Which Of The Follwoing Statements Of The Service Sector Of The Us Economy Is Most Accurate

The economy is one of the of import subjects in the Civil Services Examination. On 10th October 2021, UPSC conducted IAS Prelims. The adjacent Prelims is going to take place on fifth June 2022. For revision of this section, candidates tin can practise from previous years' UPSC Prelims Economic system Questions and download the solutions PDF given in this article.

Here, nosotros accept provided 2013-2021 questions related to Economy that were asked in Prelims General Studies Paper-I of the IAS Exam.

Candidates must note that questions in the Economic system section are partly driven by current diplomacy. Hence, such questions asked previously volition exist highlighted so that candidates understand how current diplomacy are aligned with the Indian Economy. This volition help them focus on the latest electric current affairs, which will be relevant for the UPSC 2022 exam.

Get previous years' subject-wise questions of UPSC Prelims from the links provided below:

Tabular array of Content:

Economy Questions in IAS Prelims 2021
Economic system Questions in IAS Prelims 2020
Economy Questions in IAS Prelims 2019
Economy Questions in IAS Prelims 2018
Economic system Questions in IAS Prelims 2017
Economy Questions in IAS Prelims 2016
Economy Questions in IAS Prelims 2015
Economy Questions in IAS Prelims 2014
Economy Questions in IAS Prelims 2013
UPSC Prelims Economic system Solutions 2013-2020

Economy Questions in IAS Prelims 2021

The IAS Prelims Economy Questions of 2021 are given beneath:

IAS Prelims Economy Questions 2021

Questions asked in Prelims 2021 from the Economy section are given beneath:

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

a) Increment in the Greenbacks 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 state

2. With reference to the Indian economy, demand-pull inflation tin can be acquired/increased by which of the post-obit?

one. Expansionary policies
2. Fiscal stimulus
3. Aggrandizement-indexing wages
4. College purchasing ability
5. Rising interest rates

Select the correct reply using the code given below.
a) 1, 2 and 4 only
b) 3, 4 and 5 simply
c) 1, 2, 3 and 5 only
d) 1, 2, iii, 4 and 5

3. With reference to India, consider the following statements:
1. Retail investors through Demat account can invest in Treasury Bills and Government of India Debt Bonds in the primary market
ii. The "Negotiated Dealing System-Ordering Matching" is a authorities securities trading platform of the Reserve Banking company of India.
3. The "Fundamental Depository Services Ltd" is jointly promoted by the Reserve Banking company of India and the Mumbai Stock Exchange.
Which of the statements given above is/are right?
a) 1 only
b) 1 and 2
c) 3 only
d) two and three

four. In India, the Central Bank's function as the "lender of last resort" ordinarily refers to which of the following?

one. Lending to trade and manufacture bodies when they neglect to borrow from other sources
2. Providing liquidity to the banks having a temporary crisis
3. Lending to governments to finance budgetary deficits

Select the right answer using the lawmaking given below
a) 1 and 2
b) 2 only
c) ii and iii
d) 3 only

5. Consider the following statements:

1. The Governor of the Reserve Banking concern of India (RBI) is appointed past the Central Government.
two. Certain provisions in the Constitution of India requite the Central Authorities the right to consequence directions to the RBI in the public interest.
3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

a) i and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, two and 3

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

1. All casual workers are entitled to employees Provident Fund Coverage
ii. All casual workers are entitled to regular working hours and overtime payment
iii. The government tin can by notification specify that an establishment or manufacture shall pay wages just through its bank business relationship.

Which of the in a higher place statements are correct?
a) ane and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) ane, 2 and 3

vii. Which among the following steps is most probable to exist taken at the time of an economical recession?
a) Cut in revenue enhancement rates accompanied by increase in interest charge per unit
b) Increase in expenditure on public projects
c) Increment in tax rates accompanied past reduction of interest rate
d) Reduction of expenditure on public projects

8. Consider the post-obit statements

Other things remaining unchanged, market need for a proficient might increase if

1. Toll of its substitute increases
2. Price of its complement increases
3. The good is an inferior good and income of the consumers increases
four. Its price falls

Which of the to a higher place statements are correct?
a) ane and 4 only
b) ii, 3 and 4
c) 1, 3 and 4
d) 1, 2 and 3

9. With reference to Urban Cooperative Banks in Bharat, consider the following statements:

ane. They are supervised and regulated past local boards fix by the State Governments.
2. They can issue disinterestedness shares and preference shares.
3. They were brought nether the purview of the Banking Regulation Act, 1949 through an Amendment in 1996
Which of the statements given above is/are correct?
a) i only
b) ii and 3 only
c) 1 and three only
d) ane, two and 3

x. Indian Government Bail yields are influenced by which of the following?

