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(Papers) UPSC Pre Topic Wise Papers : Economy

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2017 :

1. Consider the following statements:
The nation-wide ‘Soil Health Card Scheme’ aims at
1. expanding the cultivable area under irrigation.
2. enabling  the  banks  to  assess  the  quantum  of loans  to  be  granted  to  farmerson  the  basis  of soil quality.
3. checking the overuse of fertilizers in farmlands. 
Which  of  the  above  statements  is/are  correct  ?
(a) 1 and 2 only 
(b) 3 only
(c) 2 and 3 only 
(d) 1,  2  and  3
Ans: B

2. Who  among  the  following  can  join  the  NationalPension  System  (NPS)?
(a) Resident Indian citizens only
(b) Persons  of  age  from  21 to  55  only
(c) All  State  Government  employees  joining  the services  after  the  date  of  notification  by  the respective  State  Governments
(d) All Central Governments Employees including those of Armed Forces joining the services on or after 1st April, 2004
Ans: C
Exp: The  Central  Government  had  introduced  the National  Pension  System  (NPS)  with  effect  from January  1,  2004  (except  for  armed  forces). • Subsequently,  various  State  Governments adopted  this  architecture  and  implemented  NPS with  effect  from  different  dates. 
• Eligibility – Any citizen of India, whether resident or  non-resident,  subject  to  the  following conditions.  Individuals  who  are  aged  between 18  –  60  years,  including  NRIs  .  After  attaining 60  years  of  age,  you  will  not  be  permitted  to make  further  contributions  to  the  NPS  accounts. 

3. What  is/are  the  most  likely  advantages  ofimplementing ‘Goods and Services Tax (GST)’?
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its  foreign  exchange  reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the  near  future.
Select  the  correct  answer  using  the  code  given below:
(a) 1 only 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: A
Exp: Statements  2  and  3  are  probable  but  not deterministic.

4. ‘Broad-based  Trade  and  Investment  Agreement(BTIA)’  is  sometimes  seen  in  the  news  in  thecontext of  negotiations held between  India and
(a) European Union
(b) Gulf Cooperation Council
(c) Organization  for  Economic  Cooperation  and Development
(d) Shanghai Cooperation Organization
Ans: A
Exp: The  EU  and  India  have  negotiated  an  ambitious Broad-based  Trade  and  Investment  Agreement since  2007.

5. Consider the following statements:
1. India  has  ratified  the  Trade  Facilitation Agreement  (TFA)  of  WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
3. TFA  came into  force in  January  2016.
Which of the statements given above is/are correct?
(a) 1 and 2 only 
(b) 1 and 3 only
(c) 2 and 3 only 
(d) 1,  2  and  3
Ans: A
Exp: WTO members concluded negotiations at the 2013 Bali Ministerial Conference on the landmark Trade Facilitation Agreement  (TFA),  which  entered into force on 22 February 2017 following its ratification by two-thirds  of the WTO membership. The TFA contains  provisions  for  expediting the  movement, release and clearance of goods, including goods in transit.  It  also  sets  out  measures  for  effective cooperation between customs and other appropriate authorities  on  trade  facilitation  and  customs compliance issues. It further contains provisions for technical  assistance  and  capacity  building  in  this area.  It  came into  being in  Feb,  2017.

6. What  is  the  importance  of  developing  ChabaharPort  by  India?
(a) India’s  trade  with  African  countries  will enormously increase.
(b) India’s  relations  with  oil-producing  Arab countries will be strengthened.
(c) India will not depend on Pakistan for access to Afghanistan  and Central Asia.
(d) Pakistan will facilitate and protect the installation of  a  gas  pipeline  between  Iraq  and  India.
Ans: C
Exp: The  port  will  make  way  for  India  to  bypass Pakistan  in  transporting  goods  to  Afghanistan using  a  sea-land  route. At  present,  Pakistan  does not  allow  India  to  transport  through  its  territory to  Afghanistan.  It  has,  however,  recently  allowed some  Afghan  shipments  to  come  to  India. This will also give momentum to the International North-South  Transport  Corridor  of  which  both are  initial  signatories  along  with  Russia.  Iran  is the  key  gateway  in  this  project.  It  entails  the ship,  rail,  and  road  routes  for  moving  freight between  India,  Russia,  Iran,  Europe  and  Central Asia.  The  route  primarily involves  moving freight from  India,  Iran,  Azerbaijan  and  Russia.  The objective  of  the  corridor  is  to  increase  trade connectivity  between  major  cities  such  as Mumbai,  Moscow,  Tehran,  Baku,  Astrakhan  etc. 

7. Which of the following has/have occurred in Indiaafter its liberalization of economic policies in 1991?
1. Share  of  agriculture  in  GDP  increased enormously.
2. Share of India’s exports in world trade increased.
3. FDI inflows increased.
4. India’s  foreign  exchange  reserves  increased enormously.
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(d) 1,  2, 3 and  4
Ans: B
Exp: Share  of  agriculture  in  GDP  is  decreasing

8. With  reference  to  ‘National  Investment  and Infrastructure  Fund’,  which  of  the  followingstatements  is/are  correct?
1. It  is  an  organ  of  NITI Aayog.
2. It has a corpus of Rs. 4,00,000 crore at present.
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
Ans: D
Exp: NIIF  has  been  structured  as  a  fund  of  funds and  set  up  as  Category  II  Alternate  Investment Fund  (AIF)  under  the  Securities  and  Exchange Board  of  India  (SEBI)  Regulations.  Total  corpus
of  the  fund  is  Rs.  40,000  Crore. 

9. The Global Infrastructure Facility is a/an
(a) ASEAN initiative to  upgrade infrastructure in Asia  and  financed  by  credit  from  the  Asian Development Bank.
(b) World  Bank  collaboration  that  facilitates  the preparation  and  structuring  of  complex infrastructure  Public-Private  Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.
(c) Collaboration  among  the  major  banks  of  the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private vestment.
(d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.
Ans: B
Exp:
• The  World  Bank  (WB)  has  launched  the  GIF  to specifically  cater  to  the  infrastructure  needs  of the  emerging  economies  and  developing countries.
• The  GIF  will  channel  money  towards  bankable infrastructure  project  in  such  countries.
• GIF  also  places  importance  on  sustainable development.  Its  key  focus  will  be  on  climate friendly  infrastructure  investments  and  projects that  will  boost  trade.
• Key  Objectives  :
– Mobilizing  the  private  sector:  Concentrating  onfinancing  and  implementation  modalities  that draw  together  the  comparative  advantages  of the  public  and  private  sectors  to  expand investment  and  improve  infrastructure  services.
– Collaborating  for  best  results:  Mobilizing partners’  technical  and  financial  resources  in an innovative  and flexible way to  achieve  greater leverage  and  address  the  complex  infrastructure financing  challenges  that  are  beyond  the resources  of  any  individual  partner.

