UPSC Prelims Topic Wise Questions For Economy – Last 15 Year

UPSC Prelims Topic Wise Questions for Economy are provided here.

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UPSC Prelims Topic Wise Questions for Economy 2023

UPSC Prelims Topic Wise Questions for Economy 2022

1. Consider the following statements:

1. Gujarat has the largest solar park in India.

2. Kerala has a fully solar powered International Airport.

3. Goa has the largest floating solar photovoltaic project in India.

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(d) 3 only

2. Consider the following statements:

1. Tight monetary policy of US Federal Reserve could lead to capital flight.

2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).

3. Devaluation of domestic currency decreases the currency risk associated with ECBS.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

3. Consider the following statements:

1. In India, credit rating agencies are regulated by Reserve Bank of India.

2. The rating agency popularly known as ICRA is a public limited company.

3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

4. With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?

1. The Governor of RBI is the Chairman of BBB.

2. BBB recommends for the selection of heads for Public Sector Banks.

3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

5. With reference to Convertible Bonds, consider the following statements:

1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.

2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

6. In India, which one of the following is responsible for maintaining price stability by controlling inflation?

(a) Department of Consumer Affairs

(b) Expenditure Management Commission

(d) Reserve Bank of India

7. With reference to Non-Fungible Token (NFTs), consider the following statements:

1. They enable the digital representation of physical assets.

2. They are unique cryptographic tokens that exist on a blockchain.

3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

8. With reference to the Indian economy, consider the following statements:

1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.

2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.

3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

9. With reference to the Indian economy, consider the following statements:

1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.

2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.

3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Ans: (b)

10. With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”?

1. Government can reduce the coupon rates on its borrowing by way of IIBs.

2. IIBS provide protection to the investors from uncertainty regarding inflation.

3. The interest received as well as capital gains on IIBs are not taxable.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

11. With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?

1. They can sell their own goods in addition to offering their platforms as market-places.

2. The degree to which they can own big sellers on their platforms is limited.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

12. Which of the following activities constitute real sector in the economy?

1. Farmers harvesting their crops

2. Textile mills converting raw cotton into fabrics

3. A commercial bank lending money to a trading company.

4. A corporate body issuing Rupee Denominated Bonds overseas.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2, 3 and 4 only

(d) 1, 2, 3 and 4

13. Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with referece to India?

(a) An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment.

(b) A foreign company investing in Indian and paying taxes to the country of its base on the profits arising out of its investment.

(c) An Indian company purchases tangible assests in a foreign country and sells such assets after their value increases and transfers the proceeds to India.

(d) A foreign compnay transfers shares and such shares derive their substantial value from assest located in India.

14. With reference to the expenditure made by an organization or a company, which of the following statements is/are correct?

1. Acquiring new technology is capital expenditure.

2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

15. With reference to the Indian economy, consider the following statements:

1. A share of the household financial savings goes towards government borrowings.

2. Dated securities issued at marked-related rates in auctions form a large component of internal debt.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

UPSC Prelims Topic Wise Questions for Economy 2021

1. The money multiplier in an economy increases with which one of the following?

(a) Increase in the Cash Reserve Ratio in the banks

(b) Increase in the Statutory Liquidity Ratio in the banks

(c) Increase in the banking habit of the people

(d) Increase in the population of the country

2. With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?

Expansionary policies
Fiscal stimulus
Inflation-indexing wages
Higher purchasing power
Rising interest rates

Select the correct answer using the code given below.

(a) 1, 2 and 4 only

(b) 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5

3. With reference to India, consider the following statements:

Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(d) 2 and 3 only

4. In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following?

Lending to trade and industry bodies when they fail to borrow from other sources
Providing liquidity to the banks having a temporary crisis
Lending to governments to finance budgetary deficits

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(d) 3 only

5. Consider the following statements:

The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

6. With reference to casual workers employed in India, consider the following statements:

All casual workers are entitled for Employees Provident Fund coverage.
All casual workers are entitled for regular working hours and overtime payment.
The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

7. Which among the following steps is most likely to be taken at the time of an economic recession?

(a) Cut in tax rates accompanied by increase in interest rate

(b) Increase in expenditure on public projects

(d) Reduction of expenditure on public project

8. Consider the following statements:

Other things remaining unchanged, market demand for a good might increase if

Price of its substitute increase
Price of its complement increase
The good is an inferior good and income of the consumers increases
Its price falls

Which of the above statements are correct?

(a) 1 and 4 only

(b) 2, 3 and 4 only

(d) 1, 2 and 3 only

9. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements:

They are supervised and regulated by local boards set up by the State Governments.
They can issue equity shares and preference shares.
They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

10. Indian Government Bond Yields are influenced by which of the following?

Actions of the United States Federal Reserve
Actions of the Reserve Bank of India
Inflation and short-term interest rates

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

11. Consider the following:

Foreign currency convertible bonds
Foreign institutional investment with certain conditions
Global depository receipts
Non-resident external deposits

Which of the above can be included in Foreign Direct Investments?

(a) 1, 2 and 3 only

(b) 3 only

(d) 1 and 4 only

12. Consider the following statements:

The effect of devaluation of a currency is that it necessarily

Improves the competitiveness of the domestic exports in the foreign markets
Increases the foreign value of domestic currency
Improves the trade balance

Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 2 only

(d) 2 and 3 only

13. Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

(a) Diversion of resources to the purchase of real estate and investment in luxury housing

(b) Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.

