UPSC 2024 › Indian Economy

15 questions · 2024 · answers as per the UPSC key

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Topics: Banking & Financial Sector (3)Financial Markets & Capital Markets (3)Human Development, Poverty & Employment Schemes (2)National Income & Economic Growth (2)Agriculture & Rural Development (1)Digital Payments & Financial Inclusion (1)Infrastructure & Industry (1)International Institutions & Reports (1)International Trade & WTO (1)

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :

(a) Bond market
(b) Forex market
(c) Money market
(d) Stock market
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Answer: (c) Money market

The total fertility rate in an economy is defined as :

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

Consider the following statements : 1. window of the Reserve Bank of India. 2. 3.

Which of the statements given above is/are correct ?

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

In India, which of the following can trade in Corporate Bonds and Government Securities ?

  1. Insurance Companies
  2. Pension Funds
  3. Retail Investors

Select the correct answer using the code given below :

(a) 1 and 2 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 :

  1. Exchange-Traded Funds (ETF)
  2. Motor vehicles
  3. Currency swap

Which of the above is/are considered financial instruments ?

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

With reference to the sectors of the Indian economy, consider the following pairs : Economic activity | Sector

  1. Storage of agricultural produce | Secondary
  2. Dairy farm | Primary
  3. Mineral exploration | Tertiary
  4. Weaving cloth | Secondary

How many of the pairs given above are correctly matched ?

(a) Only one
(b) Only two
(c) Only three
(d) All four
Show answer
Answer: (b) Only two

With reference to physical capital in Indian economy, consider the following pairs : Items | Category

  1. Farmer's plough | Working capital
  2. Computer | Fixed capital
  3. Yarn used by the weaver | Fixed capital
  4. Petrol | Working capital

How many of the above pairs are correctly matched ?

(a) Only one
(b) Only two
(c) Only three
(d) All four
Show answer
Answer: (b) Only two

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 ?

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

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 ?

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

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 ?

(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct
Show answer
Answer: (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

Consider the following statements :

Statement-I : Syndicated lending spreads the risk of borrower default across multiple lenders.

Statement-II : The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.

Which one of the following is correct in respect of the above statements ?

(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct
Show answer
Answer: No single answer
Note: Cancelled by UPSC — marks awarded to all candidates

Consider the following statements in respect of the digital rupee :

  1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
  2. It appears as a liability on the RBI's balance sheet.
  3. It is insured against inflation by its very design.
  4. It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct ?

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

Consider the following statements : 1. 2. rice and wheat.

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: (a) 1 only

With reference to the Digital India Land Records Modernisation Programme, consider the following statements : 1. 2. 3. any of the languages recognized by the Constitution of India.

Which of the statements given above are correct ?

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

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements : 1. 2. 3. attaining the age of 60 years. 4.

Which of the statements given above is/are correct ?

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