10. Consider the following statements:
1. Tax revenue as a percent of GDP of  India has steadily increased in the last  decade.
2. Fiscal deficit as a percent of GDP of India 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) Either 1  nor  2
Ans: A
Exp: Fiscal  Deficit  has  decreased  in  the  last  decade.

11. Consider the following statements:
1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NCPI  has  launched  RuPay,  a  card  Payment scheme.
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
Ans: C
Exp: RuPay  is  an  Indian  domestic  card  scheme conceived  and  launched  by  the  National Payments  Corporation  of  India  (NPCI).  It  was created  to  fulfil  the  Reserve  Bank  of  India’s desire  to  have  a  domestic,  open  loop,  and multilateral system of payments in India. National Payments  Corporation  of  India  (NPCI)  helps  in promoting  the  financial  inclusion  in  the  country 

12. Which  of  the  following  statements  best  describesthe-  term  ‘Scheme  for  Sustainable  Structuring  ofStressed Assets (S4A)’, recently seen in the news?
(a) It is a procedure for considering ecological costs of  developmental  schemes  formulated  by  the Government.
(b) It  is  a  scheme  of  RBI  for  reworking  the financial structure of big corporate entities facing genuine difficulties.
(c) It  is  a  disinvestment  plan  of  the  Government regarding Central Public Sector Undertakings. (d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.
Ans: B
Exp: In  order to  strengthen the lenders’  ability to  deal with  stressed  assets  and  to  put  real  assets  back on  track  by  providing  an  avenue  for  reworking the  financial  structure  of  entities  facing  genuine difficulties,  the  Reserve  Bank  of  India  has  issued guidelines  on  a  ‘Scheme  for  Sustainable Structuring  of  Stressed  Assets’

13. Consider the following statements:
1. The  Standard  Mark  of  Bureau  of  Indian Standards  (BIS)  is  mandatory  for  automotive tyres  and  tubes.
2. AGMARK is a quality Certification Mark issued by  the  Food  and  Agriculture  Organisation (FAO).
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
Ans: A
Exp: The  Product  Certification  Scheme  of  BIS  aims  at providing  Third  Party  Guarantee  of  quality, safety  and  reliability  of  products to the  customer. Presence  of  ISI  certification  mark,  known  as Standard  Mark,  on  a  product  is  an  assurance  of conformity  to  the  specifications. Under  Product  Certification  ,  Mandatory certification  is  there  for  Automobile  Accessories such  as  Automotive  vehicles  –Tubes  and pneumatic  tyres
AGMARK  (Agricultural  Mark)  is  a  certification issued  by  Directorate  of  Marketing  and Inspection  for  agricultural  produce.

14. What  is/are  the  advantage/advantages  ofimplementing  the  `National  Agriculture  Market’scheme?
1. It  is  a  pan-India  electronic  trading  portal  for agricultural commodities. 
2. It  provides  the  farmers  access  to  nationwide market,  with  prices  commensurate  with  the quality of their produce. 
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
Ans: C
Exp: National  Agriculture  Market  (NAM)  is  a  panIndia  electronic  trading  portal  which  networks the  existing  APMC  (Agricultural  produce  market Committee)  mandis  to  create  a  unified  national market  for  agricultural  commodities. NAM  created  a  unified  market  through  online trading  platform,  both,  at  State  and  National level  and  promotes  uniformity,  streamlining  of procedures  across  the  integrated  markets, removes  information  asymmetry  between  buyers and  sellers  and  promotes  real  time  price discovery,  based  on  actual  demand  and  supply, promotes  transparency  in  auction  process,  and access  to  a  nationwide  market  for  the  farmer, with  prices  commensurate  with  quality  of  his produce  and  online  payment  and  availability  of better  quality  produce  and  at  more  reasonable prices  to  the  consumer.

15. With reference to `Quality Council of India (QCI)’,consider the following statements:
1. QCI was  set  up jointly  by the Government  of India and the  Indian  Industry.
2. Chairman  of  QCI  is  appointed  by  the  Prime Minister on the recommendations of the industry to the Government.
Which  of  the  above  statements  is/are  correct?
(a) 1 only 
(b) 2 only
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: C
Exp: Formed  in  1997,  the  Quality  Council  of  India was  set-up  by  the  Confederation  of  Indian Industry,  the  Federation  of  Indian  Chambers  of Commerce  and  Industry,  and  the  Associated Chambers  of  Commerce  and  Industry. QCI  is  governed  by  a  Council  comprising  of  38 members  including  the  Chairman  and  Secretary General.  The  Council  has  an  equal representation  of Government,  Industry  and  other Stakeholders.
The  chairman  selection  is  approved  by  the  PM upon  suggestion  from  the  body  stakeholders. 

16. What is the purpose of setting up of Small FinanceBanks  (SFBs) in  India?
1. To supply credit to small business units
2. To supply credit to small and marginal farmers
3. To  encourage  young  entrepreneurs  to  set  up business particularly in rural areas.
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, 2and 3
Ans: A
Exp: RBI’s  guidelines  for  Small  Banks Eligibility  –  Professionals  with  10  years  of experience  in  banking  /  finance  /  Micro  Finance Institutions. The minimum capital requirement is Rs 100 crore (minimum  paid-up  equity  capital). Local focus and ability to serve smaller customers will  be  a  key  criterion  in  licensing  such  banks. The  bank  shall  primarily  undertake  basic banking  activities  of  accepting  deposits  and lending to  small farmers,  small  businesses,  micro and  small  industries,  and  unorganized  sector entities.  It  cannot  set  up  subsidiaries  to undertake  non-banking  financial  services activities.  After  the  initial  stabilization  period  of five  years,  and  after  a  review,  the  RBI  may liberalize the  scope  of  activities for  Small  Banks. The  area  of  operations  would  normally  be restricted  to  few  districts  (near-by)  of  a  state. However,  if  necessary,  it  would  be  allowed  to expand  its  area  of  operations  beyond  contiguous districts  in  one  or  more  states  with  reasonable geographical  proximity. Small  Banks  have  to  meet  RBI’s  norms  and regulations  regarding  risk  management.  They have  to  meet  CRR  and  SLR  requirements,  like any  other  commercial  bank. The  maximum  loan  size  and  investment  limit exposure to  single/group  borrowers/issuers would be  restricted  to  15  per  cent  of  capital  funds. For the first three  years,  25  per  cent  of  branches should  be  in  unbanked  rural  areas. Of  the  loans  issued  by  Small  Banks,  75%  should be to the  so-called  priority  sector which includes 
agriculture  and  small  businesses.  And  half  the loan  portfolio  of  the  banks  should  be  loans  and advances  of  up  to  Rs.25  lakh  to  micro  finance businesses.

