for attracting investors and favorable pricing, eligibility to issue Masala Bonds is governed by RBI’s ECB framework, which specifies eligible borrowers but does not mandate a AAA rating as the sole criterion. Incorrect Solution: B Statement 1 is incorrect. While DTAAs can affect taxability, Masala Bonds can be issued in various jurisdictions, and the interest income earned by investors is generally taxable in India (though a lower withholding tax rate of 5% may apply under Section 194LC of the Income Tax Act, subject to conditions). It is not always tax-exempt. Statement 2 is correct. This is the defining characteristic of Masala Bonds. They are rupee-denominated bonds issued in offshore markets. This means that the Indian entity issues bonds denominated in INR to foreign investors. The investors subscribe to these bonds in a foreign currency (e.g., USD), which is converted to INR. All future coupon payments and principal repayment by the Indian issuer are in INR. Therefore, if the INR depreciates against the investor’s home currency during the bond’s tenure, the investor receives less in terms of their home currency, thereby bearing the currency risk. In conventional foreign currency bonds (like Eurobonds or Yankee bonds), the Indian issuer borrows in foreign currency and repays in foreign currency, thus bearing the currency risk. Statement 3 is incorrect. The end-use restrictions for Masala Bonds are generally aligned with the ECB framework. While there are negative lists (e.g., real estate activities, investing in capital markets), they are not necessarily significantly more stringent across the board than all forms of ECBs. The framework aims for broad parity in permitted end-uses for funds raised from abroad. Statement 4 is incorrect. There is no such mandatory requirement that only AAA-rated Indian corporates can issue Masala Bonds. While a good credit rating is beneficial for attracting investors and favorable pricing, eligibility to issue Masala Bonds is governed by RBI’s ECB framework, which specifies eligible borrowers but does not mandate a AAA rating as the sole criterion.

#### 10. Question

Which of the following statements accurately distinguishes Masala Bonds from other conventional offshore bond issuances by Indian entities?

• Masala Bonds are exclusively issued in jurisdictions with which India has a Double Taxation Avoidance Agreement (DTAA), and the interest income is always tax-exempt in India for foreign investors.

• Unlike Eurobonds or Yankee bonds where the currency risk is typically borne by the issuer, in Masala Bonds, the currency risk (INR exchange rate fluctuation against the foreign currency of investment) is primarily borne by the investor.

• The end-use restrictions for proceeds from Masala Bonds are significantly more stringent than those for External Commercial Borrowings (ECBs) raised in foreign currency.

• Only Indian corporates rated AAA by domestic credit rating agencies are eligible to issue Masala Bonds in offshore markets.

Which of the statements given above is correct?

• (a) 1 and 4 only

• (b) 2 only

• (c) 2 and 3 only

• (d) 3 and 4 only

Solution: B

Statement 1 is incorrect. While DTAAs can affect taxability, Masala Bonds can be issued in various jurisdictions, and the interest income earned by investors is generally taxable in India (though a lower withholding tax rate of 5% may apply under Section 194LC of the Income Tax Act, subject to conditions). It is not always tax-exempt.

Statement 2 is correct. This is the defining characteristic of Masala Bonds. They are rupee-denominated bonds issued in offshore markets. This means that the Indian entity issues bonds denominated in INR to foreign investors. The investors subscribe to these bonds in a foreign currency (e.g., USD), which is converted to INR. All future coupon payments and principal repayment by the Indian issuer are in INR. Therefore, if the INR depreciates against the investor’s home currency during the bond’s tenure, the investor receives less in terms of their home currency, thereby bearing the currency risk. In conventional foreign currency bonds (like Eurobonds or Yankee bonds), the Indian issuer borrows in foreign currency and repays in foreign currency, thus bearing the currency risk.

Statement 3 is incorrect. The end-use restrictions for Masala Bonds are generally aligned with the ECB framework. While there are negative lists (e.g., real estate activities, investing in capital markets), they are not necessarily significantly more stringent across the board than all forms of ECBs. The framework aims for broad parity in permitted end-uses for funds raised from abroad.

Statement 4 is incorrect. There is no such mandatory requirement that only AAA-rated Indian corporates can issue Masala Bonds. While a good credit rating is beneficial for attracting investors and favorable pricing, eligibility to issue Masala Bonds is governed by RBI’s ECB framework, which specifies eligible borrowers but does not mandate a AAA rating as the sole criterion.

Solution: B

• Question 11 of 30 11. Question 1 points Consider the following statements: The Public Financial Management System (PFMS) is implemented by the Office of Controller General of Accounts. The Central Board of Indirect Taxes and Customs transfers duty drawback funds via 32 bank accounts of exporters. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C PFMS is a web *based online software application developed and implemented by the Office of the Controller General of Accounts, Ministry of Finance It was launched in 2009 as a central sector scheme by the erstwhile Planning Commission. It aims to facilitate strong public financial management system by establishing an efficient flow of fund and payment cum accounting network. Recently the Central Board of Indirect Taxes and Customs has decided to electronically transfer duty drawback funds via PFMS directly to exporters bank accounts with the name to ensure transparency. Duty drawback under the Customs Act 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods. Hence statements 1 and 2 are correct Incorrect Solution: C PFMS is a web based online software application developed and implemented by the Office of the Controller General of Accounts, Ministry of Finance It was launched in 2009 as a central sector scheme by the erstwhile Planning Commission. It aims to facilitate strong public financial management system by establishing an efficient flow of fund and payment cum accounting network. Recently the Central Board of Indirect Taxes and Customs has decided to electronically transfer duty drawback funds via PFMS directly to exporters bank accounts with the name to ensure transparency. Duty drawback under the Customs Act 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods. Hence statements 1 and 2 are correct *

#### 11. Question

Consider the following statements:

• The Public Financial Management System (PFMS) is implemented by the Office of Controller General of Accounts.

• The Central Board of Indirect Taxes and Customs transfers duty drawback funds via 32 bank accounts of exporters.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• PFMS is a web *based online software application developed and implemented by the Office of the Controller General of Accounts, Ministry of Finance*

• It was launched in 2009 as a central sector scheme by the erstwhile Planning Commission.

• It aims to facilitate strong public financial management system by establishing an efficient flow of fund and payment cum accounting network.

• Recently the Central Board of Indirect Taxes and Customs has decided to electronically transfer duty drawback funds via PFMS directly to exporters bank accounts with the name to ensure transparency.

• Duty drawback under the Customs Act 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods.

Hence statements 1 and 2 are correct

Solution: C

• PFMS is a web *based online software application developed and implemented by the Office of the Controller General of Accounts, Ministry of Finance*

• It was launched in 2009 as a central sector scheme by the erstwhile Planning Commission.

• It aims to facilitate strong public financial management system by establishing an efficient flow of fund and payment cum accounting network.

• Duty drawback under the Customs Act 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods.

