SawaalBoxसवाल बॉक्स

Indian Economy

621 questions asked in UPSC Prelims.

2025 · Q7Indian EconomyFinancial Markets & Capital Marketseasy

Consider the following statements : Statement I : As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II : Bondholders are lenders to a company whereas stockholders are its owners. Statement III : For repayment purpose, bondholders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

  1. (a)Both Statement II and Statement III are correct and both of them explain Statement I
  2. (b)Both Statement I and Statement II are correct and Statement I explains Statement II
  3. (c)Only one of the Statements II and III is correct and that explains Statement I
  4. (d)Neither Statement II nor Statement III is correct
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Official answer(a) Both Statement II and Statement III are correct and both of them explain Statement I

2025 · Q8Indian EconomyFinancial Markets & Capital Marketsmoderate

Consider the following statements : I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India’s stock market has grown rapidly in the recent past even overtaking Hong Kong’s at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(a) I and II only

2025 · Q24Indian EconomyAgriculture & Rural Developmentmoderate

Consider the following statements about turmeric during the year 2022–23 : I. India is the largest producer and exporter of turmeric in the world. II. More than 30 varieties of turmeric are grown in India. III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric producing States in India. Which of the statements given above are correct?

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(d) I, II and III

2025 · Q30Indian EconomyAgriculture & Rural Developmentmoderate

Consider the following statements about the Rashtriya Gokul Mission : I. It is important for the upliftment of rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers. II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner. Which of the statements given above is/are correct?

  1. (a)I only
  2. (b)II only
  3. (c)Both I and II
  4. (d)Neither I nor II
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Official answer(c) Both I and II

2025 · Q61Indian EconomyPublic Financeeasy

Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores. Which of the following statements are correct? I. Revenue deficit is ₹ 20,000 crores. II. Fiscal deficit is ₹ 10,000 crores. III. Primary deficit is ₹ 4,000 crores. Select the correct answer using the code given below.

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(d) I, II and III

2025 · Q66Indian EconomyFiscal Policy & Budgetmoderate

Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of ₹ 4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.

  1. (a)I, II and III
  2. (b)I, II and IV
  3. (c)I, III and IV
  4. (d)II, III and IV
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Official answer(c) I, III and IV

2025 · Q67Indian EconomyInternational Organizationsmoderate

Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) : I. It provides loans and guarantees to middle income countries. II. It works single-handedly to help developing countries to reduce poverty. III. It was established to help Europe rebuild after the World War II. Which of the statements given above are correct?

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(c) I and III only

2025 · Q68Indian EconomyDigital Payments & Financial Inclusioneasy

Consider the following statements in respect of RTGS and NEFT : I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?

  1. (a)I only
  2. (b)I and II
  3. (c)I and III
  4. (d)III only
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Official answer(a) I only

2025 · Q82Indian EconomyInfrastructuremoderate

Consider the following statements : I. Indian Railways have prepared a National Rail Plan (NRP) to create a ‘future ready’ railway system by 2028. II. ‘Kavach’ is an Automatic Train Protection system developed in collaboration with Germany. III. ‘Kavach’ system consists of RFID tags fitted on track in station section. Which of the statements given above are not correct?

  1. (a)I and II only
  2. (b)II and III only
  3. (c)I and III only
  4. (d)I, II and III
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Official answer(a) I and II only

2025 · Q89Indian EconomyInfrastructure & Industrymoderate

Consider the following statements : Statement I : In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II : In India, the Central Government has the power to notify minor minerals under the relevant law. Which one of the following is correct in respect of the above statements?

  1. (a)Both Statement I and Statement II are correct and Statement II explains Statement I
  2. (b)Both Statement I and Statement II are correct but Statement II does not explain Statement I
  3. (c)Statement I is correct but Statement II is not correct
  4. (d)Statement I is not correct but Statement II is correct
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Official answer(d) Statement I is not correct but Statement II is correct

2024 · Q41Indian EconomyDemographicseasy

The total fertility rate in an economy is defined as :

  1. (a)the number of children born per 1000 people in the population in a year.
  2. (b)the number of children born to a couple in their lifetime in a given population.
  3. (c)the birth rate minus death rate.
  4. (d)the average number of live births a woman would have by the end of her child-bearing age.
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Official answer(d) the average number of live births a woman would have by the end of her child-bearing age.

2024 · Q42Indian EconomyBanking and Financedifficult

Consider the following statements : 1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct ?

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

2024 · Q49Indian EconomyBanking and Financedifficult

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements : 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals. Which of the statements given above is/are correct ?

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

2024 · Q50Indian EconomyInfrastructure & Industrymoderate

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements : 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. 2. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct ?

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

2024 · Q51Indian EconomyInternational Institutions & Reportsmoderate

Consider the following statements : Statement-I : If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment. Statement-II : The USA Government debt is not backed by any hard assets, but only by the faith of the Government. Which one of the following is correct in respect of the above statements ?

  1. (a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  2. (b)Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  3. (c)Statement-I is correct, but Statement-II is incorrect
  4. (d)Statement-I is incorrect, but Statement-II is correct
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Official answer(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I