1. Actions of the Usa Federal Reserve
2. Actions of the Reserve Banking company of India
3. Inflation and short-term interest rates.

Select the correct answer using the code given beneath
a) 1 and 2 only
b) ii only
c) 3 only
d) ane, two and 3

11. Consider the post-obit:

one. Foreign currency convertible bonds
two. Foreign institutional investment with certain conditions
iii. Global depository receipts
four. Non-resident external deposits

Which of the higher up tin can be included in Strange Straight Investments?

a) 1, 2 and 3
b) 3 simply
c) 2 and 4
d) ane and iv

12. Consider the following statements:

The upshot of the devaluation of a currency is that it necessarily

1. Improves the competitiveness of the domestic exports in the foreign markets
two. Increment the foreign value of the domestic currency
3. Improves the merchandise balance

Which of the to a higher place statements is/are

a) 1 only
b) 1 and two
c) 3 but
d) ii and three

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

a) Diversion of resource to the purchase of existent manor and investment in luxury housing
b) Investment in unproductive activities and purchase of precious stones, jewellery, aureate etc.
c) Big donations to political parties and growth of regionalism
d) Loss of acquirement to the State Exchequer due to tax evasion

14. Which one of the following is probable to be one of the most inflationary in its furnishings?

a) Repayment of public debt
b) Borrowing from the public to finance a budget arrears
c) Borrowing from the banks to finance a budget deficit
d) Creation of new money to finance a budget deficit

Respond Key for Economy Prelims 2021 Questions

UPSC Prelims Economy Reply Key 2021
1. C	eight. A
ii. A	9. B
3. B	x. D
4. B	xi. A
5. C	12. A
6. C	13. D
seven. B	xiv. D

Year-Wise Economy Questions in IAS Prelims

The IAS Prelims Economic system Questions from 2013 to 2020 for UPSC 2022 are given below:

UPSC Prelims Economy Questions 2013-2020

2020 UPSC Prelims Economy Questions

What is the importance of the term "Interest Coverage Ratio" of a firm in Bharat?

(1)Information technology helps in agreement the present risk of a firm that a bank is going to requite a loan to.

(2) Information technology helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.

(3) The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the right reply using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, two and iii

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

(one) Minimum Support Toll

(ii) Authorities'south trading

(iii) Government's stockpiling

(4) Consumer subsidies

Select the right answer using the code given below:

(a) ane, 2 and 4 but

(b) 1, 3 and four only

(d) 1, ii, 3 and 4

Nether the Kisan Credit Card scheme, short-term credit back up is given to farmers for which of the post-obit purposes ?

(1) Working capital for maintenance of subcontract assets harvesters,

(2) Purchase of combine tractors and mini trucks requirements of farm

(3) Consumption households

(4) Post-harvest expenses

(5) Construction of family house and setting upwardly of village cold storage facility

Select the correct reply using the code given below:

(a) 1, 2 and 5 only

(b) 1, three and 4 merely

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

Consider the following statements :

(1) The weightage of food in Consumer Toll Index (CPI) is higher than that in Wholesale Price Index (WPI).

(ii) The WPI does not capture changes in the prices of services, which CPI does.

(3) The Reserve Bank of Republic of india has now adopted WPI every bit its key mensurate of inflation and to make up one's mind on changing the fundamental policy rates.

Which of the statements given to a higher place is/are correct?

(a) ane and 2 only

(b) 2 only

(d) i, 2 and three

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

(ane) Fixing Minimum Support Price for agronomical produce of all crops

(2) Computerization of Chief Agricultural Credit Societies

(3) Social Capital development

(four) Free electricity supply to farmers

(5) Waiver of agronomical loans by the banking system

(6) Setting upwards of cold storage facilities by the governments.

In India, which of the following tin be considered as public investment in agriculture?

