General Financial Rules 2017 - Chapter 2: General System of

Financial Management

1. All moneys received by or on behalf of the Government either as dues of Government or for

deposit, remittance or otherwise, shall be brought into Government Account

A. on the same day

B. within 24 hours

C. as soon as possible

D. without delay

2. All moneys received by or on behalf of the Government shall be brought into Government

Account in accordance with such general or special rules as may be issued under Articles

A. 149 and 283 of the Constitution

B. 150 and 283 (1) of the Constitution

C. 151 and 284 (1) of the Constitution

D. 151 and 283 of the Constitution

3. Under Article 284 of the Constitution all moneys received by or deposited with any officer

employed in connection with the affairs of the Union in his capacity as such, other than

revenues or public moneys raised or received by Government, shall be paid into the

A. Consolidated Fund of India

B. Contingency Fund of India

C. Public Account

D. Departmental Account

4. All moneys received by or deposited with the Supreme Court of India or with any other

Court, other than a High Court, within a Union Territory, shall be paid into

A. Consolidated Fund of India

B. Contingency Fund of India

C. Public Account

D. Departmental Account

5. The Head of Account to which public moneys shall be credited and the withdrawal of

moneys therefrom shall be governed by the relevant provisions of

A. List of Major Head and Minor Head

B. Delegation of Financial Power

 C. GAR 1990 and R&P Rules, 1983 or such other general or special orders as

may be issued in this behalf.

D. Treasury Rules

6. Subject to any general or special orders issued by a Department of the Central Government,

an Administrator or a Head of a Department responsible for the collection of revenue shall

keep ________the fully informed of the progress of collection of revenue under his control

and of all important variations in such collections as compared with the Budget Estimates.

A. Secretary to the concerned department

B. Ministry of Finance

C. Committee on Economic Affair

D. Niti Aayog

7. When the maintenance of any rentable building is entrusted to a civil department, other

than the Central Public Works Department, who shall be responsible for the due recovery of

the rent thereof

A. the Administrator or the Head of the Department concerned

B. the head of the office concerned

C. Divisional officer of the concerned division

D. Directorate of Estate

8. The detailed rules and procedure, regarding the demand and recovery of rent of

Government buildings and lands, are contained in the

A. GAR 1990

B. R&P 1983

C. GFR 2017
D. departmental regulations of the departments in charge of those

buildings

9. Who shall watch the realization of miscellaneous demands of Government, not falling under

the ordinary revenue administration, such as contributions from State Governments, Local

Funds, contractors and others towards establishment charges.

A. Head of the Department

B. Accounts Officers

C. Chief Accounting Officer

D. Department of Revenue
10. Subject to any general or special orders issued by the Government Departments of the

Central Government, Administrators and Heads of Departments, other than those in

_____________ shall submit to the Audit Officer and the Accounts Officer concerned

statements showing the remissions of revenue and abandonment of claims to revenue

sanctioned during the preceding year by competent authorities

A. Ministry of Railways

B. Ministry of Defence

C. Department of Post

D. Department of Telecommunication

11. The above mentioned statement shall be submitted

A. Monthly

B. Quarterly

C. Six-monthly

D. Annually

12. The above mentioned statement of remission of revenue shall be submitted to the Audit

Officer and the Accounts Officer concerned on

A. 31st March

B. 1 st April

C. 1 st June

D. 30th September

13. In the annual statement of remission of revenue shall be submitted to the Audit Officer and

the Accounts Officer, individual remissions need not be included in the statements provided

that amount is
A. Below Rupees one hundred (100)

B. Below Rupees five hundred (500)

C. Below Rupees one thousand (1000)

D. Below Rupees two thousand (2000)

14. Who may make rules defining remissions and abandonments of revenue for the purpose of

Rule 19 of GFR 2017

A. Parliament

B. President

C. Ministry of Finance
 D. Departments of the Central Government and Administrators concerned

15. Standards of financial propriety have been referred to in the GFR under Rule

A. 19

B. 20

C. 21

D. 22

16. The financial powers of the Government, which have not been delegated to a subordinate

authority, shall vest in the

A. President

B. Parliament

C. Union Cabinet

D. Finance Ministry

17. The duties and responsibilities of a controlling officer in respect of funds placed at his

disposal are to ensure except:

A. that the expenditure does not exceed the budget allocation.

B. that the expenditure is incurred for the purpose for which funds have been provided.

C. that the expenditure is not incurred in public interest.

D. that adequate control mechanism is functioning in his Department for prevention,

detection of errors and irregularities in the financial proceedings of his subordinate

offices and to guard against waste and loss of public money

18. An order which involves (i) any grant of land, or assignment of revenue, or concession,

grant, lease or license of mineral or forest rights, or rights to water, power or any easement

or privilege of such concessions, or relinquishment of revenue in any way shall not be issued
by a subordinate authority without previous sanction of

A. the President

B. the Parliament

C. Secretary of the concerned department/Ministry

D. Ministry of Finance

19. Pick the correct one Copies of all sanctions or orders other than the following types should
be endorsed to the Audit Officers: (i) Sanctions relating to grant to advances to Central

Government employees. (ii) Sanctions relating to appointment or promotion or transfer of

 Gazetted and non-Gazetted Officers. (iii) All sanctions relating to creation or continuation

or abolition of posts. (iv) Sanctions for handing over charge and taking over charge, etc.

A. i, ii and iii

B. ii, iii and iv

C. i, iii and iv

D. All of the above

20. State whether true or false Sanction of Contingent expenditure incurred under the powers

of Head of Offices shall invariably be communicated to Audit Office.

A. True

B. False

21. A sanction for any fresh charge shall, unless it is specifically renewed, lapse if no payment in

whole or in part has been made during a period of

A. 3 months from the date of issue of such sanction.

B. 6 months from the date of issue of such sanction.

C. 12 months from the date of issue of such sanction.

D. Financial year in which sanction accorded.

22. Pick the incorrect one

A. when the period of currency of the sanction is prescribed in the departmental

regulations or is specified in the sanction itself, it shall lapse on the expiry of such

periods; or

B. when there is a specific provision in a sanction that the expenditure would be met

from the Budget provision of a specified financial year, it shall lapse at the close of

that financial year; or

C. in the case of purchase of stores, a sanction shall not lapse, if tenders have been

accepted (in the case of local or direct purchase of stores) or the indent has been

placed (in the case of Central Purchases) on the Central Purchase Organization

within the period of one year of the date of issue of that sanction, even if the actual

payment in whole or in part has not been made during the said period.

D. in respect of an addition to a permanent establishment, made from year

to year under a general scheme by a competent authority, or in respect of

an allowance sanctioned for a post or for a class of Government servants,

but not drawn by the officer(s) concerned shall lapse.

23. The remission of disallowances by Audit and writing off of overpayments made to

Government servants by competent authorities shall be in accordance with the provisions of

the

A. R&P Rules 1983

B. GAR 1990

C. GFR 2017

D. Delegation of Financial Powers Rules

24. Pick the incorrect one regarding losses need not be reported by the subordinate authority

concerned to the next higher authority as well as to the Statutory Audit Officer and to the

concerned Principal Accounts Officer

A. when such loss has been made good by the party responsible for it.

B. Cases involving losses of revenue due to mistakes in assessments which are

discovered too late to permit a supplementary claim being made,

C. Cases involving losses of revenue due to under assessments which are due to

interpretation of the law by the local authority being overruled by higher authority

after the expiry of the time-limit prescribed under the law

D. refunds allowed on the ground that the claims were time-barred.

25. Petty losses are losses not exceeding (need not be reported) in terms of GFR 2017

A. 2000/-

B. 5000/-

C. 10000/-

D. 25000/-

26. Cases involving serious irregularities shall not be brought to the notice of
A. Financial Adviser

B. Chief Accounting Authority of the Ministry or Department concerned

C. the Accounts Office/Audit Officer Concerned

D. the Controller General of Accounts, Ministry of Finance.

27. Report of loss shall be made at

A. Single stage
B. two stages

C. three stages

D. depending upon the nature of case.

28. The reports on losses, which the HoD cannot finally dispose of under the delegated powers,

shall be submitted to

A. Financial Advisor of the concerned Ministry/Department

B. Chief Accounting Authority of the concerned Ministry/Department

C. the Finance Ministry

D. the Parliament

29. State whether true or false An amount lost through misappropriation, defalcation,

embezzlement, etc., must not be redrawn on a simple receipt pending investigation,

recovery or write-off with the approval of the authority competent to write-off the loss in

question. It should only be drawn after loss has been made good.