(d) Loss of revenue to the State Exchequer due to tax evasion

14. Which of the following is likely to be the most inflationary in its effects?

(a) Repayment of public debt

(b) Borrowing from the public to finance a budget deficit

(d) Creation of new money to finance a budget deficit

UPSC Prelims Topic Wise Questions for Economy 2020

1. If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?

Not depending on short-term foreign borrowings
Opening up to more foreign banks
Maintaining full capital account convertibility

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

2. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

(a) to reduce it by ₹1,00,000

(b) to increase it by ₹1,00,000

(d) to leave it unchanged

3. “Gold Tranche” (Reserve Tranche) refers to

(a) a loan system of the World Bank

(b) one of the operations of a Central Bank

(d) a credit system granted by IMF to its members

4. In India, which of the following can be considered as public investment agriculture?

Fixing Minimum Support Price for agricultural produce of all corps
Computerization of Primary Agricultural Credit Societies
Social Capital development
Free electricity supply to farmers
Waiver of agricultural loans by the banking system
Setting up of cold storage facilities by the governments

Select the correct answer using the code given below :

(a) 1, 2 and 5 only

(b) 1, 3, 4 and 5 only

(c) 2, 3 and 6 only

(d) 1, 2, 3, 4, 5 and 6

5. What is the importance of the term “Interest Coverage Ratio” of a firm in India?

It helps in understanding the present risk of a firm that a bank is going to give loan to.
It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

6. Which of the following factors/policies were affecting the price of rice in India in the recent past?

Minimum Support Price
Government’s trading
Government’s stockpiling
Consumer subsidies

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

7. Consider the following statements:

The value of Indo-Sri Lanka trade has consistently increased in the last decade.
“Textile and textile articles” constitute an important item of trade between India and Bangladesh.
In the last five years, Nepal has been the largest trading partner of India in South Asia.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

8. Under the Kisan credit card scheme, short-term credit support is given to farmers for which of the following purposes?

Working capital for maintenance of farm assets
Purchase of combine harvesters, tractors and mini trucks
Consumption requirements of farm households
Post-harvest expenses
Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below :

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(d) 1, 2, 3, 4 and 5

9. Consider the following statements:

The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
The WPI does not capture changes in the prices of services, which CPI does.
Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

10. Consider the following statements:

In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

11. With reference to the Indian economy, consider the following statements:

‘Commercial Paper’ is a short-term unsecured promissory note.
‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
‘Call Money’ is a short-term finance used for interbank transactions.
‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 4 only

(c) 1 and 3 only

(d) 2, 3 and 4 only

12. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?

(a) It is the investment through capital instruments essentially in a listed company.

(b) It is a largely non-debt creating capital flow.

(d) It is the investment made by foreign institutional investors in the Government securities.

13. With reference to the international trade of India at present, which of the following statements is/are correct?

India’s merchandise exports are less than its merchandise imports.
India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
India’s exports of services are more than its imports of services.
India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 4 only

(d) 1, 3 and 4 only

14. The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

(a) Crude oil

(b) Bullion

(d) Uranium

15. In the context of the Indian economy, non-financial debt includes which of the following?

Housing loans owed by households
Amounts outstanding on credit cards
Treasury bills

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

16. With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?

Quantitative restrictions on imports by foreign investors are prohibited.
They apply to investment measures related to trade in both goods and services.
They are not concerned with the regulation of foreign investment.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

17. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

Cut and optimize the Statutory Liquidity Ratio
Increase the Marginal Standing Facility Rate
Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

18. With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

Worker productivity (Rs. per worker at 2004 — 05 prices) increased in urban areas while it decreased in rural areas.
The percentage share of rural areas in the workforce steadily increased.
In rural areas, the growth in non-farm economy increased.
The growth rate in rural employment decreased.

Which of the statements given above is/are Correct?

(a) 1 and 2 only

(b) 3 and 4 only

(d) 1, 2 and 4 only

19. Consider the following statements:

In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

20. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits?

Cost of restoration of the computer system in case of malware disrupting access to one’s computer
Cost of a new computer if some miscreant wilfully damages it, if proved so
Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
Cost of defence in the Court of Law if any third party files a suit

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

UPSC Prelims Topic Wise Questions for Economy 2019

1. With reference to land reforms in independent India, which one of the following statements is correct?

(a) The ceiling laws were aimed at family holdings and not individual holdings.

(b) The major aim of land reforms was providing agricultural land to all the landless.

(d) Land reforms permitted no exemptions to the ceiling limits.

2. In a given year in India, official poverty lines are higher in some States than in others because

(a) poverty rates vary from State to State

(b) price levels vary from State to State

(d) quality of public distribution varies from State to State

3. Among the following, which one is the largest exporter of rice in the world in the last five years?

(a) China

(b) India

(d) Vietnam

4. Consider the following statements:

Coal sector was nationalized by the Government of India under Indira Gandhi.
Now, coal blocks are allocated on lottery basis.
Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

5. Consider the following statements:

The United Nations Convention against Corruption (UNCAC) has a ‘Protocol against the Smuggling of Migrants by Land, Sea and Air’.
The UNCAC is the ever-first legally binding global anti-corruption instrument.
A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly.
The United Nations Office on Drugs and Crime (UNODC) is mandated by its member States to assist in the implementation of both UNCAC and UNTOC.