17. Which of the following is a most likely consequenceof  implementing  the  `Unified  Payments  Interface(UPI)’?
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace the physical currency  in  about  two  decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become  very  effective.
Ans: A

18. ‘Recognition  of  Prior  Learning  Scheme’  issometimes mentioned in the news with reference to
(a) Certifying  the  skills  acquired  by  construction workers through traditional channels.
(b) Enrolling the persons in Universities for distance learning programmes.
(c) Reserving some skilled jobs to rural and urbanpoor in some public sector undertakings.
(d) Certifying the skills acquired by trainees underthe National Skill Development Programme.
Ans: D
Exp: Pradhan  Mantri  Kaushal  Vikas  Yojana  (PMKVY) is  the  flagship  scheme  of  the  Ministry  of  Skill Development  &  Entrepreneurship  (MSDE)  with the  objective  of  this  Skill  Certification  Scheme to  enable  a  large  number  of  Indian  youth  to take  up  industry-relevant  skill  training  that  will help  them  in  securing  a  better  livelihood. Recognition  of  Prior  Learning  Scheme Individuals  with  prior  learning  experience  or skills  shall  be  assessed  and  certified  under  the Recognition  of  Prior  Learning  (RPL)  component of  the  Scheme.  RPL  aims  to  align  the competencies  of  the  unregulated  workforce  of the  country  to  the  NSQF  (National  Skills
Qualification  Framework).

19. Which  of  the  following  statements  is/are  correctregarding the Monetary Policy Committee (MPC)?
1. It  decides the RBI’s  benchmark interest  rates.
2. It is a 12-member body including the Governor of  RBI  and  is  reconstituted  every  year.
3. It functions under the chairmanship of the Union Finance Minister.
Select  the  correct  answer  using  the  code  given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only
Ans: A
Exp: The  Monetary  Policy  Committee  would  be entrusted  with  the  task  of  fixing  the  benchmark policy  rate  (repo  rate)  required  to  contain inflation  within  the  specified  target  level. It  consists  of  6  members.  The  Members  of  the Monetary  Policy  Committee  appointed  by  the Central  Government  shall  hold  office  for  a period  of  four  years. The  Governor  of  the  Bank—Chairperson,  ex officio;

2016 :

1. Regarding  ‘Atal  Pension  Yojana’,  which  of  the following  statements is/are correct? 
1. It  is  a    minimum  guaranteed  pension  scheme mainly targeted at unorganized sector workers
2. Only  one  member  of  a  family  can  join  the scheme
3. Same amount of pension is guaranteed for the spouse  for  life  after  subscriber’s  death.
Select  the  correct  answer  using  the  code  given below:
(a) 1 only 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: C
Exp: Atal  Pension  Yojana  (APY)  is  open  to  all  bank account  holders  who  are  not  members  of  any statutory  social  security  scheme.  The  minimum age  of  joining  APY  is  18  years  and  maximum age  is  40  years.  Therefore,  minimum  period  of contribution  by  the  subscriber  under  APY  would be  20  years  or  more.  No  specification  of  family members.  In  case  of  death  of  subscriber  pension would  be  available  to  the  spouse  and  on  the death  of  both  of  them  (subscriber  and  spouse), the  pension  corpus  would  be  returned  to  his nominee.

2. Which  of  the  following  best  describes  the  term“import  cover”,  sometimes  seen in the  news?
(a) It is the ratio of value of imports to the Gross Domestic  product  of  a  country
(b) It is the total value of imports of a country in a  year.
(c) It is the ratio between the value of exports and that  of imports  between two  countries
(d) It is the number of months of imports that could be paid for by a country’s international reserves
Ans: D

3. Recently, which one of the following currencies hasbeen proposed to be added to the basket of  IMF’sSDR?
(a) Rouble 
(b) Rand
(c) Indian Rupee 
(d) Renminbi
Ans: D
Exp: Chinese  renminbi  (RMB)  will  be  added  as  the fifth  currency  in  IMF’s  SDR.

4. With  reference  to  the  International Monetary  andFinancial Committee (IMFC), consider the followingstatements:
1.  IMFC  discusses  matters  of  concern  affecting the global economy, and advises the International Monetary  Fund  (IMF)  on  the  direction  of  its work.
2.  The  World  Bank  participates  as  observer  in IMFC’s  meetings. 
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
Ans: C
Exp: The  IMFC  advises  and  reports to the  IMF Board of  Governors  on  the  supervision  and management  of  the  international  monetary  and financial  system,  including  on  responses  to unfolding  events  that  may disrupt  the  system.  It also  considers  proposals  by  the  Executive  Board to  amend  the  Articles  of  Agreement  and  advises on  any  other  matters  that  may  be  referred  to  it by  the  Board  of  Governors.  Although  the IMFC has  no  formal  decision-making  powers,  in practice,  it  has  become  a  key  instrument  for providing  strategic  direction  to  the  work  and policies  of  the  Fund. World  Bank  acts  as  observer  in  the  meetings.

5. Which of the following is/are included in the capitalbudget  of the Government  of  India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans  received  from  foreign  governments.
3. Loans and advances  granted to the States  and Union Territories.
Select  the  correct  answer  using  the  code  given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,  2  and  3
Ans: D
Exp: Capital  Budget  consists  of  capital  receipts  and payments.  Capital  receipts  are  loans  raised  by he  government from the  public  (which  are called market  loans),  borrowings  by  the  government from the  Reserve  Bank  and  other  parties through sale  of treasury  bills, loans  received from foreign bodies  and  governments,  and  recoveries  of  loans granted  by  the  Central  government  to  state  and Union  Territory  governments  and  other  parties. Capital  payments  consist  of  capital  expenditure on  acquisition  of  assets  like  land,  buildings, machinery,  and  equipment,  as  also  investments in  shares,  loans  and  advances  granted  by  the Central  government  to  state  and  Union  Territory governments,  government  companies, corporations  and  other  parties.

6. In  the  context  of  which  of  the  following  do  yousometimes find the terms ‘amber box, blue box andgreen  box’ in the  news?
(a) WTO  affairs
(b) SAARC  affairs
(c) UNFCCC  affairs
(d) India-EU negotiations on FTA
Ans: A
Exp: These  are  WTO  jargon  for  different  kinds  of subsidies  given  to  agriculture.  In  a  nutshell, amber  box  subsidies  constitute  all  forms  of domestic  support  deemed  to  be  trade  distorting, primarily  by  encouraging  excessive  production. Blue  box  subsidies  are  considered  somewhat  less trade  distorting,  because  while  they  directly  link production  to  subsidies,  they  also  set  limits  on production  by way  of  quotas, for instance.  Green box  subsidies  were  initially  considered  nondistorting  in  terms  of  production  and  trade, though  it  is  increasingly  being  recognized  that they are at best minimally trade distorting. Direct income  support  schemes   unlinked  to  production would be typical examples of green box subsidies.

7. PradhanMantri MUDRA Yojana is  aimed  at
(a) Bringing  the  small  entrepreneurs  into  formal financial system
(b) Providing loans to poor farmers for cultivating particular crops
(c) Providing pensions to old and destitute persons
(d) Funding the voluntary organization involved in the  promotion  of  skill  development  and employment generation
Ans: A
Exp: The  main  objectives  of  Mudra  Bank  are,  to encourage entrepreneurs and  small business units to  expand  their  capabilities  and  operations,  to reduce  over  indebtedness  and  to  provide  formal system  of  credit  (finance).