A. True

B. False

30. In cases of loss to Government on account of culpability of Government servants, the loss

should be borne by the

A. Government Servant concerned

B. Section-in-charge of Government Servant concerned

C. HoD concerned

D. Central Government Department or State Government concerned with

the transaction.

31. If any recoveries are made from the erring Government officials in cash, the receipt will be

credited to the that borne/sustained the loss i.e.

A. Government Servant concerned

B. Section-in-charge of Government Servant concerned

C. HoD concerned

D. Central Government Department or State Government concerned with

the transaction.

32. All cases involving loss of Government money arising from erroneous or irregular issue of

cheques or irregular accounting of receipts will be reported to the

A. Chief Controller of Accounts

B. Controller General of Accounts

C. Comptroller & Auditor General

D. Audit/Account Officer
 33. Cases involving material loss or destruction of Government property as a result of fire, theft,

fraud, etc., shall be invariably reported to the Police for investigation as early as possible

where value of loss exceeds

A. 10000/-

B. 25000/-

C. 50000/-

D. 100000/-

34. All loss of immovable property, such as buildings, communications, or other works, caused

by fire, flood, cyclone, earthquake or any other natural cause, shall be reported at once by

the subordinate authority concerned to Government through the usual channel incase loss

exceeds

A. 25000/-

B. 50000/-

C. 100000/-

D. 150000/-

35. Pick the incorrect one regarding submission of any files categorized as ‘Secret’ or ‘Top

Secret to Audit officer

A. It should not be submitted to Audit without prior concurrence of Government.

B. It should be submitted as usual.

C. It should be submitted to Audit in the presence of HoD

D. It should personally be given to the Head of the Audit Office specifying

this fact, who will then deal with it in accordance with the standing
instructions for handling and custody of such classified documents.

General Financial Rules 2017 - Chapter 3: Budget Formulation

and Implementation

1. Financial Year covers the period

A. From 01 Jan to 31 Dec

B. From 01 April to 31 March next year

C. From 01 July to 30 June next year

 D. 01 September to 31 August next year

2. Presentation of Budget/ Annual Financial Statement to Parliament is made under the provision

of Article

A. 112 (1)

B. 112 (2)

C. 113 (1)

D. 113 (2)

3. Who shall arrange to lay Budget/ Annual Financial Statement before both the Houses of

Parliament

A. Concerned Ministry/Department

B. CGA

C. Finance Minister

D. Public Account Committee

4. The provisions for preparation, formulation and submission of budget to the Parliament are

contained in Articles

A. 112 to 116 of the Constitution of India.

B. 112 to 115 of the Constitution of India

C. 110 to 114 of the Constitution of India

D. 111 to 117 of the Constitution of India

5. The budget shall contain the following: -

A. Estimates of all revenues expected to be raised during the financial year to which the budget

relates

B. Estimates of all expenditure for each programme, scheme and project in that financial year;
C. Estimates of all interest and debt servicing charges and any repayments on loans in that

financial year;

D. All of the above

6. State whether true or false The accounting heads under which major tax and non-tax revenues

are collected shall be prescribed by the administrative Ministry in consultation with the Budget

Division in the Finance Ministry.

A. True

B. False

7. The rates of user charges should be linked with appropriate price indices and reviewed at least
 A. every year

B. every two years

C. every three years

D. every five years

8. The expenditure Charged on the Consolidated Fund and expenditure for which a vote of the

Lok Sabha is required have been provisioned in

A. Article 112 (1) and Article 112 (2) respectively

B. Article 112 (2) and Article 113(3) respectively

C. Article 112 (3) and Article 113(3) respectively

D. Article 112 (3) and Article 113(2) respectively(check this answer)

9. The estimates for expenditure for which vote of Lok Sabha is required shall be in the form of

A. Vote on Account

B. Demand for Grants

C. Vote for Grants

D. Vote on Demand

10. The final unit of appropriation is

A. Major Head

B. Minor Head

C. Primary Head

D. Object head

11. State whether One Demand for Grant is presented in respect of each Ministry or Department

and under no circumstances more than one Demand for Grant in respect of a single Ministry or

Department shall be presented

A. True

B. False

12. The Demand for Grants shall be presented to Parliament at

A. single level

B. two levels

C. three level
D. four levels

13. Pick the incorrect one

A. The Demand for Grants shall be presented to Parliament at two levels.

 B. The main Demand for Grants shall be presented to Parliament by the Ministry of Finance,

Budget Division along with the Annual Financial Statement

C. The Detailed Demands for Grants, for consideration by the “Public Account

Committee (PAC) of the Parliament, are laid on the Table of the Lok Sabha by

the concerned Ministries/ Departments, as per dates approved from time to

time.

D. None the above

14. The heads under which provision for expenditure shall be made in the Demands for Grants or

Appropriation shall be prescribed by the Finance Ministry in consultation with the

A. CGA

B. CAG

C. Public Account Committee

D. Administrative Ministry or Department.

15. DRSC stands for

A. Disaster Relief Standing Committee

B. Departmentally Related Standing Committee

C. Demand Reviewing Standing Committee

D. Demand Review & Structure Committee

16. Outcome Budget Statement is prepared by Department of Expenditure in consultation with the

concerned Ministries and

A. Union Cabinet

B. Finance Commission

C. NITI Aayog
D. Public Account Committee

17. The budget statement linking outlays against each scheme/project with the

outputs/deliverables and medium term outcomes is known as

A. Performance Budget

B. Output Budget

C. Deliverable Budget
D. Outcome Budget

18. MTEF Statement stand for

A. Medium Term Expenditure Framework

 B. Most Tolerable Efficiency Factor

19. If the Appropriation Bill seeking authorization of the Parliament to make expenditure in

consonance with the Budget proposal is likely to be passed after the start of the financial year to

which it corresponds then pending the completion of the procedure prescribed in Article 113 of

the Constitution for the passing of the Budget, to cover expenditure for a brief period the

Finance Ministry may need to obtain a

A. Vote on Credit

B. Vote on Demand

C. Vote on Account

D. Credit on Demand

20. Vote on Account’ has been referred to in

A. Article 113 of the Constitution.

B. Article 114 of the Constitution.

C. Article 115 of the Constitution.

D. Article 116 of the Constitution.

21. State whether true or false Funds made available under Vote on Account may be utilized for

expenditure on a ‘New Service’.

A. True

B. False

22. A copy of the entries made in GFR 5 during the preceding month shall be sent by the officer

maintaining it, to the Head of the Department or other designated Controlling Officer on

A. 1 st day of next month

B. 3 rd day of next month

C. 7 th day of next month

D. 15th day of next month

23. State whether true or false This statement shall also include adjustment of an inward claim,

etc., communicated by Pay and Accounts Officer directly to the DDO (and not to his Grant

Controlling Officer). If there are no entries in the register in any month, a statement need not

be sent.
A. True

B. False
24. To monitor the receipt of the returns from DDOs, the Controlling Officer will maintain a

broadsheet in Form

A. GFR 3

B. GFR 4

C. GFR 5

D. GFR 6

25. Pick the correct one regrading examining the point by the Controlling Officer on receipt of the
returns from DDOs.

(i) that the accounts classification has been properly given (ii) that progressive expenditure

has been properly noted and the available balances worked out correctly (iii) that

expenditure up-to-date is within the grant or appropriation (iv) that the returns have been

signed by Disbursing Officers. Where he finds defects in any of these respects, he shall take

steps to rectify the defect.

A. i, ii and iii

B. i, ii and iv

C. ii, iii and iv

D. All of the above

26. When all the returns from the Disbursing Officers for a particular month have been received

and found to be in order, the Controlling Officer shall compile a statement in Form

A. GFR 5

B. GFR 6

C. GFR 7

D. GFR 9

27. On receipt of all the necessary returns, the Head of the Department shall prepare a

consolidated account showing the complete expenditure from the grant or appropriation at his

disposal upto the end of the preceding month in Form

A. GFR 7

B. GFR 8
C. GFR 9

D. GFR 10
28. Who shall be responsible for the monthly reconciliation of the figures given in the accounts

maintained by the Head of the Department with those appearing in the Accounts Officer’s

books?

