Economy Current Affairs Quiz/Questions-Answers May 2011, May 9- May 15

Taking the Economy Current Affairs Quiz will test as well as enhance your knowledge on economy related issues. Moreover the Economy Current Affairs Quiz for May 2011 will help you in the preparation for different competitive examination like that of Bank PO, MBA, NABARD, RBI, Railway, SSC, Civil Services Exam etc.

1. Private power producers moved Central Electricity Regulatory Commission (CERC) against which company accusing it of going on a power purchase agreement (PPA)-signing spree to escape regulatory oversight in selling its costlier power?
a. BHEL
b. NTPC
c. APEPDCL
d. Bhoruka Power Corporation Limited
Answer: (b)

2. Which of the statement/statements is/are true?
1. Indian Union Ministry of Finance declared that food served in hotel rooms from air-conditioned restaurants holding liquor licences and housed within the hotel premises will not attract service tax.
2. Indian Union Ministry of Finance announced that the luxury tax would be included in case of short-term accommodation service.
a. Only 1
b. Only 2
c. Both 1 & 2
d. None of the above
Answer: (a)

3. India’s competition regulator announced on 10 May 2011 the regulations for mergers and acquisitions. With regard to the statement which of the following is true?
1. The new rules by the competition regulator exempt a host of transactions from the scrutiny of the Competition Commission of India and seek much lower merger notification fees than proposed earlier.
2. If an acquirer has 30% stake in a firm then further acquisition will not trigger the competition law except where the acquisition leads to transfer from joint control to single control.
3. An acquisition of less than 15% voting right,if it is in the usual course of business or purely an investment will be exempted.
4. The rules would take effect from 31 March 2011 and not apply retrospectively.
a. 1 & 3
b. Only 1
c. 2 & 4
d. 1 & 4
Answer: (a)

4. Market regulator, Securities and Exchange Board of India passed a consent order against which of the following merchant bankers for failing to exercise due diligence while conducting its business?
a. Edelweiss Capital
b. ABN Amro Securities (India) Private Limited
c. Alpen Capital India Pvt. Ltd.
d. ANZ Capital Private Limited
Answer: (a)

5. The cabinet committee on economic affairs (CCEA) decided that foreign direct investment in LLPs will be allowed only in those sectors where 100% foreign ownership is permitted. Which of the following statements are not true with regard to the above statement?
1. LLPs with foreign investments will only be allowed in agricultural or plantation activity, print media and real estate business or downstream investments.
2. LLP are operating in sectors where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions.
3. Foreign participation in the LLPs will not be allowed by way of cash considerations, received by inward remittance through normal banking channels.
4. LLPs have also been barred from accessing overseas debt through external commercial borrowings.
a. 1 & 3
b. 2 & 4
c. 2 & 3
d. 3 & 4
Answer: (a)

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