23.4       ndian   onom
           3. The main idea behind inclusive           12. Consider the following statements about
               growth is to include SCs, STs, OBCs,        ‘effective revenue deficit’:
               minorities and women in the country’s        1. “Effective revenue deficit is a Western
               development process.                              idea of public finance management,
           4. The 3rd Generation of Economic                     which India used it for the first time in
               Reforms runs parallel to the idea of              the Union Budget 2011–12.
               inclusive growth.                            2. It is a modified kind of revenue deficit
          Select the correct statements using the code           which excludes that part of revenue
          given below:                                           deficit by which assets have been
         (a) 1, 2 and 3                                          created.
         (b) 2, 3 and 4                                    Select the correct statements using the code
         (c) 1, 3 and 4                                    given below:
         (d) 1, 2 , 3 and 4                                (a) Only 1
                                                           (b) Only 2
     10. ‘Bad bank’ was recently in news—select the
          statements correct about it, using the code      (c) 1 and 2
          given below:                                     (d) Neither 1 nor 2
           1. It is a bank which buys the bad loans of 13. Consider the following statements about
               the banks                                   ‘farm subsidies’ in India.
           2. Government of India is presently              1. The input subsidies in India such as
               consider to set up such a bank.                   on fertilizers fall under indirect farm
           3. It will help India come out of the twin            subsidies.
               balance sheet problem.                       2. Reduction in power and irrigation bills
          Code:                                                  offered to farmers fall under direct
                                                                 farm subsidies.
         (a) 1 and 2
                                                            3. The agricultural provisions of the
         (b) 2 and 3
                                                                 WTO though allow direct farm
         (c) 1 and 3                                             subsidies, prohibits indirect subsidies.
         (d) 1, 2 and 3                                     4. All subsidies forwarded by the
     11. LoU (Letter of Undertaking) was recently                governments in India fall under the
          in news. Select the correct statement(s)               indirect category.
          about it by using the code given below:          Select the correct statements using the code
        1. It is issued by a customer in the name of       given below:
            a bank or financial institution.               (a) 1 and 2
        2. It guarantees the creditworthiness of the       (b) 2 and 3
            drawee of the LoU.
                                                           (c) 3 and 4
        Code:
                                                           (d) 1 and 4
         (a) Only 1
         (b) Only 2                                    14. Consider the following statements related
                                                           to the Bilateral Investment Promotion and
         (c) 1 and 2 both
                                                           Protection Agreement (BIPA).
         (d) Neither 1 nor 2