A. DDO & Accounts Officer jointly

B. DDO & Head of Department jointly

C. Head of Department & Accounts Officer jointly

D. All of the above jointly.

29. Pick the incorrect one

A. DDOs shall maintain a Bill Register in Form TR 28-A, and note all bills presented for

payment to the PAO in the register. Payment details shall be noted in the appropriate

column of the Bill Register.

B. The PAOs shall furnish to each of the DDOs including Cheque –drawing DDOs, an extract

from the expenditure control register or from the Compilation Sheet every month.

statements for May to March shall also contain Progressive Figures.

C. The DDO shall furnish to the PAO a certificate of agreement of the figures as

per his books with those indicated by the PAOs by the 15th day of the month

following the month of accounts.

D. The Principal Accounts Officer (or PAO wherever payments, relating to a grant are handled

wholly by a PAO) of each Ministry, shall send a monthly statement showing the expenditure

vis-à-vis the Budget provision under the various heads of accounts to the Heads of

Departments responsible for overall control of expenditure against grant of the Ministry as a

whole.

30. The Head of the Department shall furnish a quarterly certificate to the Principal Accounts
Officer certifying the correctness of the figures relating to Grant for the quarter by

A. the 15th of the following month after the end of quarters

B. the 15th of the second following month after the end of quarters

C. the last day of following month after the end of quarters

D. the last day of second following month after the end of quarters

31. The Departments of the Central Government shall obtain from their Heads of Departments and
other offices under them the departmental figures of expenditure in Form GFR 8 by

A. the 7th of the following the month

B. the 10th of the following the month

 C. the 15th of the following the month

D. the last day of the following the month

32. A Broadsheet shall be maintained by the Departments of Central Government or each Head of

Department and other authorities directly under them, to watch the prompt receipt of the

various returns from month to month in Form

A. GFR 9

B. GFR 10

C. GFR 11

D. GFR 11

33. In order to maintain proper control over expenditure, a Controlling Officer shall obtain from

the spending authorities liability statements in Form GFR 3-A every month, starting from the

month of

A. April

B. June

C. September

D. October

34. The Controlling Officer maintains a Liability Register in Form

A. GFR 2

B. GFR 3

C. GFR 3A

D. GFR 6

35. Ultimately responsible for the control of expenditure against the grant/appropriation is

A. Head of Department
B. Accounts Officer

C. Authority administering the grant/appropriation

D. Head of Department & Accounts Officer jointly.

36. The Accounts Officer shall not allow any payment against sanctions in excess of the Budget

provisions unless there is specific approval of the

A. Head of Department
B. Chief Controller of Account

C. Controller General of Accounts

D. Chief Accounting Authority.

37. State whether true or false The savings as well as provisions even though that cannot be

profitably utilised shall not be surrendered to Government before the end of the year. No

savings shall be held in reserve for possible future excesses.

A. True

B. False

38. Re-appropriation of Funds has been referred to in

A. Rule 10 of the Delegation of Financial Powers Rules

B. Rule 10 of GFR 2017

C. Rule 10 of R & P 1983

D. Rule 10 of GAR 1990

39. Re-appropriation of fund involves transfer of fund from

A. One department to another

B. One major head to another

C. Capital to Revenue or vice versa

D. One primary unit to another.

40. An application for re-appropriation of funds shall ordinarily be supported by a statement in

Form

A. GFR 1

B. GFR 2

C. GFR 3

D. GFR 4

41. In all orders sanctioning re-appropriation, the reasons saving and excess and affected primary

units (secondary units, wherever necessary shall be invariably Stated for amount of
A. Rupees 50 thousand or over

B. Rupees 1 lakh or over

C. Rupees 2 lakh or over

D. Rupees 5 lakh or over

42. Supplementary Grant has been mentioned in Article

A. 113 of the Constitution

B. 114 of the Constitution

C. 115 of the Constitution

D. 116 of the Constitution

43. Expenditure in excess of the provisions for the service included in an Appropriation (Vote on

Account) Act shall be met

A. By Supplementary Grant

B. By Excess Grant

C. By an advance from Consolidated Fund

D. By an advance from Contingency Fund

44. Contingency Fund of India has been set up under Article

A. 266 (1)

B. 267 (1)

C. 266 (2)

D. 267 (2)

45. The procedure for obtaining an advance from the Contingency Fund and recoupment of the

Fund shall be as laid down in the

A. Contingency Fund of India Rules 1952

B. Contingency Fund of India Rules 1955

C. Treasury Rule

D. GAR 1990

46. Who appears before the Committee on Public Accounts and any other Parliamentary

Committee for examination of accounts?

A. Head of Department

B. CCA

C. CAA
D. Financial Advisor

General Financial Rules 2017 - Chapter 4: Government Accounts

1. Accounts of the Union Government shall be prepared by

A. CGA

B. C&AG

C. Financial Advisor of the concerned Ministry/Department

D. Public Account Committee

2. Accounts of the Union Government shall be certified by

A. CGA
 B. C&AG

C. Financial Advisor of the concerned Ministry/Department

D. Public Account Committee

3. Accounts of the Union Government shall be submitted to the President of India, preferably

within

A. 1 month of close of the Financial Year

B. 3 months of close of the Financial Year

C. 6 months of close of the Financial Year

D. 9 months of close of the Financial Year

4. Who shall cause Accounts of the Union Government to be laid before each House of

Parliament?

A. Finance Minister

B. Union Cabinet

C. C&AG

D. President

5. The Accounts of the Union Government shall be kept in such form as the President may, on

the advice of the Comptroller and Auditor General of India, prescribe as given in Article

A. 148

B. 149

C. 150

D. 151

6. Who is responsible for prescribing the form of accounts of the Union and States, and to

frame, or revise, rules and manuals relating thereto on behalf of the President of India on
the advice of the Comptroller and Auditor General of India?

A. Accountant General

B. CCA

C. CAA

D. CGA

7. Government accounts shall be prepared on

A. cash basis.

B. credit basis

C. accrual basis
 D. any of the above

8. Government accounts shall be kept in

A. single part

B. two parts

C. three parts

D. four parts

9. Pick the incorrect one

A. Consolidated Fund is divided into two Divisions, namely, ‘Revenue’ and ‘Capital’

divisions.

B. The Revenue Division comprises two sections namely Receipt Heads (Revenue

Account) dealing with the proceeds of taxation and other receipts classified as

revenue and the section ‘Expenditure Heads (Revenue Account)’ dealing with the

revenue expenditure met therefrom.

C. The Capital Division comprises two sections, viz., ‘Receipt Heads

(Capital Account)’ and ‘Expenditure Heads (Capital Account)’

D. These sections are in turn divided into sectors such as ‘General Services’, ‘Social and

Community Services’, ‘Economic Services’, etc., under which specific functions or

services are grouped corresponding to the sectors of classification and which are

represented by Major Heads (comprising Sub-Major Heads wherever necessary).

10. Contingency Fund of Union Territories are set up by the Government of India under

A. Section 48 of Government of Union Territories Act, 1963.

B. Section 52 of Government of Union Territories Act, 1948

C. Section 62 of Government of Union Territories Act, 1965

D. Section 108 of Government of Union Territories Act, 1967

11. Transactions relating to debt (other than those included in Part-I), reserve funds, deposits,

advances, suspense, remittances and cash balances shall be recorded in

A. Consolidated Fund

B. Contingency Fund

C. Public Account
D. Departmental Fund

12. The classification of transaction in Government Accounts shall have closer reference to

A. Function/Programme/Activity
 B. Department/Ministry

C. Capital and Revenue

D. Charged and Voted

13. Classification of Government Accounts consists of

A. 4 tiers

B. 5 tiers

C. 6 tiers

D. 7 tiers

14. The six tiers of Government Accounts are represented by a unique

A. 15 digits’ numeric code.

B. 15 digits’ alpha-numeric code

C. 13 digits’ numeric code.

D. 13 digits’ alpha-numeric code

15. Pick the incorrect one

A. The List of Major and Minor Heads of Accounts of Union and States is maintained

by the Ministry of Finance (Department of Expenditure – Controller General of

Accounts)

B. CGA is authorised to open a new head of account on the advice of the C&AG under

the Article 150 of the Constitution.