Select the correct answer using the code given below:

(a) one, 2 and v only

(b) 1, three, iv and 5 only

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

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

(1) Commercial Paper is a short-term unsecured promissory note.

(2) Certificate of Eolith is a long-term Musical instrument issued by RBI to a corporation.

(3) 'Call Money' is short-term finance used for interbank transactions.

(iv) "Zero-Coupon Bonds' are the involvement-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

(d) 2, 3 and 4 only

With reference to the international trade of Bharat at present, which of the post-obit statements is/are right?

(1) Republic of india's merchandise exports are less than its trade imports.

(two) Republic of india's imports of iron and steel, chemicals, fertilisers and machinery accept decreased in recent years.

(three) India's exports of services are more than its imports of services.

(4) India suffers from an overall trade/electric current business relationship deficit.

Select the correct answer using the code given below:

(a) 1 and 2 but

(b) 2 and 4 only

(d) 1, 3 and 4 only

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

(1) Housing loans owed by households

(ii) Amounts outstanding on credit cards

(iii) Treasury bills

Select the correct answer using the code given below :

(a) 1 but

(b) one and 2 only

(d) ane, 2 and 3

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

(1) Quantitative restrictions on imports by foreign investors are prohibited.

(two) They utilise to investment measures related to trade in both goods and services.

(three) They are non concerned with the regulation of foreign investment.

Select the correct answer using the lawmaking given below:

(a) 1 and ii just

(b) two only

(d) i, ii and iii

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

(1) Cutting and optimize the Statutory Liquidity Ratio

(2) Increase the Marginal Continuing Facility Charge per unit

(3) Cut the Depository financial institution Rate and Repo Rate

Select the correct answer using the lawmaking given below:

(a) 1 and ii only

(b) 2 merely

(d) 1, 2 and 3

With reference to the Indian economy later on the 1991 economical liberalization, consider the following statements :

(1) Worker productivity (Rs per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.

(two) The percentage share of rural areas in the workforce steadily increased.

(3) In rural areas, the growth in the non-farm economic system increased.

(iv) The growth rate in rural employment decreased.

Which of the statements given above is/are right?

(a) one and 2 only

(b) iii and 4 only

(d) 1, ii and four simply

Consider the post-obit statements:

(1) In terms of brusk-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more than credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.

(ii) Ane of the most of import functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given in a higher place is/are correct?

(a) 1 only

(b) 2 but

(d) Neither ane nor two

If another global fiscal crisis happens in the nearly future, which of the following actions/policies are virtually likely to give some amnesty to Republic of india?

(1) Not depending on short-term strange borrowings

(2) Opening up to more strange banks

(3) Maintaining full capital account convertibility

Select the correct answer using the lawmaking given below :

(a) 1 just

(b) 1 and ii just

(d) 1, 2 and 3

If y'all withdraw i,00,000 in cash from your Demand Deposit Business relationship at your bank, the firsthand effect on aggregate money supply in the economy volition exist

(a) to reduce it by 1,00,000

(b) to increment it by ane,00,000

(d) to get out it unchanged

Candidates tin can get the notes on the relevant articles from where the economy questions were asked in IAS Prelims 2020:

2019 IAS Prelims Economy Questions

1. In a given year in Republic of india, official poverty lines are higher in some states than in others because

(a) poverty rates vary from Land to Land

(b) toll levels vary from State to State

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

two. The money multiplier in an economy increases with which ane of the following?

(a) Increment in the greenbacks reserve ratio

(b) Increment in the banking habit of the population

(d) Increase in the population of the land

3. Consider the following statements:

The Reserve Bank of Bharat'southward contempo directives relating to 'Storage of Payment Organisation Data', popularly known as data diktat, control the payment system providers that

(1) they shall ensure that entire data relating to payment systems operated by them are stored in a system but in India

(2) they shall ensure that the systems are endemic and operated by public sector enterprises

(3) they shall submit the consolidated system audit study to the Comptroller and Auditor Full general of Bharat by the cease of the calendar year

Which of the statements given above is/are correct?

(a) 1 merely

(b) 1 and 2 only

(d) 1, ii and iii

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

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

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

(d) Following an expansionary monetary policy

five. Consider the post-obit statements

(1) Purchasing Power Parity (PPP) commutation rates are calculated by comparing the prices of the aforementioned handbasket of goods and services in different countries.