8. What is/are the purpose/purposes of Government’s‘Sovereign  Gold  Bond  Scheme’  and  GoldMonetization Scheme?
1. To bring the idle gold lying with India households into the economy
2. To promote FDI in the gold and jewelry sector
3. To reduce India’s dependence on gold imports
Select  the  correct  answer  using  the  code  given below
(a) 1 Only 
(b) 2 and 3 Only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: C
Exp: Gold  Bond  and  Gold  Monetisation  schemes combined  purposes  is  to  reduce  India’s  gold imports  and  bring  all  the  gold  lying  idle  with individuals  and  households  in  India  into  the economy.However,  the  schemes  aren’t  targeted at  Foreign  investors  or  boosting  foreign investment.

9. Consider the following statements:
1. New  Development  Bank  has  been  set  up  by APEC.
2. The  headquarters  of  New  Development  Bank is in Shanghai.
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
Ans: B
Exp: New  Development  Bank  has  been  established  by the  BRICS.

10. ‘SWAYAM’,  an  imitative  of  the  Government  ofIndia, aims at
(a) Promoting the Self Help Groups in rural areas
(b) Providing financial and technical assistance to young  start-up  entrepreneurs
(c) Promoting the education and health of adolescent girls
(d) Providing  affordable  and  quality  education to the  citizens  for  free
Ans: D
Exp: SWAYAM  is  an  online  platform  of  the  Ministry of  HRD  through  which  online  programmes/ courses  will  be  offered  to  students  in  India.

11. The  term  ‘Base  Erosion  and  profit  shifting’  issometimes  seen in the  news in the  context  of
(a) mining operation by multinational companies in resource-rich  by  backward  areas 
(b) curbing  of  the  tax  evasion  by  multinational companies
(c) exploitation  of  genetic  resources  of  a  country by multinational companie
(d) Lack of consideration of environmental costs in the planning of development projects
Ans: B
Exp: Base  erosion  and  profit  shifting  (BEPS)  refers  to tax  avoidance  strategies  that  exploit  gaps  and mismatches in tax  rules to  artificially  shift profits to  low  or  no-tax  locations. 

12. Recently,  India’s  first  ‘National  Investment  andManufacturing Zone’ was proposed to be set up in
(a) Andhra  Pradesh
(b) Gujarat
(c) Maharashtra
(d) Uttar  Pradesh
Ans: A
Exp: Andhra  Pradesh  is  set  to  house  India’s  first national investment  and manufacturing  zone.  The NIMZ  will  comprise  a  special  purpose  vehicle and  a  developer,  along  with  the  state  and  the central  governments  as  stakeholders.

13. With  reference  to  ‘Financial  Stability  andDevelopment  Council’,  consider  the  following statements:
1. It  is  an  organ  of  NITI Aayog.
2. It is  headed  by the Union Finance Minister.
3. It monitors macro prudential super-vision of the economy.
Which of the statements given above is/are correct?
(a) 1 and 2 only 
(b) 3 Only
(c) 2 and 3 only 
(d) 1,  2  and  3
Ans: C
Exp: The  Chairman  of  the  Council  is  the  Finance Minister  and  its  members  include  the  heads  of financial  sector  Regulators  (RBI,  SEBI,  PFRDA,IRDA  &  FMC  {now  with  SEBI})  Finance Secretary  and/or  Secretary,  Department  of Economic  Affairs,  Secretary,  Department  of Financial  Services,  and  Chief  Economic  Adviser. The  Council  can  invite  experts  to  its  meeting  if required.  The  FSDC  Secretariat  is  in  the
Department  of  Economic  Affairs. The  council  will  act  as  a  co-ordination  agency between  the  various  financial  sector  regulatorsthe  RBI,  SEBI,  IRDA  and  the  PFRDA.  This Council  would  monitor  macro-prudential
supervision  of  the  economy,  including  the functioning  of large financial  conglomerates,  and address  inter-regulatory  coordination  issues.

14. What is/are the purpose/purposes of the ‘Marginal Cost  of  Funds  based  Lending  Rate  (MCLR)’ announced  by  RBI?
1. These guidelines help improve the transparency in  the  methodology  followed  by  banks  for determining the interest  rates  on  advances
2. These guidelines help ensure availability of bank credit  &  interest  rates  which  are  fair  to  the borrowers  as  well  as  the  banks
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
Ans: C
Exp: MCLR  help  in  improving  the  transmission  of policy  rates into the lending  rates  of  banks, these guidelines  are  expected  to  improve  transparency in  the  methodology  followed  by  banks  for determining  interest  rates  on  advances.  These guidelines are also expected to ensure availability of  bank  credit  at  interest  rates  which  are  fair  to the  borrowers  as  well  as  the  banks.  Further, marginal  cost  of  pricing  of  loans  will  help  the banks  to  become  more  competitive  and  enhance their  long  run  value  and  contribution  to economic  growth.

15. With  reference to  the  ‘Trans-Pacific  Partnership’,consider the following statements: 
1. It is  an  agreement  among  all  the  Pacific  Rim countries  except China  and Russia.
2. It  is  a  strategic  alliance  for  the  purpose  of maritime security only.
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
Ans: D
Exp: The  TPP  involves  12  Pacific  Rim  nations  –Australia,  Brunei,  Canada,  Chile,  Japan, Malaysia,  Mexico,  New  Zealand,  Peru, Singapore,  the  United  States  and  Vietnam.  The pact  aims  to  deepen  economic ties  between these nations,  slashing  tariffs  and  fostering  trade  to boost  growth.

16. The term ‘Core Banking Solution’ is sometimes suchin  the  news.  Which  of  the  following  statementsbest  describes/describe this term?
1. It is a networking of a bank’s  branches which enables  customers  to  operate  their  accounts from  any  branch  of  the  bank  on  its  network regardless  of  where they  open their  accounts.
2. It  is  an  effort  to  increase  RBI’s  control  over commercial banks through computerization. 
3. It is a detailed procedure by which a bank with huge  non-performing  assets  is  taken  over  by another  bank.
Select  the  correct  answer  using  the  code  given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,  2  and  3
Ans: A
Exp: Core  Banking  Solution  (CBS)  is  networking  of branches,  which  enables  Customers  to  operate their  accounts,  and  avail  banking  services  from any  branch  of  the  Bank  on  CBS  network, regardless  of  where  he  maintains  his  account. The  customer  is  no  more  the  customer  of  a Branch.