C. Ministries/Departments may open Sub-Heads and Detailed Heads as required by

them in consultation with the Budget Division of the Ministry of Finance.

D. Principal Accounts Offices of Ministry/Department may open

Sub/Detailed Heads required under the Minor Heads falling within the
Consolidated Fund of India subject to certain restriction.

16. The Object Heads have been prescribed under Government of India’s Orders below Rule 8

of

A. R&P 1983

B. GFR 2017

C. GAR 1990
D. Delegation of Financial Power Rules

17. State whether true or false In cases of doubt regarding the Head under which a transaction

should be accounted, the matter shall be referred to the Principal Accounts Officer of the
 Ministry/Department concerned for clarification of the Ministry of Finance and the CA&G,

wherever necessary.

A. True

B. False

18. RBI shall nominate a bank to function as Accredited Bank of a Ministry or Department, in

consultation with the

A. CGA

B. C&AG

C. PAO

D. Finance Minister

19. Pick the correct ones (i) Public Financial Management System (PFMS) an integrated

Financial Management System of CGA shall be used for sanction preparation, bill

processing, payment, receipt management, Direct Benefit Transfer, fund flow management

and financial reporting. (ii) All the payment, to the extent possible, shall be released ‘just-

in-time’ by the Ministries through PFMS. (iii) Detailed Demand for Grants (DDG), as

approved, must be uploaded on PFMS by the end of the financial year. (iv) All the re-

appropriation orders, surrender order shall be generated through PFMS system. (v) All

grantee institutions shall submit Utilisation Certificates on PFMS.

A. i, ii, iii and iv

B. i, ii, iv and v

C. ii, iii, iv and v

D. All of the above

20. DBT should include

A. in-kind transfers to beneficiaries

B. in cash transfers to beneficiaries

C. transfers/honorariums given to various enablers of government schemes

D. All of the above.

21. Transaction charges for the financial intermediaries facilitating DBT payments shall be paid

as stipulated by
A. Union Cabinet

B. Ministry of Finance

C. Ministry of Trade & Commerce

 D. Ministry of Corporate Affairs

22. Appropriation Accounts of Central Ministries/Departments other than Ministry of

Railways, Defence and Posts shall be prepared by the

A. CCA

B. CGA

C. C&AG

D. Principal Accounts Officer

23. Appropriation Accounts of Central Ministries/Departments shall be prepared under the

guidance of

A. CCA

B. CGA

C. C&AG

D. Principal Accounts Officer

24. Who signs the Appropriation Accounts of Central Ministries/Departments?

A. CAA

B. CGA

C. C&AG

D. Principal Accounts Officer

25. Union Government Appropriation Accounts (Civil) that required to be submitted to

Parliament, shall be prepared by

A. Principal Accounts Officer

B. CCA

C. CA&G
D. CGA

26. State whether true or false Appropriation Accounts pertaining to Departments of Posts and

Defence Services shall be prepared and signed by the Secretaries to the Government of

India in the Department of Posts and Ministry of Defence respectively and that of Ministry

of Railways by the Chairman, Railway Board.

A. True
B. False

27. Accounts showing under the respective Heads the annual receipts and disbursements and

statement of balances for the purpose of the Union, are called

 A. Appropriation Accounts

B. Finance Accounts

C. Proforma Accounts

D. Balance Sheet

28. Finance accounts of the Government of India (including transactions of Department of

Posts and Ministries of Defence and Railways and transactions under Public Account of

India of Union Territory Governments) shall be prepared and signed by the

A. CGA

B. C&AG

C. Secretary (Expenditure), Ministry of Finance

D. Finance Minister

29. Finance accounts of the Government of India is countersigned by the

A. CGA

B. C&AG

C. Secretary (Expenditure), Ministry of Finance

D. Finance Minister

30. The certified Annual Accounts and the Reports relating to the accounts shall be submitted

by the Comptroller and Auditor General of India to the President in accordance with the

provisions of

A. Section 10 of DPC Act, 1971 & Article 150 of Constitution

B. Section 11 of DPC Act, 1971 & Article 151 of Constitution

C. Section 11 of DPC Act, 1971 & Article 150 of Constitution

D. Section 10 of DPC Act, 1971 & Article 151 of Constitution

31. The Appropriation and Finance Accounts shall be prepared by the respective authorities on

the dates mutually agreed upon with the

A. CGA

B. C&AG

C. DRSC

D. Finance Minister
32. State whether true or false Details of the financial stakes of the Administrative Ministries /

PSUs / Subordinate / Statutory / Autonomous Bodies in Public Private Partnerships (PPP)/

 Production Sharing Contracts (PSCs)/ Joint Ventures (JV’s)/ Subsidiary companies etc.

should be disclosed Finance Accounts.

A. True

B. False

33. Pick the incorrect one

A. Proforma Accounts is suitable for Government Departments working on a

commercial or quasi-commercial basis

B. This includes the maintenance of suitable Manufacturing, Trading, Profit & Loss

Accounts and Balance Sheet.

C. The Head of the units shall be required to maintain such subsidiary

proforma accounts in commercial form as may be agreed between

Government and CGA.

D. None of the above (All of the above are correct)

34. Proforma accounts of regular Government Workshops and Factories shall be kept in

accordance with the detailed rules and procedure prescribed in the

A. GAR, 1990

B. R&P, 1983

C. GFR, 2017

D. Departmental regulations.

35. Proforma accounts relating to Public Works shall be prepared by the

A. Divisional Officer

B. CCA

C. Accounts Officers
D. CGA

36. Proforma accounts relating to Public Works shall be prepared by the Accounts Officers in

accordance with the instructions contained in

A. Departmental regulations

B. Account Code for Accountants General.

C. GAR, 1990
D. Works Manual.

37. Where commercial accounts are maintained for the purpose of assessment of the cost of an

article or service, who shall ensure that adequate regulations are framed with the approval
 of Government in order to ensure that the cost deduced from the accounts is accurate and

true?

A. Head of the Unit

B. CAG

C. CGA

D. CCA

38. Subsidiary accounts and statements shall be submitted on such date as may be required by

to the

A. CCA

B. CAA

C. CGA

D. Accounts Officer

39. Subsidiary accounts and statements shall be appended each year to the

A. Appropriation Accounts

B. Finance Accounts

C. Departmental Accounts

D. Balance Sheet

40. The Personal Deposit Account shall be authorised to be opened by a special order by the

concerned Ministry or Department in consultation with the

A. CAA

B. CCA

C. CGA

D. C&AG
41. Every personal deposit account so authorised to be opened, shall form part of the

Government Account and be located in the

A. Consolidated Fund

B. Contingency Fund

C. Public Account

D. Local Departmental Account

42. The provisions relating to “Personal Deposit Account” are contained in

A. Civil Accounts Manual and R&P 1983

B. GAR, 1990
 C. GFR, 2017

D. Accounts Code

43. In relation to Civil and Criminal Courts’ deposits, Personal Deposit Account to be opened in

favour of the

A. Chief Justice of High Court of the State Concerned

B. Chief Justice of Supreme Court

C. Bar Council

D. Chief Judicial Authority concerned

44. State whether true or false Officers commanding units and others concerned in the

administration of public funds in the Defence Departments can be authorised to open

personal deposit accounts for such funds.

A. True

B. False

45. Significant expenditure incurred with the object of acquiring tangible assets of a permanent

nature or enhancing the utility of existing assets, shall broadly be defined as

A. Assets expenditure

B. Capital expenditure.

C. Revenue expenditure

D. At discretion of HoD

46. Charges on maintenance, repair, upkeep and working expenses, which are required to

maintain the assets in a running order as also all other expenses incurred for the day to day

running of the organisation, including establishment and administrative expenses, shall be

classified as
A. Revenue expenditure

B. Capital expenditure

C. Major Expenditure

D. Contingent Expenditure

47. Pick the incorrect one

A. Expenditure on a temporary asset or on grants-in-aid cannot ordinarily be

considered as a capital expenditure
 B. Expenditure on a temporary asset or on grants-in-aid shall not, except in cases

specifically authorised by the President on the advice of the C&AG, be debited to a

Capital Head.