Which of the statements given above are correct?

(a) 1 and 3 only

(b) 2, 3 and 4 only

(c) 2 and 4 only

(d) 1, 2, 3 and 4

6. Consider the following statements:

As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
no notice of termination of employment shall be necessary in the case of temporary workman

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

7. The Service Area Approach was implemented under the purview of

(a) Integrated Rural Development Programme

(b) Lead Bank Scheme

(d) National Skill Development Mission

8. Consider the following statements:

Most of India’s external debt is owed by governmental entities.
All of India’s external debt is denominated in US dollars.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

9. Which of the following is not included in the assets of a commercial bank in India?

(a) Advances

(b) Deposits

(d) Money at call and short notice

10. In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

The foreign currency earnings of India’s IT sector
Increasing the government expenditure
Remittances from Indians abroad

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 3 only

(d) 1, 2 and 3

11. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

(a) Certificate of Deposit

(b) Commercial Paper

(d) Participatory Note

12. With reference to India’s Five-Year Plans, which of the following statements is/are correct?

From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

13. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

(a) To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit

(b) To support the infrastructure projects of Central and State Governments

(d) To aim at faster resolution of stressed assets of Rs 50 crore or more which are under consortium lending

14. The Chairmen of public sector banks are selected by the

(a) Banks Board Bureau

(b) Reserve Bank of India

(d) Management of concerned bank

15. Consider the following statements:

Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
One of the tasks of PNGRB is to ensure competitive markets for gas.
Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

16. Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?

(a) Maintenance of law and order

(b) Paying taxes

(d) Dealing with construction permits

17. In India, ‘extend producer responsibility’ was introduced as an important feature in which of the following?

(a) The Bio-medical Waste (Management and Handling) Rules, 1998

(b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

(c) The e-Waste (Management and Handling) Rules, 2011

(d) The Food Safety and Standard Regulations, 2011

18. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

(a) transportation cost only

(b) interest cost only

(c) procurement incidentals and distribution cost

(d) procurement incidentals and charges for godowns

19. Consider the following statements:

Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
In terms of PPP dollars, India is the sixth largest economy in the world.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

20. Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

(a) Spices

(b) Fresh fruits

(d) Vegetable oils

21. Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?

(a) Curbing imports of non-essential goods and promoting exports

(b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds

(d) Following an expansionary monetary policy

22. Consider the following statements:

The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data, popularly known as data diktat, command the payment system providers that

they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India
they shall ensure that the systems are owned and operated by public sector enterprises
they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

23. The money multiplier in an economy increases with which one of the following?

(a) Increase in the cash reserve ratio

(b) Increase in the banking habit of the population

(d) Increase in the population of the country

UPSC Prelims Topic Wise Questions for Economy 2018

1. Consider the following:

Areca nut
Barley
Coffee
Finger millet
Groundnut
Sesamum
Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

(a) 1, 2, 3 and 7 only

(b) 2, 4, 5 and 6 only

(d) 1, 2, 3, 4, 5, 6 and 7

2. With reference to the governance of public sector banking in India, consider the following statements:

Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

3. Consider the following items:

Cereal grains hulled
Chicken eggs cooked
Fish processed and canned
Newspapers containing advertising material

Which of the above items is/are exempted under GST (Good and Services Tax)?

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

4. Consider the following countries:

Australia
Canada
China
India
Japan
USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5

(b) 3, 4, 5 and 6

(c) 1, 3, 4 and 5

(d) 2, 3, 4 and 6

5. Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India?

Formation of India’s own Internet companies like China did.
Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
Connect many of our villages to the Internet and bring Wi-Fi to many of our schools, public places and major tourist centres.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

6. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

It is the flagship scheme of the Ministry of Labour and Employment.
It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy.
It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2, and 3

7. The Partnership for Action on Green Economy (PAGE), a UN mechanism to assist countries transition towards greener and more inclusive economies, emerged at

(a) The Earth Summit on Sustainable Development 2002, Johannesburg.

(b) The United Nations Conference on Sustainable Development 2012, Rio de Janeiro.

(d) The World Sustainable Development Summit 2016, New Delhi.

8. Which one of the following statements correctly describes the meaning of legal tender money?

(a) The money which is tendered in courts of law to defray the fee of legal cases

(b) The money which a creditor is under compulsion to accept in settlement of his claims

(d) The metallic money in circulation in a country

9. If a commodity is provided free to the public by the Government, then

(a) the opportunity cost is zero.

(b) the opportunity cost is ignored.

(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.

(d) the opportunity cost is transferred from the consumers of the product to the Government.

10. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

(a) industrial output fails to keep pace with agricultural output.

(b) agricultural output fails to keep pace with industrial output.

(c) poverty and unemployment increase.

(d) imports grow faster than exports.

11. Consider the following statements:

Human capital formation as a concept is better explained in terms of a process which enables

Individuals of a country to accumulate more capital.
Increasing the knowledge, skill levels and capacities of the people of the country.
Accumulation of tangible wealth.
Accumulation of intangible wealth

Which of the statements given above is/are correct?