17. There  has  been  a  persistent  deficit  budget  yearafter  year.  Which  action/actions  of  the  followingcan  be  taken  by  the  Government  to  reduce  thedeficit?
1. Reducing revenue expenditure
2. Introducing  new  welfare  schemes
3. Rationalizing subsidies
4. Reducing import duty
Select  the  correct  answer  using  the  code  given below.
(a) 1 only 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2, 3 and  4
Ans: C
Exp: Reducing  revenue  expenditure  and  rationalizing subsidies  will  reduce  the  expenditure  of  the government.  Whereas  introducing  new  welfare schemes  and  reducing  import  duty  will  add additional  burden  to  the government  resources.

18. The  establishment  of  “Payment  Banks’  is  beingallowed  in  India  to  promote  Financial  inclusion.Which of the following statements is/are correct inthis context?
1. Mobile telephone companies  and  supermarket chains  that  are  owned  and  controlled  by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit  cards.
3. Payment  Banks  cannot  undertake  lending activities.
Select  the  correct  answer  using  the  code  given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1,  2  and  3
Ans: B
Exp: Existing  non-bank  Pre-paid  Payment  Instrument (PPI)  issuers;  and  other  entities  such  as individuals /  professionals;  Non-Banking  Finance Companies  (NBFCs),  corporate  Business Correspondents(BCs),  mobile  telephone companies,  super-market  chains,  companies,  real sector  cooperatives;  that  are  owned  and controlled  by  residents;  and  public  sector entities may  apply  to  set  up  payments  banks. Payment  Banks  can  issue  ATM/  debit  cards  but not  credit  cards.  Payment  Banks  can  NOT  give loans. 

19. With reference to ‘Stand Up India Scheme’, whichof the  following  statements is/are  correct?
1. Its  purpose  is  to  promote  entrepreneurship among  SC/ST  and  women  entrepreneurs. 
2. It  provides  for  refinance through  SIDBI.
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
Ans: C
Exp: The  “Stand  up  India  Scheme”  is  being  launched now  to  promote  entrepreneurship  among Scheduled  Caste/Schedule  Tribe  and  Women  for loans  in  the  range  of  Rs.  10  Lakhs  to  Rs.  100 Lakhs.  The  Scheme  is  expected  to  benefit  large number  of  such  entrepreneurs,  as  it  is  intended to  facilitate  at  least  two  such  projects  per  bank branch  (Scheduled  Commercial  Bank)  on  an average  one  for  each  category  of  entrepreneur. Refinance  window  through  Small  Industries Development Bank of India (SIDBI) with an initial amount  of  Rs.  10,000  crore  will  be  provided.

20. With  reference  to  ‘Pradhan  Mantri  Fasal  BimaYojana’, consider the following statements: 
1. Under this scheme, farmers with have to pay a uniform premium of two percent  for any crop they  cultivate in  any  season  of the  year.
2. This scheme covers post-harvest losses arising out  of  cyclones  and  unseasonal  rains.
Which of the statements given about is/are correct?
(a) 1 only
(b) 2 only
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: B
Exp: Under  the  scheme  there  will  be  a  uniform premium  of  only  2%  to  be  paid  by  farmers  for all  Kharif  crops  and  1.5%  for  all  Rabi  crops.  In case  of  annual  commercial  and  horticultural crops, the  premium to  be  paid  by farmers will  be only  5%.  Post-harvest  losses  arising  out  of cyclone  and  unseasonal  rain  have  been  covered nationally.

21. Which one of the following is a purpose of ‘UDAY’,a  scheme  of  the  Government? 
(a) Providing technical and  financial assistance to start-up entrepreneurs in the field or renewable source  of  energy.
(b) Providing electricity to every household in the country by 2018
(c)  Replacing  the  coal-based  power  plants  with natural gas, nuclear, solar, wind and tidal power plants  over a period  of time.
(d) Providing for financial turnaround and revival of power distribution companies
Ans: D
Exp: UDAY  (Ujwal  DISCOM  Assurance  Yojana) scheme  to  provide  a  permanent  solution  for financial  turnaround  and  revival  of  Power Distribution  companies  (discoms).

22. With reference to ‘IFC Masala Bonds’, sometimes given  below is/are  correct?
1. The  International  Financed  Corporation,  with offers  these  bonds,  is  an  arm  of  the  World Bank.
2. They are the rupee-denominated bonds and are a  source  of  debt  financing  for  the  public  and private  sector.
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
Ans: A
Exp: International  Finance  Corporation,  the  privatesector  financing  arm  of  World  Bank,  has launched  rupee-denominated  offshore  bonds  for Rs  1,600  crore,  or  about  $250  million,  attracting first-time  investors  to overseas  rupee  markets.

2015 :

1. “Pradhan Mantri Jan-Dhan Yojna’ has been launchedfor
(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
Ans: C
Exp: Pradhan  mantri  Jan  Dhan  Yojana  is  a  financial inclusive  programme  of  the  government  aiming at  opening  up  at least  on  bank  account for  every household  and  providing  insurance  cover.

2. With  reference  to  the  Fourteenth  FinanceCommission, 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) Only 1

(b) Only 2
(c) Both  1  and  2

(d) Neither  1  nor  2
Ans: A
Exp: 14th Finance Commission  has increased the  share of  states  in  the  divisible  pool,  but  has  not considered  any  sector-specific  grants.

3. A decrease in tax to GDP ratio of a country indicateswhich 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) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B
Exp: Tax  GDP  ratio  may  decline
- If  tax  revenue  remains  static  or  falls  while GDP  increases
- Transfer of income by the government is done from  high  income  groups  to  low  income groups  through  taxation.

4. In the ‘Index of Eight Core Industries’, which oneof the following is given the highest weight?
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
Ans: B
Exp: The  index  of  Eight  Core  Industries  (base  2004- 05=100)  concepts  of  following  industries  with different  weight  ages  (1)  Coal  (Weight:  4.38%) (2)  Crude  oil  (Weight:  5.22%)  (3)  Natural  gas (Weight:  1.71%)  (4) Refinery  Products  (Weight: 5.94%)  (5)  fertilizers  (Weight:  1.25%)  (6)  Steel (Wight:  6.68%)  (7)  Cement  (Weight:  2.41%)  and (8)  Electricity  (Weight:  10.32%). 

5. Which  of  the  following  statements  is/are  correctregarding  National  Innovation  Foundation-India(NIF)?
1. NIF is an autonomous body of the Department of  Science  and Technology  under  the  Central Government.
2. NIF  is  an  initiative  to  strengthen  the  highly advanced scientific research in India’s premier scientific institutions in collaboration with highly advanced foreign scientific institutions. 
Select  the  correct  answer  using  the  code  given below:
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: A
Exp: NIF  is  an  autonomous  body  of  the  department  of Science  and  Technology,  Government  of  India, based  on  Honey  Bee  Network  Philosophy,  which provides  institutional  support  to  grassroot innovators  and outstanding  traditional  knowledge solders from the  unorganized  sector  of the  society. 