Hence statements 1 and 2 are correct

• Question 12 of 30 12. Question 1 points Consider the following statements: Statement – I : Inverted duty structure encourage export of domestically produced goods. Statement – II : Under inverted duty structure, import tax on raw materials is higher than tax on final products made with the materials. Which of the following is correct in respect of the above statements ? (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I (c) Statement- I is correct but Statement -II is incorrect (d) Statement- I is incorrect but Statement -II is correct Correct Solution : D An inverted duty structure occurs when import tax on raw materials or parts is higher than the tax on final products made from them. Under it local manufacturers have to pay high taxes on essential materials, increasing their production costs; higher production costs make locally manufactured products less competitive compared to imported goods. An inverted duty structure where taxes on import good or raw materials are higher than Taxes on final product, reduces competitiveness by increasing production cost and hindering domestic manufacturers’ ability to compete with imports; this leads to higher prices for domestically produced goods and can discourage exports. Hence statement 1 is incorrect and statement 2 is correct Incorrect Solution : D An inverted duty structure occurs when import tax on raw materials or parts is higher than the tax on final products made from them. Under it local manufacturers have to pay high taxes on essential materials, increasing their production costs; higher production costs make locally manufactured products less competitive compared to imported goods. An inverted duty structure where taxes on import good or raw materials are higher than Taxes on final product, reduces competitiveness by increasing production cost and hindering domestic manufacturers’ ability to compete with imports; this leads to higher prices for domestically produced goods and can discourage exports. Hence statement 1 is incorrect and statement 2 is correct

#### 12. Question

Consider the following statements:

Statement – I :

Inverted duty structure encourage export of domestically produced goods.

Statement – II :

Under inverted duty structure, import tax on raw materials is higher than tax on final products made with the materials.

Which of the following is correct in respect of the above statements ?

• (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I

• (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I

• (c) Statement- I is correct but Statement -II is incorrect

• (d) Statement- I is incorrect but Statement -II is correct

Solution : D

• An inverted duty structure occurs when import tax on raw materials or parts is higher than the tax on final products made from them.

• Under it local manufacturers have to pay high taxes on essential materials, increasing their production costs; higher production costs make locally manufactured products less competitive compared to imported goods.

• An inverted duty structure where taxes on import good or raw materials are higher than Taxes on final product, reduces competitiveness by increasing production cost and hindering domestic manufacturers’ ability to compete with imports; this leads to higher prices for domestically produced goods and can discourage exports.

Hence statement 1 is incorrect and statement 2 is correct

Solution : D

• An inverted duty structure occurs when import tax on raw materials or parts is higher than the tax on final products made from them.

Hence statement 1 is incorrect and statement 2 is correct

• Question 13 of 30 13. Question 1 points Consider the following statements : Niveshak Shivir Initiative has been launched by Investor Education and Protection Fund Authority (IEPFA) in collaboration with SEBI. Niveshak Shivir help investors reclaim unclaimed dividends. IEPFA is chaired by the Secretary to the Ministry of Corporate Affairs. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 1, 2 and 3 (d) 1 and 2 only Correct Solution: C Recently Niveshak Shivir initiative has been launched by *IEPFA and SEBI It is a nationwide investor assistant and outlet program to simplify the process of reclaiming unclaimed dividends and shares for investors. The government established Investors Education and Protection Fund Authority in 2016 under the provisions of section 125 of Companies Act 2013 for administration of investor education and protection fund It comes under Ministry of Corporate Affairs and is headed by Secretary to the ministry. IEPFA provides a portal to track share status and file claims. The initiative reduces dependency on intermediaries and enhances transparency in investor recovery process; it also promotes financial literacy and trust in the financial system along with supporting faster resolution of investor grievances. Hence statements 1, 2 and 3 are correct Incorrect Solution: C Recently Niveshak Shivir initiative has been launched by IEPFA and SEBI It is a nationwide investor assistant and outlet program to simplify the process of reclaiming unclaimed dividends and shares for investors. The government established Investors Education and Protection Fund Authority in 2016 under the provisions of section 125 of Companies Act 2013 for administration of investor education and protection fund It comes under Ministry of Corporate Affairs and is headed by Secretary to the ministry. IEPFA provides a portal to track share status and file claims. The initiative reduces dependency on intermediaries and enhances transparency in investor recovery process; it also promotes financial literacy and trust in the financial system along with supporting faster resolution of investor grievances. Hence statements 1, 2 and 3 are correct *

#### 13. Question

Consider the following statements :

• Niveshak Shivir Initiative has been launched by Investor Education and Protection Fund Authority (IEPFA) in collaboration with SEBI.

• Niveshak Shivir help investors reclaim unclaimed dividends.

• IEPFA is chaired by the Secretary to the Ministry of Corporate Affairs.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 and 3 only

• (c) 1, 2 and 3

• (d) 1 and 2 only

Solution: C

• Recently Niveshak Shivir initiative has been launched by *IEPFA and SEBI*

• It is a nationwide investor assistant and outlet program to simplify the process of reclaiming unclaimed dividends and shares for investors.

• The government established Investors Education and Protection Fund Authority in 2016 under the provisions of section 125 of Companies Act 2013 for administration of investor education and protection fund

• It comes under Ministry of Corporate Affairs and is headed by Secretary to the ministry.

• IEPFA provides a portal to track share status and file claims.

• The initiative reduces dependency on intermediaries and enhances transparency in investor recovery process; it also promotes financial literacy and trust in the financial system along with supporting faster resolution of investor grievances.

Hence statements 1, 2 and 3 are correct

Solution: C

• Recently Niveshak Shivir initiative has been launched by *IEPFA and SEBI*

• It is a nationwide investor assistant and outlet program to simplify the process of reclaiming unclaimed dividends and shares for investors.

• It comes under Ministry of Corporate Affairs and is headed by Secretary to the ministry.

• IEPFA provides a portal to track share status and file claims.

Hence statements 1, 2 and 3 are correct

• Question 14 of 30 14. Question 1 points Consider the following statements: Volatality Index (India VIX) is derived from the order book of Nifty 50 options contract using Black -Schools model. A high India VIX indicates stable stock market conditions. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: A Volatility Index or India VIX is a volatility index that measures the expected volatility in the Indian stock market over the next 30 days It is often referred to as Fear index as it reflects sentiment of investors regarding Market’s future volatility. The National Stock Exchange compiles the volatility index data; it derives this index from the order book of Nifty 50 options contract using Black -Schools model. Hence statement 1 is correct A high India VIX suggests that investors expect significant fluctuations in the stock prices indicating uncertainty in the market. Conversely a low India VIX indicates expectations of relatively stable market conditions. Hence statement 2 is incorrect Incorrect Solution: A Volatility Index or India VIX is a volatility index that measures the expected volatility in the Indian stock market over the next 30 days It is often referred to as Fear index as it reflects sentiment of investors regarding Market’s future volatility. The National Stock Exchange compiles the volatility index data; it derives this index from the order book of Nifty 50 options contract using Black -Schools model. Hence statement 1 is correct A high India VIX suggests that investors expect significant fluctuations in the stock prices indicating uncertainty in the market. Conversely a low India VIX indicates expectations of relatively stable market conditions. Hence statement 2 is incorrect

#### 14. Question

Consider the following statements:

• Volatality Index (India VIX) is derived from the order book of Nifty 50 options contract using Black -Schools model.

• A high India VIX indicates stable stock market conditions.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: A

• Volatility Index or India VIX is a volatility index that measures the expected volatility in the Indian stock market over the next 30 days

• It is often referred to as Fear index as it reflects sentiment of investors regarding Market’s future volatility.

• The National Stock Exchange compiles the volatility index data; it derives this index from the order book of Nifty 50 options contract using Black -Schools model.

Hence statement 1 is correct

• A high India VIX suggests that investors expect significant fluctuations in the stock prices indicating uncertainty in the market.

• Conversely a low India VIX indicates expectations of relatively stable market conditions.