(a) 1 and 2

(b) 2 only

(c) 2 and 4

(d) 1, 3 and 4

12. Despite being a high saving economy, capital formation may not result in significant increase in output due to

(a) weak administrative machinery

(b) illiteracy

(d) high capital-output ratio

13. Consider the following statements:

The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

14. Consider the following statements:

Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
CAR is decided by each individual bank.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

15. Consider the following statements:

The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

16. With reference to the provisions made under the National Food Security Act, 2013, consider the following statements:

The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.
The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 3 only

17. With reference to digital payments, consider the following statements:

BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

18. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

It is introduced as a part of the Income Tax Act.
Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

19. Consider the following statements:

The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

20. Consider the following statements:

The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

21. Which one of the following links all the ATMs in India?

(a) Indian Banks’ Association

(b) National Securities Depository Limited

(c) National Payments Corporation of India

(d) Reserve Bank of India

22. Consider the following statements:

Aadhaar card can be used as a proof of citizenship or domicile.
Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

UPSC Prelims Topic Wise Questions for Economy – 2017

23. What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

It is a pan-India electronic trading portal for agricultural commodities.
It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither1 nor 2

24. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

It decides the RBI’s benchmark interest rates,
It is a 12-member body including the Governor of RBI and is reconstituted every year.
It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(d) 2 and 3 only

25. Consider the following statements:

National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country
NPCI has launched RuPay, a card payment scheme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither1 nor 2

26. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

27. Consider the following statements:

Tax revenue as a percent of GDP of India has steadily increased in the last decade.
Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither I nor 2

28. Consider the following statements:

The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

29. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

Share of agriculture in GDP increased enormously.
Share of India’s exports in world trade increased.
FDI inflows increased. 4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2, 3 and 4 only

(d) 1, 2, 3

30. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(d) It is an important provision in The Insolvency and Bankruptcy Code’ recently implemented by the Government.

31. Consider the following statements:

India has ratified the Trade Facilitation Agreement (TFA) of WTO.
TFA is a part of WTO’s Bali Ministerial Package of 2013.
TFA came into force in January 2016.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

32. With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:

It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

33. Which of the following is a most likely consequence of implementing the Unified Payments Interface (UPI)?

(a) Mobile wallets will not be necessary for online payments.

(b) Digital currency will totally replace the physical currency in about two decades.

(d) Direct transfer of subsidies to poor people will become very effective.

34. What is the purpose of setting up of Small Finance Banks (SFBs) in India?

To supply credit to small business units
To supply credit to small and marginal farmers
To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

35. With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), consider the following statements:

A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
Properties held benami are liable for confiscation by the Government.
The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements .given above is/are correct?

(a) 1only

(b) 2 only

(d) 2 and 3 only

36. ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

(a) European Union

(b) Gulf Cooperation Council

(d) Shanghai Cooperation Organization

37. The term ‘Digital Single Market Strategy’ seen in the news refers to

(a) ASEAN

(b) BRICS

(c) EU

(d) G20

38. Consider the following statements:

India has ratified the Trade Facilitation Agreement (TFA) of WTO.
TFA is a part of WTO’s Bali Ministerial Package of 2013.
TFA came into force in January 2016.

Which of the statements given above is/are correct?

(a) 1 and 2only

(b) 1 and 3 only

(d) 1, 2 and 3

39. Consider the following in respect of ‘National Career Service’:

National Career Service is an initiative of the Department of Personnel and Training, Government of India.
National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

40. What is the aim of the programme ‘Unnat Bharat Abhiyan’?

(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.

(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.

(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.

41. The Global Infrastructure Facility is a/an

(a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.

(b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.

(c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private investment.

(d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.

42. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crore at present.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

43. Which of the following are the objectives of ‘National Nutrition Mission’?

To create awareness relating to malnutrition among pregnant women and lactating mothers.
To reduce the incidence of anemia among young children, adolescent girls and women.
To promote the consumption of millets, coarse cereals and unpolished rice.
To promote the consumption of poultry eggs.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2 and 3 only

(d) 3 and 4 only

44. What is the purpose of Vidyanjali Yojana’?

To enable the famous foreign educational institutions to open their campuses in India.
To increase the quality of education provided in government schools by taking help from the private sector and the community.
To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

(a) 2 only

(b) 3 only

(d) 2 and 3 only

UPSC Prelims Topic Wise Questions for Economy – 2016

45. With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither1 nor 2

46. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

(a) WTO affairs

(b) SAARC affairs

(d) India-EU negotiations on FTA

47. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(a) Rouble

(b) Rand

(d) Renminbi

48. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?

(a) Organization for Economic Cooperation and Development (OECD)

(b) World Economic Forum

(c) World Bank

(d) World Trade Organization (WTO)

49. Consider the following statements:

New Development Bank has been set up by APEC.
The headquarters of New Development Bank is in Shanghai.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

50. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
The World Bank participates as observer in MFC’s meetings,

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither I nor 2

51. ‘Global Financial Stability Report’ is prepared by the

(a) European Central Bank

(b) International Monetary Fund

(d) Organization for Economic Cooperation and Development

52. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

(a) It is the ratio of value of imports to the Gross Domestic Product of a country

(b) It is the total value of imports of a country in a year

(d) It is the number of months of imports that could be paid for by a country’s international reserves

53. With reference to ‘Financial Stability and Development Council’, consider the following statements:

It is an organ of NITI Aayog.
It is headed by the Union Finance Minister
It monitors macro-prudential supervision of the economy.