6. The  Fair  and  Remunerative  Price  (FRP)  ofsugarcane  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
Ans: A
Exp: The  cabinet  committee  on  Economic  Affairs approves  the  fair  and  remunerative  price  (FRP) of  sugarcane,  however,  state  governments  are free  to  fix  their  own  state  advised  price  (SAP) and  millers  can  offer any  price  above  the  FRP.

7. Which  one  of  the  following  issues  the  ‘GlobalEconomic 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
Ans: D
Exp: The  World  Bank  Reports  the  ‘Global  Economic Prospect’,  it  is  also  called  a  flagship  report  by the  World  Bank  Group.  However,  the  IMF publishes  the  ‘Global  Economic  Outlook’. 

8. When  the  Reserve  Bank  of  India  reduces  theStatutory Liquidity Ratio by 50 basis points, whichof 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
Ans: C
Exp: In  an  attempt  to  provide  more  liquidity  to  the banking  system,  the  Reserve  Bank  of  India  (RBI) has  reduced  the  Statutory  Liquidity  Ratio  (SLR) by  50  basis  points  to  21.50%  from  22%
This is likely to provide banks to cut their lending rates.

9. In,  India,  markets  in  agricultural  products  areregulated 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
Ans: B
Exp: Markets  in  Agricultural  Products  in  India  are regulated  under  the  Agricultural  produce  market committee  (APMC)  Act  enacted  by  the  States.  An agricultural  produce  market  committee  is  a marketing  board established  by  state  governments of  India.  APMC  acts  run  on  two  principles:  Ensure that  intermediaries  (and  money  lenders)  do  not compel  farmers  to  sell  their  produce  at  the  farm gate  extremely  low  price  so that  farmers  are  not exploited.  All  food  produce  should  first  be  brought to the market yard and then be sold through auction.

10. Which of the  following  brings  out the  ‘ConsumerPrice  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
Ans: C
Exp: This  index  is  the  oldest  among  the  CPI  indices s  its  dissemination  started  as  early  as  in  1946. he  history  of  compilation  and  maintenance  of Consumer  Price  Index  for  Industrial  workers owes  its  origin  to  the  deteriorating  economic condition  of  the  workers  post  first  world  war which  resulted  in  sharp  increase  in  prices.  As  a consequence  of  rise  in  prices  and  cost  of  living, the  provincial  governments  started   compiling Consumer  Price  Index.  The  estimates  were however  not  satisfactory.  In  pursuance  of  the recommendation  of  Rau  Court  of  enquiry,  the work  of  compilation  and  maintenance  was  taken over  by  government  in  1943.  Since  1958-59,  the compilation  of  CPI(IW)  has  been  started  by Labour  Bureau  ,an  attached  office  under Ministry  of  Labour  &  Employment. 

11. The terms ‘Agreement on Agriculture’, ‘Agreementon  the Application  of  Sanitary  and  PhytosanitaryMeasures’ and  ‘Peace Clause’ appear in the newsfrequently 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
Ans: C
Exp: The  end  of  the  Uruguay  Round  resulted  in  the formation  of  the  WTO,  which  established  a substantial  set  of  rules  regarding  trade  in  goods —  including  agricultural  goods,  included agreements  on  trade  in  services  and  on  traderelated  aspects  of  intellectual  property  rights,  as well  as  a  strong  and  comprehensive  mechanism to  settle  trade  disputes  between  member countries.
The WTO  oversees  about  60  different  agreements which  have the  status  of international legal texts. Member  countries  must  sign  and  ratify  all  WTO agreements  on  accession.  Some  of  the  most important  agreements  are,  Agreement  on Agriculture  (AoA),  General  Agreement  on  Trade in  Srvices  (GATS),  Agreement  on  Trade-Related Aspects  of  Intellectual  Property  Rights  (TRIPS), Agreement  on  the  Application  of  Sanitary  and Phytosanitary  Measures  (SPS),  Agreement  on Technical  Barriers  to  Trade,  Agreement  on Customs  Valuation,  etc.

12. 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
Ans: C
Exp: Convertibility  of  a  currency  means  that  domestic currency  could  be  allowed  to  be  converted freely into  foreign  currencies  and  vice  versa.  The rupee,  for  example  has  been  convertible  on  the current  account  since  1994,  meaning  it  can  be changed  freely  into  foreign  currency  for purposes  like  trade  related  expenses.  But  it  is not fully  convertible  on Capital Account meaning that  rupee  cannot  be  converted  freely  for
activities  such  as  acquiring  overseas  assets. Option  (b)  also  appears  to  be  correct  because convertibility  eventually  leads  the  exchange  rate to  tend  towards  market  determined  exchange  rate. However,  rupee  is  still  not  fully  determined  by market  forces  and  there  are  restrictions  on  Capital Account  and RBI  also intervenes from time to time. 

13. 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) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B
Exp: The  Accelerated  Irrigation  Benefits  Programme had  been  launched  with  a  view  to  accelerate  the completion  of  incomplete  irrigation  projects.

14. ‘Basel III Accord’ or simply ‘Basel III’, often seenin  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
Ans: B
Exp: Basel  III  (or  the  Third  Basel Accord)  is  a  global voluntary  regulatory  framework  on  bank  capital adequacy,  stress testing  and market liquidity  risk.

15. With  reference  to  Indian  economy,  consider  thefollowing 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) Only 1 (b) Only 2
(c) Both  1  and  2 (d) Neither  1  nor  2
Ans: B
Exp: While  growth  of  Real  Gross  Domestic  Product declined during the last three years of the decade, GDP  at  market  price  increased  steadily  due  to rising  prices  even  when  growth  rate  was  small during  the  last  three  years  of  the  decade. 

16. With  reference  to  Indian  economy,  consider  thefollowing:
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) Only 1 
(b) 2,  3  and  4
(c) 1  and  2 
(d) 1,  3  and  4
Ans: C
Exp: Public  Debt  and  Public  Revenue  are  the  issues that  pertain  to  fiscal  policy.

17. With  reference to inflation in  India,  which  of thefollowing 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
Ans: C
Exp: The  decrease  in  supply  of  broad  money  M3 helps in  controlling  inflation  in  India.

18. The problem of international liquidity is related tothe non-availability of
(a) Goods  and  services
(b) Gold and silver
(c) Dollars  and  other  hard  currencies
(d) Exportable surplus
Ans: C
Exp: Dollars  and  hard  currencies  are  used for  payments in  international  trade,  investment  and  liquidation of  international  debt.  So  if  there  is  shortage  of liquidity,  this  means  scarcity  of  Dollars  and  hard currencies  to  carry  on  the  above  transactions. 

19. There  has  been  a  persistent  deficit  budget  yearafter  year. Which  of the  following  actions  can  betaken  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) Only 1 
(d) 1,  2, 3 and  4
Ans: A
Exp: Since  the  main  component  of  comprehensive measure  of  budget  deficit  (fiscal  deficit)  is revenue  deficit,  reduction  in  revenue  expenditure in  general  and  rationalizing  subsidies  (an important  component  of  revenue  expenditure) would  be  useful  to  reduce  deficit.