Hence statement 2 is incorrect

Solution: A

• Volatility Index or India VIX is a volatility index that measures the expected volatility in the Indian stock market over the next 30 days

• It is often referred to as Fear index as it reflects sentiment of investors regarding Market’s future volatility.

• The National Stock Exchange compiles the volatility index data; it derives this index from the order book of Nifty 50 options contract using Black -Schools model.

Hence statement 1 is correct

• A high India VIX suggests that investors expect significant fluctuations in the stock prices indicating uncertainty in the market.

• Conversely a low India VIX indicates expectations of relatively stable market conditions.

Hence statement 2 is incorrect

• Question 15 of 30 15. Question 1 points Recently India International Bullion Exchange was in news; it is under the regulatory control of: (a) RBI (b) SEBI (c) International Financial Services Centre Authority (d) Directorate General of Foreign Trade Correct Solution : C The India International Bullion Exchange is India’s first international Bullion exchange based at Gift city (Gujarat International Finance Tech City) at Gandhinagar, Gujarat. It is regulated by the International Financial Services Centres Authority, a unified authority for the regulation of financial products, services and institutions at IFSC. Products and Technologies offered at IIBX are diversified and available at a Cost that is far more competitive compared to those at Indian exchanges as well as Global exchanges in other cities likes Singapore, Dubai, London and New York Hence option C is correct Incorrect Solution : C The India International Bullion Exchange is India’s first international Bullion exchange based at Gift city (Gujarat International Finance Tech City) at Gandhinagar, Gujarat. It is regulated by the International Financial Services Centres Authority, a unified authority for the regulation of financial products, services and institutions at IFSC. Products and Technologies offered at IIBX are diversified and available at a Cost that is far more competitive compared to those at Indian exchanges as well as Global exchanges in other cities likes Singapore, Dubai, London and New York Hence option C is correct

#### 15. Question

Recently India International Bullion Exchange was in news; it is under the regulatory control of:

• (c) International Financial Services Centre Authority

• (d) Directorate General of Foreign Trade

Solution : C

• The India International Bullion Exchange is India’s first international Bullion exchange based at Gift city (Gujarat International Finance Tech City) at Gandhinagar, Gujarat.

• It is regulated by the International Financial Services Centres Authority, a unified authority for the regulation of financial products, services and institutions at IFSC.

• Products and Technologies offered at IIBX are diversified and available at a Cost that is far more competitive compared to those at Indian exchanges as well as Global exchanges in other cities likes Singapore, Dubai, London and New York

Hence option C is correct

Solution : C

• The India International Bullion Exchange is India’s first international Bullion exchange based at Gift city (Gujarat International Finance Tech City) at Gandhinagar, Gujarat.

• It is regulated by the International Financial Services Centres Authority, a unified authority for the regulation of financial products, services and institutions at IFSC.

Hence option C is correct

• Question 16 of 30 16. Question 1 points Consider the following statements: Finternet will allow individuals to transfer any financial asset of any amount, at any time to anyone and anywhere in the world. Finternet is envisaged to be built on unified ledgers to bring multiple financial market on a single programmable platform. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C Recently the ex chairman of UIDAI described the concept of Finternet at the Global Fintech Fest in Mumbai. Finternet is a multiple financial ecosystem interconnected with each other much like internet it would lower barriers between different financial services and systems, drastically reducing the complex clearing and messaging and other issues that hinder financial systems. Finternet would be built on unified ledgers which will bring multiple financial market such as tokinized assets, shares, bonds, real estate on a single programable platform. This has the capability to enable individuals and businesses to transfer any financial asset they like in any amount and anytime, using any device, to anyone is anywhere in the world; financial transactions would be cheap, secure and near instantaneous. Hence statements 1 and 2 are correct Incorrect Solution: C Recently the ex chairman of UIDAI described the concept of Finternet at the Global Fintech Fest in Mumbai. Finternet is a multiple financial ecosystem interconnected with each other much like internet it would lower barriers between different financial services and systems, drastically reducing the complex clearing and messaging and other issues that hinder financial systems. Finternet would be built on unified ledgers which will bring multiple financial market such as tokinized assets, shares, bonds, real estate on a single programable platform. This has the capability to enable individuals and businesses to transfer any financial asset they like in any amount and anytime, using any device, to anyone is anywhere in the world; financial transactions would be cheap, secure and near instantaneous. Hence statements 1 and 2 are correct

#### 16. Question

Consider the following statements:

• Finternet will allow individuals to transfer any financial asset of any amount, at any time to anyone and anywhere in the world.

• Finternet is envisaged to be built on unified ledgers to bring multiple financial market on a single programmable platform.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• Recently the ex chairman of UIDAI described the concept of Finternet at the Global Fintech Fest in Mumbai.

• Finternet is a multiple financial ecosystem interconnected with each other much like internet

• it would lower barriers between different financial services and systems, drastically reducing the complex clearing and messaging and other issues that hinder financial systems.

• Finternet would be built on unified ledgers which will bring multiple financial market such as tokinized assets, shares, bonds, real estate on a single programable platform.

• This has the capability to enable individuals and businesses to transfer any financial asset they like in any amount and anytime, using any device, to anyone is anywhere in the world; financial transactions would be cheap, secure and near instantaneous.

Hence statements 1 and 2 are correct

Solution: C

• Recently the ex chairman of UIDAI described the concept of Finternet at the Global Fintech Fest in Mumbai.

• Finternet is a multiple financial ecosystem interconnected with each other much like internet

• it would lower barriers between different financial services and systems, drastically reducing the complex clearing and messaging and other issues that hinder financial systems.

• Finternet would be built on unified ledgers which will bring multiple financial market such as tokinized assets, shares, bonds, real estate on a single programable platform.

Hence statements 1 and 2 are correct

• Question 17 of 30 17. Question 1 points Consider the following statements: Statement – I : Perpetual Bonds are issued by corporations to raise capital. Statement – II : Perpetual Bonds allow investors to receive interest payments indefinitely. Which of the following is correct in respect of the above statements ? (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I (c) Statement- I is correct but Statement -II is incorrect (d) Statement- I is incorrect but Statement -II is correct Correct Solution : B Perpetual Bonds are a type of debt instrument that do not have a fixed maturity date; hence they continue to pay interest indefinitely with no obligation to repay the principle This makes them long term investment option where investors receive a stream of income without a set end date for the investment. These bonds allow investors receive interest payment as long as the issuer continues to pay. These are issued by issuer (government/ corporations) to raise capital by selling bonds to investors. Hence statements 1 and 2 are correct but statement 2 does not directly explain statement 1 Incorrect Solution : B Perpetual Bonds are a type of debt instrument that do not have a fixed maturity date; hence they continue to pay interest indefinitely with no obligation to repay the principle This makes them long term investment option where investors receive a stream of income without a set end date for the investment. These bonds allow investors receive interest payment as long as the issuer continues to pay. These are issued by issuer (government/ corporations) to raise capital by selling bonds to investors. Hence statements 1 and 2 are correct but statement 2 does not directly explain statement 1

#### 17. Question

Consider the following statements:

Statement – I :

Perpetual Bonds are issued by corporations to raise capital.

Statement – II :

Perpetual Bonds allow investors to receive interest payments indefinitely.

Which of the following is correct in respect of the above statements ?

