UPSC CSE Prelims Previous Year’s Questions of ECONOMY with Solutions (2016-2021)

The Union Public Service Commission (UPSC) is the central recruiting agency held responsible for the appointment of group “A” officers under varying services. The competitive examination comprises of two successive stages :

(i)  Civil Services (Preliminary) Examination (Objective Type) for the selection of candidates for Main Examination; and

(ii)  Civil Services (Main) Examination (Written and Interview) for the selection of candidates for the various Services and posts.

The first phase of the UPSC exam i.e. the Preliminary Examination comprises two Objective type papers (MCQ based), General Studies Paper-I and General Studies Paper-II (CSAT), Paper- II is qualifying in nature (33% marks are needed). In Paper- I for every correct answer 2 marks are awarded and for every wrong answer 1/3rd marks will be deducted i.e. 0.66 marks. Whereas, in Paper-II 2.5 marks are awarded for each correct answer and 1/3rd marks (0.833 marks) are deducted for each wrong answer. The duration of the examination is 2 hours for each paper and both papers are conducted on the same day.

It is important to note that this stage of the examination is meant to serve as a screening test only as the marks obtained in the Preliminary Examination will not be counted for determining the final rank or service of a candidate. 

The odds of clearing this stage are highly skewed as the number of candidates who qualify for the Main Examination is about twelve to thirteen times the total approximate number of vacancies to be filled in the year. Only those candidates who are declared to have qualified in the Preliminary Examination in the year will be eligible for admission to the Main Examination of that year. The cut off marks for the past years for the General category are mentioned below.

UPSC Prelims Cut-off Marks over the years (2016-2021)

Year

Cut-off Marks for General category

Percentage

2016

116/200

58%

2017

105.34/200

52.67%

2018

98/200

49%

2019

98/200

49%

2020

92.51/200

46.61%

The Preliminary Exam follows the pattern of objective–type for assessment. It comprises questions from various domains such as economy, polity, geography, history, etc. The syllabus for Paper-I of the Preliminary Examination is given below

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

It is important to prepare for each subject or topic mentioned in the syllabus in a holistic manner in order to clear the examination. While preparing for Paper-I it is important to solve previous year’s questions to get an idea of the breadth of questions asked and predict what sort of questions can be asked in the next year.

The number of questions asked from the economy portion of the syllabus is substantial. The questions on ecoomy have been compiled below after careful analysis of the previous year’s UPSC papers from 2016-2021.


Weightage of Sub-topics of Economics questions in the previous 6 years (2016-2021):

TRENDS AND STRATEGY OF ECONOMICS: 

It can be seen that most of the questions in the economy come from Money and Banking, and Balance of payment and International trade sections. The next important topics are Budget, Taxation and Public finance. Going through NCERTs is essential for understanding the basic concepts of the discipline. One should also be aware of the current economic issues facing the country. It is important to be aware of current affairs and supplement the knowledge obtained from NCERTs with regular newspaper reading. In addition to the Hindu the Explained section of the Indian Express and articles from websites like The Mint and the Hindu Business line can be referred to to understand current economic news.  


YEAR-WISE QUESTIONS (2016-2021)

 

2021

 

Q.1 Consider the following statements:

  1.    The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
  2.    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?

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

 

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

a) 1 and 2 Only

b) 2 Only

c) 3 Only

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.

a) 1 and 2

b) 2 Only

c) 2 and 3

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?

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

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?

a) 1 Only

b) 1 and 2

c) 3 Only

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?

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

c) Large donations to political parties and growth of regionalism

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?

a) 1, 2 and 3

b) 3 Only

c) 2 and 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?

a) 1 Only

b) 1 and 2

c) 3 Only

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.

a) 1, 2 and 4 Only

b) 3, 4 and 5 Only

c) 1, 2, 3 and 5 Only

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? 

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

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?

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

b) Increase in expenditure on public projects

c) Increase in tax rates accompanied by reduction of interest rate 

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

a) Repayment of Public debt

b) Borrowing from the public to finance a budget deficit

c) Borrowing from the banks to finance a budget deficit

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?

a) 1 and 4 only

b) 2, 3 and 4 

c) 1, 3 and 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

a) to reduce it by ₹ 1,00,000

b) to increase it by ₹ 1,00,000

c) to increase it by more than ₹ 1,00,000

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 :

a) 1 and 2 only

b) 2 only

c) 1 and 3 only

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 ?

a) 1 only

b) 2 only

c) Both 1 and 2

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 :

a) 1 only

b) 1 and 2 only

c) 3 only

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?