C. Capital expenditure is generally met from receipts of capital nature, as distinguished

from ordinary revenues derived from taxes, duties, fees, fines and similar items of

current income including extraordinary receipts.

D. Under no circumstances the Government shall meet capital expenditure

from ordinary revenues.

48. Charges for re- placement of all wastage or depreciation of property originally provided out

of capital grants shall be classified as

A. Revenue Expenditure

B. Capital Expenditure

C. Contingent Expenditure

D. At discretion of HoD

49. The cost of genuine improvements, which enhance the useful life of the asset whether

determined by prescribed rules or formulae, or under special orders of Government, may be

debited to

A. Revenue Expenditure

B. Capital Expenditure

C. Contingent Expenditure

D. At discretion of HoD

50. Expenditure on account of reparation of damage caused by extraordinary calamities such as

flood, fire, earthquake, enemy action, etc., shall be charged to Capital, or to Revenue, or
divided between them, depending upon whether such expenditure results in

creation/acquisition of new assets or whether it is only for restoring the condition of the

existing assets, as may be determined case basis by

A. HoD

B. Government

C. Ministry of Finance
D. Accounts Office

51. The allocation between capital and revenue expenditure on a Capital Scheme for which

separate Capital and Revenue Accounts are to be kept, shall be determined in accordance
 with such general or special orders as may be prescribed by the Government after

consultation with the

A. CGA

B. CCA

C. C&AG

D. Niti Aayog

52. Capital receipts accruing during the process of construction of a project, shall be classified

as

A. Revenue Receipt

B. Misc. Receipt

C. Contribution

D. reduction of capital expenditure

53. Receipts and recoveries on Capital Account in so far as they represent recoveries of

expenditure previously debited to a Capital Major Head shall be taken in

A. reduction of capital expenditure

B. Revenue Receipt

C. Misc. Receipt

D. Contribution

54. State whether true or false Where loans outstanding against Public Sector Undertakings are

proposed to be converted into equity investments in or as grants-in-aid to the Public Sector

Undertakings, the approval of the Ministry of Finance to such proposals, shall be obtained

by including a token provision in the relevant Demands for Grants or Supplementary

Demands for Grants as may be found expedient.

A. True

B. False

55. For capital outlay provided otherwise (other than out of specific loan raised by the Govt.),

interest shall be charged at the rate of interest to be determined each year by the

A. Department of Economic Affairs, Ministry of Finance.

B. Department of Expenditure, Ministry of Finance

C. Ministry of Trade & Commerce

D. Ministry of Corporate Affairs

56. As a convention, the period accepted by Central and State Governments for the re-audit of

past transactions involving errors in classification

A. 2 years

B. 3 years

C. 5 years

D. 10 years

57. The Central Government (which includes Union Territories) and the State Governments

have agreed under reciprocal arrangements not to prefer petty and isolated claims for an

amount not exceeding

A. 5000/-

B. 7500/-

C. 10000/-

D. 15000/-

58. If a doubt arises as to whether a particular claim would fall within or outside the purview of

the proposed arrangement between the Central Government (which includes Union

Territories) and the State Governments, it shall be decided by

A. Central Govt.

B. State Governments concerned

C. mutual consultation

D. Parliament.

59. In the case of Projects, jointly executed by several Governments, where the expenditure is to

be shared by the participating Governments in agreed proportions, but the expenditure is

ab-initio incurred by one Government and shares of other participating Governments

recovered subsequently shall be exhibited as

A. Revenue receipt

B. Misc. Revenue receipt

C. Misc. Deposit Receipt

D. abatement of charges

60. A five years’ contract shall be offered to the State Government during which the Central
Government would pay the fixed sum per annum for the work, If the charges are found to

be reasonable and do not exceed for any individual item (or connected group of items)

A. 10000/-
 B. 25000/-

C. 50000/-

D. 100000/-

61. An annual statement of proposed charges from the State Government at the time of

preparation of the Budget shall be necessary, if the amount agreed upon exceeds

A. 25000/-

B. 50000/-

C. 75000/-

D. 100000/-

62. Claims of State Governments, on account of the extra cost of agency functions entrusted to

them under

A. Article 258

B. Article 259

C. Article 261

D. Article 263

63. The date up-to which Inter-Governmental adjustments can be carried out as the books of

RBI for the month of March are closed on this very date

A. 7th April

B. 15th April

C. 20th May

D. 1st June

64. Recoveries of expenditure for services rendered or supplies made to non-Government

parties or other Governments (including local funds and Governments outside India), shall
in all cases, be classified as

A. Reduction of Expenditure

B. Receipts

C. Contribution

D. Misc. Deposit Receipt

65. When a Government undertakes a service merely as an agent of a private body, the recovery
of entire cost of the service rendered shall be taken

A. Reduction of Expenditure

B. Receipts
 C. Contribution

D. Misc. Deposit Receipt

66. State whether true or false Any relief in respect of payment for services rendered or supplies

made to any outside body or fund shall ordinarily be given through a remission of dues

rather than by grant-in-aid.

A. True

B. False

67. Pick the incorrect one

A. Half the maintenance charges pertaining to boarder/boundary line will be borne by

the Central Government, the other half being recovered, as far as practicable, from

the foreign country, failing which the foreign country’s share will also be borne by

the Central Government.

B. Charges relating to demarcation of boundaries and boundary disputes will be borne

by the Central Government under Entry 10 of the Union List, subject to such

recovery as shall be made from the Foreign Country.

C. Where streams or other watercourses form the boundaries and where the ordinary

principle of median line applies, the Government concerned will bear the cost of

maintenance of the boundary line on its side.

D. The arrangement in (a) above i.e. bearing half the maintenance charges pertaining

to boarder/boundary line, in its application to Nepal will be subject to special

arrangements worked out in consultation with the Nepal Government.

E. The share of the Nepal Government for maintenance and demarcation

of and disputes over boundaries will be borne by the Central

Government for the present

68. For purposes of inter-Departmental payments, the Departments of a Government shall be

divided into

A. Service departments and commercial departments

B. Work departments and non-work departments

C. General Departments and Economic departments

D. General, Social and Economic departments.

69. All claims shall ordinarily be preferred between Departments, both commercial and non-

commercial of the Central Government, within the same financial year and not beyond
 A. 2 years from the date of transaction.

B. 3 years from the date of transaction.

C. 5 years from the date of transaction.

D. 7 years from the date of transaction.

70. The settlement of inter-departmental adjustments shall be regulated by the directions

contained in Chapter 4 of

A. R&P 1983

B. GAR,1990.

C. GFR, 2017

D. Treasury Rules

71. Between different Departments of the same Government, the recoveries effected for services

rendered shall be classified as

A. Revenue Income

B. Misc. Income

C. Deposit Receipt

D. Deductions from the gross expenditure.

72. Recoveries made by a Commercial Department, e.g., Railways, Posts or a departmental

commercial undertaking in respect of services rendered in pursuance of the functions for

which the Commercial Department is constituted shall be treated as

A. receipts of the Department

B. deductions from the gross expenditure

C. grant to the department

D. deposit receipt
73. Where a commercial department acts as an agent for the discharge of functions not

germane to the essential purpose of the Department, the recoveries shall be taken as

A. Revenue Income

B. Misc. Income

C. Reduction of expenditure

D. Deposit Receipt
74. Recoveries of fees for purchase, inspection, etc., effected by the Central Purchase

Organizations (DGS&D) of Government of India, are treated as

A. receipts of the Department

 B. deductions from the gross expenditure

C. grant to the department

D. deposit receipt

75. State whether true or false Recoveries effected from another Department of the same

Government which are to be classified as deduction from the gross expenditure, shall be

shown in the relevant Demand for Grant as “below the line” recovery under the appropriate

Major Head of Account etc.