• (a) Both Statement -I and Statement -II are correct and Statement -II explains Statement -I

• (b) Both Statement -I and Statement -II are correct but Statement -II does not explain Statement -I

• (c) Statement- I is correct but Statement -II is incorrect

• (d) Statement- I is incorrect but Statement -II is correct

Solution : B

• Perpetual Bonds are a type of debt instrument that do not have a fixed maturity date; hence they continue to pay interest indefinitely with no obligation to repay the principle

• This makes them long term investment option where investors receive a stream of income without a set end date for the investment.

• These bonds allow investors receive interest payment as long as the issuer continues to pay.

• These are issued by issuer (government/ corporations) to raise capital by selling bonds to investors.

Hence statements 1 and 2 are correct but statement 2 does not directly explain statement 1

Solution : B

• Perpetual Bonds are a type of debt instrument that do not have a fixed maturity date; hence they continue to pay interest indefinitely with no obligation to repay the principle

• This makes them long term investment option where investors receive a stream of income without a set end date for the investment.

• These bonds allow investors receive interest payment as long as the issuer continues to pay.

• These are issued by issuer (government/ corporations) to raise capital by selling bonds to investors.

Hence statements 1 and 2 are correct but statement 2 does not directly explain statement 1

• Question 18 of 30 18. Question 1 points Consider the following statements : The Business Ready report replaces the Ease of Doing Business report. The B- READY Report 2024 consider the three pillars of Regulatory framework, Public Services and Operational eficiency. B-READY report covers the stages of a firm’s life cycle from market entry to reorganisation or closure. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Recently the World Bank launched the Business Ready report 2024 to replace the Ease of Doing Business report. The Ease of doing business report got halted in 2020 due to issues related to data manipulation and concerns over integrity of certain rankings. Hence statement 1 is correct The B- READY Report 2024 is organised around 10 core topics for private sector development covering the stages of life cycle of a firm including market entry, operation and closure. For each topic, the report considers three pillars : Regulatory framework focuses on the rules and regulations that a firm should follow during their life cycle Public services covers government provided services and infrastructures that support regulatory compliance and business activities with an emphasis on digitisation and transparency. Operational Efficiency it measures how easily firms can comply with regulation and utilise public services Hence statements 2 and 3 are correct Incorrect Solution: C Recently the World Bank launched the Business Ready report 2024 to replace the Ease of Doing Business report. The Ease of doing business report got halted in 2020 due to issues related to data manipulation and concerns over integrity of certain rankings. Hence statement 1 is correct The B- READY Report 2024 is organised around 10 core topics for private sector development covering the stages of life cycle of a firm including market entry, operation and closure. For each topic, the report considers three pillars : Regulatory framework focuses on the rules and regulations that a firm should follow during their life cycle Public services covers government provided services and infrastructures that support regulatory compliance and business activities with an emphasis on digitisation and transparency. Operational Efficiency it measures how easily firms can comply with regulation and utilise public services Hence statements 2 and 3 are correct

#### 18. Question

Consider the following statements :

• The Business Ready report replaces the Ease of Doing Business report.

• The B- READY Report 2024 consider the three pillars of Regulatory framework, Public Services and Operational eficiency.

• B-READY report covers the stages of a firm’s life cycle from market entry to reorganisation or closure.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

• Recently the World Bank launched the Business Ready report 2024 to replace the Ease of Doing Business report.

• The Ease of doing business report got halted in 2020 due to issues related to data manipulation and concerns over integrity of certain rankings.

Hence statement 1 is correct

• The B- READY Report 2024 is organised around 10 core topics for private sector development covering the stages of life cycle of a firm including market entry, operation and closure.

For each topic, the report considers three pillars :

• Regulatory framework focuses on the rules and regulations that a firm should follow during their life cycle

• Public services covers government provided services and infrastructures that support regulatory compliance and business activities with an emphasis on digitisation and transparency.

• Operational Efficiency it measures how easily firms can comply with regulation and utilise public services

Hence statements 2 and 3 are correct

Solution: C

• Recently the World Bank launched the Business Ready report 2024 to replace the Ease of Doing Business report.

• The Ease of doing business report got halted in 2020 due to issues related to data manipulation and concerns over integrity of certain rankings.

Hence statement 1 is correct

• The B- READY Report 2024 is organised around 10 core topics for private sector development covering the stages of life cycle of a firm including market entry, operation and closure.

For each topic, the report considers three pillars :

• Regulatory framework focuses on the rules and regulations that a firm should follow during their life cycle

• Public services covers government provided services and infrastructures that support regulatory compliance and business activities with an emphasis on digitisation and transparency.

• Operational Efficiency it measures how easily firms can comply with regulation and utilise public services

Hence statements 2 and 3 are correct

• Question 19 of 30 19. Question 1 points Consider the following statements : Insider trading involves a business transaction in which a company acquires another one by exchanging its own stock for target company’s stock. SEBI along with RBI regulates Insider trading in India. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: D Insider trading is defined as the act of buying or selling security based on non public, price sensitive information. Such information must be significant enough to impact and investor’s decision to buy or sell a stock ; This method involves company insiders like employees, directors and executives who usually have access to such confidential information. On the other hand, a Stock-for-stock merger is a business transaction in which one company acquires another company by exchanging its own stock for that company’s stock. Hence statement 1 is incorrect Insider trading is illegal in India ; It is regulated by SEBI Act 1992 and SEBI ( Prohibition of Insider Trading) Regulations 2015. Hence statement 2 is incorrect Incorrect Solution: D Insider trading is defined as the act of buying or selling security based on non public, price sensitive information. Such information must be significant enough to impact and investor’s decision to buy or sell a stock ; This method involves company insiders like employees, directors and executives who usually have access to such confidential information. On the other hand, a Stock-for-stock merger is a business transaction in which one company acquires another company by exchanging its own stock for that company’s stock. Hence statement 1 is incorrect Insider trading is illegal in India ; It is regulated by SEBI Act 1992 and SEBI ( Prohibition of Insider Trading) Regulations 2015. Hence statement 2 is incorrect

#### 19. Question

Consider the following statements :

• Insider trading involves a business transaction in which a company acquires another one by exchanging its own stock for target company’s stock.

• SEBI along with RBI regulates Insider trading in India.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: D

• Insider trading is defined as the act of buying or selling security based on non public, price sensitive information.

• Such information must be significant enough to impact and investor’s decision to buy or sell a stock ;

• This method involves company insiders like employees, directors and executives who usually have access to such confidential information.

• On the other hand, a Stock-for-stock merger is a business transaction in which one company acquires another company by exchanging its own stock for that company’s stock.

Hence statement 1 is incorrect

• Insider trading is illegal in India ;

• It is regulated by SEBI Act 1992 and SEBI ( Prohibition of Insider Trading) Regulations 2015.

Hence statement 2 is incorrect

Solution: D

• Insider trading is defined as the act of buying or selling security based on non public, price sensitive information.

• Such information must be significant enough to impact and investor’s decision to buy or sell a stock ;

• This method involves company insiders like employees, directors and executives who usually have access to such confidential information.

• On the other hand, a Stock-for-stock merger is a business transaction in which one company acquires another company by exchanging its own stock for that company’s stock.

Hence statement 1 is incorrect

• Insider trading is illegal in India ;

• It is regulated by SEBI Act 1992 and SEBI ( Prohibition of Insider Trading) Regulations 2015.