 

a) An advisory issued by the king to his subordinates

b) A diary to be maintained for daily accounts

c) a bill of exchange

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

a) 1 and 2 only

b) 4 only

c) 1 and 3 only

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 :

a) 1, 2 and 5 only

b) 1, 3 and 4 only

c)  2, 3, 4 and 5 only

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 :

a) 1, 2 and 4 only

b) 1, 3 and 4 only

c) 2 and 3 only

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

 

a) Long standing parliamentary convention

b) Article 112 and Article 110(1) of the Constitution of India

c) Article 113 of the Constitution of India

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 :

a) 1 and 2 only

b) 2 and 4 only

c) 3 only

d) 1, 3 and 4 only

 

Answer -

 

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

 

a) Crude oil

b) Bullion

c) Rare earth elements

d) Uranium

 

Answer - A

 

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

 

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

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

c) It is the investment which involves debt-servicing.

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

 

Answer – B

 

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

 

a) A loan system of the World bank

b) One of the operations of a central bank

c) A credit system granted by WTO to its members

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 :

a) 1 only

b) 1 and 2 only

c) 3 only

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 :

a) 1 and 2 only

b) 2 only

c) 1 and 3 only

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?

a) 1 only

b) 2 only

c) Both 1 and 2

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 ?

a) 1 and 2 only

b) 2 only

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

 

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

  1.   The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
  2.     The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
  3.     The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.
  4.   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-

  1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
  2. 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?

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   Neither 1 nor 2

Answer- B

 

Q.3.With reference to digital payments, consider the following statements:

  1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
  2. 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?

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   Neither 1 nor 2

Answer- A

 

Q.4. Consider the following statements:

  1. 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.
  2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   Neither 1 nor 2

Answer- A

 

Q.5. Consider the following statements:

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

Which of the statements given above is/are correct?

  1.   1 and 2 only
  2.     3 Only
  3.     2 and 3 only
  4.   1, 2 and 3

Answer- C

 

Q.6. Which one of the following statements correctly describes the meaning of legal tender money?

  1.   The money which is tendered in courts of law to defray the fee of legal cases
  2.     The money which a creditor is under compulsion to accept in settlement of his claims
  3.     The bank money in the form of cheques, drafts, bills of exchange, etc.
  4.   The metallic money in circulation in a country

Answer- B

 

Q.7. Which one of the following links all the ATMs in India?

  1.   Indian banks’ Association
  2.     National Securities Depository Limited
  3.     National Payments Corporation of India
  4.   Reserve Bank of India

Answer- C

 

Q.8. Consider the following statements-

  1. 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.
  2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
  3. 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?

  1.   1 only
  2.     2 and 3 only
  3.     1 and 3 only
  4.   1, 2 and 3

Answer- C

 

Q.9.Consider the following items:

  1. Cereal grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. Newspapers containing advertising material

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

  1.   1 only
  2.     2 and 3 only
  3.     1, 2 and 4 only
  4.   1, 2, 3 and 4

Answer- C

 

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

  1.   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.
  2.     A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
  3.     A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
  4.   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?

  1. It is introduced as a part of the Income Tax Act.
  2. 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:

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   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

  1.   ILO
  2.     IMF
  3.     UNCTAD
  4.   WTO

Answer- D

 

Q.13.Consider the following countries :

  1. Australia
  2. Canada
  3. China
  4. India
  5. Japan
  6. USA

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

  1.   1, 2, 4 and 5
  2.     3, 4, 5 and 6
  3.     1,3,4, and 5
  4.   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

  1. Rajasthan has the highest percentage share of agricultural households among its rural households.
  2. Out of the total agricultural households in the country, a little over 60 percent belong to OBCs.
  3. 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?

  1.   2 and 3 only
  2.     2 only
  3.     1 and 3 only
  4.   1, 2 and 3

Answer- C

 

Q.15. Consider the following:

  1. Areca nut
  2. Barley
  3. Coffee
  4. Finger millet
  5. Groundnut
  6. Sesamum
  7. Turmeric

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

  1.   1, 2, 3 and 7 only
  2.     2,4,5 and 6 only
  3.     1, 3, 4, 5 and 6 only
  4.   1, 2, 3, 4, 5, 6 and 7

Answer- B

 

Q.16.Consider the following statements

  1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
  2. 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

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   Neither 1 nor 2

Answer- A

 

Q.17. If a commodity is provided free to the public by the Government, then

  1.   the opportunity cost is zero.
  2.     the opportunity cost is ignored.
  3.     The opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4.   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

  1.   weak administrative machinery
  2.     illiteracy
  3.     high population density
  4.   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?

  1. Formation of India’s own Internet companies like China did.
  2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
  3. 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

  1.   1 and 2 only
  2.     3 only
  3.     2 and 3 only
  4.   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

  1.   industrial output fails to keep pace with agricultural output.
  2.     agricultural output fails to keep pace with industrial output.
  3.     Poverty and unemployment increase
  4.   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:

  1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised grains.
  2. 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.
  3. 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?

