MCQ
upsc-p1-economy-infrastructure-ppp MCQ - Practice Questions with Answers
Solve 4 upsc-p1-economy-infrastructure-ppp questions for RAS/RPSC preparation.
Practice questions
Q1With reference to long-term infrastructure finance, consider the following statements: 1. Exclusive reliance on bank lending can create an asset-liability mismatch because banks fund long projects with shorter-duration deposits. 2. Long-lived infrastructure assets need financing structures with correspondingly long-term liabilities. Which of the statements given above is/are correct? Select the correct answer using the code given below.
Both statements are correct. Infrastructure returns arrive over long periods, while ordinary bank deposits are generally shorter than project lives. Matching long-lived assets with long-term liabilities reduces the maturity mismatch that arises when banks alone carry such financing.
Q2Match List I with List II and select the correct answer using the code given below. List I (Model) A. Engineering, Procurement and Construction B. BOT Toll C. BOT Annuity D. Toll-Operate-Transfer List II (Payment or financing feature) 1. Upfront concession payment for an operational road asset 2. User charges collected by the private concessionaire 3. Government budget pays the contractor 4. Authority makes annuity payments
Engineering, Procurement and Construction is paid from the government budget; BOT Toll depends on user charges; BOT Annuity is paid through authority annuities; and Toll-Operate-Transfer brings an upfront concession payment against an operational road asset. Thus the matching is A-3, B-2, C-4 and D-1.
Q3Arrange the following infrastructure statutes in chronological order, beginning with the earliest: A. Major Port Authorities Act B. Electricity Act C. National Highways Authority of India Act D. National Highways Act Select the correct answer using the code given below.
The chronological order is the National Highways Act, 1956; the National Highways Authority of India Act, 1988; the Electricity Act, 2003; and the Major Port Authorities Act, 2021. Therefore, the correct sequence is D-C-B-A.
Q4Arrange the following stages of a PPP project in their proper sequence: A. Monitor performance under the concession B. Identify the project C. Secure approvals and bid out the concession D. Prepare feasibility and value-for-money analysis Select the correct answer using the code given below.
The public authority first identifies the project, then prepares feasibility and value-for-money analysis, secures approvals and bids out the concession, and finally monitors performance during the concession. The correct sequence is B-D-C-A.
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