Hence statement 2 is incorrect

• Question 20 of 30 20. Question 1 points Which of the following best describes *Predatory* *Pricing*? (a) Policy followed by a company of charging different prices to different customers for a particular product (b) Merging of two or more companies into one entity and fixing a higher price for a product or service (c) An act of setting low prices in an attempt to eliminate competition (d) A market capturing technique in which two companies jointly reduce price of commodities, to compete against a larger company Correct Solution : C Predatory pricing is the illegal act of setting prices low to attempt to eliminate competition. Predatory pricing violates anti trust laws as it makes markets more valuable to a monopoly. Recently the Competition Commission of India notified the Determination of Cost of Production Regulations 2025 to regulate E-Commerce and quick commerce platforms. Predatory pricing has been defined under the competition Act 2002 as a strategy in which a company deliberately lowers its prices below the cost of production to reduce competition and eliminate competitors. Hence option C is correct Incorrect Solution : C Predatory pricing is the illegal act of setting prices low to attempt to eliminate competition. Predatory pricing violates anti trust laws as it makes markets more valuable to a monopoly. Recently the Competition Commission of India notified the Determination of Cost of Production Regulations 2025 to regulate E-Commerce and quick commerce platforms. Predatory pricing has been defined under the competition Act 2002 as a strategy in which a company deliberately lowers its prices below the cost of production to reduce competition and eliminate competitors. Hence option C is correct

#### 20. Question

Which of the following best describes *Predatory* *Pricing*?

• (a) Policy followed by a company of charging different prices to different customers for a particular product

• (b) Merging of two or more companies into one entity and fixing a higher price for a product or service

• (c) An act of setting low prices in an attempt to eliminate competition

• (d) A market capturing technique in which two companies jointly reduce price of commodities, to compete against a larger company

Solution : C

• Predatory pricing is the illegal act of setting prices low to attempt to eliminate competition.

• Predatory pricing violates anti trust laws as it makes markets more valuable to a monopoly.

• Recently the Competition Commission of India notified the Determination of Cost of Production Regulations 2025 to regulate E-Commerce and quick commerce platforms.

• Predatory pricing has been defined under the competition Act 2002 as a strategy in which a company deliberately lowers its prices below the cost of production to reduce competition and eliminate competitors.

Hence option C is correct

Solution : C

• Predatory pricing is the illegal act of setting prices low to attempt to eliminate competition.

• Predatory pricing violates anti trust laws as it makes markets more valuable to a monopoly.

• Recently the Competition Commission of India notified the Determination of Cost of Production Regulations 2025 to regulate E-Commerce and quick commerce platforms.

Hence option C is correct

• Question 21 of 30 21. Question 1 points With reference to the United Nations Forum on Forests (UNFF), consider the following statements: It was created following the recommendations of the Rio+20 Earth Summit as part of Agenda 2030. It operates under the UN General Assembly and is headquartered in Nairobi. It monitors the implementation of the UN Strategic Plan for Forests 2017–2030 across all member states. How many of the above given statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is incorrect — The UNFF was established in October 2000 by the United Nations Economic and Social Council (ECOSOC), predating the Rio+20 Earth Summit of 2012. Its creation was a result of earlier initiatives, including the Intergovernmental Panel on Forests (IPF) and the Intergovernmental Forum on Forests (IFF), which were set up following the 1992 Earth Summit (UNCED) in Rio de Janeiro. Statement 2 is incorrect — The UNFF is a functional commission under the United Nations Economic and Social Council (ECOSOC), not the UN General Assembly. Its Secretariat is based at the United Nations Headquarters in New York City, not Nairobi. Statement 3 is correct — UNFF is the key body monitoring the UN Strategic Plan for Forests (2017–2030), promoting Sustainable Forest Management (SFM). This plan includes six Global Forest Goals and 26 associated targets aimed at promoting sustainable forest management worldwide. Incorrect Solution: A Statement 1 is incorrect — The UNFF was established in October 2000 by the United Nations Economic and Social Council (ECOSOC), predating the Rio+20 Earth Summit of 2012. Its creation was a result of earlier initiatives, including the Intergovernmental Panel on Forests (IPF) and the Intergovernmental Forum on Forests (IFF), which were set up following the 1992 Earth Summit (UNCED) in Rio de Janeiro. Statement 2 is incorrect — The UNFF is a functional commission under the United Nations Economic and Social Council (ECOSOC), not the UN General Assembly. Its Secretariat is based at the United Nations Headquarters in New York City, not Nairobi. Statement 3 is correct — UNFF is the key body monitoring the UN Strategic Plan for Forests (2017–2030), promoting Sustainable Forest Management (SFM). This plan includes six Global Forest Goals and 26 associated targets aimed at promoting sustainable forest management worldwide.

#### 21. Question

With reference to the United Nations Forum on Forests (UNFF), consider the following statements:

• It was created following the recommendations of the Rio+20 Earth Summit as part of Agenda 2030.

• It operates under the UN General Assembly and is headquartered in Nairobi.

• It monitors the implementation of the UN Strategic Plan for Forests 2017–2030 across all member states.

How many of the above given statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 1 is incorrect — The UNFF was established in October 2000 by the United Nations Economic and Social Council (ECOSOC), predating the Rio+20 Earth Summit of 2012. Its creation was a result of earlier initiatives, including the Intergovernmental Panel on Forests (IPF) and the Intergovernmental Forum on Forests (IFF), which were set up following the 1992 Earth Summit (UNCED) in Rio de Janeiro.

Statement 2 is incorrect — The UNFF is a functional commission under the United Nations Economic and Social Council (ECOSOC), not the UN General Assembly. Its Secretariat is based at the United Nations Headquarters in New York City, not Nairobi.

Statement 3 is correct — UNFF is the key body monitoring the UN Strategic Plan for Forests (2017–2030), promoting Sustainable Forest Management (SFM). This plan includes six Global Forest Goals and 26 associated targets aimed at promoting sustainable forest management worldwide.

Solution: A

• Question 22 of 30 22. Question 1 points Consider the following statements: Statement-I: The Bhumisparsha Mudra symbolizes the Buddha’s enlightenment and calling the earth to witness his victory over Mara. Statement-II: This mudra is commonly associated with the Amitabha Buddha in Mahayana tradition. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: C Bhumisparsha Mudra (“earth-touching gesture”) is iconic in Buddhist iconography. It depicts the Buddha sitting in Vajrasana, touching the earth with his right hand while meditating. This gesture represents his moment of enlightenment at Bodh Gaya, calling the Earth goddess to witness his triumph over Mara (temptation and fear), and thus, Statement-I is correct. Statement-II is incorrect as this mudra is not associated with Amitabha Buddha. Instead, Amitabha, the Buddha of Infinite Light, is depicted in Dhyana Mudra (gesture of meditation) or Varada Mudra. The Bhumisparsha Mudra is specifically linked with Shakyamuni Buddha, representing his resolve and spiritual awakening. It is foundational in Theravada and Mahayana art but contextually misattributed in Statement-II. Incorrect Solution: C Bhumisparsha Mudra (“earth-touching gesture”) is iconic in Buddhist iconography. It depicts the Buddha sitting in Vajrasana, touching the earth with his right hand while meditating. This gesture represents his moment of enlightenment at Bodh Gaya, calling the Earth goddess to witness his triumph over Mara (temptation and fear), and thus, Statement-I is correct. Statement-II is incorrect as this mudra is not associated with Amitabha Buddha. Instead, Amitabha, the Buddha of Infinite Light, is depicted in Dhyana Mudra (gesture of meditation) or Varada Mudra. The Bhumisparsha Mudra is specifically linked with Shakyamuni Buddha, representing his resolve and spiritual awakening. It is foundational in Theravada and Mahayana art but contextually misattributed in Statement-II.

