Previous year Economy questions (PYQ) Prelims Analysis 

Group "A" officers are appointed under various services by the Union Public Service Commission (UPSC), which serves as the primary recruiting organization. 

Two successive stages make up the competitive examination: 

  • The objective-type Civil Services (Preliminary) Examination to select candidates for the Main Examination; and
  • The Civil Services (Main) Examination (written and interview) is held to choose candidates for the various services and posts.

The General Studies Paper-I and General Studies Paper-II (CSAT) are objective-type (MCQ-based) papers that are part of the UPSC Preliminary Examination, which is the first phase of the exam. Paper II is qualifying and requires a minimum score of 33%. For each correct response in Paper I, two marks are given, and for each incorrect response, one-third of a mark, or 0.66 marks, is taken away. In contrast, Paper II awards 2.5 marks for each correct response and subtracts 0.83 marks (or 2.5 marks) for each incorrect response. Each paper takes two hours to complete, and both are given on the same day. 

The Preliminary Examination is only intended to be a screening test, so it is essential to keep in mind that a candidate's marks will not be considered when determining their final rank or level of service. 

The likelihood of passing this stage is significantly skewed because there are roughly twelve to thirteen times as many candidates qualifying for the main examination as open positions are filled yearly. To be admitted to the Main Examination for that year, a candidate must be officially declared qualified in the Preliminary Examination. Below are the previous years' cut-off scores for the General category.

 

 

UPSC Prelims Cut-off Marks over the Years (2015-2022)

 

Year

Cut-off Marks for General category

Percentage

2015

107.34/200

53.67%

2016

116/200

58%

2017

105.34/200

52.67%

2018

98/200

49%

2019

98/200

49%

2020

92.51/200

46.61%

2021

87.54/200

43.77%

2022

95/200 (expected)

47.5%

 

The objective-type assessment format is followed during the preliminary exam. It includes questions from many subject areas, including history, geography, politics, economics, etc. 

The following list contains the syllabus for Paper I of the preliminary examination. 

  • Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.
  • Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
  • General issues on Environmental ecology, Biodiversity and Climate Change - that do not require subject specialization.
  • General Science.
  • Current events of national and international importance.
  • History of India and Indian National Movement.
  • Indian and World Geography-Physical, Social, and Economic Geography of India and the World.

Passing the test is crucial to prepare thoroughly for each subject or topic listed on the syllabus. When preparing for Paper-I, it is crucial to complete questions from previous years to understand the range of questions asked and make predictions about the questions that might be asked the following year.

There are many questions from the syllabus's section on economics. After carefully examining the UPSC papers from 2015 through 2022, the economic questions have been compiled below.

TRENDS AND STRATEGY OF ECONOMICS: 

Most questions about economics are typically found in the sections on money and banking, the balance of payments, and international trade. The crucial topics are public finance, budgeting, and taxation. Consult NCERTs for a thorough understanding of the discipline's core concepts. Everyone should also understand the nation's current economic problems. To supplement the knowledge acquired from NCERTs, current events should be kept up to date, and regular newspaper reading should be done. Readers can also consult publications like the Hindu, the Explained section of the Indian Express, and articles from websites like The Mint and the Hindu Business line to understand recent economic news.  

 

YEAR-WISE QUESTIONS (2022-2017)

2022

1.“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following:

(a) Asian Development Bank

(b) International Monetary Fund

(c ) United Nations Environment Programme Finance Initiative

(d) World Bank

Answer- B

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

 

  • An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
  • An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
  • 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

Answer- C

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

 

  • If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
  • If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
  • 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- B

4.With reference to the “G20 Common Framework”, consider the following statements:

 

  • It is an initiative endorsed by the G20 together with the Paris Club.
  • It is an initiative to support Low Income Countries with unsustainable debt.

 

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

Answer- C

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

 

  • Government can reduce the coupon rates on its borrowing by way of IIBs.
  • IIGs provide protection to the investors from uncertainty regarding inflation.
  • 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- A

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

 

  • They can sell their own goods in addition to offering their platforms as marketplaces.
  • 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer- B

  1. Which of the following activities constitutes a real sector in the economy?

 

  • Farmers harvesting their crops
  • Textile mills converting raw cotton into fabrics
  • A commercial bank lending money to a trading company
  • A corporate body issuing Rupee Denominated Bonds overseas

 

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4

Answer- A

  1. Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference 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 India and paying taxes to the country of its base on the profits arising out of its investment

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

(d) A foreign company transfers shares and such shares derive their substantial value from assets located in India

Answer- D

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

 

  • Acquiring new technology is capital expenditure.
  • 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer-A

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

 

  • A share of the household financial savings goes towards government borrowings.
  • Dated securities issued at market-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

Answer- C

  1. With reference to Ayushman Bharat Digital Mission, consider the following statements:

 

  • Private and public hospitals must adopt it.
  • As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.
  • It has seamless portability across the country.

