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SFG 2024 | LEVEL 2 |Test 20 |

DO NOT OPEN THIS TEST BOOKLET UNTIL YOU ARE TOLD TO DO SO

T.B.C.: FIAS-SFG24-L2T20 Test Booklet Series
Serial No.

A
TEST BOOKLET
GENERAL STUDIES & CSAT

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SFG 2024 | LEVEL 2 |Test 20 |

Q.1) Consider the following: Q.4) With reference to ‘GST composition

1. Demographic performance scheme’, consider the following statements:
2. Forest and ecology 1. A person whose aggregate turnover in the
3. Governance reforms preceding financial year is more than 75
4. Stable government lakhs cannot opt for the scheme.
5. Tax and fiscal efforts 2. Tax-payer opting for the composition levy
For the horizontal tax devolution, the Fifteenth under the GST composition scheme, cannot
Finance Commission used how many of the avail Input Tax Credit.
above as criteria other than population, area 3. Tax-payer under the composition scheme
and income distance? can make supplies of goods to Special
a) Only two Economic Zones (SEZs).
b) Only three How many of the above statements are
c) Only four correct?
d) All five a) Only one
b) Only two
Q.2) Consider the following sources of income: c) All three
1. Dividends from Public Sector d) None
Undertakings
2. Interest received on loans given by the Q.5) Consider the following statements
Central Government regarding Newly constructed Parliament of
3. Income from Disinvestment of Public India:
Sector Undertakings 1. The Lok Sabha chamber of the new
4. Dividends from the Reserve Bank of India's Parliament building bears a resemblance
operations to Lotus.
5. Recovery of loans given to the state 2. The entire building has been designed to
government be energy efficient and has a Platinum
6. Profit from circulation of small coins rated Green Building Certification.
How many of the above are considered non- Which of the statements given above is/are
tax revenue receipts of Government of India? correct?
a) Only three a) 1 only
b) Only four b) 2 only
c) Only five c) Both 1 and 2
d) All six d) Neither 1 nor 2

Q.3) In context of Indian Economy, which one Q.6) With reference to the difference between
of the following statements best reflects the Old Pension Scheme (OPS) and New Pension
meaning of the terms “Crowding in”? scheme (NPS), consider the following
a) The private sector is being displaced in the statements:
financial market due to borrowing by the 1. Only government employees were eligible
government. under OPS, whereas private sector
b) The private sector is being encouraged in employees can also join under NPS.
the financial market due to increased 2. Under OPS, there is no provision for tax on
spending by the government. pension, whereas certain proportion of
c) Government borrowing to boost pension is taxable under the NPS.
employment in the public sector. Which of the statements given above is/are
d) Government providing financial rescue correct?
plans for business entities in distress. a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

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SFG 2024 | LEVEL 2 |Test 20 |