#### 22. Question

Consider the following statements:

Statement-I:

The Bhumisparsha Mudra symbolizes the Buddha’s enlightenment and calling the earth to witness his victory over Mara.

Statement-II:

This mudra is commonly associated with the Amitabha Buddha in Mahayana tradition.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-I is incorrect but Statement-II is correct

Solution: C

Bhumisparsha Mudra (“earth-touching gesture”) is iconic in Buddhist iconography. It depicts the Buddha sitting in Vajrasana, touching the earth with his right hand while meditating. This gesture represents his moment of enlightenment at Bodh Gaya, calling the Earth goddess to witness his triumph over Mara (temptation and fear), and thus, Statement-I is correct.

Statement-II is incorrect as this mudra is not associated with Amitabha Buddha. Instead, Amitabha, the Buddha of Infinite Light, is depicted in Dhyana Mudra (gesture of meditation) or Varada Mudra.

The Bhumisparsha Mudra is specifically linked with Shakyamuni Buddha, representing his resolve and spiritual awakening. It is foundational in Theravada and Mahayana art but contextually misattributed in Statement-II.

Solution: C

• Question 23 of 30 23. Question 1 points Consider the following statements: Statement-I: The India–UK Free Trade Agreement includes a Double Contribution Convention that is expected to significantly reduce operational costs for Indian service exporters. Statement-II: The Convention exempts Indian professionals and employers from making dual social security payments in the UK for short-term assignments. Statement-III: Indian service suppliers will be subject to an Economic Needs Test (ENT) in the UK under the FTA’s mobility provisions. Which one of the following is correct in respect of the above statements? (a) Both Statement-II and Statement-III are correct and both of them explain Statement-I (b) Both Statement-II and Statement-III are correct, but only one of them explains Statement-I (c) Only one of the Statements II and III is correct and that explains Statement-I (d) Neither Statement-II nor Statement-III is correct Correct Solution : C Statement-I refers to the cost-saving benefit for Indian exporters due to the Double Contribution Convention. Statement-II is correct — this Convention waives the need to pay into UK’s social security system for assignments under 3 years, thereby cutting costs for Indian firms operating in the UK. Statement-III is incorrect — the FTA removes the Economic Needs Test (ENT) for Indian professionals in the UK, easing market access in 137 service sub-sectors. Thus, Statement-II correctly explains how the Convention reduces operational costs, and Statement-III contradicts the factual provision of the FTA. Incorrect Solution : C Statement-I refers to the cost-saving benefit for Indian exporters due to the Double Contribution Convention. Statement-II is correct — this Convention waives the need to pay into UK’s social security system for assignments under 3 years, thereby cutting costs for Indian firms operating in the UK. Statement-III is incorrect — the FTA removes the Economic Needs Test (ENT) for Indian professionals in the UK, easing market access in 137 service sub-sectors. Thus, Statement-II correctly explains how the Convention reduces operational costs, and Statement-III contradicts the factual provision of the FTA.

#### 23. Question

Consider the following statements:

Statement-I: The India–UK Free Trade Agreement includes a Double Contribution Convention that is expected to significantly reduce operational costs for Indian service exporters.

Statement-II: The Convention exempts Indian professionals and employers from making dual social security payments in the UK for short-term assignments.

Statement-III: Indian service suppliers will be subject to an Economic Needs Test (ENT) in the UK under the FTA’s mobility provisions.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-II and Statement-III are correct and both of them explain Statement-I

• (b) Both Statement-II and Statement-III are correct, but only one of them explains Statement-I

• (c) Only one of the Statements II and III is correct and that explains Statement-I

• (d) Neither Statement-II nor Statement-III is correct

Solution : C

Statement-I refers to the cost-saving benefit for Indian exporters due to the Double Contribution Convention.

Statement-II is correct — this Convention waives the need to pay into UK’s social security system for assignments under 3 years, thereby cutting costs for Indian firms operating in the UK.

Statement-III is incorrect — the FTA removes the Economic Needs Test (ENT) for Indian professionals in the UK, easing market access in 137 service sub-sectors. Thus, Statement-II correctly explains how the Convention reduces operational costs, and Statement-III contradicts the factual provision of the FTA.

Solution : C

Statement-I refers to the cost-saving benefit for Indian exporters due to the Double Contribution Convention.

• Question 24 of 30 24. Question 1 points With reference to loan instruments of the International Monetary Fund (IMF), consider the following statements: Stand-by Arrangements (SBA) are used for providing structural adjustment support to countries over a multi-year horizon. Resilience and Sustainability Facility (RSF) aims to help countries address long-term climate and sustainability risks. Extended Fund Facility (EFF) is used for short-term liquidity needs during currency crises. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: A Statement 1 is incorrect. SBA is designed to address short-term balance of payments problems, not long-term structural adjustment. It usually spans 12–24 months, not a multi-year horizon with deep reforms. Structural adjustment over a longer term is handled by EFF, not SBA. Statement 2 is correct — RSF was introduced in 2022 to support low-income and vulnerable middle-income countries. Its focus is on long-term structural challenges such as climate change, pandemic preparedness, and sustainability risks. Statement 3 is incorrect — EFF supports countries with medium- to long-term balance of payments problems, especially those requiring deep structural reforms. It typically runs for 3 years, extendable to 4. Short-term liquidity during currency crises is handled by SBA, not EFF. Incorrect Solution: A Statement 1 is incorrect. SBA is designed to address short-term balance of payments problems, not long-term structural adjustment. It usually spans 12–24 months, not a multi-year horizon with deep reforms. Structural adjustment over a longer term is handled by EFF, not SBA. Statement 2 is correct — RSF was introduced in 2022 to support low-income and vulnerable middle-income countries. Its focus is on long-term structural challenges such as climate change, pandemic preparedness, and sustainability risks. Statement 3 is incorrect — EFF supports countries with medium- to long-term balance of payments problems, especially those requiring deep structural reforms. It typically runs for 3 years, extendable to 4. Short-term liquidity during currency crises is handled by SBA, not EFF.

#### 24. Question

With reference to loan instruments of the International Monetary Fund (IMF), consider the following statements:

• Stand-by Arrangements (SBA) are used for providing structural adjustment support to countries over a multi-year horizon.

• Resilience and Sustainability Facility (RSF) aims to help countries address long-term climate and sustainability risks.

• Extended Fund Facility (EFF) is used for short-term liquidity needs during currency crises.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: A

Statement 1 is incorrect.

• SBA is designed to address short-term balance of payments problems, not long-term structural adjustment.

• It usually spans 12–24 months, not a multi-year horizon with deep reforms.

• Structural adjustment over a longer term is handled by EFF, not SBA.

Statement 2 is correct —

• RSF was introduced in 2022 to support low-income and vulnerable middle-income countries.

• Its focus is on long-term structural challenges such as climate change, pandemic preparedness, and sustainability risks.

Statement 3 is incorrect — EFF supports countries with medium- to long-term balance of payments problems, especially those requiring deep structural reforms.

• It typically runs for 3 years, extendable to 4.

