Quizzes

Bitcoins are tracked by the Central Banks of the countries.

• This statement is incorrect. Bitcoins operate on a decentralized network using blockchain technology. Central banks, which are typical of traditional fiat currencies, do not track or control Bitcoin. Bitcoin transactions are verified by a network of nodes and recorded on a public ledger known as the blockchain.

Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

• This statement is correct. Bitcoin operates on a peer-to-peer network, allowing individuals to send and receive Bitcoins to and from anyone else who has a Bitcoin address, without the need for an intermediary like a bank.

Online payments can be sent without either side knowing the identity of the other.

• This statement is correct. Bitcoin transactions can be made without disclosing the identity of the parties involved. While Bitcoin addresses are recorded on the blockchain, these addresses do not directly reveal the identity of the users. This anonymity is one of the features that distinguish Bitcoin from traditional banking systems.

• Mining operations by multinational companies: This refers to foreign companies extracting resources. It has no linkage with tax avoidance issues which Base Erosion and Profit Shifting (BEPS) aims to tackle.
• Curbing of tax evasion by multinational companies: Correct. Discussions around reforming international tax laws to curb BEPS techniques applied by MNCs to artificially shift profits and avoid taxes is the relevant context.
• Exploitation of genetic resources: Access to biological/genetic resources again relates to domain of environmental regulations rather than corporate taxes and profit shifting loopholes. No connection to BEPS.
• Environmental costs in development projects: This pertains to ensuring ecological preservation in infrastructure plans. It is also an unrelated aspect with respect to BEPS discussions around corporate tax avoidance.

It is an organ of NITI Aayog.

• This statement is incorrect. The Financial Stability and Development Council (FSDC) is an independent regulatory body established in 2010.
• It is not a part or organ of NITI Aayog, which is a policy think tank that provides strategic policy advice to the government.

It is headed by the Union Finance Minister.

• This statement is correct. As per its composition outlined, the FSDC is chaired by the Union Finance Minister of India.

It monitors macroprudential supervision of the economy.

• This statement is correct. Ensuring financial stability and macroprudential supervision of the economy is a key objective of the FSDC.

In summary, the FSDC is an independent statutory institution headed by the Finance Minister. It is not connected to NITI Aayog in any administrative capacity.