  1.   1 and 2
  2.     2 only
  3.     1 and 3
  4.   3 only

Answer- B

 

Q.22.Consider the following statements :

  1. 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.
  2. 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.
  3. 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?

  1.   1 and 2
  2.     2 only
  3.     1 and 3
  4.   3 only

Answer- B

 

Q.23.With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements

  1. It is the flagship scheme of the Ministry of Labour and Employment.
  2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
  3. 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 ?

  1.   1 and 3 only
  2.     2 only
  3.     2 and 3 only
  4.   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

  1. individuals of a country to accumulate more capital.
  2. increasing the knowledge, skill levels and capacities of the people of the country.
  3. accumulation of tangible wealth.
  4. accumulation of intangible wealth.

Which of the statements given above is/are correct?

  1.   1 and 2
  2.     2 only
  3.     2 and 4
  4.   1, 3 and 4

Answer- C

 

Q.25.Consider the following statements

  1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
  2. 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?

  1.   1 only
  2.     2 only
  3.     Both 1 and 2
  4.   Neither 1 nor 2

Answer- A

 

2017

 

Q.1.Consider the following statements:

  1. National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.
  2. 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)?

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. 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?

  1. To supply credit to small business units
  2. To supply credit to small and marginal farmers
  3. 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)’?

  1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. 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:

  1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
  2. Properties held benami are liable for confiscation by the Government.
  3. 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 :

  1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
  2. 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:

  1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
  2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
  3. 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?

  1. Share of agriculture in GDP increased enormously.
  2. Share of India’s exports in world trade increased.
  3. 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

(c) 2 and 3 only

(d) 1, 2, 3 and 4

Answer-B

 

Q.15.Consider the following in respect of ‘National Career Service’:

  1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.
  2. 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. 1. Under NSQF, a learner can acquire the certification for competency only through formal learning.
  2. 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:

  1. 1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
  2. 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:

  1. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
  2. 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. 1. QCI was set up jointly by the Government of India and the Indian Industry.
  2. 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:

  1. The first APMCHUD was held in India in 2006 on the theme ‘Emerging Urban Forms — Policy Responses and Governance Structure’.
  2. 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?

  1. 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.
  2. Its partners are either governments or local urban authorities only.
  3. 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?

  1. 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

(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’?

  1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
  2. To reduce the incidence of anemia among young children, adolescent girls and women.
  3. To promote the consumption of millets, coarse cereals and unpolished rice.
  4. 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. 1. To enable the famous foreign educational institutions to open their campuses in India.
  2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
  3. 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?

  1. It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
  2. It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
  3. 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

 

Q.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

 

Q.2.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

 

Q.3.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 which 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

 

Q.4.With reference to ‘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

 

Q.5.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

 

Q.6. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

  1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
  2. Only one member of a family can join the scheme.
  3. 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

Answer- C

 

Q.7.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

 

Q.8.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

 

Q.9.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

 

Q.10.With reference to the ‘Trans-Pacific Partnership’, consider the following statements:

  1. It is an agreement among all the Pacific Rim countries except China and Russia.
  2. It is a strategic alliance for the purpose of maritime security ONLY

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

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

(b) agency of 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

 

Q.12.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

 

Q.13.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

(c) UNFCCC affairs

(d) India-EU negotiations on FTA

Answer-A

 

Q.14.Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

(a) Rouble

(b) Rand

(c) Indian Rupee

(d) Renminbi

Answer- D

 

Q.15.With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

  1. 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

 

Q.16.Consider the following statements :

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

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.17. 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

 

Q.18.‘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

 

Q.19.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

 

Q.20.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

 

Q.21.With reference to ‘Stand up India scheme’, which of the following statement is/are correct?

  1. 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
  2. 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) Neither 1 nor 2

Answer-C

 

Q.22.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

(c) providing pensions to old and destitute persons

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

Answer-A

 

 Q.23.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

 

Q.24.Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in

(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh

Answer-A

 

Q.25.Which one of the following is a purpose of `UDAY’, a scheme of the Government?

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

(b) Providing electricity to every household in 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

Answer- D

 

Q.26.What is/are the purpose/purposes of `District Mineral Foundations’ in India?

  1. Promoting mineral exploration activities in mineral-rich districts

       2.Protecting the interests of the persons affected by mining operations

  1. 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

(c) 1 and 3 only

(d) 1, 2 and 3

Answer-B

 

Q.27.`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

(c) promoting the education and health of adolescent girls

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

Answer- D

 

Q.28.Regarding DigiLocker, sometimes seen in the news, which of the following statements is/are correct?

1 It is a digital locker system offered by the Government under Digital India Programme.

  1. It allows you to access your e-documents irrespective of your physical location.

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

 

Q.29.Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?

  1. Undernourishment
  2. Child stunting
  3. 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

Answer-C