UPSC 2012 › Indian Economy

16 questions · 2012 · answers as per the UPSC key

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Topics: Human Development, Poverty & Employment Schemes (5)Infrastructure & Industry (3)Banking & Financial Sector (2)External Sector & Balance Of Payments (2)Agriculture & Rural Development (1)Fiscal Policy & Budget (1)Monetary Policy & Money Supply (1)Taxation (1)

How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?

  1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
  2. By strengthening 'self-help groups' and providing skill development
  3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers

Select the correct answer using the codes given below :

(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (b) 2 only

The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

  1. Deprivation of education, health, assets and services at household level
  2. Purchasing power parity at national level
  3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below :

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (a) 1 only

Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

  1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
  2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend
  3. Devolution of a specified share of central taxes to local bodies as grants

Select the correct answer using the codes given below :

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (c) 1 and 3 only

What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

  1. Setting up of National Investment and Manufacturing Zones
  2. Providing the benefit of 'single window clearance'
  3. Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below :

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (d) 1, 2 and 3

Consider the following specific stages of demographic transition associated with economic development :

  1. Low birthrate with low death rate
  2. High birthrate with high death rate
  3. High birthrate with low death rate

Select the correct order of the above stages using the codes given below :

(a) 1, 2, 3
(b) 2, 1, 3
(c) 2, 3, 1
(d) 3, 2, 1
Show answer
Answer: (c) 2, 3, 1

In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37·90%. Which of the following are among those Eight Core Industries?

  1. Cement
  2. Fertilizers
  3. Natural gas
  4. Refinery products
  5. Textiles

Select the correct answer using the codes given below :

(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2, 3, 4 and 5
Show answer
Answer: (c) 1, 2, 3 and 4 only

The endeavour of 'Janani Suraksha Yojana' Programme is

  1. to promote institutional deliveries
  2. to provide monetary assistance to the mother to meet the cost of delivery
  3. to provide for wage loss due to pregnancy and confinement

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Show answer
Answer: (a) 1 and 2 only

Consider the following :

  1. Hotels and restaurants
  2. Motor transport undertakings
  3. Newspaper establishments
  4. Private medical institutions The employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?
(a) 1, 2 and 3 only
(b) 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Show answer
Answer: (d) 1, 2, 3 and 4

How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?

  1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.
  2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
  3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.
  4. DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes.

Which of the statements given above is/are correct?

(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 4 only
(d) 1, 2, 3 and 4
Show answer
Answer: (b) 3 and 4 only

The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?

  1. Other banks retain their deposits with the RBI.
  2. The RBI lends funds to the commercial banks in times of need.
  3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below :

(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (d) 1, 2 and 3
UPSC 2012 · Q76 · Indian Economy › Taxation · Save

Under which of the following circumstances may 'capital gains' arise?

  1. When there is an increase in the sales of a product
  2. When there is a natural increase in the value of the property owned
  3. When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below :

(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Show answer
Answer: (b) 2 and 3 only

Which of the following measures would result in an increase in the money supply in the economy?

  1. Purchase of government securities from the public by the Central Bank
  2. Deposit of currency in commercial banks by the public
  3. Borrowing by the government from the Central Bank
  4. Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below :

(a) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
Show answer
Answer: (c) 1 and 3

Which of the following would include Foreign Direct Investment in India?

  1. Subsidiaries of foreign companies in India
  2. Majority foreign equity holding in Indian companies
  3. Companies exclusively financed by foreign companies
  4. Portfolio investment

Select the correct answer using the codes given below :

(a) 1, 2, 3 and 4
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only
Show answer
Answer: (d) 1, 2 and 3 only

Consider the following statements : The price of any currency in international market is decided by the

  1. World Bank
  2. demand for goods/services provided by the country concerned
  3. stability of the government of the concerned country
  4. economic potential of the country in question

Which of the statements given above are correct?

(a) 1, 2, 3 and 4
(b) 2 and 3 only
(c) 3 and 4 only
(d) 1 and 4 only
Show answer
Answer: (b) 2 and 3 only

The basic aim of Lead Bank Scheme is that

(a) big banks should try to open offices in each district
(b) there should be stiff competition among the various nationalized banks
(c) individual banks should adopt particular districts for intensive development
(d) all the banks should make intensive efforts to mobilize deposits
Show answer
Answer: (c) individual banks should adopt particular districts for intensive development

Despite having large reserves of coal, why does India import millions of tonnes of coal?

  1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
  2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
  3. Steel companies need large quantity of coking coal which has to be imported.

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
Show answer
Answer: (b) 2 and 3 only