Economy and Banking News Questions and Answers

Answer: A

According to the RBI, Rs 15.28 lakh crore came back.

In its Annual Report released at the end of August 2017, the Reserve Bank said that of the Rs 15.44 lakh crore in Rs 500 and Rs 1000 notes in circulation on 8 November 2016, an estimated Rs 15.28 lakh crore had been returned to the banking system, about 99 per cent.

\[ 15.44 - 15.28 = 0.16 \ \text{lakh crore} \]

So only about Rs 16,000 crore stayed out. The higher figures, 15.35 to 15.42, are not the August 2017 estimate.

Answer: A

The country was Switzerland.

In December 2024 Switzerland suspended the Most-Favoured-Nation clause in its Double Taxation Avoidance Agreement with India, with effect from 1 January 2025. It followed a 2023 ruling of India's Supreme Court in the Nestle case, which held that an MFN clause does not apply automatically unless notified.

The suspension meant higher withholding tax on dividends for Indian entities in Switzerland. The UK, USA and Germany took no such step.

Answer: A

The plant was set up in Tamilnadu.

Adani Green Energy commissioned the 648 MW Kamuthi solar power project in Ramanathapuram district, Tamil Nadu, in 2016. At the time it was the largest single-location solar power plant in the world, built in about eight months.

Gujarat, Karnataka and Maharashtra have large solar parks of their own, but the 2016 Adani plant that set the record was at Kamuthi in Tamil Nadu.

Answer: B

The key matching is the 1st Engine with Agriculture (3), the 2nd with MSMEs (1), the 3rd with Investment (4) and the 4th with Export (2), the code 3 1 4 2.

The Union Budget 2025-26 described agriculture, MSMEs, investment and exports as the four engines of development, and the code printed as option B follows that order. The other codes place one or more of these in a different order.

The Union Budget 2025-26 speech named agriculture as the first engine, MSMEs as the second, investment as the third and exports as the fourth engine of development.

Answer: C

The new scheme proposed 7 slabs.

The optional new tax regime announced in the Union Budget 2020-21 had these rates on income: up to Rs 2.5 lakh, nil; Rs 2.5-5 lakh, 5%; Rs 5-7.5 lakh, 10%; Rs 7.5-10 lakh, 15%; Rs 10-12.5 lakh, 20%; Rs 12.5-15 lakh, 25%; and above Rs 15 lakh, 30%.

Counting the nil band, that makes seven slabs. Answering 6 counts only the slabs that carry tax, and 5 and 8 match no version of the scheme.

Answer: D

The growth was 13.24 per cent.

The RBI Digital Payments Index, which tracks the spread of digital payments in India against a base of March 2018 = 100, stood at 395.57 in March 2023 against 349.30 in March 2022.

\[ \frac{395.57 - 349.30}{349.30} \times 100 \approx 13.24\% \]

19.24, 9.16 and 16.45 do not match the change between the two published index values.

Answer: B

The Green Rupee Term Deposit was introduced by the State Bank of India.

SBI launched the SBI Green Rupee Term Deposit in February 2024. The money raised is used to finance environment-friendly projects such as renewable energy and clean transport, in line with the RBI's framework for green deposits.

The Reserve Bank does not take deposits from the public, so it cannot offer such a scheme, and Canara Bank and Bank of Baroda are not the banks that introduced this product.

Answer: B

The 'Mobile Handheld Device' was launched by the State Bank of India.

In October 2023 SBI launched handheld devices for its customer service point agents so that basic banking can be done at customers' doorsteps: cash withdrawal, cash deposit, fund transfer, balance enquiry and mini statement. It was aimed especially at senior citizens, persons with disabilities and others who find it hard to reach a branch.

Canara Bank, Punjab National Bank and Indian Bank were not the launchers of this initiative.

Answer: C

India ranked 130 in the Index of Economic Freedom 2018.

The Index of Economic Freedom is published every year by the Heritage Foundation, a US think tank, with The Wall Street Journal. It scores countries on rule of law, government size, regulatory efficiency and open markets. In the 2018 edition India was placed 130th among 180 countries, in the 'mostly unfree' category.

105, 115 and 135 are nearby numbers chosen to test recall of the exact rank.

Answer: B

The loan is for Assam.

The Asian Development Bank and the Government of India signed a USD 231 million loan to build the Lower Kopili hydroelectric project in Assam, a 120 MW plant on the Kopili river in the Dima Hasao and Karbi Anglong districts. It is meant to increase clean power for the state and help meet peak demand.

West Bengal, Odisha and Bihar are not the subject of this loan.