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Indian Economy

621 questions asked in UPSC Prelims.

2016 · Q8Indian EconomyFinancial Markets & Capital Marketsmoderate

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.

  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(c) Both 1 and 2

2016 · Q15Indian EconomyInternational Institutions & Reportsmoderate

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 observer in IMFC's meetings. 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(c) Both 1 and 2

2016 · Q18Indian EconomyExternal Sector & Balance Of Paymentseasy

Which of the following best describes the term 'import cover', sometimes seen in the news?

  1. (a)It is the ratio of value of imports to the Gross Domestic Product of a country
  2. (b)It is the total value of imports of a country in a year
  3. (c)It is the ratio between the value of exports and that of imports between two countries
  4. (d)It is the number of months of imports that could be paid for by a country's international reserves
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Official answer(d) It is the number of months of imports that could be paid for by a country's international reserves

2016 · Q21Indian EconomyAgriculture & Rural Developmentmoderate

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements : 1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. 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(b) 2 only

2016 · Q24Indian EconomyAgriculture & Rural Developmenteasy

Why does the Government of India promote the use of 'Neem-coated Urea' in agriculture?

  1. (a)Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms
  2. (b)Neem coating slows down the rate of dissolution of urea in the soil
  3. (c)Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields
  4. (d)It is a combination of a weedicide and a fertilizer for particular crops
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Official answer(b) Neem coating slows down the rate of dissolution of urea in the soil

2016 · Q29Indian EconomyDigital Payments & Financial Inclusioneasy

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.

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

2016 · Q43Indian EconomyBanking & Financial Sectormoderate

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.

  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(c) Both 1 and 2

2016 · Q48Indian EconomyAgriculture & Rural Developmentmoderate

With reference to 'Initiative for Nutritional Security through Intensive Millets Promotion', which of the following statements is/are correct? 1. This initiative aims to demonstrate the improved production and post-harvest technologies, and to demonstrate value addition techniques, in an integrated manner, with cluster approach. 2. Poor, small, marginal and tribal farmers have larger stake in this scheme. 3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and microirrigation equipment. Select the correct answer using the code given below.

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

2016 · Q60Indian EconomyTaxationeasy

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

  1. (a)mining operation by multinational companies in resource-rich but backward areas
  2. (b)curbing of the tax evasion by multinational companies
  3. (c)exploitation of genetic resources of a country by multinational companies
  4. (d)lack of consideration of environmental costs in the planning and implementation of developmental projects
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Official answer(b) curbing of the tax evasion by multinational companies

2016 · Q62Indian EconomyInfrastructure & Industrymoderate

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 3. Authorizing State Governments to issue licences for mineral exploration Select the correct answer using the code given below.

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

2016 · Q71Indian EconomyFinancial Markets & Capital Marketsmoderate

What is/are the purpose/purposes of 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.

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

2016 · Q73Indian EconomyDigital Payments & Financial Inclusioneasy

Pradhan Mantri MUDRA Yojana is aimed at

  1. (a)bringing the small entrepreneurs into formal financial system
  2. (b)providing loans to poor farmers for cultivating particular crops
  3. (c)providing pensions to old and destitute persons
  4. (d)funding the voluntary organizations involved in the promotion of skill development and employment generation
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Official answer(a) bringing the small entrepreneurs into formal financial system

2016 · Q76Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

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.

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