 

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- D

  1. Consider the following statements:

 

  • Tight monetary policy of US Federal Reserve could lead to capital flight.
  • Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
  • 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- A

  1. Consider the following statements:

 

  • In India, credit rating agencies are regulated by Reserve Bank of India.
  • The rating agency popularly known as ICRA is a public limited company.
  • 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- B

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

 

  • The Governor of RBI is the Chairman of BBB.
  • BBB recommends for the selection of heads for Public Sector Banks.
  • 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- B

  1. Convertible Bonds, consider the following statements:

 

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

Answer- C

  1. 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

(c) Financial Stability and Development Council

(d) Reserve Bank of India

Answer- D

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

 

  • They enable the digital representation of physical assets.
  • They are unique cryptographic tokens that exist on a blockchain.
  • They can be traded or exchanged at equivalency and therefore can be used as a medium transactions. of commercial

 

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- A

  1. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers?

(a) Central Statistics Office

(b)  Department for Promotion of Industry and Internal Trade

(c)  Labour Bureau

(d). National Technical Manpower Information System

Answer- C

2021

Q.1 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 

Answer – C

Q.2 The money multiplier in an economy increases with which one of the following?

  1. a) Increase in the Cash Reserve Ratio in the banks
  2. b) Increase in the Statutory Liquidity Ratio in the banks
  3. c) Increase in the banking habit of the people
  4. d) Increase in the population of the country

Answer – C

Q.3 India 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

  1. a) 1 and 2 Only
  2. b) 2 Only
  3. c) 3 Only
  4. d) 1, 2 and 3

Answer - D

Q.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 codes given below.

  1. a) 1 and 2
  2. b) 2 Only
  3. c) 2 and 3
  4. d) 3 Only

Answer - B

Q.5 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 above statements given above is/are correct?

  1. a) 1 only
  2. b) 2 and 3 only
  3. c) 1 and 3 only
  4. d) 1, 2 and 3 

Answer - B

Q.6 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 below is/are correct?

  1. a) 1 Only
  2. b) 1 and 2
  3. c) 3 Only
  4. d) 2 and 3

Answer - B

Q.7. 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?

  1. a) Diversion of resources to the purchase of real estate and investment in luxury housing
  2. b) Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc
  3. c) Large donations to political parties and growth of regionalism
  4. d) Loss of revenue to the State Exchequer due to tax evasion

Answer - D

Q.8 Consider the following

 

  •     Foreign Currency Convertible Bonds
  •     Foreign Institutional investment with certain conditions
  •     Global depository receipts (GDR)
  •     Non-resident external deposits

 

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

  1. a) 1, 2 and 3
  2. b) 3 Only
  3. c) 2 and 4
  4. d) 1 and 4

Answer - A

Q.9 Consider the following statements:

The effect of devaluation of a currency is that it_____________ 

 

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

 

Which of the above statements is/are correct?

  1. a) 1 Only
  2. b) 1 and 2
  3. c) 3 Only
  4. d) 2 and 3

Answer – A

Q.10 With reference to the 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 codes given below.

  1. a) 1, 2 and 4 Only
  2. b) 3, 4 and 5 Only
  3. c) 1, 2, 3 and 5 Only
  4. d) 1, 2, 3, 4 and 5

Answer - A

Q.11 With reference to the 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? 

  1. a) 1 and 2 only
  2. b) 2 and 3 only
  3. c) 1 and 3 only
  4. d) 1, 2 and 3 

Answer - D

Q.12 Which among the following steps is most likely to be taken at the time of an economic recession?

  1. a) Cut in tax rates accompanied by increase in interest rate  
  2. b) Increase in expenditure on public projects
  3. c) Increase in tax rates accompanied by reduction of interest rate 
  4. d) Reduction of expenditure on public projects

Answer - B

Q.13 Which one of the following is likely to be the most inflationary in its effects

  1. a) Repayment of Public debt
  2. b) Borrowing from the public to finance a budget deficit
  3. c) Borrowing from the banks to finance a budget deficit
  4. d) Creation of new money to finance a budget deficit 

Answer - D

Q.14 Consider the following statements: 

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

 

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

 

Which of the above statements are correct?