Q.7) Which of the following statements best Q.10) With reference to various reports/index
describes the concept of “Fiscal profligacy”? sometimes mentioned in the news, consider
a) A scenario where government reduces the following pairs:
taxes to stimulate economic growth. Reports Published by
b) The government’s heavy reliance on central 1. India Justice Office of the Registrar of
bank borrowing to address its fiscal Report the Supreme Court of
obligations. India.
c) A situation where the government spends 2. World Press Reporters without
more than it can afford, leading to Freedom Index Borders
unsustainable levels of debt and deficits. 3. Global United Nation Office on
d) The government’s fiscal measures aimed at Terrorism Drugs and Crime
controlling the higher inflationary situation Index (GTI) (UNODC).
in an economy. How many of the above pairs are correctly
matched?
Q.8) With reference to Indian Economy, a) Only one
consider the following statements about E- b) Only two
Way bill: c) All three
1. It is not mandatory for intra-state d) None
movement of goods and services.
2. Fresh Fruits and vegetables transport are Q.11) Which one of the following effects of
exempted from the requirement of creation of black money in India has been main
obtaining e-way bills. cause of worry to the Government of India?
3. It can be generated only by the GST a) Diversion of resources to the purchase of
registered transporter for the movement of real estate and investment in luxury
goods. housing
How many of the statements given above are b) Investment in unproductive activities and
correct? purchase of precious stones, jewellery,
a) Only one gold, etc.
b) Only two c) Large donations to political parties and
c) All three growth of regionalism
d) None d) Loss of revenue to the State Exchequer due
to tax evasion
Q.9) With reference to Securities Transaction
Tax, consider the following statements: Q.12) Which among the following best
1. It is the direct tax levied on both purchase describes the “Golden Rule” in public finance?
and sale of the securities in the capital a) Government’s capital expenditure should
market. be more than revenue expenditure.
2. It is levied only when the investor makes b) Government should borrow only to finance
profits from the sale of financial assets. the capital formation and not to fund
3. It is not applicable to the off-market current spending.
securities transactions. c) Government debt should not be more than
How many of the statements given above are 50% of its country's GDP.
correct? d) The government should maintain strict
a) Only one adherence to the fiscal deficit target at all
b) Only two times.
c) All three
d) None Q.13) In the context of the taxation system in
India, which of the following best describes the
nature of personal income tax in India?
a) Progressive tax
b) Regressive tax
c) Proportional tax
d) Digressive tax

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SFG 2024 | LEVEL 2 |Test 20 |

Q.14) Consider the following statements about Q.17) With reference to the Prime Minister's
a ‘Cut Motion’: National Relief Fund (PMNRF), consider the
It is a type of parliamentary motion moved in following statements:
Lok Sabha during the voting for demand for 1. The disbursement of the funds out of
grant while enacting the budget. If the motion PMNRF is made at the discretion of the
is passed, the budgetary demand will be Prime Minister.
reduced by Rs 100. It is proposed specifically 2. It is audited by the Comptroller and Auditor
to ventilate a specific grievance that falls General of India (CAG).
under the jurisdiction of the Government of 3. Not all the contributions towards PMNRF
India. are exempt from Income Tax.
The above statements describe which one of How many of the above statements are
the following types of cut motion? correct?
a) Policy cut motion a) Only one
b) Economic cut motion b) Only two
c) Token cut motion c) All three
d) None of the Above d) None

Q.15) With reference to the National Electricity Q.18) With reference to Economic growth,
Plan 2022-27, consider the following which of the following statements best
statements: describes the concept of ‘Fiscal drag’?
1. It was prepared by the Central Electricity a) A situation where interest on previous
Authority. loans is increasing year by year.
2. It aims to increase the share of non-fossil b) A situation where inflation or income
based capacity in electricity to more than growth moves taxpayers into higher tax
two-third by end of 2026-27. brackets.
Which of the statements given above is/are c) A situation where combination of tax
correct? increases and spending cuts are scheduled
a) 1 only to take place automatically.
b) 2 only d) A situation where the government
c) Both 1 and 2 increases spending to boost economic
d) Neither 1 nor 2 growth and tries to increase employment
levels.
Q.16) With reference to Capital Gains Tax,
consider the following statements: Q.19) Consider the following statements about
1. It can be imposed on the profits from the Goods and Service Tax (GST) in India:
transfer of patent and trademark rights. Statement I: GST is not applied at each stage
2. Long term capital gains tax rate is generally of value addition, but only on the end product.
higher than short term capital gains tax Statement II: GST is a destination-based tax.
rate in India. Which one of the following is correct in
3. It is applicable exclusively to capital gains respect of the above statements?
realized by Indian citizens. a) Both Statement I and Statement II are
How many of the statements given above are correct, and Statement II is the correct
correct? explanation for Statement I.
a) Only one b) Both Statement I and Statement II are
b) Only two correct, but Statement II is not the correct
c) All three explanation for Statement I.
d) None c) Statement I is correct, but Statement II is
incorrect.
d) Statement I is incorrect, but Statement II is
correct.

