Indian Economy – UPSC Prelims PYQs

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country.

Which one of the following statements best represents an important difference between the two?

With reference to "Aam Aadmi Bima Yojana", consider the following statements:

1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless household.
2. The member insured must be in the age group of 30 to 65 years.
3. There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12.

Which of the statements given above is/are correct?

In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply?

1. It is a major classification of crude oil.
2. It is sourced from North Sea.
3. It does not contain sulphur.

Which of the statements given above is/are correct?

With what purpose is the Government of India promoting the concept of "Mega Food Parks"?

1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.

Select the correct answer using the codes given below:

Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are:

1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities

Select the correct answer using the codes given below the lists:

Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

With reference to the period of colonial rule in India, "Home Charges" formed an important part of drain of wealth from India. Which of the following funds constituted "Home Charges"?

1. Funds used to support the India Office in London.
2. Funds used to pay salaries and pensions of British personnel engaged in India.
3. Funds used for waging wars outside India by the British.

Select the correct answer using the codes given below:

What is the difference between "vote-on-account" and "interim budget"?

1. The provision of a "vote-on-account" is used by a regular Government, while an "interim budget" is a provision used by a caretaker Government.
2. A "vote-on-account" only deals with the expenditure in Government's budget, while an "interim budget" includes both expenditure and receipts.

Which of the statements given above is/are correct?

Regarding the International Monetary Fund, which one of the following statements is correct?

Why is the offering of "teaser loans" by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

In the context of Indian economy, consider the following statements:

1. The growth rate of GDP has steadily increased in the last five years.
2. The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct?

In India,

which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

Which of the following can aid in furthering the Government's objective of inclusive growth?

1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act

Select the correct answer using the codes given below :

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/are correct?

Economic growth is usually coupled with

The lowering of Bank Rate by the Reserve Bank of India leads to

In the context of the affairs

of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently ?

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?

In order to comply with TRIPS Agreement, India enacted the Geographical Indications of Goods (Registration & Protection) Act, 1999. The difference/differences between a “Trade Mark” and a Geographical Indication is/are

1. A Trade Mark is an individual or a company’s right whereas a Geographical Indication is a community’s right.
2. A Trade Mark can be licensed whereas a Geographical Indication cannot be licensed.
3. A Trade Mark is assigned to the manufactured goods whereas the Geographical Indication is assigned to the agricultural goods/products and handicrafts only.

Which of the statements given above is/are correct ?

The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following :

1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of exports of services only.

Which of the above are the objectives of this Act ?

Which one of the following statements is an appropriate description of deflation ?

With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:

1. They cannot engage in the acquisition of securities issued by the government.
2. They cannot accept demand deposits like Savings Account.

Which of the statements given above is/are correct?

Which one of the following was NOT stipulated in the Fiscal Responsibility and Budget Management Act, 2003?

In the parlance of financial investments, the term ‘bear’ denotes

A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?

Consider the following countries:

1. Brazil
2. Mexico
3. South Africa According to UNCTAD, which of the above is/are categorized as “Emerging Economies”?

Which one of the following is not related to United Nations?

In the context of Indian economy, consider the following pairs:

1. Melt down – Fall in stock prices
2. Recession – Fall in growth rate
3. Slow down – Fall in GDP

Which of the pairs given above is/are correctly matched?

With reference to BRIC countries, consider the following statements:

1. At present, China’s GDP is more than the combined GDP of all the three other countries.
2. China’s population is more than the combined population of any two other countries.

Which of the statements given above is/are correct?

Which of the following is/are treated as artificial currency?

As regards the use of international food safety standards as reference point for the dispute settlements, which one of the following does WTO collaborate with?

An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by

In the context of governance, consider the following :

1. Encouraging Foreign Direct Investment inflows
2. Privatization of higher educational Institutions
3. Down-sizing of bureaucracy
4. Selling/off-loading the shares of Public Sector Undertakings

Which of the above can be used as measures to control the fiscal deficit in India ?

Inclusive growth as enunciated in the Eleventh Five Year Plan does NOT include one of the following:

Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?

Consider the following actions by the Government:

1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies In the context of economic recession, which of the above actions can be considered a part of the "fiscal stimulus" package?

When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

With reference to India, consider the following statements:

1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

Which of the statements given above is/are correct?

In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements :

1. The assets in the National Investment Fund are managed by the Union Ministry of Finance.
2. The National Investment Fund is to be maintained within the Consolidated Fund of India.
3. Certain Asset Management Companies are appointed as the fund managers.
4. A certain proportion of annual income is used for financing select social sectors.

Which of the statements given above is/are correct ?

In India,

which of the following is regulated by the Forward Markets Commission ?

Which one of the following is not a feature of Limited Liability Partnership firm ?

With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct ?

With reference to India, consider the following :

1. Nationalization of Banks
2. Formation of Regional Rural Banks
3. Adoption of villages by Bank Branches

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India ?

Consider the following statements :

1. Purchase and sale of shares and securities on behalf of customers.
2. Acting as executors and trustees of wills.

The functions of commercial banks in India include

Which of the statements given above is/are correct ?

In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years ?

Consider the following statements : In India, taxes on transactions in Stock Exchanges and Futures Markets are

1. Levied by the Union
2. Collected by the States

Which of the statements given above is/are correct ?

In India, during the last decade the total cultivated land for which one of the following crops has remained more or less stagnant ?

Consider the following statements :

1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season.
2. Sugar and sugarcane are essential commodities under the Essential Commodities Act.

Which of the statements given above is/are correct ?