A. True

B. False

76. Fill in the blank In the case of Government Departments and undertakings declared as

commercial, adjustment of Pensionary liability shall be made in the regular accounts by

charging the average of the percentage for ___________ of service based on the rates of

monthly contribution of prescribed pension

A. 10th years

B. 12th years

C. 15th years
D. 20th years

General Financial Rules 2017 - Chapter 5: Works

1. Works which add capital value to existing assets but do not create new assets are called

A. Original Works

B. Repair Works

C. Minor Works

D. Contingent Works

2. New constructions, site preparation, additions and alterations to existing works, special

repairs to newly purchased or previously abandoned buildings or structures, including re-

modelling or replacement are called

A. Original Works
B. Repair Works

C. Minor Works

D. Contingent Works
3. Subject to certain conditions a Ministry or Department at its discretion may directly execute

repair works estimated to cost up to Rupees

A. 10 lakhs

B. 15 lakhs

C. 20 lakhs

D. 30 lakhs

4. A Ministry or Department may, at its discretion, assign to any Public Works Organisation

(PWO) repair works estimated to cost above Rupees 30 Lakhs and original/minor works of

A. above 50 lakh

B. above 1 crore

C. above 2 crore

D. any value

5. Pick the incorrect one No works shall be commenced or liability incurred in connection with

it until

A. administrative approval has been obtained from the appropriate authority in each

case.

B. sanction to incur expenditure has been obtained from the competent authority.

C. a properly detailed design has been sanctioned; while designing the projects etc,

principles of Life Cycle cost may also be considered.

D. funds to cover the charge during the year and beyond till completion of

the work have been provided by competent authority.

6. State whether true or false For purpose of approval and sanctions, a group of works which

forms one project, shall be considered as one work. Therefore, approval or sanction of
higher authority is not required as cost of each particular work in the project is within the

powers of such approval or sanction of a lower authority.

A. True

B. False

7. Open tenders will be called for works costing Rupees

A. 1 lakh to 10 lakh
B. 2 lakh to 15 lakh

C. 3 lakh to 20 lakh

D. 5 lakh to 30 lakh
 8. Limited tenders will be called for works costing less than Rupees

A. 1 lakh

B. 2 lakh

C. 5 lakh

D. 10 lakh

9. To review the progress of the work, the Administrative Ministry or Department will set up a

Review Committee consisting of a representative each from the Administrative Ministry,

Finance (Internal Finance Wing) and the Executing Agency when the estimate cost of

approved project is Rupees

A. 50 crore and above

B. 100 crore and above

C. 200 crore and above

D. 500 crore and above

10. The Review Committee shall have the powers to accept variation within

A. 5% of the approved estimates.

B. 10% of the approved estimates

C. 10% of the approved estimates

D. 15% of the approved estimates

General Financial Rules 2017 - Chapter 6: Procurement of Goods

and Services

1. An authority competent to incur expenditure may sanction the purchase of goods required

for use in public service in accordance with provisions given in the

A. Delegation of Financial Powers Rules

B. Departmental Regulations

C. R&P

D. GFR
2. The terms rate contract pertains to

A. Ministries/Departments

B. DGS&D
 C. Ministry of Finance

D. Ministry of Corporate Affairs

3. GeM stands for

A. Government Money

B. Government e-marketing

C. Government e-market Place

D. Goods e-market place

4. Pick the incorrect one

A. Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the

requisite quality, specification and delivery period.

B. Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest

price amongst the available sellers, of at least three different manufacturers, on GeM,

meeting the requisite quality, specification and delivery period.

C. Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite

quality, specification and delivery period after mandatorily obtaining bids, using

online bidding or reverse auction tool provided on GeM.

D. None (all of the above are correct)

5. The Ministries/Departments shall l project their Annual Procurement Plan of goods and

services on GeM portal within

A. 30 days of Budget approval.

B. 30 days of financial year

C. 90 days of budget approval

D. 90 days of financial year

6. Depending on the nature of the goods the supplier(s) will be registered for a fixed period

between

A. 1 to 2 years

B. 1 to 3 years

C. 2 to 3 years

D. 2 to 5 years
7. If a procuring entity determines that the bidder has breached the code of integrity it may

debar a bidder or any of its successors from participating in any procurement process

undertaken by it for a period

 A. not exceeding two years

B. not exceeding three years

C. not exceeding five years

D. not exceeding ten years

8. Purchase of goods without inviting quotations or bids on the basis of a certificate to be

recorded by the competent authority up-to the value of Rupees

A. 10000/-

B. 15000/-

C. 25000/-

D. 50000/-

9. Purchase of goods without inviting quotations or bids on the basis of a certificate to be

recorded by the competent authority up-to the certain has been given in GFR under Rule

A. 145

B. 147

C. 150

D. 154

10. Purchase of goods on each occasion may be made on the recommendations of a duly

constituted Local Purchase Committee costing

A. above Rs. 10,000 up-to Rs.1,00,000/-

B. above Rs. 15,000 up-to Rs.1,50,000/-

C. above Rs. 25,000 up-to Rs.1,50,000/-

D. above Rs. 25,000 up-to Rs.2,50,000/-

11. Purchase of goods on each occasion may be made on the recommendations of a duly
constituted Local Purchase Committee has been referred to in GFR under Rule

A. 151

B. 154

C. 155

D. 157

12. State whether true or false It is desirable, however, not mandatory for all
Ministries/Department s of the Central Government, their attached and Subordinate Offices

and Autonomous /Statutory Bodies to publish their tender enquiries, corrigenda thereon and

details of bid awards on the Central Public Procurement Portal (CPPP).

 A. True

B. False

13. It is mandatory for Ministries/ Departments to receive all bids through e-procurement

portals in respect of all procurements. These instructions will not apply to procurements

made by Ministries / Departments through

A. Multinational Companies

B. Public Sector Undertakings

C. DGSD Rate

D. Make in India Companies

14. Advertised Tender Enquiry should be resorted for procurement of goods of estimated value

of Rupees

A. 10 lakh and above

B. 20 lakh and above

C. 25 lakh and above

D. 30 lakh and above

15. CPPP Stands for

A. Central Public Procurement Portal

B. Centralized Purchase & Payment Portal

C. Common Public Procurement Portal

D. Common Purchase & Payment Portal

16. Ordinarily, from the date of publication of the tender notice or availability of the bidding

document for sale, whichever is later the minimum time to be allowed for submission of bids

should be
A. 2 weeks

B. 3 weeks

C. 4 weeks

D. 7 weeks

17. Where the bids from abroad are also to be obtained, the minimum period should be kept as

A. 3 weeks for domestic and 4 weeks for foreign bidders.

B. 3 weeks for both domestic and foreign bidders.

C. 4 weeks for both domestic and foreign bidders

D. 4 weeks for domestic and 6 weeks for foreign bidders

18. Limited Tender Enquiry may be adopted when estimated value of the goods to be procured

is up to Rupees

A. 10 lakh

B. 15 lakh

C. 20 lakh

D. 25 lakh

19. Copies of the bidding document should be sent directly by speed post/registered

post/courier/ email to firms which are borne on the list of registered suppliers for the goods

in question under

A. Advertised Tender Enquiry

B. Limited Tender Enquiry

C. Multi Tender Enquiry

D. Two Stage Tender Enquiry

20. The number of supplier firms in Limited Tender Enquiry should be

A. not less than three

B. more than three

C. four

D. six

21. Purchase through Limited Tender Enquiry may be adopted even where the estimated value

of the procurement is more than 25 lakh in the following circumstances except

A. The competent authority in the Ministry or Department certifies that the demand is

urgent and any additional expenditure involved by not procuring through advertised

tender enquiry is justified in view of urgency.

B. There are sufficient reasons indicating that it will not be in public interest to procure

the goods through advertised tender enquiry.

C. The sources of supply are definitely known and possibility of fresh source(s) beyond

those being tapped is remote.

D. The goods under procurement is of high value and delicate nature.

22. Pick the incorrect one

A. For purchasing high value plant, machinery etc. of a complex and technical nature,

bids may be obtained in two parts- Technical bid and Financial bid.
 B. Technical bid consists of all technical detail s along with commercial terms and

conditions and Financial bid indicating item-wise price for the items mentioned in the

technical bid.

C. The technical bid and the financial bid should be sealed by the bidder in

separate covers duly super-scribed and both these sealed covers are

submitted separately.