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SFG 2024 | LEVEL 2 |Test 20 |

Q.20) With reference to India’s Foreign Trade Q.23) The Budget of government of India is
Policy,2023, consider the following statements: broadly categorized under Revenue and
1. It was notified under the provisions of Capital expenditure. In this context consider
Foreign Trade Act, 1992. the following:
2. It aims to transform India into a 1.Construction of highways
merchandise trade surplus country by 2.Salaries for government employees
2030. 3.Pension for government employees
3. It aims to develop the districts as export 4.Food subsidy
hubs in partnership with the respective 5.Investment in public sector enterprises for
State Governments. the acquisition of fixed assets
How many of the above statements are How many of the above are part of capital
correct? expenditure of Government of India under
a) Only one budget?
b) Only two a) Only two
c) All three b) Only three
d) None c) Only four
d) All five
Q.21) Along with the Budget, the Finance
Minister also places other documents before Q.24) Consider the following:
the Parliament which include ‘The Macro 1. Presence of a large informal sector
Economic Framework Statement’. The 2. Low per capita income
aforesaid document is presented because this 3. Predominance of a cash-based economy
is mandated by 4. High levels of tax evasion and avoidance
a) Long standing parliamentary convention How many of the above contribute to low Tax
b) Article 112 and Article 110(1) of the to GDP ratio in India?
Constitution of India a) Only one
c) Article 113 of the Constitution of India b) Only two
d) Provisions of the Fiscal Responsibility and c) Only three
Budget Management Act, 2003 d) All four

Q.22) Consider the following pairs: Q.25) Consider the following statements:
Term Meaning Statement-I: The McMahon Line demarcates
1. Tax expenditure The responsiveness of the boundary between India and Pakistan.
tax revenue to changes Statement-II: The McMahon line was drawn
in the tax rate. during the Shimla Convention of 1914.
2.Tax Elasticity The responsiveness of Which of the following is correct in respect of
tax revenue to changes the above statements?
in GDP. a) Both Statement-I and Statement-II are
3.Tax Buoyancy The revenue foregone correct and Statement-II is the correct
by the government due explanation for Statement- I.
to various exemptions b) Both Statement-I and Statement-II are
provided under the tax correct and Statement-II is not the correct
laws explanation for Statement-I.
How many of the above pairs are correctly c) Statement-I is correct but Statement-II is
matched? incorrect.
a) Only one d) Statement I is incorrect but Statement-II is
b) Only two correct.
c) All three
d) None

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 SFG 2024 | LEVEL 2 |Test 20 |

Q.26) Consider the following: Q.29) In context of Cess , consider the

1. Provident Funds following statements:
2. Small Savings 1. The proceeds from the cess levied shall be
3. Post Office Deposits credited to the Consolidated Fund of India
4. Remittances 2. Its proceeds have to be used for a specific
5. Judicial Deposits purpose.
The proceeds from how many of the above are 3. It is imposed only on indirect taxes in India.
accounted under the Public Accounts of India? 4. Article 270 of the Constitution of India
a) Only two allows cess to be excluded from the
b) Only three purview of the divisible pool of taxes that
c) Only four the Union government must share with the
d) All five States.
How many of the above statements are
Q.27) Consider the following statements: correct?
Statement-I- The Economic Survey is a) Only one
prepared by the Chief Economic Adviser (CEA) b) Only two
annually. c) Only three
Statement-II - Article 112 provides for the d) All four
submission of the annual financial statement
every year. Q.30) With reference to Asian Development
Which one of the following is correct in Bank (ADB), consider the following statements:
respect of the above statements? 1. The headquarters of ADB is in Beijing.
a) Both Statement-I and Statement-II are 2. India is one of the founding members of
correct and Statement-II is the correct ADB.
explanation for Statement-I 3. It does not have any members from
b) Both Statement-I and Statement-II are outside Asia.
correct and Statement-II is not the correct 4. China is the largest shareholder of ADB.
explanation for Statement-I How many of the statements given above are
c) Statement-I is correct but Statement-II is correct?
incorrect a) Only one
d) Statement-I is incorrect but Statement-II b) Only two
is correct c) Only three
d) All four
Q.28) Consider the following functions:
1. Responsible for the preparation of the Q.31) There has been a persistent deficit
budget. budget year after year. Which of the following
2. Announces the interest rates of small actions can be taken by the government to
saving schemes. reduce the deficit?
3. Manages the internal and external aspects 1. Reducing revenue expenditure
of the economic policies and programs of 2. Introducing new welfare schemes
the country. 3. Rationalizing subsidies
Which department of the Government of India 4. Expanding industries
is responsible for the above-given functions? Select the correct answer using the code given
a) Department of Economic Affairs below.
b) Department of Expenditure a) 1 and 3 only
c) Department of Financial Services b) 2 and 3 only
d) Department of Revenue c) 1 only
d) 1, 2, 3 and 4