• Short-term liquidity during currency crises is handled by SBA, not EFF.

Solution: A

Statement 1 is incorrect.

• SBA is designed to address short-term balance of payments problems, not long-term structural adjustment.

• It usually spans 12–24 months, not a multi-year horizon with deep reforms.

• Structural adjustment over a longer term is handled by EFF, not SBA.

Statement 2 is correct —

• RSF was introduced in 2022 to support low-income and vulnerable middle-income countries.

• Its focus is on long-term structural challenges such as climate change, pandemic preparedness, and sustainability risks.

Statement 3 is incorrect — EFF supports countries with medium- to long-term balance of payments problems, especially those requiring deep structural reforms.

• It typically runs for 3 years, extendable to 4.

• Short-term liquidity during currency crises is handled by SBA, not EFF.

• Question 25 of 30 25. Question 1 points Consider the following statements: The diurnal temperature variation during cotton’s fruiting stage is critical for boll development and fibre quality. Due to salinity sensitivity and waterlogging intolerance, cotton cultivation is more concentrated in rain-fed deep black soils of the Deccan than in irrigated Indo-Gangetic alluvial belts. Which of the above given statements is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C Both statements are correct. Cotton fibre elongation and boll opening require warm days and cool nights—a diurnal variation pattern that enhances fibre strength and length. Additionally, cotton is sensitive to water stagnation, hence unsuitable for flood-prone Indo-Gangetic belts. The deep black cotton soils (Regur) in Maharashtra, Gujarat, and MP retain moisture and are better adapted for rain-fed cotton farming, explaining the regional pattern of concentration. Incorrect Solution: C Both statements are correct. Cotton fibre elongation and boll opening require warm days and cool nights—a diurnal variation pattern that enhances fibre strength and length. Additionally, cotton is sensitive to water stagnation, hence unsuitable for flood-prone Indo-Gangetic belts. The deep black cotton soils (Regur) in Maharashtra, Gujarat, and MP retain moisture and are better adapted for rain-fed cotton farming, explaining the regional pattern of concentration.

#### 25. Question

Consider the following statements:

• The diurnal temperature variation during cotton’s fruiting stage is critical for boll development and fibre quality.

• Due to salinity sensitivity and waterlogging intolerance, cotton cultivation is more concentrated in rain-fed deep black soils of the Deccan than in irrigated Indo-Gangetic alluvial belts.

Which of the above given statements is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

Both statements are correct. Cotton fibre elongation and boll opening require warm days and cool nights—a diurnal variation pattern that enhances fibre strength and length.

Additionally, cotton is sensitive to water stagnation, hence unsuitable for flood-prone Indo-Gangetic belts.

The deep black cotton soils (Regur) in Maharashtra, Gujarat, and MP retain moisture and are better adapted for rain-fed cotton farming, explaining the regional pattern of concentration.

Solution: C

Both statements are correct. Cotton fibre elongation and boll opening require warm days and cool nights—a diurnal variation pattern that enhances fibre strength and length.

Additionally, cotton is sensitive to water stagnation, hence unsuitable for flood-prone Indo-Gangetic belts.

The deep black cotton soils (Regur) in Maharashtra, Gujarat, and MP retain moisture and are better adapted for rain-fed cotton farming, explaining the regional pattern of concentration.

• Question 26 of 30 26. Question 1 points On Thursday, October 24, 1929, panic gripped Wall Street as the stock market began to crash, continuing its downward spiral over the next six days. On Black Tuesday, October 29, it fell another 12%, triggering a financial catastrophe. In the 1920s, known as the “Roaring Twenties,” booming post-WWI business and stock investments created false confidence. Charles Mitchell of National City Bank encouraged average Americans to invest, often buying stocks on margin—using loans to finance purchases. By 1929, about 90% of stock investments were loan-backed, creating a fragile financial bubble. A slight price drop before the crash didn’t raise alarms, but the crash exposed deep economic flaws. Businesses collapsed, unemployment soared, and even rural populations suffered due to drought and lack of credit. Though not the sole cause, the crash symbolized the start of the Great Depression. Recovery only came with the economic demands of World War II. Which of the following views corroborates the above passage? (a) The Wall Street crash happened as a result of America’s losses in World War I. (b) Prices dropping before the crash were a warning sign for investors who began to sell their stock. (c) Both (A) and (B) (d) Neither (A) nor (B) Correct Solution: D Explanation: (A) is incorrect because the U.S. entered WWI late and was relatively unaffected, which actually boosted its economy in the 1920s. (B) is incorrect as well—the passage states that the slight price drop didn’t alarm experts or investors, and selling was not widespread until the crash began. Incorrect Solution: D Explanation: (A) is incorrect because the U.S. entered WWI late and was relatively unaffected, which actually boosted its economy in the 1920s. (B) is incorrect as well—the passage states that the slight price drop didn’t alarm experts or investors, and selling was not widespread until the crash began.

#### 26. Question

On Thursday, October 24, 1929, panic gripped Wall Street as the stock market began to crash, continuing its downward spiral over the next six days. On Black Tuesday, October 29, it fell another 12%, triggering a financial catastrophe. In the 1920s, known as the “Roaring Twenties,” booming post-WWI business and stock investments created false confidence. Charles Mitchell of National City Bank encouraged average Americans to invest, often buying stocks on margin—using loans to finance purchases. By 1929, about 90% of stock investments were loan-backed, creating a fragile financial bubble. A slight price drop before the crash didn’t raise alarms, but the crash exposed deep economic flaws. Businesses collapsed, unemployment soared, and even rural populations suffered due to drought and lack of credit. Though not the sole cause, the crash symbolized the start of the Great Depression. Recovery only came with the economic demands of World War II.

Which of the following views corroborates the above passage?

• (a) The Wall Street crash happened as a result of America’s losses in World War I.

• (b) Prices dropping before the crash were a warning sign for investors who began to sell their stock.

• (c) Both (A) and (B)

• (d) Neither (A) nor (B)

Solution: D Explanation: (A) is incorrect because the U.S. entered WWI late and was relatively unaffected, which actually boosted its economy in the 1920s. (B) is incorrect as well—the passage states that the slight price drop didn’t alarm experts or investors, and selling was not widespread until the crash began.

• Question 27 of 30 27. Question 1 points There are two containers of the same volume, first container half-filled with sugar syrup and the second container half-filled with milk. Half the content of the first container is transferred to the second container, and then the half of this mixture is transferred back to the first container. Next, half the content of the first container is transferred back to the second container. Then the ratio of sugar syrup and milk in the second container is (e) 4 : 5 (f) 6 : 5 (g) 5 : 4 (h) 5 : 6 Correct Solution: D Justification : Step 1: Half the content of the first container is transferred to the second container Step 2: Half of the mixture of second container is transferred back to the first container Step 3: Half the content of the first container is transferred back to the second container Sugar syrup : Milk in second container = 62.5 : 75 = 5 : 6 The answer is option D Incorrect Solution: D Justification : Step 1: Half the content of the first container is transferred to the second container Step 2: Half of the mixture of second container is transferred back to the first container Step 3: Half the content of the first container is transferred back to the second container Sugar syrup : Milk in second container = 62.5 : 75 = 5 : 6 The answer is option D

#### 27. Question

There are two containers of the same volume, first container half-filled with sugar syrup and the second container half-filled with milk. Half the content of the first container is transferred to the second container, and then the half of this mixture is transferred back to the first container. Next, half the content of the first container is transferred back to the second container. Then the ratio of sugar syrup and milk in the second container is

