General Financial Rules(GFR) 2017 CHAPTER 10: BUDGETING AND ACCOUNTING OF EXTERNALLY AIDED PROJECTS MCQ

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  1. The projects or schemes of the Government of India to be implemented through external aid receipt from multilateral or bilateral funding agencies shall be approved
    (a) Parliament through budget proposal
    (b) Parliament separately from budget proposal
    (c) Ministry of Finance
    (d) President of India
    Answer

    Answer: A

  2. To finance specific project(s) by the funding agency(ies) under Government to Government agreement(s) is called
    (a) Singular Funding (b) Unilateral Funding
    (c) Bilateral Funding (d) Multilateral Funding
    Answer

    Answer: C

  3. Funding by Agencies such as the World Bank is called
    (a) Singular Funding (b) Unilateral Funding
    (c) Bilateral Funding (d) Multilateral Funding
    Answer

    Answer: D

  4. GFT stands for
    (a) General Funding Transaction (b) Government Funding Transaction
    (c) Government Foreign Transaction (d) General Foreign Transaction
    Answer

    Answer: C

  5. The nodal agency to execute the legal agreement for loans or grants from external funding Agency(ies) is
    (a) Department of Economic Affairs, Ministry of Finance
    (b) Department ofExpenditure, Ministry of Finance
    (c) Department of Revenue, Ministry of Finance
    (d) Department of Foreign Finance, Ministry of External Affair.
    Answer

    Answer: A

  6. State whether true or false
    Grant agreements for Technical Assistance shall also be Ministry of Finance, Department of Economic Affairs.
    (a) True (b) False
    Answer

    Answer: B

  7. Responsible for implementing the financial covenants laid down in the agreement(s) executed by Department(s) of Government of India and the External Funding Agency(ies) is
    (a) Director of Foreign Loan and Assistance
    (b) Controller of Aid Accounts and Audit
    (c) Controller of Financial Aid & Assistance
    (d) Director of Foreign Aid & Assistance
    Answer

    Answer: B

  8. Controller of Aid Accounts and Audit (CAAA) is located in Finance Ministry in the
    (a) Department of Budget (b) Department of Foreign Finance
    (c) Department of Expenditure (d) Department of Economic Affairs
    Answer

    Answer: D

  9. The external aid shall flow from the Funding Agency in foreign currency or Indian Rupees and shall be received by the
    (a) Controller of Aid Accounts and Audit (b) Reserve Bank of India, Mumbai
    (c) Ministry of External Affair (d) Reserve Bank of India, Nagpur
    Answer

    Answer: B

  10. How many procedures are laid down for withdrawal of funds from the loan or grant account?
    (a) Two (b) Three
    (c) Four (d) Five
    Prepared by Deepak Kumar Rahi, AAO/Local Audit Department, Patna
    Answer

    Answer: A

  11. Under the Revolving Fund Scheme, the Funding Agency disburses as initial advance to Government of India under the respective loan or credit or grant Agreement
    (a) the estimated expenditure of two monthsfor the projects
    (b) the estimated expenditure of three months for the projects
    (c) the estimated expenditure of four months for the projects
    (d) the estimated expenditure of six months for the projects
    Answer

    Answer: C

  12. A loan wise proformaaccount for liquidation of advancereceived from Funding Agencyshall be maintained by
    (a) Fund Agency concerned (b) Controller of Aid Accounts and Audit
    (c) RBI, Central Account Office, Nagpur (d) RBI, Mumbai
    Answer

    Answer: D

  13. Under the Direct Payment Procedure the Funding Agencyshall directly pay from the loan or credit or grant account.to the
    (a) the contractor or supplier or consultant (b) RBI, Mumbai
    (c) Controller of Aid Accounts and Audit (d) Project Implementing Agency
    Answer

    Answer: A

  14. In the case of Central Projects,Centrally Sponsored Projects and PublicSector or Financial Institutions, the fund to theProject Implementing Agencyshall be released by
    (a) Ministry of Finance (b) Controller of Aid Accounts and Audit
    (c) the concerned administrative Ministry or Department
    (d) RBI, Mumbai
    Answer

    Answer: C

  15. State whether true or false
    The respective Departments of the State Government shall provide in the Budgetsuch expenditure proposed to be incurredunder Non-Plan Schemes during the financialyear by the Project ImplementingAgencies.
    (a) True (b) False
    Answer