Which of the statements given above is/ are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

54. ‘The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
Payment Banks can issue both credit cards and debit cards.
Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

55. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither I nor 2

56. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme”?

To bring the idle gold lying with Indian households into the economy
To promote FDI in the gold and jewellery sector
To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

57. Which of the following is/are included in the capital budget of the Government of India?

Expenditure on acquisition of assets like roads, buildings, machinery, etc,
Loans received from foreign governments
Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

58. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

(a) Providing technical and financial assistance to start-up entre-preneurs in the field of renewable sources of energy

(b) Providing electricity to every household iv the country by 2018

(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time.

(d) Providing for financial turnaround and revival of power distribution companies

59. With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?

Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
It provides for refinance through SIDBI,

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither1 nor 2

60. ‘SWAYAM’, an initiative of the Government of India, aims at

(a) promoting the Self Help Groups in rural areas

(b) providing financial and technical assistance to young start-up entrepreneurs

(d) providing affordable and quality education to the citizens for free

61. Pradhan Mantri MUDRA Yojana is aimed at

(a) bringing the small entrepreneurs into formal financial system

(b) providing loans to poor farmers for cultivating particular crops

(d) funding the voluntary organizations involved in the promotion of skill development and employment generation

62. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
Only one member of a family can join the scheme.
Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

63. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

(a) mining operation by multinational companies in resource-rich but backward areas

(b) curbing of the tax evasion by multinational companies

(d) lack of consideration of environmental planning and developmental costs in the implementation of projects

64. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

Reducing revenue expenditure
Introducing new welfare schemes
Rationalizing subsidies
Reducing import duty

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

65. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

66. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

Promoting mineral exploration activities in mineral-rich districts
Protecting the interests of the persons affected by mining operations
Authorizing State Governments to issue licences for mineral exploration

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

67. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?

Undernourishment
Child stunting
Child mortality

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1 and 3 only

UPSC Prelims Topic Wise Questions for Economy – 2015

68. The substitution of steel for wooden ploughs in agricultural production is an example of

(a) labour-augmenting technological progress

(b) capital-augmenting technological progress

(d) None of the above

69. Which one of the following best describes the main objective of Seed Village Concept?

(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others

(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

(d) Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies

70. The Fair and Remunerative Price (FRP) of sugarcane is approved by the

(a) Cabinet Committee on Economic Affairs

(b) Commission for Agricultural Costs and Prices

(d) Agricultural Produce Marketing Committee

71. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

(a) Coal production

(b) Electricity generation

(d) Steel production

72. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers?

(a) The Reserve Bank of India

(b) The Department of Economic Affairs

(c) The Labour Bureau

(d) The Department of Personnel and Training

73. Which one of the following issues the ‘Global Economic Prospects’ report periodically?

(a) The Asian Development Bank

(b) The European Bank for Reconstruction and Development

(d) The World Bank

74. The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phyto-sanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of affairs of the

(a) Food and Agriculture Organization

(b) United Nations Framework Conference on Climate Change

(c) World Trade Organization

(d) United Nations Environment Programme

75. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

(a) develop national strategies for the conservation and sustainable use of biological diversity

(b) improve banking sector’s ability to deal with financial and econo-mic stress and improve risk management

(d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

76. Convertibility of rupee implies:

(a) being able to convert rupee notes into gold

(b) allowing the value of rupee to be fixed by market forces

(c) freely permitting the conversion of rupee to other currencies and vice versa

(d) developing an international market for currencies in India

77. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

Reducing revenue expenditure
Introducing new welfare schemes
Rationalizing subsidies
Expanding industries

Select the correct answer using the code given below:

(a) 1 and 3 only

(b) 2 and 3 only

(d) 1, 2, 3 and 4

78. With reference to inflation in India, which of the following statements is correct?

(a) Controlling the inflation in India is the responsibility of the Government of India only

(b) The Reserve Bank of India has no role in controlling the inflation

(c) Decreased money circulation helps in controlling the inflation

(d) Increased money circulation helps in controlling the inflation

79. The problem of international liquidity is related to the non-availability of

(a) goods and services

(b) gold and silver

(c) dollars and other hard currencies

(d) exportable surplus

80. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

81. With reference to Indian economy, consider the following statements:

The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

82. A decrease in tax to GDP ratio of a country indicates which of the following?

Slowing economic growth rate
Less equitable distribution of national income

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither1 nor 2

83. With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:

Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

84. Pradhan Mantri Jan-Dhan Yojana’ has been launched for

(a) providing housing loan to poor people at cheaper interest rates

(b) promoting women’s Self-Help Groups in backward areas

(c) promoting financial inclusion in the country

(d) providing financial help to the marginalized communities

85. Consider the following statements:

The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency,

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

86. In India, markets in agricultural products are regulated under the

(a) Essential Commodities Act, 1955

(b) Agricultural Produce Market Committee Act enacted by States

(d) Food Products Order, 1956 and Meat and Food Products Order, 1973

87. The Government of India has established NITI Aayog to replace the

(a) Human Rights Commission

(b) Finance Commission

(d) Planning Commission

88. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points which of the following is likely to happen?