Solution: D

Justification :

Step 1: Half the content of the first container is transferred to the second container

Step 2: Half of the mixture of second container is transferred back to the first container

Step 3: Half the content of the first container is transferred back to the second container

Sugar syrup : Milk in second container = 62.5 : 75 = 5 : 6

The answer is option D

Solution: D

Justification :

Step 1: Half the content of the first container is transferred to the second container

Step 2: Half of the mixture of second container is transferred back to the first container

Step 3: Half the content of the first container is transferred back to the second container

Sugar syrup : Milk in second container = 62.5 : 75 = 5 : 6

The answer is option D

• Question 28 of 30 28. Question 1 points The radius of the sphere is 25% more than the length of the rectangle. The breadth of the rectangle is 22cm. If the area of the rectangle is equal to the curved surface area of the sphere, then what will be the curved surface area of the sphere? (a) 24.64 (b) 30.64 (c) 28.64 (d) 32.64 Correct Solution: A Justification : Answer A) 24.64 Explanation Let the length of the rectangle=x Radius of the sphere=125x/100=5x/4 422/7(5x/4)(5x/4)=22x X=28/25 Radius=5/428/25=7/5 CSA of sphere=422/77/57/5=24.64 Incorrect Solution: A Justification : Answer A) 24.64 Explanation Let the length of the rectangle=x Radius of the sphere=125x/100=5x/4 422/7(5x/4)(5x/4)=22x X=28/25 Radius=5/428/25=7/5 CSA of sphere=422/77/57/5=24.64

#### 28. Question

The radius of the sphere is 25% more than the length of the rectangle. The breadth of the rectangle is 22cm. If the area of the rectangle is equal to the curved surface area of the sphere, then what will be the curved surface area of the sphere?

Solution: A

Justification :

Answer A) 24.64

Explanation

Let the length of the rectangle=x

Radius of the sphere=125x/100=5x/4

422/7(5x/4)(5x/4)=22*x

Radius=5/4*28/25=7/5

CSA of sphere=422/77/5*7/5=24.64

Solution: A

Justification :

Answer A) 24.64

Explanation

Let the length of the rectangle=x

Radius of the sphere=125x/100=5x/4

422/7(5x/4)(5x/4)=22*x

Radius=5/4*28/25=7/5

CSA of sphere=422/77/5*7/5=24.64

• Question 29 of 30 29. Question 1 points The ratio between the length and the breadth of a rectangular park is 6 : 5. If a man cycling along the boundary of the park at the speed of 11 km/hr completes one round in 12 minutes, then consider the following statements: Statement I: The perimeter of the rectangular park is 2500 meters Statement II: The area of the rectangular park is 375000 m2 Which among the following statement is/are correct? (a) I only (b) II only (c) Both I and II (d) Neither I nor II Correct Solution: D Justification : Speed = 11 km/hr Time taken = 12 minutes Let the length and breadth of the rectangle be 6x and 5x So perimeter = distance = (11000 x 12)/60 = 2200 meters 2 x (6x + 5x) = 2200 x = 100 So length of the rectangle = 600 m and breadth = 500 m Thus area = 600 x 500 = 300000 m2 Statement I: The perimeter of the rectangular park is 2500 meters perimeter = distance = (11000 x 12)/60 = 2200 meters Hence statement I is incorrect Statement II: The area of the rectangular park is 375000 m2 Area = 600 x 500 = 300000 m2 Hence statement II is incorrect Incorrect Solution: D Justification : Speed = 11 km/hr Time taken = 12 minutes Let the length and breadth of the rectangle be 6x and 5x So perimeter = distance = (11000 x 12)/60 = 2200 meters 2 x (6x + 5x) = 2200 x = 100 So length of the rectangle = 600 m and breadth = 500 m Thus area = 600 x 500 = 300000 m2 Statement I: The perimeter of the rectangular park is 2500 meters perimeter = distance = (11000 x 12)/60 = 2200 meters Hence statement I is incorrect Statement II: The area of the rectangular park is 375000 m2 Area = 600 x 500 = 300000 m2 Hence statement II is incorrect

#### 29. Question

The ratio between the length and the breadth of a rectangular park is 6 : 5. If a man cycling along the boundary of the park at the speed of 11 km/hr completes one round in 12 minutes, then consider the following statements:

Statement I: The perimeter of the rectangular park is 2500 meters

Statement II: The area of the rectangular park is 375000 m2

Which among the following statement is/are correct?

• (a) I only

• (b) II only

• (c) Both I and II

• (d) Neither I nor II

Solution: D

Justification :

Speed = 11 km/hr

Time taken = 12 minutes

Let the length and breadth of the rectangle be 6x and 5x So perimeter = distance = (11000 x 12)/60 = 2200 meters 2 x (6x + 5x) = 2200

So length of the rectangle = 600 m and breadth = 500 m Thus area = 600 x 500 = 300000 m2

Statement I: The perimeter of the rectangular park is 2500 meters perimeter = distance = (11000 x 12)/60 = 2200 meters

Hence statement I is incorrect

Statement II: The area of the rectangular park is 375000 m2 Area = 600 x 500 = 300000 m2

Hence statement II is incorrect

Solution: D

Justification :

Speed = 11 km/hr

Time taken = 12 minutes

Let the length and breadth of the rectangle be 6x and 5x So perimeter = distance = (11000 x 12)/60 = 2200 meters 2 x (6x + 5x) = 2200

So length of the rectangle = 600 m and breadth = 500 m Thus area = 600 x 500 = 300000 m2

Statement I: The perimeter of the rectangular park is 2500 meters perimeter = distance = (11000 x 12)/60 = 2200 meters

Hence statement I is incorrect

Statement II: The area of the rectangular park is 375000 m2 Area = 600 x 500 = 300000 m2

Hence statement II is incorrect

• Question 30 of 30 30. Question 1 points The given Bar graph represents the demand and Production of motorcycles of five companies (in lakhs). The average Production of motorcycles of companies Bajaj, TVS and Suzuki taken together is what percent less than the demand of motorcycles of company Honda? (a) 8% (b) 6.7% (c) 7.3% (d) 5.6% Correct Solution : A Justification : Average production of motorcycle of companies Bajaj, TVS and Suzuki = (90 +135 +120) / 3 = 115 lakhs Demand of company Honda = 125 lakhs Required percentage = (125 – 115)/125×100 =10/125×100=8% Incorrect Solution : A Justification : Average production of motorcycle of companies Bajaj, TVS and Suzuki = (90 +135 +120) / 3 = 115 lakhs Demand of company Honda = 125 lakhs Required percentage = (125 – 115)/125×100 =10/125×100=8%

#### 30. Question

The given Bar graph represents the demand and Production of motorcycles of five companies (in lakhs).

The average Production of motorcycles of companies Bajaj, TVS and Suzuki taken together is what percent less than the demand of motorcycles of company Honda?

Solution : A

Justification :

Average production of motorcycle of companies Bajaj, TVS and Suzuki = (90 +135 +120) / 3 = 115 lakhs

Demand of company Honda = 125 lakhs

Required percentage = (125 – 115)/125×100

=10/125×100=8%

Solution : A

Justification :

Average production of motorcycle of companies Bajaj, TVS and Suzuki = (90 +135 +120) / 3 = 115 lakhs