UPSC 2014 › Indian Economy

14 questions · 2014 · answers as per the UPSC key

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Topics: Monetary Policy & Money Supply (3)Agriculture & Rural Development (2)Economic Planning & Five-Year Plans (2)Digital Payments & Financial Inclusion (1)External Sector & Balance Of Payments (1)Financial Markets & Capital Markets (1)Fiscal Policy & Budget (1)Infrastructure & Industry (1)International Institutions & Reports (1)Taxation (1)

Consider the following pairs : Programme/Project : Ministry

  1. Drought-Prone Area Programme : Ministry of Agriculture
  2. Desert Development Programme : Ministry of Environment and Forests
  3. National Watershed Development Project for Rainfed Areas : Ministry of Rural Development

Which of the above pairs is/are correctly matched?

(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3
(d) None
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Answer: (d) None
UPSC 2014 · Q27 · Indian Economy › Taxation · Save

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
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government
Show answer
Answer: (d) tax imposed and collected by the State Government

What does venture capital mean?

(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries
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Answer: (b) A long-term start-up capital provided to new entrepreneurs

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

(a) inclusive growth and poverty reduction
(b) inclusive and sustainable growth
(c) sustainable and inclusive growth to reduce unemployment
(d) faster, sustainable and more inclusive growth
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Answer: (d) faster, sustainable and more inclusive growth

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

  1. Balance of trade
  2. Foreign assets
  3. Balance of invisibles
  4. Special Drawing Rights

Select the correct answer using the code given below.

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

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

(a) banking operations
(b) communication networking
(c) military strategies
(d) supply and demand of agricultural products
Show answer
Answer: (a) banking operations

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

  1. 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 below.

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2

In the context of Indian economy, which of the following 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 prevent the commercial banks from making excessive profits
  4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

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

With reference to two non-conventional energy sources called ‘coalbed methane’ and ‘shale gas’, consider the following statements :

  1. Coalbed methane is the pure methane gas extracted from coal seams, while shale gas is a mixture of propane and butane only that can be extracted from fine-grained sedimentary rocks.
  2. In India, abundant coalbed methane sources exist, but so far no shale gas sources have been found.

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
Show answer
Answer: (d) Neither 1 nor 2

Which of the following are associated with 'Planning' in India?

  1. The Finance Commission
  2. The National Development Council
  3. The Union Ministry of Rural Development
  4. The Union Ministry of Urban Development
  5. The Parliament

Select the correct answer using the code given below.

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

If the interest rate is decreased in an economy, it will

(a) decrease the consumption expenditure in the economy
(b) increase the tax collection of the Government
(c) increase the investment expenditure in the economy
(d) increase the total savings in the economy
Show answer
Answer: (c) increase the investment expenditure in the economy

In the context of food and nutritional security of India, enhancing the 'Seed Replacement Rates' of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider/greater implementation?

  1. There is no National Seeds Policy in place.
  2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
  3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below.

(a) 1 and 2
(b) 3 only
(c) 2 and 3
(d) None
Show answer
Answer: (b) 3 only

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

(a) The International Monetary Fund
(b) The United Nations Development Programme
(c) The World Economic Forum
(d) The World Bank
Show answer
Answer: (a) The International Monetary Fund

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

  1. Defence expenditure
  2. Interest payments
  3. Salaries and pensions
  4. Subsidies

Select the correct answer using the code given below.

(a) 1 only
(b) 2 and 3 only
(c) 1, 2, 3 and 4
(d) None
Show answer
Answer: (c) 1, 2, 3 and 4