UPSC 2015 › Indian Economy

23 questions · 2015 · answers as per the UPSC key

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Topics: Agriculture & Rural Development (4)Fiscal Policy & Budget (3)Infrastructure & Industry (3)Banking & Financial Sector (2)External Sector & Balance Of Payments (2)Inflation & Price Indices (2)Monetary Policy & Money Supply (2)Digital Payments & Financial Inclusion (1)Economic Planning & Five-Year Plans (1)International Institutions & Reports (1)International Trade & WTO (1)National Income & Economic Growth (1)

'Pradhan Mantri Jan-Dhan Yojana' has been launched for

(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women's Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities
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Answer: (c) promoting financial inclusion in the country

With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

  1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
  2. It has made recommendations concerning sector-specific grants.

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
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Answer: (a) 1 only

A decrease in tax to GDP ratio of a country indicates which of the following?

  1. Slowing economic growth rate
  2. Less equitable distribution of national income

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: (a) 1 only

In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
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Answer: (b) Electricity generation

The Fair and Remunerative Price (FRP) of sugarcane is approved by the

(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
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Answer: (a) Cabinet Committee on Economic Affairs

Which one of the following issues the 'Global Economic Prospects' report periodically?

(a) The Asian Development Bank
(b) The European Bank for Reconstruction and Development
(c) The US Federal Reserve Bank
(d) The World Bank
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Answer: (d) The World Bank

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

(a) India's GDP growth rate increases drastically
(b) Foreign Institutional Investors may bring more capital into our country
(c) Scheduled Commercial Banks may cut their lending rates
(d) It may drastically reduce the liquidity to the banking system
Show answer
Answer: (c) Scheduled Commercial Banks may cut their lending rates

In India, markets in agricultural products are regulated under the

(a) Essential Commodities Act, 1955
(b) Agricultural Produce Market Committee Act enacted by States
(c) Agricultural Produce (Grading and Marking) Act, 1937
(d) Food Products Order, 1956 and Meat and Food Products Order, 1973
Show answer
Answer: (b) Agricultural Produce Market Committee Act enacted by States

Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

(a) The Reserve Bank of India
(b) The Department of Economic Affairs
(c) The Labour Bureau
(d) The Department of Personnel and Training
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Answer: (c) The Labour Bureau

The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the

(a) Food and Agriculture Organization
(b) United Nations Framework Conference on Climate Change
(c) World Trade Organization
(d) United Nations Environment Programme
Show answer
Answer: (c) World Trade Organization

Convertibility of rupee implies

(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India
Show answer
Answer: (c) freely permitting the conversion of rupee to other currencies and vice versa

The Government of India has established NITI Aayog to replace the

(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
(d) Planning Commission
Show answer
Answer: (d) Planning Commission

In India, the steel production industry requires the import of

(a) saltpetre
(b) rock phosphate
(c) coking coal
(d) All of the above
Show answer
Answer: (c) coking coal

Consider the following statements :

  1. The Accelerated Irrigation Benefits Programme was launched during 1996–97 to provide loan assistance to poor farmers.
  2. The Command Area Development Programme was launched in 1974–75 for the development of water-use efficiency.

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: (b) 2 only

'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 diversity
(b) improve banking sector's ability to deal with financial and economic stress and improve risk management
(c) reduce the greenhouse gas emissions but places a heavier burden on developed countries
(d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
Show answer
Answer: (b) improve banking sector's ability to deal with financial and economic stress and improve risk management

With reference to Indian economy, consider the following statements :

  1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
  2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

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: (b) 2 only

With reference to Indian economy, consider the following :

  1. Bank rate
  2. Open market operations
  3. Public debt
  4. Public revenue

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

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

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

(a) Controlling the inflation in India is the responsibility of the Government of India only
(b) The Reserve Bank of India has no role in controlling the inflation
(c) Decreased money circulation helps in controlling the inflation
(d) Increased money circulation helps in controlling the inflation
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Answer: (c) Decreased money circulation helps in controlling the inflation

The substitution of steel for wooden ploughs in agricultural production is an example of

(a) labour-augmenting technological progress
(b) capital-augmenting technological progress
(c) capital-reducing technological progress
(d) None of the above
Show answer
Answer: (b) capital-augmenting technological progress

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

(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
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Answer: (c) dollars and other hard currencies

Which one of the following best describes the main objective of ‘Seed Village Concept’?

(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
(c) Earmarking some villages exclusively for the production of certified seeds
(d) Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies
Show answer
Answer: (b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalizing subsidies
  4. Expanding industries

Select the correct answer using the code given below.

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

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

  1. It is a Public Limited Government Company.
  2. It is a Non-Banking Financial Company.

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