(a) India’s GDP growth rate increases drastically

(b) Foreign Institutional Investors may bring more capital into our country

(c) Scheduled Commercial Banks may cut their lending rates

(d) It may drastically reduce the liquidity to the banking system

89. With reference to Indian economy, consider the following:

Bank rate
Open market operations
Public debt
Public Revenue

Which of the above is/are component/components of Monetary Policy?

(a) 1 only

(b) 2, 3 and 4

(c) 1 and 2

(d) 1, 3 and 4

90. With reference to inflation in India, which of the following statements is correct?

(a) Controlling the inflation in India is the responsibility of the Government of India only

(b) The Reserve Bank of India has no role in controlling the inflation

(d) Increased money circulation helps in controlling the inflation

91. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

It is a Public Limited Government Company.
It is a Non-Banking Financial Company.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

UPSC Prelims Topic Wise Questions for Economy – 2014

92. In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider/greater implementation?

There is no National Seeds Policy in place.
There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below.

(a) 1 and 2

(b) 3 only

(d) None

93. Which of the following organizations brings out the publication known as ‘World Economic Outlook’?

(a) The International Monetary Fund

(b) The United Nations Development Programme

(d) The World Bank

94. Which of the following are associated with ‘Planning’ in India?

The Finance Commission
The National Development Council
The Union Ministry of Rural Development
The Union Ministry of Urban Development
The parliament

Select the correct answer using the code given below.

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(d) 1, 2, 3, 4 and 5

95. The main objective of the 12th Five-Year Plan is

(a) inclusive growth and poverty reduction

(b) inclusive growth and sustainable growth

(d) faster, sustainable and more inclusive growth

96. If the interest rate is decreased in an economy, it will

(a) decrease the consumption expenditure in the economy

(b) increase the tax collection of the Government

(d) increase the total savings in the economy

97. What does venture capital mean?

(a) A short-term capital provided to industries

(b) A long-term start-up capital provided to new entrepreneurs

(d) Funds provided for replacement and renovation of industries

98. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

(a) banking operations

(b) communication networking

(d) supply and demand of agricultural products

99. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

100. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

To enable the Central Bank to control the amount of advances the banks can create
To make the people’s deposits with banks safe and liquid
To prevent the commercial banks from making excessive profits
To force the banks to have sufficient vault-cash to meet their day-to-day requirements

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 2 only

(d) 1, 2, 3 and 4

101. The sales tax you pay while purchasing a toothpaste is a

(a) tax imposed by the Central Government

(b) tax imposed by the Central Government but collected by the State Government

(d) tax imposed and collected by the State Government

102. With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account?

Balance of trade
Foreign assets
Balance of invisibles
Special Drawing Rights

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3

(d) 1, 2 and 4

103. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

Defence expenditure
Interest payments
Salaries and pensions
Subsidies

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) None

UPSC Prelims Topic Wise Questions for Economy – 2013

104. Disguised unemployment generally means

(a) large number of people remain unemployed

(b) alternative employment is not available

(d) productivity of workers is low

105. Which one of the following groups of items is included in India’s foreign-exchange reserves?

(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries

(b) Foreign-currency assets, gold holdings of the RBI and SDRs

(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

106. An increase in the Bank Rate generally indicates that the

(a) Market rate of interest is likely to fall

(b) Central Bank is no longer making loans to commercial banks

(d) Central Bank is following a tight money policy

107. In India, deficit financing is used for raising resources for

(a) Economic development

(b) Redemption of public debt

(d) Reducing the foreign debt

108. Priority Sector Lending by banks in India constitutes the lending to

(a) agriculture

(b) micro and small enterprises

(d) All of the above

109. A rise in general level of prices may be caused by

an increase in the money supply
a decrease in the aggregate level of output
an increase in the effective demand

Select the correct answer using the codes given below.

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

110. Which one of the following is likely to be the most inflationary in its effect?

(a) Repayment of public debt

(b) Borrowing from the public to finance a budget deficit

(d) Creating new money to finance a budget deficit

111. Supply of money remaining the same when there is an increase in demand for money, there will be

(a) a fall in the level of prices

(b) an increase in the rate of interest

(d) an increase in the level of income and employment

112. Which of the following grants/grant direct credit assistance to rural households?

Regional Rural Banks
National Bank for Agriculture and Rural Development
Land Development Banks

Select the correct answer using below.

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

113. Consider the following statements:

Inflation benefits the debtors.
Inflation benefits the bondholders.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

114. Consider the following liquid assets:

Demand deposits with the banks
Time deposits with the banks
Savings deposits with the banks
Currency

The correct sequence of these assets in the decreasing order of liquidity is

(a) 1-4-3-2

(b) 4-3-2-1

(d) 4-1-3-2

115. The balance of payments of a country is a systematic record of

(a) All import and export transactions of a country during a given period of time, normally a year

(b) Goods exported from a country during a year

(d) Capital movements from one country to another

116. The Reserve Bank of India regulates the commercial banks in matters of

Liquidity of assets
Branch expansion
Merger of banks
Winding-up of banks

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2, 3 and 4 only

(d) 1, 2, 3 and 4

117. Which of the following constitute Capital Account?

Foreign Loans
Foreign Direct Investment
Private Remittances
Portfolio Investment

Select the correct answer using the codes given below.