  1. a) 1 and 4 only
  2. b) 2, 3 and 4 
  3. c) 1, 3 and 4 
  4. d) 1, 2 and 3 

Answer - A

 2020

Q.1 If you withdraw Rs. 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

  1. a) to reduce it by ₹ 1,00,000
  2. b) to increase it by ₹ 1,00,000
  3. c) to increase it by more than ₹ 1,00,000
  4. d) to leave it unchanged

Answer – D

Q.2 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 :

  1. a) 1 and 2 only
  2. b) 2 only
  3. c) 1 and 3 only
  4. d) 1, 2 and 3

Answer - B

Q.3 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 ?

  1. a) 1 only
  2. b) 2 only
  3. c) Both 1 and 2
  4. d) Neither It nor 2

Answer - B

Q.4 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 a   loan to.
  • It helps in evaluating the emerging risk of a firm that a bank is going to give a 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer - A

Q.5 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 :

  1. a) 1 only
  2. b) 1 and 2 only
  3. c) 3 only
  4. d) 1, 2 and 3

Answer - D

Q.6 Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?

  1. a) An advisory issued by the king to his subordinates
  2. b) A diary to be maintained for daily accounts
  3. c) a bill of exchange
  4. d) An order from the feudal lord to his subordinates

Answer - C

Q.7 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

  1. a) 1 and 2 only
  2. b) 4 only
  3. c) 1 and 3 only
  4. d) 2, 3 and 4 only

Answer - C

Q.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 :

  1. a) 1, 2 and 5 only
  2. b) 1, 3 and 4 only
  3. c)  2, 3, 4 and 5 only
  4. d) 1, 2, 3, 4 and 5

Answer - B

Q.9 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 :

  1. a) 1, 2 and 4 only
  2. b) 1, 3 and 4 only
  3. c) 2 and 3 only
  4. d) 1, 2, 3 and 4

Answer - B

 Q.10 Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by

  1. a) Long standing parliamentary convention
  2. b) Article 112 and Article 110(1) of the Constitution of India
  3. c) Article 113 of the Constitution of India
  4. d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer - D

Q.11 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 :

  1. a) 1 and 2 only
  2. b) 2 and 4 only
  3. c) 3 only
  4. d) 1, 3 and 4 only

Answer - D 

Q.12 The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

  1. a) Crude oil
  2. b) Bullion
  3. c) Rare earth elements
  4. d) Uranium

Answer - A

Q.13 With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristics ?

  1. a) It is the investment through capital instruments essentially in a listed company.
  2. b) It is largely non-debt creating capital flow.
  3. c) It is the investment which involves debt-servicing.
  4. d) It is the investment made by foreign institutional investors in the Government securities.

Answer – B

Q.14 “Gold Tranche” (Reserve Tranche) refers to

  1. a) A loan system of the World bank
  2. b) One of the operations of a central bank
  3. c) A credit system granted by WTO to its members
  4. d) A credit system granted by IMF to its members

Answer - D

Q.15 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 :

  1. a) 1 only
  2. b) 1 and 2 only
  3. c) 3 only
  4. d) 1, 2 and 3

Answer - A

Q.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 :

  1. a) 1 and 2 only
  2. b) 2 only
  3. c) 1 and 3 only
  4. d) 1, 2 and 3

Answer- C

Q.17 In India, which of the following can be considered as public investment in agriculture?

 

  •     Fixing Minimum Support Price for agriculture produce of all crops
  •     Computerization of Primary Agriculture Credit Societies
  •     Social Capital development
  •     Free electricity supply of farmers
  •     Waiver of agriculture 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

Answer - C

Q.18 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

(c) 2 and 3 only

(d) 1,2, 3 and 4

Answer - D

 Q.19 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?

  1. a) 1 only
  2. b) 2 only
  3. c) Both 1 and 2
  4. d) Neither 1 nor 2

Answer - D

 Q.20 With reference to the Indian economy after the 1991 economic liberalization, consider the following statements :

 

  • Worker productivity 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 the 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

(c) 3 only

(d) 1, 2 and 4

Answer - B

 Q.21 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.
  • The 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 ?

