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ForumIAS Simulator Tests - Discussions

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  • Hi guys i have some clarifications on some important questions on Simulator 7 ..Please anyone clarify this ..I think some answers are wrong as per the key
    Below are questions on SIM 7
    10
    Which among the following are forms of urban local government?

    1. Port Trust

    2. Municipality

    3. Housing Board

    4. Town Area Committee

    5. City Transport Boards

    Select the correct answer using the codes given below:

    Options:
    a
    2 and 4 only
    b
    1, 2, 3 and 4 only
    c
    1, 2 and 4 only
    d
    1, 2, 3, 4 and 5
    Selected Option:
    c
    1, 2 and 4 only

    Correct Option:
    d
    1, 2, 3, 4 and 5


    My doubt is "Housing board,City transport boards are special autonomous bodies for functional specific independent of local bodies. are they also types of urban local government

    39
    Which among the following is/are sources of revenue for the central government in India?

    1) Land revenue

    2) Sales tax

    3) Taxes on agricultural income

    4) Custom duty

    Select the correct answer using the codes below

    Options:
    a
    2 and 4 only
    b
    2, 3 and 4
    c
    4 only
    d
    1, 2, 3 and 4
    Subject: Economy
    Selected Option:
    a
    2 and 4 only

    Correct Option:
    c
    4 only


    In my view central govt also have sales tax in Inter state trade of goods and services which is levied by central govt and shared among states. but answer is given only custom duty. Please anyone clarify

    46
    What will happen if there is an increase in money supply in an economy?

    Options:
    a
    Interest rate decreases
    b
    Interest rate increases
    c
    Decrease in productivity
    d
    None of the above
    Selected Option:
    b
    Interest rate increases

    Correct Option:
    a
    Interest rate decreases


    When there is increase in money supply repo rate will increase and consequently consumer interest rate will also be increased by banks.. But answer is given other way

    68
    Which of the following statements are true about both Jainism and Buddhism?

    1) Opposition to the caste system

    2) Rejection of the theories of rebirth

    3) Opposition to ritualism

    4) Rejection of the soul or atman

    Select the correct answer using the codes given below:

    Options:
    a
    1 and 2 only
    c
    2 and 3 only
    e
    1 and 3 only
    g
    2, 3 and 4 only
    Selected Option:
    e
    1 and 3 only

    Correct Option:
    c
    2 and 3 only


    Both janism and bhuddism believed in Theory of rebirth.. In fact bhudha 12 cycle of wheel based on karma theory ..Also jainism insists on ascetism to purge out karmas. Mahavir also upholds karma theory....

    these many questions need clarifications on Simulator 7

    @DrKingSchultz and other experts please have look at these questions.... Because these questions are importnant topics and also appeared in single test of simulator 7.....so there should be correct answers since just 3 weeks are away for exam
    Q39.) What u are thinking is central sale tax. Sale tax was the previous form of VAT and u know that vat is collected and levied by the state thus the Sale tax was also levied and collected by the state before the introduction of the VAT system. For more detail see the video of Mrunal on GST.
  • @raushankumar
    Q39.) What u are thinking is central sale tax. Sale tax was the previous form of VAT and u know that vat is collected and levied by the state thus the Sale tax was also levied and collected by the state before the introduction of the VAT system. For more detail see the video of Mrunal on GST.

    Yes thanks ..Sales tax which is replaced by VAT is levied and collected by state....But in option they have just mentioned sales tax.....so it could also include central sale tax also..... that's why i had doubt...Also throw light on other questions also if possible ....
  • Hi guys i have some clarifications on some important questions on Simulator 7 ..Please anyone clarify this ..I think some answers are wrong as per the key
    Below are questions on SIM 7
    10
    Which among the following are forms of urban local government?

    1. Port Trust

    2. Municipality

    3. Housing Board

    4. Town Area Committee

    5. City Transport Boards

    Select the correct answer using the codes given below:

    Options:
    a
    2 and 4 only
    b
    1, 2, 3 and 4 only
    c
    1, 2 and 4 only
    d
    1, 2, 3, 4 and 5
    Selected Option:
    c
    1, 2 and 4 only

    Correct Option:
    d
    1, 2, 3, 4 and 5


    My doubt is "Housing board,City transport boards are special autonomous bodies for functional specific independent of local bodies. are they also types of urban local government

    39
    Which among the following is/are sources of revenue for the central government in India?

    1) Land revenue

    2) Sales tax

    3) Taxes on agricultural income

    4) Custom duty

    Select the correct answer using the codes below

    Options:
    a
    2 and 4 only
    b
    2, 3 and 4
    c
    4 only
    d
    1, 2, 3 and 4
    Subject: Economy
    Selected Option:
    a
    2 and 4 only

    Correct Option:
    c
    4 only


    In my view central govt also have sales tax in Inter state trade of goods and services which is levied by central govt and shared among states. but answer is given only custom duty. Please anyone clarify