(2) In terms of PPP dollars, Republic of india is the sixth-largest economy in the earth.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither i nor ii

half-dozen. With reference to Republic of india'due south Five-Year Plans, which of the following statements is/are right?

(ane) From the Second Five-Year Plan, in that location was a determined thrust towards commutation of basic and capital good industries.

(2) The Fourth Five-Year Plan adopted the objective of correcting the earlier tendency of increased concentration of wealth and economical power.

(three) In the Fifth Five-Year Program, for the first time, the financial sector was included as an integral role of the Programme.

Select the right answer using the code given beneath.

(a) 1 and ii only

(b) 2 only

(d) 1, ii and iii

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

(a) Certificate of Eolith

(b) Commercial Newspaper

(d) Participatory Notation

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

(1) The foreign currency earnings of Republic of india'south IT sector

(2) Increasing the government expenditure

(3) Remittances from Indians abroad

Select the correct answer using the lawmaking given below.

(a) 1 only

(b) 1 and 3 only

(d) 1, 2 and 3

9. Which of the following is non included in the assets of a commercial bank in India?

(a) Advances

(b) Deposits

(d). Money at phone call and short notice

10. Consider the following statements:

(i) Nigh of Bharat'southward external debt is owed by governmental entities.

(2) All of India'due south external debt is denominated in U.s. dollars.

Which of the statements given to a higher place is/are correct?

(a) 1 merely

(b) ii only

(d) Neither 1 nor ii

eleven. The economic price of food grains to the Food Corporation of Bharat is Minimum Support Price and bonus (if any) paid to the farmers plus

(a) transportation cost only

(b) interest cost just

(d) procurement incidentals and charges for godowns

12. The Chairman of public sector banks are selected by the

(a) Banks Board Agency

(b) Reserve Depository financial institution of India

(d) Management of concerned bank

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

(a) To lessen the Government of India'south perennial burden of fiscal deficit and current business relationship deficit

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

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

Candidates tin go the notes on the relevant articles from where the economy questions were asked in IAS Prelims 2019:

2018 IAS Prelims Economic system Questions

i. Which one of the post-obit all-time describes the term "Merchant Discount Charge per unit" sometimes seen in the news?

(a) The incentive given past a banking concern 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 appurtenances or services.

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

2. Consider the following statements

(1) The Fiscal Responsibility and Upkeep Management (FRBM) Review Committee Report has recommended a debt to Gross domestic product ratio of lx% for the general (combined) authorities by 2023, comprising xl% for the Central Authorities and 20% for the State Governments.

(two) The Cardinal Government has domestic liabilities of 21% of Gross domestic product as compared to that of war of GDP of the Country two Governments.

(3) Every bit per the Constitution of India, it is mandatory for a State to take the Primal Authorities'south consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given in a higher place is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) one, two and iii

3. Consider the following statements

(1) The quantity of imported edible oils is more than the domestic product 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 two statements given higher up is/are correct

(a) 1 only

(b) ii merely

(d) Neither 1 nor 2

4. Which one of the post-obit links all the ATMs in Republic of india ?

(a) Indian banks' Clan

(b) National Securities Depository Limited

(d) Reserve Banking concern of Bharat

five. Which one of the post-obit 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 nether coercion to take in settlement of his claims

(d) The metallic money in apportionment in a country

half-dozen. If a article is provided free to the public by the Government, so

(a) the opportunity toll is zero.

(b) the opportunity cost is ignored.

(d) the opportunity toll is transferred from the consumers of the production to the Authorities.

7. Increment in absolute and per capita real GNP practice not connote a higher level of economic development, if

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

(b) agricultural production fails to keep stride with industrial output.

(d) imports grow faster than exports.

8. Consider the following statements: Human being capital formation as a concept is improve explained in terms of a process, which enables

(1) individuals of a country to accumulate more capital.

(two) increasing the noesis, 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?

(a) 1 and 2

(b) 2 only

(d) 1, three and iv

9. Despite being a high saving economic system, capital formation may not outcome in significant increase in output due to

(a) weak administrative machinery

(b) illiteracy

(d) high capital-output ratio

ten. Consider the post-obit statements:

(1) The Reserve Bank of Bharat manages and services Government of India Securities but not any State Government Securities.