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 SFG 2024 | LEVEL 2 |Test 20 |

Q.32) In context of Angel tax in India, consider Q.35) In the context of Indian Polity, consider
the following statements: the following Political Parties:
1. It is the tax paid by unlisted companies on 1. National People’s Party (NPP)
gaining funding from angel investors 2. Bahujan Samaj Party (BSP)
through issuing shares 3. All-India Trinamool Congress (AITC)
2. The Income Tax Act, 1961 provides the 4. Nationalist Congress Party (NCP)
legal framework for Angel Tax. 5. Communist Party of India (CPI)
3. Start-ups recognized by the Dept. of 6. Aam Aadmi Party (AAP)
Promotion of Industry and Internal Trade At present, how many of the above are given
(DPIIT) are excluded from angel tax levy. the status of National Party?
How many of the above statements are a) Only three
correct? b) Only four
a) Only one c) Only five
b) Only two d) All six
c) All three
d) None Q.36) With reference to recommendations
made by 15th Finance Commission, consider
Q.33) With reference to various types of taxes, the following statements:
consider the following pairs: 1. It increased the share of states in the
Tax Description central divisible pool of taxes from 32 to 42
1. Ad- Valorem tax Tax on value of goods and percent.
services. 2. Population was given the highest weightage
2. Pigouvian Tax Tax on market transaction under horizontal devolution of taxes.
that creates a negative 3. It recommended sector specific grants for
externality nutrition and pre-primary education.
3. Tobin Tax Tax on Spot Exchange 4. It recommended the constitution of a
Transactions. dedicated modernization fund for Defense
How many of the above pairs are correctly and Internal Security.
matched? How many of the above statements are
a) Only one correct?
b) Only two a) Only one
c) All three b) Only two
d) None c) Only three
d) All four
Q.34) With reference to Central Board of
Direct Taxes, consider the following Q.37) With reference to the external debt in
statements: India, consider the following statements:
1. It is a statutory body established under the 1. It refers to the borrowings made by India
Income Tax Act of 1961. only in non-rupee denominated currency.
2. It oversees the matter relating to the 2. Ministry of Finance manages external debt
impositions and collection of all direct of the central government.
taxes in India levied by the central 3. In India the external debt owed by
government. sovereign entities is greater than that of
3. The cost inflation index is released by the non-sovereign entities.
Central Board of Direct Taxes. How many of the above statements are
How many of the above statements are correct?
correct? a) Only one
a) Only one b) Only two
b) Only two c) All three
c) All three d) None
d) None

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 SFG 2024 | LEVEL 2 |Test 20 |