20. Which  of  the  following  has/have  been  accorded‘Geographical Indication’ status?
1. Banaras  Brocades  and  Sarees
2. Rajasthani Daal-Bati-Churma
3. Tirupathi Laddu
Select  the  correct  answer  using  the  code  given below:
(a) Only 1 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: C

21. With  reference  to  the  Indian  RenewableEnergy 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) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: C
Exp: IREDA  has  been  awarded  “Mini  Ratna”  (Category -I) status in 2015 by Ministry of New and Renewable Energy  (MNRE).  IREDA  is  a  Public  Limited Government  Company  established  as  a  NonBanking  Financial  Institution  in  1987  under  the administrative control of MNRE to promote, develop and  extend  financial  assistance  for  renewable energy  and  energy  efficiency  /conservation  projects with  the  motto:  “ENERGY  FOR  EVER”

2014 :

1. 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
Ans: B

2. If the interest  rate is  decreased in  an  economy, itwill
(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
Ans: C

3. What are the significances of a practical approachto  sugarcane  production  known  as  ‘SustainableSugarcane Initiative’?
1. Seed cost is very low in this compared to the conventional method of cultivation.  
2. Drip irrigation can be practiced very effectively in this.
3. There is no application of chemical/ inorganic fertilizers at all in this. 
4. The  scope  for  intercropping  is  more  in  this compared  to  the  conventional  method  of cultivation.
Select  the  correct  answer  using  the  code  given below:
(a) 1 and 3 only 
(b) 1, 2 and 4 only 
(c) 2, 3 and 4 only 
(d) 1,  2, 3 and  4
Ans: B

4. The sales tax you pay while purchasing a toothpasteis  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
Ans: D

5. In  the  context  of  food  and  nutritional  security  ofIndia, enhancing the ‘Seed Replacement Rates’ ofvarious crops helps in achieving the food productiontargets 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) Only 3
(c) 2  and  3 
(d) None
Ans: B

6. With  reference  to  Union  Budget,  which  of  thefollowing,  is/are  covered  under  Non-PlanExpenditure?
1. Defence  -expenditure 
2. Interest  payments 
3. Salaries and pensions 
4. Subsidiess, 
Select  the  correct  answer  using  the  code  given below:
(a) Only 1 
(b) 2 nd 3 only
(c) 1,  2, 3 and  
4 (d) None
Ans: C

7. If the interest  rate is  decreased in  an  economy, itwill
(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
Ans: C

8. With  reference to Balance  of  Payments, which  ofthe  following  constitutes/constitute  the  CurrentAccount?
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) Only 1
(b) 2  and  3
(c) 1  and  3
(d) 1,  2  and  4
Ans: C

9. What  is/are  the  facility/facilities  the  beneficiariescan 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) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: C

10. In  the  context  of  Indian  economy;  which  of  thefollowing is/are the purpose/purposes of ‘StatutoryReserve  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) Only 1
(b) 1 and 2 only 
(c) 2 and 3 only
(d) 1,  2, 3 and  4
Ans: D

11. The  terms  ‘Marginal  Standing  Facility  Rate’  and‘Net  Demand  and  Time  Liabilities’,  sometimesappearing in  news, are  used in  relation to
(a) Banking operations
(b) Communication networking 
(e) Military strategies 
(d) Supply and demand of agricultural products
Ans: A

2013 :

1. The balance of payments of a country is a systematicrecord  of
(a) All import and export transactions of a country during a given period of time, normally a year 
(b) Goods  exported  from  a  country  during a  year
(c) Economic transaction between the government of  one country to  another
(d) Capital movement from one country to another
Ans: A

2. The Reserve Bank of India regulates the commercialbanks in matters  of
1. Liquidity of assets
2. Branch expansion
3. Merger  of  banks
4. Winding-up of banks
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 1, 2 and 3 only
(d) 1,  2, 3 and  4
Ans: D

3. An increase  in  the  Bank  Rate  generally  indicatesthat  the
(a) Market  rate of interest is likely to  fall
(b) Central  Bank  is  no  longer  making  loans  to commercial banks
(c) Central Bank is following an easy money policy
(d) Central Bank is following a tight money policy
Ans: D

4. In  India,  deficit  financing  is  used  for  raisingresources  for
(a) Economic development
(b) Redemption of public debt
(c) Adjusting the balance of  payments
(d) Reducing the  foreign debt
Ans: A

5. Priority Sector Lending by banks in India constitutesthe lending to
(a) Agriculture
(b) Micro and small enterprises
(c) Weaker  sections
(d) All  of the above
Ans: D

6. To obtain full benefits of demographic dividend, whatshould India do?
(a) Promoting skill development
(b) Introducing more  social  security  schemes
(c) Reducing infant mortality rate
(d) Privatization of higher education
Ans: A

7. 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
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 1 and 2 only
(c) 2 and 3 only 
(d) 1,  2  and  3
Ans: D

8. Which  one  of  the  following  groups  of  items  isincluded in  India’s  foreign-exchange  reserves?
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans  from  foreign countries
(b) Foreign-currency  assets,  gold  holdings  of  the RBI  and  SDRs
(c) Foreign-currency assets, loans from the World Bank  and  SDRs
(d) Foreign-currency  assets,  gold  holdings  of  the RBI  and loans  from the World Bank
Ans: B

9. Which one of the following is likely to be the mostinflationary in its effect?
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
Ans: D

10. Supply of money remaining the same when there isan increase in  demand  for money, there will  be
(a) A fall in the level of prices
(b) An  increase  in  the  rate  of  interest
(c) A  decrease  in  the  rate  of  interest
(d) An  increase  in  the  level  of  income  andemployment
Ans: B

11. Economic growth in country X will necessarily haveto  occur if
(a) There is technical progress in the world economy
(b) There is population growth in X
(c) There is capital formation in X
(d) The  volume  of  trade  grows  in  the  world economy
Ans: C

12. The national income of a country for a given periodis equal to the
(a) total value of goods and services produced by the nationals
(b) sum  of  total  consumption  and  investment expenditure
(c) sum of personal income of all individuals
(d) money  value  of  final  goods  and  services produced
Ans: A

13. The national income of a country for a given periodis equal to the
(a) Total value of goods and services produced by the nationals
(b) Sum  of  total  consumption  and  investment expenditure
(c) Sum of personal income of all individuals
(d) Money  value  of  final  goods  and  services produced
Ans: A

14. Which  of the  following  grants/  grant  direct creditassistance to  rural households?
1. Regional Rural Banks
2. National  Bank  for  Agriculture  and  Rural Development
3. Land Development Banks
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 2 only 
(b) Only 2
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: C

15. Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct  Investment
3. Private  Remittances
4. Portfolio Investment
Select  the  correct  answer  using  the  codes  given below:
(a) 1,  2  and  3 
(b) 1,  2  and  4
(c) 2,  3  and  4 
(d) 1,  3  and  4
Ans: B