(ii) Treasury bills are issued by the Government of Bharat and there are no treasury bills issued past the State Governments.

(3) Treasury bills offered are issued at a disbelieve from the par value.

Which of the statements given above is/are correct?

(a) one and 2 only

(b) 3 Merely

(d) i, 2 and iii

11. Consider the following statements:

(1) Capital Capability Ratio (Car) is the corporeality that banks accept 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 past each individual bank.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

12. 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 business relationship.

(ii) While a chip-pin debit carte has iv factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given higher up is/are correct?

(a) ane just

(b) ii only

(d) Neither ane nor 2

thirteen. With reference to the governance of public sector cyberbanking in Republic of india, consider the following statements

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

(two) To put the public sector banks in club, the merger of associate banks with the parent State Depository financial institution of Republic of india has been affected.

Which of the statements given above is/are correct ?

(a) 1 but

b) 2 merely

(d) Neither 1 nor 2

Candidates can get the notes on the relevant articles from where the economic system questions were asked in IAS Prelims 2018:

2017 IAS Prelims Economic system Questions

ane. With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are right?

(ane) It is an organ of NITI Aayog.

(2) Information technology has a corpus of Rs. 4, 00,000 crore at present.

Select the correct answer using the code given below:

(a) 1 only

(b) two merely

(d) Neither one nor 2

two. What is/are the virtually likely advantages of implementing 'Goods and Services Tax (GST)'?

(1) It volition supersede multiple taxes nerveless by multiple government and will thus create a single market place in India.

(2) Information technology will drastically reduce the 'Current Account Deficit' of Republic of india and volition 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 about future.

Select the correct answer using the code given beneath:

(a) one but

(b) 2 and 3 only

(d) 1, two and 3

3. Consider the following statements :

(one) Tax revenue every bit a percent of Gdp of India has steadily increased in the concluding decade.

(two) Financial deficit as a pct of GDP of India has steadily increased in the concluding decade.

Which of the statements given above is/are right ?

(a) one merely

(b) 2 only

(d) Neither i nor ii

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

(one) To supply credit to small concern units

(two) To supply credit to small and marginal farmers

(iii) To encourage young entrepreneurs to set business specially in rural areas.

Select the correct answer using the code given beneath:

(a) 1 and 2 simply

(b) ii and 3 only

(d) 1, 2 and 3

5. Which of the following is the well-nigh likely upshot of implementing the 'Unified Payments Interface (UPI)'?

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

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

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

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

(ane) It decides the RBI's benchmark interest rates.

(ii) It is a 12-member body including the Governor of RBI and is reconstituted every yr.

(3) It functions under the chairmanship of the Matrimony Finance Minister.

Select the right reply using the code given below :

(a) ane only

(b) one and 2 only

(d) 2 and three only

Candidates tin can get the notes on the relevant articles from where the economic system questions were asked in IAS Prelims 2017:

IAS Prelims Economic system Questions 2016

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

(one) It is a networking of a depository financial institution'southward branches that enables customers to operate their accounts from any branch of the depository financial institution 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 process by which a bank with huge not-performing avails is taken over by some other bank.

Select the correct answer using the lawmaking given below.

(a) 1 merely

(b) two and 3 simply

(d) i, 2 and 3

ii. With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the post-obit data on the chief label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011?

(ane) List of ingredients including additives

(2) Diet data

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

(iv) Vegetarian/non-vegetarian

Select the correct answer using the lawmaking given beneath.

(a) 1, 2 and 3

(b) ii, 3 and 4

(d) 1 and 4 but

three. India's ranking in the 'Ease of Doing Business organization Alphabetize' is sometimes seen in the news. Which of the following has declared that ranking?

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

(b) World Economical Forum

(d) World Trade Organisation (WTO)

4. What is/are the purpose/purposes of the `Marginal Price of Funds based Lending Rate (MCLR)' announced by RBI?

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

(two) These guidelines assistance ensure availability of bank credit at interest rates which are fair to the borrowers equally well as the banks.

Select the correct respond using the code given below.

(a) one merely

(b) two only

(d) Neither one nor two

5. With reference to 'Financial Stability and Development Council', consider the following statements :

(1) It is an organ of NITI Aayog.

