Indian Economy – UPSC Prelims PYQs

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.

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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

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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?

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

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

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.

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

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

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With reference to the usefulness of the by-products of the sugar industry, which of the following statements is/are correct?

1. Bagasse can be used as biomass fuel for the generation of energy.
2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers.
3. Molasses can be used for the production of ethanol.

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The balance of payments of a country is a systematic record of

The Reserve Bank of India regulates the commercial banks in matters of

1. Liquidity of assets
2. Branch expansion
3. Merger of banks
4. Winding-up of banks

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An increase in the Bank Rate generally indicates that the

In India, deficit financing is used for raising resources for

Which of the following constitute Capital Account?

1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment

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Consider the following statements :

1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

Disguised unemployment generally means

Consider the following liquid assets:

1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency The correct sequence of these assets in the decreasing order of liquidity is

In the context of Indian economy, ‘Open Market Operations’ refers to

Priority Sector Lending by banks in India constitutes the lending to

To obtain full benefits of demographic dividend, what should India do?

A rise in general level of prices may be caused by

1. An increase in the money supply
2. A decrease in the aggregate level of output
3. An increase in the effective demand

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Which one of the following groups of items is included in India’s foreign-exchange reserves?

Which one of the following is likely to be the most inflationary in its effect?

Supply of money remaining the same when there is an increase in demand for money, there will be

Economic growth in country X will necessarily have to occur if

The national income of a country for a given period is equal to the

Which of the following grants/grant direct credit assistance to rural households?

1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks

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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

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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

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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

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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

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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 :

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

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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?

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?

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?

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.

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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

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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

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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

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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?

The basic aim of Lead Bank Scheme is that

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?

India has experienced persistent and high food inflation in the recent past. What could be the reasons?

1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.

Which of the statements given above are correct?

In terms of economy, the visit by foreign nationals to witness the XIX Commonwealth Games in India amounted to

Which one of the following statements appropriately describes the “fiscal stimulus”?

Consider the following actions which the Government can take:

1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above actions can help in reducing the current account deficit?

A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect" ?

Which one of the following is not a feature of “Value Added Tax”?

“A closed economy” is an economy in which