Q.38) With reference to interim budget (2024- d) It is an extreme affirmative action by the
2025), consider the following sources of Government to pursue its policy of
Revenue for the government: financial inclusion
1. Corporation tax
2. Income tax Q.42) In the framework of India's taxation
3. Goods and Service tax system, Goods and Services Tax (GST) plays a
4. Union Excise Duty pivotal role. In this context, consider the
5. Customs Duty following goods/items:
What is the correct sequence of taxes in their 1. Table Salt
decreasing order of their contribution to the 2. Human Blood and its components
total tax revenue? 3. Sealed Mineral water
a) 2-1-3-4-5 4. Pre-packed and labelled Jaggery
b) 2-3-1-4-5 5. Loosely sold Curd
c) 3-2-1-5-4 How many of the above goods/items are
d) 3-2-1-4-5 exempted under GST?
a) Only two
Q.39) With reference to Financial Stability b) Only three
development council (FSDC), consider the c) Only four
following statements: d) All five
1. It is headed by the Union finance minister.
2. It is a statutory body. Q.43) With reference to Interim Budget and
3. No funds are separately allocated to the Vote on Account in India, consider the
Council for undertaking its activities. following statements:
How many of the above statements are 1. An Interim Budget is mentioned in the
correct? constitution while Vote on account is not.
a) Only one 2. An Interim Budget includes both
b) Only two expenditure and receipts while a Vote on
c) All three account only deals with the expenditure.
d) None Which of the statements given above is/are
correct?
Q.40) Which of the following groups of a) 1 only
countries are members of the Arab League? b) 2 only
a) Egypt, Iraq, Israel and Saudi Arabia c) Both 1 and 2
b) Indonesia, Armenia, Egypt and Syria d) Neither 1 nor 2
c) Venezuela, Somalia, Israel and Ethiopia
d) Syria, Iraq, Egypt and Somalia Q.44) With reference to Fiscal deficit, consider
the following statements:
Q.41) Which one of the following statements 1. Fiscal deficit as a percent of GDP of India
appropriately describes the “fiscal stimulus”? has been constantly declining in past five
a) It is a massive investment by the years.
Government in manufacturing sector to 2. As per the 2024-25 interim budget, for
ensure the supply of goods to meet the financial year 2023-24, ‘External borrowing’
demand surge caused by rapid economic was the largest source of financing the
growth fiscal deficit.
b) It is an intense affirmative action of the Which of the statements given above is/are
Government to boost economic activity in correct?
the country a) 1 only
c) It is Government’s intensive action on b) 2 only
financial institutions to ensure c) Both 1 and 2
disbursement of loans to agriculture and d) Neither 1 nor 2
allied sectors to promote greater food
production and contain food inflation

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 SFG 2024 | LEVEL 2 |Test 20 |

Q.45) With reference to the International c) Some professional swimmers who have
Criminal Court (ICC), consider the following competed in triathlons are not professional
statements: powerlifters.
1. It is a specialized agency of the United d) None of the above can be logically
Nation (UN). concluded.
2. It can investigate crimes referred to it by
the United Nation Security Council (UNSC). Directions for the following 2 (two) items:
3. Recently, India became member of ICC. Read the following two passages and answer
How many of the statements given above are the items that follow the passages. Your
correct? answers to these items should be based on the
a) Only one passages only.
b) Only two
c) All three Passage-I
d) None Great Archaeologists are often at war with
themselves. They aim to explain seismic
Q.46) How many 5-digit prime number can be transformations—social and cultural,
formed using the digits 4, 5, 6, 7, 8 if the economic, demographic, even genetic. But
repetition of digits is not allowed? they do so by sifting (literally and figuratively)
a) 4 physical evidence that’s scant and (literally and
b) 2 figuratively) fragmentary. These methods
c) 1 mean that nearly all their publications are
d) 0 narrow and exceedingly dry, even by academic
standards. And even on those rare occasions
Q.47) A and B run a 5 km race along a circular when they venture beyond the journal article
course of length 400m. Their speeds are in the or monograph, their writing seldom tempts
ratio 4:3. If they start together in the same even the most archaeologically besotted
direction, how many times would the first one general reader. For instance, although the
pass the other (the start-off is not counted as great archaeologists of Mesopotamia have
passing)? revolutionized scholars’ understanding of the
a) 3 origins of urban civilization, their oversize
b) 4 tomes, with their detailed maps of
c) 2 watercourses and settlement patterns and
d) 5 meticulous charts of pottery types, resemble
field reports, not works of history. But because
Q.48) Read the following statements and archaeology addresses the most basic
choose the correct answer. questions and explores the most profound
Statement 1: No athlete who specializes in changes in human history by means of a
long-distance running is also a professional grossly incomplete record—and perhaps
powerlifter. because it was long the province of aristocrats
Statement 2: Some professional swimmers and buccaneers—it has invited the sort of bold
have competed in triathlons, which include a interpretations in which speculation can too
long-distance running segment. easily become untethered from evidence.
Based on the above statements, which of the When archaeology is done right, it’s frequently
following can be logically concluded? dull; when it’s fascinating, it’s frequently
a) All professional swimmers who have wrong.
competed in triathlons are also professional
powerlifters.
b) No professional swimmer who has
competed in triathlons is a professional
powerlifter.