(ii)It is headed by the Marriage Finance Government minister.

(three) It monitors macroprudential supervision of the economic system.

Which of the statements given to a higher place is/are right?

(a) one and ii only

(b) iii only

(d) 1, 2 and 3

6. The term 'Base of operations Erosion and Profit Shifting' is sometimes seen in the news in the context of

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

(b) curbing of the taxation evasion past multinational companies

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

7. Recently, India's beginning 'National Investment and Manufacturing Zone' was proposed to be set up in [From Current Diplomacy of 2015-sixteen]

(a) Andhra Pradesh

(b) Gujarat

(d) Uttar Pradesh

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

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

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

(iii) Online payments tin be sent without either side knowing the identity of the other.

Select the correct reply using the code given below.

(a) 1 and ii only

(b) two and 3 only

(d) 1, 2 and 3

nine. What is/are the purpose/purposes of the Government's 'Sovereign Gold Bond Scheme' and 'Aureate 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 right answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(d) i, ii and 3

10. 'Global Financial Stability Report' is prepared past the

(a) European Central Bank

(b) International Budgetary Fund

(d) Arrangement for Economic Cooperation and Evolution

11. The term 'Regional Comprehensive Economic Partnership' often appears in the news in the context of the affairs of a grouping of countries known equally

(a) G20

(b) Association of southeast asian nations

(d) SAARC

12. On which of the following can you find the Agency of Energy Efficiency Star Label?

(ane) Ceiling fans

(2) Electric geysers

(3) Tubular fluorescent lamps

Select the correct respond using the lawmaking given below.

(a) i and 2 only

(b) 3 only

(d) 1, 2 and iii

13. '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 aid to eurozone countries

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

xiv. At that place has been a persistent deficit budget year subsequently year. Which action/deportment of the following can be taken by the Government to reduce the deficit?

(1) Reducing acquirement expenditure

(2) Introducing new welfare schemes

(3) Rationalizing subsidies

(4) Reducing import duty

Select the correct answer using the code given below.

(a) ane only

(b) two and iii only

(d) 1, ii, three and four

15. The institution of 'Payment Banks' is existence allowed in Bharat to promote financial inclusion. Which of the following statements is/are correct in this context?

(ane) Mobile phone companies and supermarket chains that are endemic 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 reply using the code given below.

(a) 1 and 2 merely

(b) 1 and three merely

(d) 1, 2 and 3

xvi. 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

(d) Neither 1 nor two

17. Which of the post-obit is/are included in the capital budget of the Government of India?

(1) Expenditure on acquisition of avails similar roads, buildings, machinery, etc.

(2) Loans received from foreign governments

(3) Loans and advances granted to the States and Union Territories

Select the right answer using the code given beneath.

(a) one only

(b) 2 and 3 but

(d) i, two and 3

eighteen. Recently, which 1 of the following currencies has been proposed to be added to the basket of the IMF's SDR? [From Electric current Diplomacy 2015-16]

(a) Rouble

(b) Rand

(d) Renminbi

19. With reference to the International Monetary and Fiscal Commission (IMFC), consider the post-obit statements :

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

(ii) The World Banking company participates as an observer in IMFC'due south meetings.

Which of the statements given above is/are correct?

(a) one just

(b) 2 only

(d) Neither 1 nor 2

20. Which of the post-obit best describes the term 'import cover', sometimes seen in the news?

(a) It is the ratio of value of imports to the Gross domestic product of a country

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

(d) Information technology is the number of months of imports that could be paid for past a country's international reserves

Candidates tin can get the notes on the relevant articles from where the economic system questions were asked in IAS Prelims 2016:

IAS Prelims Economy Questions 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 variety

(b) improve banking sector's ability to deal with financial and economic stress and ameliorate risk direction

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

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

(one) The charge per unit of growth of Real Gdp has steadily increased in the last decade.

(2) The Gross Domestic Production at market place prices (in rupees) has steadily increased in the final decade.

Which of the statements given above is/are right?