    Answer: B

  16. The disbursements under the “Reimbursement procedure shall be consolidated under each loan or credit State-wise by the
    (a) office of the Controller of Aid Accounts and Audit
    (b) concerned Ministry/Department
    (c) concerned Implementing Agency
    (d) Reserve Bank of India, Mumbai
    Answer

    Answer: A

  17. The disbursements under the “Reimbursement procedure shall be consolidated under each loan or credit State-wise by the office of the Controller of Aid Accounts and Audit at
    (a) Daily basis (b) Weekly basis
    (c) Monthly basis (d) Periodical intervals
    Answer

    Answer: D

  18. The consolidated detail under each loan or credit State-wise prepared by the office of the Controller of Aid Accounts and Audit shall be sent for issuing sanction for actual release of disbursement for each state to
    (a) Plan Finance Division of Department of Expenditure, Ministry of Finance
    (b) Plan Finance Division of Department of Economic Affair, Ministry of Finance
    (c) Non-Plan Finance Division of Department of Expenditure, Ministry of Finance
    (d) Non-Plan Finance Division of Department of Economic Affair, Ministry of Finance
    Answer

    Answer: A

  19. Pick the incorrect one
    (a) A copy of every sanction issued by Ministry of Finance shall be endorsed to the Finance Department of the concerned State Government for information.
    (b) Reserve Bank of India, Central Accounts Section, Nagpur, for effecting the release to the concerned State Governments shall issue the Inter-Government (IG) Advice to the office of the Chief Controller of Accounts, Ministry of Finance

    (c) Under Direct Payment Procedure Office of Controller of Aid Accounts and Audit shall work out the Rupee equivalent of such Direct Payment based on Reserve Bank of India buying rate applicable for the value date on which the Direct Payment was made.
    (d) Office of CAAA shall consolidate such disbursement in Rupees, and send a list of such disbursement Statewise to Plan Finance Division of Department of Expenditure at periodical intervals requesting them to release the amount to the State concerned notionally and recover the same for credit to CAAA.
    Answer

    Answer: B

  20. Under the Central or Central sponsored project financed from external aid, whether loan or grant, the funds shall be released to Project Implementing Agency by the administrative Ministry or Department with reference to expenditure incurred by the Project Implementing Agency within
    (a) four weeks (b) four months
    (c) six weeks (d) six months
    Answer

    Answer: C

  21. When the Project Implementing Agency under Loan or Credit Agreement is a Public Sectorj or Financial Institution or Autonomous Body and Government of India is the Borrower, funds required to be passed on to the Project Implementing Agency for the expenditure incurred by the latter under the externally aided project shall be provide in its budget by
    (a) Ministry of Finance
    (b) concerned project implementing agencies
    . (c) Ministry of External Affairs
    (d) the Administrative Ministry concerned
    Answer

    Answer: D

  22. State whether true or false
    Where the loan is negotiated directly by a particular Public Sector Undertaking or Financial Institution, the funds from the Funding Agency shall flow direct to the borrowing entity.
    (a) True (b) False
    Answer

    Answer: A

  23. Responsible for prompt repayment of principal on the due date as per the agreements is
    (a) Projet implemneting agency (b) O/o the CAAA
    (c) concerned Administrative Ministry/Department
    (d) Funding Agency
    Answer

    Answer: B

  24. The repayment of loans and the interest payment shall be classified as
    (a) Repayment of loan as charged and interest payment as voted one
    (b) Repayment of loan as voted and interest payment as charged one
    (c) Both the repayment of loans and the interest payment as charged ones
    (d) Both the repayment of loans and the interest payment as voted ones
    Answer

    Answer: C

  25. Interest payment on external loan shall be accounted for in the major head
    (a) 2049 (b) 2070
    (c) 2075 (d) 8680
    Answer

    Answer: A

  26. The exchange variation in respect of foreign loans that have been fully repaid shall be adjusted written off to
    (a) 2070 (b) 2075
    (c) 8680 (d) 8675
    Answer

    Answer: C

  27. State whether true or false
    In cases where materials, equipment and other commodities, without involving any cash inflow, are received as aid from foreign countries, the Ministry or Department concerned in turn shall intimate the details to the office of the Controller of Aid Accounts and Audit for making the budget provision in regard to aid material or equipment.
    (a) True (b) False
    Answer

    Answer: A

  28. Major Head for Aid Materials and Equipments is

    (a) 0606/2606 (b) 1606/3606
    (c) 0070/2070 (d) 0075/2075
Answer

Answer: B

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