(a) 1, 2 and 3

(b) 1, 2 and 4

(d) 1, 3 and 4

118. In the context of Indian economy, ‘Open Market Operations’ refers to

(a) borrowing by scheduled banks from the RBI

(b) lending by commercial banks to industry and trade

(d) None of the above

119. The national income of a country for a given period is equal to the

(a) total value of goods and services produced by the nationals

(b) sum of total expenditure

(d) money value of final goods and services produced

120. To obtain full benefits of demographic dividend, what should India do?

(a) Promoting skill development

(b) Introducing more social security schemes

(d) Privatization of higher education

121. Economic growth in country X will occur if

(a) there is technical progress in the world economy

(b) there is population growth in X

(d) the volume of trade grows in the world economy

UPSC Prelims Topic Wise Questions for Economy – 2012

122. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

Deprivation of education, health, assets and services at household level
Purchasing power parity at national level
Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

123. Consider the following specific stages of demographic transition associated with economic development

Low birthrate with low death rate
High birthrate with high death rate
High birthrate with low death rate

Select the correct order of the above stages using the codes given below:

(a) 1, 2, 3

(b) 2, 1, 3

(d) 3, 2, 1

124. Which of the following can aid in furthering the Government’s objective of inclusive growth?

Promoting Self-Help Groups
Promoting Micro, Small and Medium Enterprises
Implementing the Right to Education Act

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

125. With reference to National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained community health worker?

Accompanying women to the health facility for antenatal care checkup
Using pregnancy test kits for early detection of pregnancy
Providing information on nutrition and immunization
Conducting the delivery of baby

Select he correct answer using the codes given below:

(a) 1, 2 and 3 only

(b) 2 and 4 only

(d) 1, 2, 3 and 4

126. The endeavour of ‘Janani Suraksha Yojana’ Programme is

to promote institutional deliveries
to provide monetary assistance to the mother to meet the cost of delivery.
to provide for wage loss due to pregnancy and confinement

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

127. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?

By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
By strengthening ‘self-help groups’ and providing skill development
By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

128. Consider the following:

Hotels and restaurants
Motor transport undertakings
Newspaper establishments
Private medical institutions

The employees of which of the above can have the `Social Security’ coverage under Employees’ State Insurance Scheme?

(a) 1, 2 and 3 only

(b) 4 only

(d) 1, 2, 3 and 4

129. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?

DRDAs act as Panchayati Raj Institutions in certain Specified backward regions of the country.
DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.
DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes

Which of the statements given above is/are correct?

(a) 1, 2 and 3 only

(b) 3 and 4 only

(d) 1, 2, 3 and 4

130. The Reserve Bank of India (RBI) acts as a bankers’ bank.

This would imply which of the following?

Other banks retain their deposits with the RBI.
The RBI lends funds to the commercial banks in times of need.
The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below:

(a) 2, and 3 only

(b) 1 and 2 only

(d) 1, 2 and 3

131. Under which of the following circumstances may ‘capital gains arise?

When there is an increase in the sales of a product
When there is a natural increase in the value of the property owned
When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

132. Which of the following measures would result in an increase in the money supply in the economy?

Purchase of government securities from the public by the Central Bank
Deposit of currency in commercial banks by the public
Borrowing by the government from the Central Bank
Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 4 only

(d) 2, 3 and 4

133. Consider the following statements: The price of any currency in international decided by the

World Bank
Demand for goods/services provided by the country concerned
Stability of the government of the concerned country
Economic potential of the country in question

Which of the statements given above are correct?

(a) 1, 2, 3 and 4

(b) 2 and 3 only

(d) 1 and 4 only

134. The basic aim of Lead Bank Scheme is that

(a) big banks should try to open offices in each district

(b) there should be stiff competition among the various nationalized banks

(d) all the banks should make intensive efforts to mobilize deposits

135. Which of the following can be said to be essentially the parts of ‘Inclusive Governance”?

Permitting the Non-Banking Financial Companies to do banking
Establishing effective District Planning Committees in all the districts
Increasing the government spending on public health
Strengthening the Mid-day Meal Scheme

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 3 and 4 only

(d) 1, 2, 3 and 4

136. Which of the following would include Foreign Direct Investment in India?

Subsidiaries of foreign companies in India
Majority foreign equity holding in Indian companies
Companies exclusively financed by foreign companies
Portfolio investment

Select the correct answer using the codes given below:

(a) 1, 2, 3 and 4

(b) 2 and 4 only

(d) 1, 2 and 3 only

137. Consider the following statements:

The price of any currency in international market is decided by the

World Bank
Demand for goods/services provided by the country concerned
Stability of the government of the concerned country
Economic potential of the country in question.

Select the correct answer using the codes below:

(a) 1, 2, 3 and 4 are correct

(b) 2 and 3 are correct

(d) 1 and 4 are correct

138. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?