  1. a) 1 and 2 only
  2. b) 2 only
  3. c) 3 only 
  4. d) 1, 2 and 3

Answer - A

 2019

 Q.1 Which of the following is not included in the assets of a commercial bank in India?

(a) Advances

(b) Deposits

(c) Investments

(d) Money at call and short notice

Answer - B

Q.2 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

(c) Increase in the statutory liquidity

(d) Increase in the population of the country

Answer - B

Q.3 What was the purpose of the 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

(c) To act as independent regulator in case of applications for loans of Rs 50 crore or more

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

Answer - D

Q.4 The Chairman of public sector banks are selected by the

(a) Banks Board Bureau

(b) Reserve Bank of India

(c) Union Ministry of Finance

(d) Management of concerned bank

Answer - A

Q.5  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

(c) 3 only

(d) 1,2 and 3 only

Answer - A

Q.6 The Service Area Approach was implemented under the purview of

(a) Integrated Rural Development Programme

(b) Lead Bank Scheme

(c) Mahatma Gandhi National Rural Employment Guarantee Scheme

(d) National Skill Development Mission

Answer - B

Q.7  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

(c) Promissory Note

(d) Participatory Note

Answer - D

Q.8 In India, which of the following reviews the independent regulators in sectors like telecommunications, insurance, electricity etc. ?

 

  •     Ad Hoc Committees set up by the Parliament.
  •     Parliamentary Department Related Standing Committees
  •     Finance Commission
  •     Financial Sector Legislative Reforms Commission
  •     NITI Aayog

 

Select the correct answer using the code given below.

(a) 1 and 2

(b) 1 , 3 and 4

(c) 3, 4 and 5

(d) 2 and 5

Answer - A

Q.9 Among the following, which one of the following is the largest exporter of rice in the world in the last five years?

(a) China

(b) India

(c) Myanmar

(d) Vietnam

Answer - B

Q.10 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

(c) Pulses

(d) Vegetable oils

Answer - D

Q.11 Consider the following statements:

 

  •     Most of India’s external debt is owed by government 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer - D

Q.12 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 government expenditure.
  •     Remittances from Indians abroad.

 

Select the correct answer using the code given below.

(a) 1 only

(b) 1 and 3 only

(c) 2 only

(d) 1,2 and 3 only

Answer - B

Q.13 Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee?

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

(b) Encouraging indian borrowers to issue rupee denominated Masala bonds

(c) Easing conditions relating to external commercial borrowing

(d) Following an expansionary monetary policy

Answer - D

Q.14 With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:

 

  •     AIIB has more than 80 member nations.
  •     India is the largest shareholder in AIIB.
  •     AIIB does not have any members from outside Asia.

 

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 only

Answer - A

Q.15 Considering the following statements :

 

  • Purchasing Power Parity (PPP) exchange rates are calculated by 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer - A

Q.16 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) Procurements incidentals and distribution costs

(d) Procurement incidentals and charges for godowns

Answer - C

Q.17 The Global Competitiveness Report is published by the

(a) International Monetary Fund

(b) United Nations Conference on Trade and Development

(c) World Economic Forum

(d) World Bank

Answer - C

Q.18 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

(c) Registering property

(d) Dealing with construction permits

Answer - A

 Q.19 Consider the following statements:

 

  • According to the Indian Patents Act, a biological process to create a seed can be patented in India.
  • In India, there is no Intellectual Property Appellate Board.
  • Plant varieties are not eligible to be patented in India.

 

Which of the statements given above is/ are correct?

(a) 1 and 3 only

(b) 2 and 3 only

(c) 3 only

(d) 1,2, and 3

Answer - C

Q.20 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 following statements given above is/are correct

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer - C

Q.21 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 goods 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

(c) 3 only

(d) 1,2 and 3

Answer - A

Q.22 Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?

 

  • Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave
  • Enterprises with creches must allow the mother minimum six creche visits daily
  • Women with two children get reduced entitlements.

 

Select the correct answer using the code given below

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1,2 and 3

Answer - C

Q.23 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 of Electricity.

 

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1,2 and 3

Answer - B

Q.24 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 one of the following statements given above is/ are correct?

(a) 1 only

(b) 2 and 3 only

(c) 3 only

(d) 1,2 and 3

Answer - A

Q.25 With reference to the management of minor minerals in India, consider the following statements :

 

  • Sand is a ‘minor mineral’ according to the prevailing law in the country.
  • State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Centre Government.
  • State Governments have the power to frame rules to prevent illegal mining of minor minerals.