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 SFG 2024 | LEVEL 2 |Test 20 |

Q.49) All of the following statements, if true, struggle. Conversely, proponents highlight the
would weaken the proposition about the potential for neuroenhancements to alleviate
nature of archaeological research and its suffering and augment human potential,
implications, EXCEPT: advocating for the ethical imperative to
a) The advent of modern technologies has improve human well-being through
enabled archaeologists to produce technological progress.
comprehensive and engaging narratives This ethical landscape is further complicated
without sacrificing academic rigor. by the blurring lines between therapeutic
b) There have been numerous instances interventions and enhancements. While the
where bold, speculative interpretations in former seeks to ameliorate deficits and restore
archaeology have been conclusively proven normal functioning, the latter aims at
right, enhancing the discipline's appeal. surpassing the typical or average capabilities,
c) The meticulous detail and narrow focus of challenging the very notion of what it means to
archaeological publications are not be human.
inherent to the discipline but rather a
result of the current academic publishing Q.50) Which of the following assumptions, if
environment. true, will weaken the arguments made in the
d) Despite the challenges of working with passage?
incomplete records, the discipline's a) Neuroenhancement technologies are
stringent methodologies ensure that even readily accessible and affordable to
its most engaging findings are firmly rooted individuals across different socio-economic
in evidence. strata.
b) The use of neuroenhancement technologies
Passage-II significantly amplifies existing social
In the discourse on cognitive enhancement, inequalities.
the ethical conundrum surrounding c) Achievements obtained through
neuroenhancement technologies stands at the neuroenhancement undermine the
forefront of contemporary bioethics. These perceived value of human effort.
technologies, encompassing pharmaceuticals, d) Neuroenhancements can be used to
brain stimulation methods, and genetic alleviate suffering and augment human
engineering, promise significant potential.
improvements in cognitive functions such as
memory, attention, and executive control.
However, the advent of such enhancements
has ignited a fervent debate over the moral
implications of artificially augmenting human
intellect. Central to this debate is the concern
regarding equity and access. The potential for
a cognitive enhancement divide, wherein only
a privileged few can afford these technologies,
raises profound questions about social justice
and the exacerbation of existing inequalities.
Moreover, the long-term effects of
neuroenhancements on human cognition and
society remain largely speculative, further
complicating ethical considerations.
The discourse also grapples with the notion of
authenticity and the value of effort. Critics
argue that achievements garnered through
enhanced capabilities may undermine the
authenticity of human endeavor, valorizing
outcomes over the intrinsic value of effort and

Forum Learning Centre: Delhi - 2nd Floor, IAPL House, 19 Pusa Road, Karol Bagh, New Delhi - 110005 | Patna - 2nd floor, AG Palace, E Boring Canal
Road, Patna, Bihar 800001 | Hyderabad - 1st & 2nd Floor, SM Plaza, RTC X Rd, Indira Park Road, Jawahar Nagar, Hyderabad, Telangana 500020
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