    46
    What will happen if there is an increase in money supply in an economy?

    Options:
    a
    Interest rate decreases
    b
    Interest rate increases
    c
    Decrease in productivity
    d
    None of the above
    Selected Option:
    b
    Interest rate increases

    Correct Option:
    a
    Interest rate decreases


    When there is increase in money supply repo rate will increase and consequently consumer interest rate will also be increased by banks.. But answer is given other way

    68
    Which of the following statements are true about both Jainism and Buddhism?

    1) Opposition to the caste system

    2) Rejection of the theories of rebirth

    3) Opposition to ritualism

    4) Rejection of the soul or atman

    Select the correct answer using the codes given below:

    Options:
    a
    1 and 2 only
    c
    2 and 3 only
    e
    1 and 3 only
    g
    2, 3 and 4 only
    Selected Option:
    e
    1 and 3 only

    Correct Option:
    c
    2 and 3 only


    Both janism and bhuddism believed in Theory of rebirth.. In fact bhudha 12 cycle of wheel based on karma theory ..Also jainism insists on ascetism to purge out karmas. Mahavir also upholds karma theory....

    these many questions need clarifications on Simulator 7

    @DrKingSchultz and other experts please have look at these questions.... Because these questions are importnant topics and also appeared in single test of simulator 7.....so there should be correct answers since just 3 weeks are away for exam
    Q46.) U are thinking in opposite direction. Repo rate increases-> Decreases in money supply(the loan avail to bank by RBI will get costlier and thus bank will take less loan and thus money supply will decrease.)
    Here money supply increase means Decrease in repo rate and thus customer will also get cheap loan i.e interest rate charged by bank will decrease because Banks are also getting cheap lone from RBI.
  • @raushankumar

    Thanks a lot......You are consistent top performer start from LEVEL 1 test i have seen.... good answers...All the best brother
  • Hi guys i have some clarifications on some important questions on Simulator 7 ..Please anyone clarify this ..I think some answers are wrong as per the key
    Below are questions on SIM 7
    10
    Which among the following are forms of urban local government?

    1. Port Trust

    2. Municipality

    3. Housing Board

    4. Town Area Committee

    5. City Transport Boards

    Select the correct answer using the codes given below:

    Options:
    a
    2 and 4 only
    b
    1, 2, 3 and 4 only
    c
    1, 2 and 4 only
    d
    1, 2, 3, 4 and 5
    Selected Option:
    c
    1, 2 and 4 only

    Correct Option:
    d
    1, 2, 3, 4 and 5


    My doubt is "Housing board,City transport boards are special autonomous bodies for functional specific independent of local bodies. are they also types of urban local government

    39
    Which among the following is/are sources of revenue for the central government in India?

    1) Land revenue

    2) Sales tax

    3) Taxes on agricultural income

    4) Custom duty

    Select the correct answer using the codes below

    Options:
    a
    2 and 4 only
    b
    2, 3 and 4
    c
    4 only
    d
    1, 2, 3 and 4
    Subject: Economy
    Selected Option:
    a
    2 and 4 only

    Correct Option:
    c
    4 only


    In my view central govt also have sales tax in Inter state trade of goods and services which is levied by central govt and shared among states. but answer is given only custom duty. Please anyone clarify

    46
    What will happen if there is an increase in money supply in an economy?

    Options:
    a
    Interest rate decreases
    b
    Interest rate increases
    c
    Decrease in productivity
    d
    None of the above
    Selected Option:
    b
    Interest rate increases

    Correct Option:
    a
    Interest rate decreases


    When there is increase in money supply repo rate will increase and consequently consumer interest rate will also be increased by banks.. But answer is given other way

    68
    Which of the following statements are true about both Jainism and Buddhism?

    1) Opposition to the caste system

    2) Rejection of the theories of rebirth

    3) Opposition to ritualism

    4) Rejection of the soul or atman

    Select the correct answer using the codes given below:

    Options:
    a
    1 and 2 only
    c
    2 and 3 only
    e
    1 and 3 only
    g
    2, 3 and 4 only
    Selected Option:
    e
    1 and 3 only

    Correct Option:
    c
    2 and 3 only


    Both janism and bhuddism believed in Theory of rebirth.. In fact bhudha 12 cycle of wheel based on karma theory ..Also jainism insists on ascetism to purge out karmas. Mahavir also upholds karma theory....

    these many questions need clarifications on Simulator 7

    @DrKingSchultz and other experts please have look at these questions.... Because these questions are importnant topics and also appeared in single test of simulator 7.....so there should be correct answers since just 3 weeks are away for exam
    Q39.) What u are thinking is central sale tax. Sale tax was the previous form of VAT and u know that vat is collected and levied by the state thus the Sale tax was also levied and collected by the state before the introduction of the VAT system. For more detail see the video of Mrunal on GST.


    q39) ForumIAS answer is right!!! watch (first 20-30 minutes) to get clarity

    q46) The question is about what will happen so mostly answer should be non of the above!!! (Interest rates may increase not will increase)

    q10) No idea

    q39) You are right mostly
  • @Ashwameda

    Thanks a lot for for throwing more light ....
  • Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than required because
    Options:
    a
    Lack of credible lending options
    b
    To make higher profit on interest rate
    c
    To control the inflation in the Indian Market
    d
    Incomplete KYC norms of most of the Account holders


    Consider the following statements regarding the Special Drawing Rights (SDRs)

    1. The SDR is an international reserve asset, created by the IMF

    2. IMF allocate SDRs to member countries in proportion to their IMF quotas only

    3. SDR as a unit of account are concerned solely with the IMF

    Which of the following statements is/are correct?