 

Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2 and 3 only

Answer - A

Q.26 In a given year in India, official poverty lines are higher in some states than in other because

(a) Poverty rates vary from state to state

(b) Price levels vary from state to state

(c) Gross state product varies from state to state

(d) Quality of public distribution varies from state to state

Answer - B

 Q.27 In the context of any country which one of the following would be considered as part of its social capital?

(a) The proportion of literates in the population.

(b) The stock of its buildings, other infrastructure and machines.

(c) The size of the population in the working age group.

(d) The level of mutual trust and harmony in the society.

Answer - D

2018

Q.1.Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

(a)  The incentive given by a bank to a merchant for accepting payments through     debit cards pertaining to that bank.

(b)    The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.

 (c)   The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

(d)  The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

Answer- C

Q.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

( c)   Both 1 and 2

(d)    Neither 1 nor 2

Answer- B

Q.3.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

( c)  Both 1 and 2

(d)   Neither 1 nor 2

Answer- A

Q.4. 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

(c)   Both 1 and 2

( d)  Neither 1 nor 2

Answer- A

Q.5. 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 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

Answer- C

Q.6. 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

(c)  The bank money in the form of cheques, drafts, bills of exchange, etc.

(d)  The metallic money in circulation in a country

Answer- B

Q.7. 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

Answer- C

Q.8. 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

Answer- C

Q.9.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 (Goods and Services Tax)?

( a) 1 only

(b)  2 and 3 only

(c)   1, 2 and 4 only

(d)  1, 2, 3 and 4

Answer- C

Q.10.Regarding Money Bill, which of the following statements is not correct?

(a)  A bill shall be deemed to be a Money Bill if it contains only provisions     relating to imposition, abolition, remission, alteration or     regulation of any tax.

(b)    A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.

(c)    A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.

(d)  A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.

Answer- C

Q.11. 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

(c)  Both 1 and 2

(d)  Neither 1 nor 2

Answer- D

Q.12.India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

(a) ILO

 (b)  IMF

 (c)  UNCTAD

 (d)  WTO

Answer- D

Q.13.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

Answer- C

Q.14.As per the NSSO 70th Round “Situation Assessment Survey of Agricultural Households”, consider the following statements

 

  • Rajasthan has the highest percentage share of agricultural households among its rural households.
  • Out of the total agricultural households in the country, a little over 60 percent belong to OBCs.
  • In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities.

 

Which of the statements given above is/are correct?

(a)  2 and 3 only

(b)  2 only

(c)   1 and 3 only

(d)  1, 2 and 3

Answer- C

Q.15. Consider the following:

 

  • Areca nut
  • Barley
  • Coffee
  • Finger millet
  • Groundnut
  • Sesamum
  • Turmeric

 

The Cabinet Committee on Economic Affair, 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

(c)   1, 3, 4, 5 and 6 only

(d)  1, 2, 3, 4, 5, 6 and 7

Answer- B

Q.16.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 a special case.

 

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

Answer- A

Q.17. 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.

Answer- C

Q.18.Despite being a high saving economy, capital formation may not result in significant increase in output due to

(a)  Weak administrative machinery

(b)   Illiteracy

(c)   High population density

(d)  High capital-output ratio

Answer- D

Q.19.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

(c)  2 and 3 only

(d)  1, 2 and 3

Answer- B

Q.20.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.

Answer- C

Q.21.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 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

(b)  2 only

(c)  1 and 3

(d)  3 only

Answer- B

Q.22.Consider the following statements :

 

  • As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualification laid down by the concerned State Council of Teacher Education.
  • As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines.
  • In India, more than 90% of teacher’s education institutions are directly under the State Governments.

 

Which of the statements given above is/are correct?

(a)  1 and 2

(b)  2 only

(c)   1 and 3

(d)  3 only

Answer- B

Q.23.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

Answer- C

Q.24.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

Answer- C

Q.25.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

(c)  Both 1 and 2

(d)  Neither 1 nor 2

Answer- A

2017

Q.1.Consider the following statements:

 

  • National Payments Corporation of India (NPCI) helps in promoting 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) Neither 1 nor 2

Answer- C

Q.2.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.

(c) FDI inflows will drastically increase.

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

Answer- A

Q.3.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

(c) 3 only

(d) 2 and 3 only

Answer- A

Q.4.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.

