NTA UGC NET/JRF Exam, Dec. 2021/June 2022 (Commerce) Shift-II

Total Questions: 100

91. Read the following passage and answer the question.

GOI has reaffirmed its intent in amendments to the Finance Bill to use tax as a deterrent to speculation in virtual digital assets. The amendments disallow losses on the sale of one crypto asset to be set off against gains on another. No deduction is permitted for any expenditure other than cost of acquisition computing of income from sale of crypto and non-fungible tokens (NFTs). Every transfer of crypto assets will be taxed at the proposed 30% rate, irrespective of whether the payer is a capital asset or not. Only the proposed 1% rate of tax deducted at source will apply to transactions in digital assets. Penalties have been imposed for taxpayers who have claimed a deduction of surcharge and cess from their taxable income, but have not declared or accounted for tax and interest on the deduction they have claimed. The inability to set off losses will skew the risk-reward profile of digital assets and crypto exchanges fear it could push trading activity beyond Indian jurisdiction to decentralized exchanges and foreign platforms accessed through virtual private networks. The industry feels not allowing tax deduction on the cost of mining crypto will eventually force blockchain companies and the talent they hire to operate outside the country. To the extent that the proposed tax regime drives users from exchanges compliant with know your customer (KYC) rules towards underground peer-to-peer platforms, deterrence would be diluted.
Nirmala Sitharaman in her statement while moving the amendments has clarified the tax on private digital assets does not indicate GoI's stance on their legitimacy. The regulatory position could become clearer once the Reserve Bank of India (RBI) is ready with its digital currency. Fiat digital currencies, which make transactions and monetary transmission more efficient, are inevitable as the use of cash plateaus in several countries. Speculation, and a reflex to curb it, must not draw attention away from the inherent superiority of digital currencies. This is the future of money.
Digital currency regulations will result in which one of the following?

Correct Answer: (d) Attract 30% tax on every transfer of crypto asset
Solution:

According to the passage every transfer of crypto assets is to be taxed at 30%.

92. Given below are two statements:

Statement I : Non-fungible tokens cannot be splitted.
Statement II : Non-fungible tokens can be replicated at convenience.
In the light of the above statements, choose the correct answer from the options given below:

Correct Answer: (c) Statement I is true and Statement II is false
Solution:A non - fungible token is unique digital identifier that cannot be copied, substituted, or| subdivided, that 15 recorded in a blockchain, and that is used to certify authenticity and ownership.
Non - fungible tokens are unique cryptographic tokens that exist on a block chain and cannot be replicated. Hence, statement 1 is true and statement II is false.

93. Government of India's intent towards virtual digital assets is which one of the following?

Correct Answer: (c) To discourage speculation
Solution:

According to the passage government intent is to discourage speculation is virtual digital assets.

94. Given below are two statements : One is labelled as Assertion A and the other is labelled as Reason R

Assertion (A) : Crypto exchanges fear that the new amendments could push trading activity beyond Indian jurisdiction to decentralized exchanges.
Reason (R) : The new amendments disallow losses on the sale of new crypto asset to be set off against gains on another.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Solution:

The inability to set off losses will skew the risk reward profile of digital assets, and crypto exchanges and foreign platforms accussed through virtual private networks, Hence both (A) and (R) are correct and R) is the correct explanation of (A).

95. Which one of the following is done by the Digital Currency Regulatory Framework?

Correct Answer: (b) Attract users towards exchanges which are compliant with know your customer rules
Solution:

Attract users towards exchanges which are compliant with know your customers rules is the most favorable expected outcome.

96. Read the given passage and answer the question.

Naik, AGM Materials, is fuming and fretting. He bumped into Kamath, GM (Materials) threw the resignation letter on his table, shouted and walked out of the room swiftly.
Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment. The year was 2021 when Naik quit the prestigious SAIL plant at Vishakhapatnam. As a manager materials, Naik enjoyed powers - he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval. Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India. Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith. When he joined the eucalyptus pulp making company, little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order, materials arrived, were received, accepted and used up in the plant. Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endosed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order. Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.
The job of AGM material is to 

Correct Answer: (a) Place order
Solution:

AGM's job is the to place an order.

97. Given below are two statements:

Statement I : Mr. Naik's presumption that he could place an order for materials with Rs. 25 lakh was right.
Statement II : Perks and reputation of the conglomerate were the reasons for Mr. Naik joining the eucalyptus pulp making company.
In the light of the above statements, choose the correct answer from the options given below:

Correct Answer: (d) Statement I is false and Statement II is true
Solution:

Statement I is incorrect - Naik's presumption was incorrect as he got into trouble even with an order of Rs. 12 lacs. Statement II is correct because perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith. Hence, Both statement I and Statement II are incorrect.

98. As per the passage, who is at fault?

Correct Answer: (d) Human Resource Department
Solution:

As per the passage HR department is at fault because of faulty induction programme.

99. Given below are two statements : One is labelled as Assertion A and the other is labelled as Reason R

Assertion (A) : It was right on the part of accounts department to withhold payment.
Reason (R) : Mr. Naik had the authority to place the order for materials with Rs. 25 lakh.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (c) (A) is correct but (R) is not correct
Solution:

Assertion is correct it was the on the part of accounts department to withhold payment. Reason is false when Mr. Naik joined the eucalyptus pulp making company, little did he realize that he needed prior approval to place an order for materials worth Rs. 12 lakh. Hence , (A) is correct but (R) not correct.

100. What is the most ineffective in the organization?

Correct Answer: (c) Induction programme
Solution:

Research indicates that a poor induction programme has a significant negative impact upon a new employees perceptism of their skills and ability to meet expectations, and how they feel about their job and their relationship with their fellow workers and employer. To achieve effectiveness the induction programme needs to be comprehensive, systematic, relevant and clear.