D. The technical bids are to be opened by the purchasing Ministry or Department at the

first instance and evaluated by a competent committee or authority. At the second

stage financial bids of only these technically acceptable offers should be opened after

intimating them the date and time of opening the financial bid for further evaluation

and ranking before awarding the contract.

23. Procurement from a single source may be resorted to in the following circumstances except:

A. It is in the knowledge of the user department that only a particular firm is the

manufacturer of the required goods

B. In a case of emergency and reason for such decision is to be recorded and approval of

competent authority obtained.

C. For standardisation of machinery or spare parts to be compatible to the existing sets

of equipment (on the advice of a competent technical expert and approved by the

competent authority), the required item is to be purchased only from a selected firm

D. None of the above

24. Proprietary Article Certificate is applicable in

A. Limited Tender Enquiry

B. Advertised Tender Enquiry

C. Single Tender Enquiry

D. Two Bid Enquiry Tender

25. An online real-time purchasing technique utilised by the procuring entity to select the

successful bid, which involves presentation by bidders of successively more favourable bids

during a scheduled period of time and automatic evaluation of bids is called

A. Electronic Procurement
B. Electronic Reverse Auction

C. Electronic Buyer Seller Action

D. Electronic Deliberation
26. State whether true or fasle Maintenance contract(s) of suitable period either with the supplier

of the goods or with any other competent firm, not necessarily the supplier of the subject

goods is/are especially needed for sophisticated and costly equipment and machinery.

A. True

B. False

27. To safeguard against a bidder’s withdrawing or altering its bid during the bid validity period

in the case of advertised or limited tender enquiry, Bid Security is obtained. Bid Security is

also called

A. Security Deposit

B. Performance Deposit

C. Work Guarantee

D. Earnest Money

28. Amount of bid security should ordinarily range between

A. 1 to 5% of the estimated value of the goods to be procured.

B. 2 to 5% of the estimated value of the goods to be procured.

C. 3 to 5% of the estimated value of the goods to be procured.

D. 5 to 10 of the estimated value of the goods to be procured.

29. Bid Security may be exempted for

A. Micro and Small Enterprises (MSEs)

B. Suppliers registered with the Central Purchase Organisation or the concerned Ministry

or Department.

C. Both of the above

D. None
30. The bid security is normally to remain valid for a period of

A. 30 days beyond the final bid validity period.

B. 30 days from date of inviting bid

C. 45 days beyond the final bid validity period

D. 45 days from date of inviting bid

31. Bid securities of the unsuccessful bidders should be returned to them at the earliest after
expiry of the final bid validity and latest on or before the

A. 30th day after the award of the contract.

B. 45th day after the award of the contract

 C. 60th day after the award of the contract

D. 75th day after the award of the contract

32. Performance Security should be for an amount of (of the value of the contract as specified in

the bid documents)

A. 2 to 5%

B. 5 to 10%

C. 5 to 15%

D. 10 to 15%

33. Period for which Performance Security should remain valid beyond the date of completion of

all contractual obligations of the supplier including warranty obligations?

A. 30 days

B. 45 days

C. 60 days

D. 90 days

34. Advance payments for procurement of goods and services may be made in cases advance

payment demanded

A. by firms holding maintenance contracts for servicing of Air- conditioners,

computers, other costly equipment, etc. by firms against fabrication

contracts, turn-key contracts etc.

B. by firms supplying high value machinery and plants.

C. by firms supplying scientific and technical items

D. by firms supplying items are located abroad.

35. In case of advance to private firms, it should not exceed:

A. 10% of the contract value

B. 20% of the contract value

C. 30% of the contract value

D. 50% of the contract value

36. In case of advance to a State or Central Government agency or a Public Sector Undertaking,

it should not exceed:

A. 20% of the contract value

B. 25% of the contract value

C. 30% of the contract value

 D. 40% of the contract value

37. In case of maintenance contract, the amount of advance should not exceed the amount

payable for

A. 2 months under the contract.

B. 3 month sunder the contract

C. 6 month sunder the contract

D. 12 months under the contract

38. Ministries or Departments of the Central Government may relax the ceilings (including

percentage laid down for advance payment for private firms) in consultation with

A. CGA

B. CA&G

C. their Principal Accounts Officer

D. their Financial Advisers

39. State whether true or false if a firm quotes NIL charges/consideration, the bid shall be given

priority and be treated as lowest one as it will most economical to the State”

A. True

B. False

40. In case a purchase Committee is constituted to purchase or recommend the procurement, no

member of the purchase Committee should be reporting directly to any other member of such

Committee in cases estimated value of procurement exceeds

A. Rs. 10 lakhs

B. Rs. 25 lakhs

C. Rs. 50 lakhs
D. Rs. 1 crore

41. State whether true or false Disclosure by the bidder of any previous transgressions made in

respect of code of integrity with any entity in any country during the last five (05) years or of

being debarred by any other procuring entity.

A. True

B. False
42. Services typically involve providing expert or strategic advice is called

A. Consulting Service

B. Non-consulting Services
 C. Advisory Services

D. Management Services

43. Preparation of a long list of potential consultants may be done on the basis of formal or

informal enquiries from other Ministries or Departments or Organizations involved in similar

activities, Chambers of Commerce & Industry, Association of consultancy firms etc. Where

the estimated cost of the consulting service is up to Rupees

A. 10 lakh

B. 15 lakh

C. 25 lakh

D. 40 lakh

44. “Expression of Interest” should be sought where the estimated cost of the consulting services

is

A. above Rs. 20 lakh

B. above Rs. 25 lakh

C. up-to Rs. 20 lakh

D. up-to Rs. 25 lakh

45. The number of short listed consultants should

A. not be less than three.

B. be more than three

C. not be less than six

D. be more than six

46. RFP stands for

A. Requirement for Procurement

B. Request for Procurement

C. Request for Purchase & Payment

D. Request for Proposal

47. Technical bids should be analysed and evaluated by a

A. Consultancy Evaluation Committee (CEC) constituted by the Ministry or

Department.
B. Consultancy Evaluation Committee (CEC) constituted by the Ministry of Finance

C. Consultancy Evaluation Committee (CEC) constituted by Head of Department

D. Consultancy Evaluation Committee (CEC) constituted by the Parliament.

48. QCBS stands for

A. Quality Control & Budgeting System

B. Quality and Cost Based Selection

C. Quality Control Based Selection

D. Quality and Cost Based Supply

49. The weight age of the technical parameters i.e. non- financial parameters in no case should

exceed

A. 30%

B. 50%

C. 60%

D. 80%

50. Services which involve physical, measurable deliverables/outcomes, where performance

standards can be clearly identified and consistently applied, are classified as

A. Contingent Services

B. Labour Services

C. Non-consulting Services

D. Work Charged Services

51. Pick the incorrect one

A. For identification of likely contractors the Ministry or Department should prepare a

list of likely and potential contractors on the basis of formal or informal enquiries from

other Ministries or Departments and Organisations involved in similar activities,

scrutiny of ‘Yellow pages’, and trade journals, if available, web site etc.

B. The number of the identified contractors for issuing limited tender

enquiry for estimated value of the non-consulting service up-to Rs.10

lakhs should not be less than six.

C. For estimated value of the non-consulting service above Rs.10 lakhs The Ministry or

Department should issue advertisement in such case should be given on Central Public

Procurement Portal (CPPP)

D. None (All of the above are correct)
General Financial Rules 2017 - Chapter 7: Inventory

1. Who should certify that he has actually received the material and recorded it in the

appropriate stock registers?

A. The Store-keeper

B. The cashier

C. The officer-in-charge of stores

D. The head of office

2. Pick the incorrectly matched

A. Fixed Assets such as plant, machinery, equipment, furniture, fixtures etc. - GFR 22

B. Consumables such as office stationery, chemicals, maintenance spare parts etc - GFR

23
C. Library books - GFR 24

D. Assets of historical/artistic value held by museum /government - GFR 24

3. Calculation of the charges to be recovered from the local bodies, contractors and others for

hiring out the fixed assets should be based on the

A. Issue Rate

B. Schedule of Rate

C. Market Rate

D. Historical cost.
4. Fixed assets should be verified at least once in

A. a six-month

B. a year

C. a two year

D. a three year

5. A physical verification of all the consumable goods and materials should be undertaken at

least once in

A. a month

B. a six-month

C. a year
D. a two year
6. A material shall generally be considered surplus if it remains in stock for over______

unless adequate reasons to treat it otherwise exist

A. a year

B. two years

C. three years

D. four years

7. Pick the incorrect one

A. Complete physical verification of books should be done every year in case of libraries

having not more than 20000 volumes.