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

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

Answer-B

Q.5.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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- A

Q.6.Who among the following can join the National Pension System (NPS)?

(a) Resident Indian citizens only

(b) Persons of age from 21 to 55 only

(c) All State Government employees joining the services after the date of notification by the respective State Governments

(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

Answer- C

Q.7. 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 the 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- A

Q.8.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) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 2 and 3 only

Answer-B

Q.9.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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer- D

Q.10.The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to

(a) Developing solar power production in our country

(b) Granting licenses to foreign T.V. channels in our country

(c) Exporting our food products to other countries

(d) Permitting foreign educational institutions to set up their campuses in our country

Answer-A

Q.11.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

(c) 2 and 3 only

(d) 1, 2 and 3

Answer- A

Q.12.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

(c) Organization for Economic Cooperation and Development

(d) Shanghai Cooperation Organization

Answer- A

Q.13.The term ‘Digital Single Market Strategy’ seen in the news refers to

(a) ASEAN

(b) BRICS

(c) EU

(d) G20

Answer- C

Q.14.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.
  • 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

(c) 2 and 3 only

(d) 1, 2, 3 and 4

Answer-B

Q.15.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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer-D

Q.16.With reference to ‘National Skills Qualification Framework (NSQF)’, which of the statements given below is/are correct?

 

  • 1. Under NSQF, a learner can acquire the certification for competency only through formal learning.
  • An outcome expected from the implementation of NSQF is the mobility between vocational and general education.

 

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

Answer-B

Q.17.Recognition of Prior Learning Scheme’ is sometimes mentioned in the news with reference to

(a) Certifying the skills acquired by construction workers through traditional channels.

(b) Enrolling the persons in Universities for distance learning programmes.

(c) Reserving some skilled jobs to rural and urban poor in some public sector undertakings.

(d) Certifying the skills acquired by trainees under the National Skill Development Programme.

Answer-A

Q.18.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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer-A

Q.19.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

Answer-C

Q.20.With reference to ‘Quality Council of India (QCI)’, consider the following statements:

 

  • 1. QCI was set up jointly by the Government of India and the Indian Industry.
  • The Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

 

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer-C

Q.21.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.

(c) Strengthening India’s scientific research institutions in order to make India a scientific and technological power.

(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.

Answer-B

Q.22.With reference to ‘Asia Pacific Ministerial Conference on Housing and Urban Development (APMCHUD)’, consider the following statements:

 

  • The first APMCHUD was held in India in 2006 on the theme ‘Emerging Urban Forms — Policy Responses and Governance Structure’.
  • India hosts all the Annual Ministerial Conferences in partnership with ADB, APEC and ASEAN.

 

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

Answer-D

Q.23.With reference to the role of UN-Habitat in the United Nations programme working towards a better urban future, which of the statements is/are correct?

 

  • UN-Habitat has been mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities to provide adequate shelter for all.
  • Its partners are either governments or local urban authorities only.
  • UN-Habitat contributes to the overall objective of the United Nations system to reduce poverty and to promote access to safe drinking water and basic sanitation.

 

Select the correct answer using the code given below:

(a) 1, 2 and 3

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1 only

Answer-B

Q.24.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.

Answer-B

Q.25.With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

 

  • It is an organ of NITI Aayog.
  • 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer-D

Q.26.Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world?

(a) World Economic Forum

(b) UN Human Rights Council

(c) UN Women

(d) World Health Organization

Answer-A

Q.27.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

(c) 1, 2 and 4 only

(d) 3 and 4 only

Answer-A

Q.28.What is the purpose of Vidyanjali Yojana’?

 

  • 1. 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

(c) 1 and 2 only

(d) 2 and 3 only

Answer-A

Q.29.Which of the following statements is/are correct regarding Smart India Hackathon 2017?

 

  • It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
  • It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
  • It is a programme aimed at making all the financial transactions in our country completely digital in a decade.

 

Select the correct answer using the code given below :

(a) 1 and 3 only

(b) 2 only

(c) 3 only

(d) 2 and 3 only

Answer- B

 2016

  1. The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term?

(1) It is a networking of a bank’s branches that enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.

(2) It is an effort to increase RBI’s control over commercial banks through computerization.

(3) It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

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

Answer - A

  1. With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011?

(1) List of ingredients including additives

(2) Nutrition information

(3) Recommendations, if any, made by the medical profession about the possibility of any allergic reactions

(4) Vegetarian/non-vegetarian

Select the correct answer using the code given below.