(a) i only

(b) two only

(d) Neither 1 nor 2

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

(ane) Bank charge per unit

(ii) Open up market operations

(3) Public debt

(4) Public revenue

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

(a) 1 only

(b) ii, 3 and iv

(d) 1, iii and 4

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

(a) Decision-making the aggrandizement in Bharat is the responsibility of the Government of India only

(b) The Reserve Depository financial institution of India has no role in controlling the inflation

(d) Increased money circulation helps in controlling the inflation

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

(a) appurtenances and services

(b) gold and silver

(d) exportable surplus

6. There has been a persistent deficit budget year afterward year. Which of the following actions tin be taken by the authorities to reduce the deficit?

(1) Reducing revenue expenditure

(ii) Introducing new welfare schemes

(3) Rationalizing subsidies

(4) Expanding industries

Select the right answer using the lawmaking given below.

(a) 1 and 3 only

(b) 2 and 3 only

(d) one,two,3 and iv

vii. A subtract in tax to GDP ratio of a country indicates which of the following?

(1) Slowing economical growth rate

(2) Less equitable distribution of national income

Select the right answer using the code given below.

(a) 1 just

(b) 2 only

(d) Neither 1 nor 2

8. In the 'Index of 8 Cadre Industries', which 1 of the following is given the highest weight?

(a) Coal production

(b) Electricity generation

(d) Steel production

ix. The Fair and Remunerative Toll (FRP) of sugarcane is approved by the

(a) Cabinet Committee on Economical Diplomacy

(b) Commission for Agricultural Costs and Prices

(d) Agricultural Produce Market place Commission

ten. Which one of the following bug the 'Global Economic Prospects' written report periodically?

(a) The Asian Evolution Bank

(b) The European Bank for Reconstruction and Evolution

(d) The World Bank

xi. When the Reserve Bank of Republic of india reduces the Statutory Liquidity Ratio past 50 basis points, which of the following is likely to happen?

(a) India's Gross domestic product growth charge per unit increases drastically

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

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

12. In Republic of india, markets in agricultural products are regulated nether the

(a) Essential Commodities Act, 1955

(b) Agronomical Produce Market Committee Act enacted by States

(d) Food Products Society, 1956 and Meat and Food Products Guild, 1973

13. Which of the following brings out the 'Consumer Price Alphabetize Number for Industrial Workers'?

(a) The Reserve Bank of India

(b) The Department of Economic Affairs

(d) The Section of Personnel and Grooming

14. Convertibility of rupee implies

(a) beingness able to convert rupee notes into golden

(b) assuasive the value of the rupee to be fixed by marketplace forces

(d) developing an international market for currencies in India

Candidates can get the notes on the relevant manufactures from where the economic system questions were asked in IAS Prelims 2015:

IAS Prelims Economy Questions 2014

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

(a) tax imposed by the Central Government

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

(d) tax imposed and collected by the State Government

two. What does venture capital hateful?

(a) A brusk-term capital provided to industries

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

(d) Funds provided for replacement and renovation of industries

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

(a) inclusive growth and poverty reductions

(b) inclusive and sustainable growth

(d) faster, sustainable and more than inclusive growth.

4. With reference to Residue of Payments, which of the post-obit constitutes/found the Electric current Business relationship?

(ane) Residual of trade

(two) Foreign avails

(3) Remainder of invisibles

(4) Special Drawing Rights

Select the right answer using the code given below.

(a) one only

(b) two and 3

(d) ane, 2 and 4

v. The terms 'Marginal Continuing Facility Rate' and 'Net Demand and Time Liabilities', sometimes appearing in news, are used in relation to

(a) banking operations

(b) advice networking

(e) military strategies

(d) supply and need of agricultural products

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

(i) It enables the beneficiaries to draw their subsidies and social security benefits in their villages.

(2) It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given beneath.

(a) 1 only

(b) two only

(d) Neither 1 nor two

vii. In the context of Indian economy; which of the post-obit is/are the purpose/purposes of 'Statutory Reserve Requirements'?

(1) To enable the Central Bank to control the amount of advances the banks can create

(2) To make the people's deposits with banks safe and liquid

(3) To preclude the commercial banks from making excessive profits

(4) To force the banks to have sufficient vault cash to meet their day-to-twenty-four hours requirements

Select the right answer using the code given beneath.