B. For libraries having more than 20000 volumes and up to 50000 volumes, such

verification should be done at least once in three years.

C. Sample physical verification at intervals of not more than five years

should be done in case of libraries having more than 50000 volumes. In

case such verification reveals unusual or unreasonable shortages,

complete verification shall be done.

D. Loss of five volumes per 1000 volumes of books issued/consulted in a year may be

taken as reasonable provided such losses are not attributable to dishonesty or

negligence. However, loss of a book of a value exceeding Rs. 1,000/- (Rupees One

thousand only) and rare books irrespective of value shall invariably be investigated

and appropriate action taken.

8. A report of stores for disposal shall be prepared in Form

A. GFR 10

B. GFR 11
C. GFR 14

D. GFR 16
9. Pick the correct one

i. Surplus or obsolete or unserviceable goods of assessed residual value above Rupees 2,00,000 should
be disposed of by either obtaining bids through advertised tender or public auction.
ii. For surplus or obsolete or unserviceable goods with residual value less than Rupees 200000, the
mode of disposal will be determined by the competent authority
iii. Certain surplus or obsolete or unserviceable goods such as expired medicines, food grain,
ammunition etc., which are hazardous or unfit for human consumption, should be disposed of or
destroyed immediately by adopting suitable mode so as to avoid any health hazard and/or
environmental pollution and also the possibility of misuse of such goods.
 iv. Surplus or obsolete or unserviceable goods, equipment and documents, which involve security
concerns (e.g. currency, negotiable instruments, receipt books, stamps, security press etc.) should be
disposed of/ destroyed in an appropriate manner to ensure compliance with rules relating to official
secrets as well as financial prudence.

A. i, ii and iii

B. ii, iii and iv

C. i, iii and iv

D. All of the above.

10. If a bid is accepted during the process of auctioning the disposal, earnest money should

immediately be taken on the spot from the successful bidder. The amount of the earnest

money should be

A. not less than 10%

B. not less than 20%

C. not less than 25%

D. not less than 30%

11. If a Ministry or Department is unable to sell any surplus or obsolete or unserviceable item

in spite if its attempts through advertised tender or auction, it may dispose of the same at its

scrap value with the approval of the competent authority in consultation with

A. HoD

B. Finance division

C. Accounts Officer

D. Legal Division

12. A sale account should be prepared for goods disposed of in Form GFR 11 duly signed by the

A. officer who supervised the sale or auction

B. Head of Department

C. Head of the Finance division

D. Accounts Officer

13. Powers to write off of losses are available under the

A. R&P 1983

B. GAR 1990
C. GFR 2017

D. Delegation of Financial Powers Rules.

14. Losses due to depreciation shall be analysed, and recorded under following heads except
 A. normal fluctuation of market prices

B. losses due to extra ordinary situations under ‘Force Majeure’ conditions

like fire, flood, enemy action, etc.

C. lack of foresight in regulating purchases

D. negligence after purchase.

15. Losses not due to depreciation shall be grouped under the following heads

(i) losses due to theft or fraud

(ii) losses due to neglect
(iii) anticipated losses on account of obsolescence of stores or of purchases in excess of requirements
(iv) losses due to damage

A. i, ii and iii

B. i, iii and iv
C. ii, iii and iv
D. All of the above

General Financial Rules 2017 - Chapter 8: Contract Management

1. All contracts shall be made by an authority empowered to do so by or under the orders of

the President in terms of

A. Article 299 (1)

B. Article 299 (2)

C. Article 301 (1)

D. Article 301 (2)

2. The various classes of contracts and assurances of property, which may be executed by

different authorities, are specified in the Notifications issued from time to time by the

A. Ministry of Finance
B. Ministry of Law
C. Ministry of Trade & Commerce

D. Ministry of Industries
3. The powers of various authorities, the conditions under which such powers should be

exercised and the general procedure prescribed with regard to various classes of contracts

and assurances of property are laid down in

A. Rule 107 of GFR 2017

B. Rule 79 of R&P 1983

C. Rule 52 of GAR 1990

D. Rule 21 of the Delegation of Financial Powers Rules.

4. State whether true or false The modifications in standard forms of contracts should be

carried out only after obtaining legal advice.

A. True

B. False

5. A Ministry or Department may, at its discretion, make purchases by issuing purchase orders

containing basic terms and conditions of value up to

A. Rs. 200000/-

B. Rs. 250000/-

C. Rs. 300000/-

D. Rs. 500000/-

6. Tender documents include the General Conditions of Contract (GCC), Special Conditions of

Contract (SCC) and scope of work, the letter of acceptance will result in a binding contract

in respect of Works Contracts, or Contracts for purchases valued between

A. Rs. 100000-500000

B. Rs. 200000-1000000

C. Rs. 100000-1000000
D. Rs. 200000-1000000

7. A Contract document should be executed, with all necessary clauses to make it a self-

contained Contract in respect of contracts for works with estimated value and purchase of

A. Rs. 1000000 or above

B. Rs. 1500000 or above

C. Rs. 2000000 or above

D. Rs. 5000000 or above

8. Contract document should be invariably executed in cases of following except

A. turnkey works
 B. maintenance of equipment

C. provision of services

D. purchase of IT products

9. Contract document, where necessary, should be executed

A. within 21 days of the issue of letter of acceptance

B. within 21 days of the opening of bid

C. within 30 days of the issue of letter of acceptance

D. within 30 days of the opening of bid

10. State whether true or false Non-executing a contract by the Contractor or Supplier within

the prescribed period would not constitute sufficient ground for annulment of the award

and forfeiture of Earnest Money Deposit.

A. True

B. False

11. Contract in which the price payable for supplies or services under the contract is

determined on the basis of actual cost of production of the supplies or services concerned

plus profit either at a fixed rate per unit or at a fixed percentage on the actual cost of

production is called

A. Fixed Rate Contract

B. Finished Rate Contract

C. Cost Plus Contract

D. Negotiated Contract

12. Price Variation Clause can be provided only in long-term contracts, where the delivery

period extends
A. up-to 18 months

B. up-to 36 months

C. beyond 36 months

D. beyond 18 months

13. The variations under Price Variation Clause are calculated by using indices published by

Governments or
A. Chambers of Commerce

B. Chambers of Trade

C. Chambers of Industries
 D. All of the threes

14. No price adjustment under Price Variation Clause will be made in favour of the supplier

where resultant increase is lower than

A. 1%

B. 2%

C. 5%

D. 10%.

15. No price variation will be admissible beyond the original Scheduled Delivery Date for

defaults on the part of the supplier. However, it may be allowed beyond the original

Scheduled Delivery Date, by specific alteration of that date through an amendment to the

contract in cases of Force Majeure or defaults by Government.

A. True

B. False

16. Copies of all contracts and agreements for purchases, and of all rate and running contracts

entered into by civil departments of the Government other than the departments like the

DGS&D should be sent to the Audit Officer and /or the Accounts officer as the case may be

when value of the contracts/agreements are of

A. Rs. 10 lakh and above

B. Rs. 15 lakh and above

C. Rs. 20 lakh and above

D. Rs. 25 lakh and above

17. Provision for recovery of liquidated damages applies when

A. Item/service received less than supply/work order

B. Description of items are different than what required in supply order

C. Items/services delivered beyond scheduled delivery date

D. Items/service supplied or rendered are in damaged/inappropriate condition.

18. No claim for the payment from contractor shall be entertained after the lapse of

A. 3 years of arising of the claim.

B. 5 years of arising of the claim

C. 7 years of arising of the claim

D. 10 years of arising of the claim

19. Monthly review should be made of all bank guarantees or other instruments expiring
A. within 6 months

B. after 6 months

C. within 3 months
D. after 3 months