    Options:
    a
    1 only
    b
    1 and 3 only
    c
    2 and 3 only
    d
    1, 2 and 3

    @raushankumar bro what should be answer to these
  • Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than required because
    Options:
    a
    Lack of credible lending options
    b
    To make higher profit on interest rate
    c
    To control the inflation in the Indian Market
    d
    Incomplete KYC norms of most of the Account holders


    Consider the following statements regarding the Special Drawing Rights (SDRs)

    1. The SDR is an international reserve asset, created by the IMF

    2. IMF allocate SDRs to member countries in proportion to their IMF quotas only

    3. SDR as a unit of account are concerned solely with the IMF

    Which of the following statements is/are correct?

    Options:
    a
    1 only
    b
    1 and 3 only
    c
    2 and 3 only
    d
    1, 2 and 3

    @raushankumar bro what should be answer to these
    ques 1-B.. more the SLR lesser the liquidity available to lend hence higher interest rates and higher profits.(assumption- these lending doesn't turn to NPAs).
    ques 2-D
  • edited May 2017
    Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than required because
    Options:
    a
    Lack of credible lending options
    b
    To make higher profit on interest rate
    c
    To control the inflation in the Indian Market
    d
    Incomplete KYC norms of most of the Account holders


    Consider the following statements regarding the Special Drawing Rights (SDRs)

    1. The SDR is an international reserve asset, created by the IMF

    2. IMF allocate SDRs to member countries in proportion to their IMF quotas only

    3. SDR as a unit of account are concerned solely with the IMF

    Which of the following statements is/are correct?

    Options:
    a
    1 only
    b
    1 and 3 only
    c
    2 and 3 only
    d
    1, 2 and 3

    @raushankumar bro what should be answer to these
    I just have seen ur comment.
    Question 1) Answer should be 'A' .
    SLR mainly include government bond and securities.

    option B is wrong because the rate offered on the government bond is around 8-9 % and which is definitely less than the loan given by the bank to the people and corporate which is around 12-14%.
    Option C-Bank have no such function of controlling the inflation.
    Option D-Absurd option.
    and we all now that NPA is a huge problem for bank . so , they can't lend to the industries and if they don't give loan to anyone then how they will pay back the interest rate to current and saving account holder . Thus, they invest in government bond(SDR). so that at least they can earn at least 8-9 % interest if not 12-14%.
    Question has been picked from last year Economic survey.

    2 Question
    1st statement is correct.
    2nd is wrong because it counts the openness of the economy too.
    3rd , i don't know.
    so, the answer should be either A or B and i want to go with A.
  • Reserve Bank of India decides the SLR rate. However, most banks currently maintain a higher SLR rate than required because
    Options:
    a
    Lack of credible lending options
    b
    To make higher profit on interest rate
    c
    To control the inflation in the Indian Market
    d
    Incomplete KYC norms of most of the Account holders


    Consider the following statements regarding the Special Drawing Rights (SDRs)

    1. The SDR is an international reserve asset, created by the IMF

    2. IMF allocate SDRs to member countries in proportion to their IMF quotas only

    3. SDR as a unit of account are concerned solely with the IMF

    Which of the following statements is/are correct?

    Options:
    a
    1 only
    b
    1 and 3 only
    c
    2 and 3 only
    d
    1, 2 and 3

    @raushankumar bro what should be answer to these
    I just have seen ur comment.
    Question 1) Answer should be 'A' .
    SLR mainly include government bond and securities.

    option B is wrong because the rate offered on the government bond is around 8-9 % and which is definitely less than the loan given by the bank to the people and corporate which is around 12-14%.
    Option C-Bank have no such function of controlling the inflation.
    Option D-Absurd option.
    and we all now that NPA is a huge problem for bank . so , they can't lend to the industries and if they don't give loan to anyone then how they will pay back the interest rate to current and saving account holder . Thus, they invest in government bond(SDR). so that at least they can earn at least 8-9 % interest if not 12-14%.
    Question has been picked from last year Economic survey.

    2 Question
    1st statement is correct.
    2nd is wrong because it counts the openness of the economy too.
    3rd , i don't know.
    so, the answer should be either A or B and i want to go with A.
    I think answer to ques-1 is A and your logic is correct bcz the question says banks are maintaining higher SLR CURRENTLY...that means this question is framed keeping in mind the present NPA problem.. and this may not be always the case...my bad I did not read the question carefully.
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