(a) 1, 2 and 3

(b) 2, 3 and 4

(c) 1, 2 and 4

(d) 1 and 4 only

Answer - C

  1. 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)

Answer - C

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

(1) These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

(2) 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 1 nor 2

Answer - C

  1. With reference to ‘The financial Stability and Development Council’, consider the following statements :

(1) It is an organ of NITI Aayog.

(2)It is headed by the Union Finance Minister.

(3) It monitors macroprudential 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

Answer - C

  1. 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

(c) exploitation of genetic resources of a country by multinational companies

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

Answer - B

  1. Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in [From Current Affairs of 2015-16]

(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh

Answer - A

  1. With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?

(1) Bitcoins are tracked by the Central Banks of the countries.

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

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

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1, 2 and 3

Answer - B

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

(1) To bring the idle gold lying with Indian households into the economy

(2) To promote FDI in the gold and jewellery sector

(3) 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

Answer - C

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

(a) European Central Bank

(b) International Monetary Fund

(c) International Bank for Reconstruction and Development

(d) Organization for Economic Cooperation and Development

Answer - B

  1. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as

(a) G20

(b) ASEAN

(c) SCO

(d) SAARC

Answer - B

  1. On which of the following can you find the Bureau of Energy Efficiency Star Label?

(1) Ceiling fans

(2) Electric geysers

(3) Tubular fluorescent lamps

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer - D

  1. ‘European Stability Mechanism’, sometimes seen in the news, is an

(a) agency created by the EU to deal with the impact of millions of refugees arriving from the Middle East

(b) An agency of the EU that provides financial assistance to eurozone countries

(c) agency of EU to deal with all the bilateral and multilateral agreements on trade

(d) agency of EU to deal with the conflicts arising among the member countries

Answer - B

  1. 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?

(1) Reducing revenue expenditure

(2) Introducing new welfare schemes

(3) Rationalizing subsidies

(4) 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

Answer - C

  1. 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?

(1) Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.

(2) Payment Banks can issue both credit cards and debit cards.

(3) 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

(c) 2 only

(d) 1, 2 and 3

Answer - B

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

(1) The International Finance Corporation, which offers these bonds, is an arm of the World Bank.

(2) 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) Neither 1 nor 2

Answer - C

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

(1) Expenditure on acquisition of assets like roads, buildings, machinery, etc.

(2) Loans received from foreign governments

(3) 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer - D

  1. Recently, which one of the following currencies has been proposed to be added to the basket of the IMF’s SDR? [From Current Affairs 2015-16]

(a) Rouble

(b) Rand

(c) Indian Rupee

(d) Renminbi

Answer - D

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

(1) IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work.

(2) The World Bank participates as an observer in IMFC’s meetings.

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

Answer - C

  1. 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

(c) It is the ratio between the value of exports and that of imports between two countries

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

Answer - D

2015

  1. ‘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 economic stress and improve risk management

(c) reduce the greenhouse gas emissions but places a heavier burden on developed countries

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

Answer - B

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

(1) The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.

(2) 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

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer - B

  1. With reference to the Indian economy, consider the following

(1) Bank rate

(2) Open market operations

(3) Public debt

(4) 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

Answer - C

  1. 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

Answer - C

  1. 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

Answer - C

  1. 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?

(1) Reducing revenue expenditure

(2) Introducing new welfare schemes

(3) Rationalizing subsidies

(4) Expanding industries

Select the correct answer using the code given below.

(a) 1 and 3 only

(b) 2 and 3 only

(c) 1 only

(d) 1,2,3 and 4

Answer - A

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

(1) Slowing economic growth rate

(2) Less equitable distribution of national income

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

Answer - A

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

(a) Coal production

(b) Electricity generation

(c) Fertilizer production

(d) Steel production

Answer - B

  1. 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

(c) Directorate of Marketing and Inspection, Ministry of Agriculture

(d) Agricultural Produce Market Committee

Answer - A

  1. 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

(c) The US Federal Reserve Bank

(d) The World Bank

Answer - D

  1. 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

Answer - C

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

(a) Essential Commodities Act, 1955

(b) Agricultural Produce Market Committee Act enacted by States

(c) Agricultural Produce (Grading and Marking) Act, 1937

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

Answer - B

  1. 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

Answer - C

  1. Convertibility of rupee implies

(a) being able to convert rupee notes into gold

(b) allowing the value of the 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

Answer - C