(a) 1 only

(b) 1 and 2 but

(d) one, 2, 3 and four

8. If the interest rate is decreased in an economy, it volition

(a) decrease the consumption expenditure in the economic system

(b) increase the tax collection of the Government

(d) increase the total savings in the economic system

9. Which of the following organizations brings out the publication known as 'World Economic Outlook'?

(a) The International Budgetary Fund

(b) The United Nations Development Plan

(d) The Earth Banking company

x. With reference to Union Budget, which of the following is/are covered under Not-Plan Expenditure?

(i) Defence expenditure

(2) Interest payments

(three) Salaries and pensions

(iv) Subsidies,

Select the correct answer using the code given beneath.

(a) 1 only

(b) 2 and 3 only

(d) None

Candidates tin can become the notes on the relevant articles from where the economy questions were asked in IAS Prelims 2014:

IAS Prelims Economy Questions 2013

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

(a) all import and transactions of a during a given period normally a year

(b) goods exported from a land during a twelvemonth

(d) capital movements from i country to another

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

(1) liquidity of avails

(2) branch expansion

(3) merger of banks

(iv) winding-upwards of banks

Select the right answer using the codes given below.

(a) 1 and 4 merely

(b) two, three and iv only

(d) 1, 2, 3 and 4

3. An increase in the Bank Charge per unit generally indicates that the

(a) market charge per unit of interest is likely to autumn

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

(d) Key Depository financial institution is following a tight money policy

iv. In Republic of india, arrears financing is used for raising resources for

(a) economic evolution

(b) redemption of public debt

(d) reducing the foreign debt

5. Which of the following constitute Capital letter Account?

(1) Strange Loans

(two) Foreign Straight Investment

(3) Individual Remittances

(4) Portfolio Investment

Select the right answer using the codes given below.

(a) 1, ii and iii

(b) 1, 2 and 4

(d) 1, 3 and 4

6. Consider the following statements :

(i) Inflation benefits the debtors.

(ii) Aggrandizement benefits the bail-holders.

Which of the statements given above is/are right?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

7. Disguised unemployment more often than not ways

(a) big number of people remain unemployed

(b) alternative employment is non available

(d) productivity of workers is depression

8. Consider the following liquid assets:

(i) Demand deposits with the banks

(2) Time deposits with the banks

(3) Savings deposits with the banks

(4) Currency

The correct sequence of these decreasing order of Liquidity is

(a) 1-4-3-2

(b) four-3-2-ane

(d) 4-one-3-two

ix. In the context of Indian economy, Open Market Operations' refers to

(a) borrowing by scheduled banks from the RBI

(b) lending by commercial banks to manufacture and trade

(d) None of the above

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

(a) agriculture

(b) micro and small enterprises

(d) All of the to a higher place

11. To obtain full benefits of demographic dividend, what should Bharat exercise?

(a) Promoting skill development

(b) Introducing more than social security schemes

(d) Privatization of higher education

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

(1) an increase in the coin supply

(2) a subtract in the amass level of output

(3) an increase in the effective demand

Select the correct answer using the codes given below.

(a) ane merely

(b) 1 and ii only

(d) ane, 2 and 3

13. Which ane of the following groups of items is included in India's foreign-exchange reserves?

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

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

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

xiv. Which i of the post-obit is likely to be the most inflationary in its effect?

(a) Repayment of public debt

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

(d) Creating new money to finance a upkeep deficit

fifteen. Supply of coin remaining the aforementioned when there is an increment in demand for money, there volition be

(a) a autumn in the level of prices

(b) an increase in the charge per unit of involvement

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

sixteen. Economic growth in land X will necessarily accept to occur if

(a) there is technical progress in the earth economic system

(b) there is population growth in X

(d) the volume of trade grows in the world economic system

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

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

(b) sum of full consumption and investment expenditure

(d) coin value of final appurtenances and services produced

18. Which of the following grants/ grant direct credit assist to rural households?

(1) Regional Rural Banks

(2) National Banking concern for Agriculture and Rural Development

(three) Country Evolution Banks

Select the right reply using the codes given below:

(a) 1 and 2 merely

(b) 2 only

(d) 1, 2 and 3

Candidates can become the notes on the relevant articles from where the economy questions were asked in IAS Prelims 2013:

Economy Questions in UPSC Prelims 2013-2020:- Download PDF Here

UPSC Prelims Economy Answers [2013-2020]

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Get all the previous years' UPSC Question Papers in the linked article.

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