Cement
Fertilizers
Natural Gas
Refinery products
Textiles

Select the correct answer using the codes given below

(a) 1 and 5 only

(b) 2, 3 and 4 only

(d) 1, 2, 3, 4 and 5

139. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

Setting up of National Investment and Manufacturing Zones
Providing the benefit of ‘single window clearance’
Establishing the Technology Acquisition and Development Fund.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(d) 1, 2 and 3

UPSC Prelims Topic Wise Questions for Economy – 2011

140. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

(a) Commercial Banks

(b) Cooperative Banks

(d) Microfinance Institutions

141. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/ are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

142. Regarding the International Monetary Fund, which one of the following statements is correct?

(a) It can grant loans to any country

(b) It can grant loans to only developed countries

(d) It can grant loans to the central bank of a country

143. Consider the following actions which the Government can take:

Devaluing the domestic currency.
Reduction in the export subsidy.
Adopting suitable policies which attract greater FDI and more funds from FIls.

Which, of the above action/actions can help in reducing the current account deficit?

(a) 1 and 2

(b) 2 and 3

(d) 1 and 3

144. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

(a) FII helps bring better management skills and technology, while FDI only brings in capital

(b) FII helps in increasing capital availability in general, while FDI only targets specific sectors

(d) FII is considered to be more stable than FDI

145. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to

(a) Export

(b) Import

(d) Consumption

146. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

(a) It is the impact of drastic deficiency in supply due to failure of crops

(b) It is the impact of the surge in demand due to rapid economic growth

(d) None of the statements (a), (b) and (c) given above is correct in this context

147. Why is the offering of “teaser loans” by commercial banks a cause of economic concern?

The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future,
In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 or 2

148. The lowering of Bank Rate by the Reserve Bank of India leads to

(a) More liquidity in the market

(b) Less liquidity in the market

(d) Mobilization of more deposits by commercial banks

149. Which one of the following statements appropriately describes the “fiscal stimulus”?

(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth

(b) It is an intense affirmative action of the Government to boost economic activity in the country

(c) It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation

(d) It is an extreme affirmative action by the Government to pursue its policy of financial, inclusion

150. In the context of Indian economy, consider the following statements:

The growth rate of GDP has steadily increased in the last five years.
The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

151. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

(a) Adult members of only the scheduled caste and scheduled tribe households

(b) Adult members of below poverty line (BPL) households

(d) Adult members of any household

152. A “closed economy” is an economy in which

(a) the money supply is fully controlled

(b) deficit financing takes place

(d) neither exports nor imports take place

153. With what purpose is the Government of India promoting the concept of “Mega Food Parks”?

To provide good infrastructure facilities for the food processing industry.
To increase the processing of perishable items and reduce wastage.
To provide emerging and eco-friendly food processing technologies to entrepreneurs.

Select the correct answer using the codes given below:

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

154. A “closed economy” is an economy in which

(a) the money supply is fully controlled

(b) deficit financing takes place

(d) neither exports nor imports take place

155. India has experienced persistent and high food inflation in the recent past. What could be the reasons?

Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
The food supply chain has structural constraints.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2, and 3

156. Which one of the following is not a feature of “Value Added Tax”?

(a) It is a multi point destination based system of taxation.

(b) It is a tax levied on value addition at each stage of transaction in the production-distribution chain.

(d) It is basically subject of the central government and state government are merely facilitator for its successful implementation.

157. Economic growth is usually coupled with?

(a) Deflation

(b) Inflation

(d) Hyperinflation

UPSC Prelims Topic Wise Questions for Economy – Last 15 Year

Table of Contents

UPSC Prelims Topic Wise Questions for Economy 2023

UPSC Prelims Topic Wise Questions for Economy 2022

UPSC Prelims Topic Wise Questions for Economy 2021

UPSC Prelims Topic Wise Questions for Economy 2020

UPSC Prelims Topic Wise Questions for Economy 2019

UPSC Prelims Topic Wise Questions for Economy 2018

UPSC Prelims Topic Wise Questions for Economy – 2017

UPSC Prelims Topic Wise Questions for Economy – 2016

UPSC Prelims Topic Wise Questions for Economy – 2015

UPSC Prelims Topic Wise Questions for Economy – 2014

UPSC Prelims Topic Wise Questions for Economy – 2013

UPSC Prelims Topic Wise Questions for Economy – 2012

UPSC Prelims Topic Wise Questions for Economy – 2011

UPSC Mains 2023 Essay Paper Pdf Download

UPSC Mains 2023 GS Paper 4 Pdf Download

UPSC Prelims Topic Wise Questions for Geography – Last 15 Year

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UPSC Mains 2020 Essay Paper Pdf Download

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Table of Contents

UPSC Prelims Topic Wise Questions for Economy 2023

UPSC Prelims Topic Wise Questions for Economy 2022

UPSC Prelims Topic Wise Questions for Economy 2021

UPSC Prelims Topic Wise Questions for Economy 2020

UPSC Prelims Topic Wise Questions for Economy 2019

UPSC Prelims Topic Wise Questions for Economy 2018

UPSC Prelims Topic Wise Questions for Economy – 2017

UPSC Prelims Topic Wise Questions for Economy – 2016

UPSC Prelims Topic Wise Questions for Economy – 2015

UPSC Prelims Topic Wise Questions for Economy – 2014

UPSC Prelims Topic Wise Questions for Economy – 2013

UPSC Prelims Topic Wise Questions for Economy – 2012

UPSC Prelims Topic Wise Questions for Economy – 2011

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