16. Consider the following statements:
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
Which of the statements given above is/are correct?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: A

17. Disguised unemployment generally means
(a) Large number of  people  remain unemployed
(b) Alternative employment is not available
(c) Marginal productivity of labour is zero
(d) Productivity of workers is low
Ans: C

18. 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 decreasing order of Liquidity is
(a) 1-4-3-2 
(b) 4-3-2-1
(c) 2-3-1-4 
(d) 4-1-3-2
Ans: D

19. In  the  context  of  Indian  economy,  Open  MarketOperations  refers  to
(a) Borrowing  by  scheduled  banks  from the RBI
(b) Lending by commercial banks to industry and trade
(c) Purchase and sale of government securities by the  RBI
(d) None  of  the  above
Ans:c

2012 :

1. Which of the following can be said to be essentiallythe  parts  of  Inclusive  Governance?
1. Permitting  the  Non-Banking  Financial Companies to do banking
2. Establishing  effective  District  Planning Committees in all the districts
3. Increasing the government spending on public health
4. Strengthening the Mid-day Meal Scheme 
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 2 only 
(b) 3 and 4 only
(c) 2, 3 and 4 only 
(d) 1,  2, 3 and  4
Ans: C

2. With  reference to National Rural Health Mission,Which  of  the  following  are  the  jobs  of  ‘ASHA”,trained community health workers?
1. Accompanying women to the health facility for antenatal  care  checkup
2. Using  pregnancy  test  kits  for  early  detection pregnancy
3. Providing  information  on  nutrition  and immunization
4. Conducting the delivery of baby.
Select  the  correct  answer  using  the  codes  given below:
(a) 1, 2 and 3 only 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2, 3 and  4
Ans: A

3. How  does the National Rural Livelihood Missionseek to improve Livelihood Mission seeks to improvelivelihood 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 skills development 
3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost of farmers.
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 2 only 
(b) Only 2
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: B

4. The Multi-Dimensional Poverty Index developed byOxford Poverty and Human Development Initiativewith 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
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: D

5. Which of the following is/are among the noticeablefeatures of the recommendations of the ThirteenthFinance Commission?
1. A design  for the Goods and Services  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 specific share of central taxes to local  bodies as  grants
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: C

6. What  is/  are  the  recent  policy  initiative(s)  ofGovernment  of  India  to  promote  the  growth  ofmanufacturing  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.
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: D

7. Consider  the  following  specific  stages  ofdemographic  transition  associated  with  economicdevelopment:
1. Low  birth  rate  with low  death  rate
2. High birth  rate with  high death  rate
3. High  birth  rate with low  death  rate
Select  the  correct  answer  using  the  codes  given below:
(a) 1,  2  and  3 
(b) 3,  2  and  1
(c) 2,  3  and  1 
(d) 3,  2  and  1
Ans: C

8. In India the overall Index of Industrial Production,the Indices of Eighth Core Industries have combinedweight of 37.90%. Which of the following are amongthose Eight Core  Industries?
1. Cement
2. Fertilizers
3. Natural  Gas
4. Refinery products
5. Textiles
Select  the  correct  answer  using  the  codes  given below:
(a) 1 and 5 only
(b) 2, 3 and 4 only
(c) 1, 2, 3 and 4 only
(d) 1, 2,  3, 4 and 5
Ans: C

9. The endeavour of Janine suraksha yojana programmeis
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 confinements

Which  of  the  above  are  correct?
(a) 1 and 2 only 
(b) Only 2
(c) Only 3 
(d) 1,  2  and  3
Ans: A

10. Consider the following:
1. Hotels  and  restaurants
2. Motor Transport undertakings
3. Newspaper  Establishments
4. Private Medical Institutions
The Employers of which of the above can have the “Social  Security  coverage  under  Employees  State Insurance  Scheme?
(a) 1, 2 and 3 only 
(b) Only 4
(c) 1, 3 and only 4 
(d) 1,  2, 3 and  4
Ans: D

11. How  do  District  Rural  Development  Agencies(DRDAs) help in the reduction of rural poverty inIndia?
1. DRDAs  act  as  Panchayati  Raj  Institutions  in certain  specified  backward  regions  of  the country.
2. DRDAs undertake area-specific scientific study of  the  cause  of  poverty  and  malnutrition  and prepare  detailed  remedial  measures.
3. DRDAs  secure  inter-sectoral  and  interdepartmental coordination and cooperation for effective  implementation  of  anti-poverty programmes.
4. DRDAs  watch  over  and  ensure  effective utilisation of the funds intended for anti-poverty programme.
Which of the statements given above is/ are correct?
(a) 1, 2 and 3 only 
(b) 3 and 4 only
(c) Only 4 
(d) 1,  2, 3 and  4
Ans: B

12. The Reserve Bank of India (RBI) acts as a bankers’bank. This would imply which of the following?
1. Other bank retains 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.
Correct
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1,  2  and  3
Ans: B

13. 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.
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 2 and 3 only
(c) Only 2 
(d) 1,  2  and  3
Ans: B

14. Which of the following measures would result in anincrease 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
Select  the  correct  answer  using  the  codes  given below:
(a) Only 1 
(b) 2 and 4 only
(c) 1  and  3 
(d) 2,  3  and  4
Ans: C

15. Which of the following would include Foreign DirectInvestment  on  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
Select  the  correct  answer  using  the  codes  given below:
(a) 1,  2, 3 and  4 
(b) 2 and 4 only
(c) 1 and 3 only 
(d) 1, 2 and 3 only
Ans: D

16. Consider the following statement:The price of any currency in international market isdecided 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.
Select  the  correct  answer  using  the  codes  given below:
(a) 1,  2, 3 and  4 
(b) 2 and 3 only
(c) 3 and 4 only 
(d) 1 and 4 only
Ans: B

17. The  basic  aim  of  Lead  Bank  Scheme  is  that 
(a) Big  banks  should  try  to  open  offices  in  each district
(b) There  should  be  stiff  competition  among  the various nationalized banks
(c) Individual banks should adopt particular districts for intensive development
(d) All the banks should make intensive efforts to mobilize deposits.
Ans: C

18. Despite  having  large  reserves  of  coal,  why  doesIndia 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 applies 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?
(a) Only 1
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1,  2  and  3
Ans: B

2011 :

1. Regarding the international monetary  fund, whichone  of the  following  statements is  correct?
(a) It  can  grant  to  any  country.
(b) It can grant loans to only developed countries.
(c) It  grants loans to  only member countries.
(d) It  can  grant   loans  to  the  central  bank  of  a country.
Ans: C

2. India  has  experienced  persistent  and  high  foodinflation  in  the  recent  past.  What  could  be  thereasons?
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?
(a) 1 and 2 only 
(b) 2 and 3 only
(c) 1 and 3 only 
(d) 1,  2  and  3
Ans: B

3. In terms of economy, the visit by foreign nationalsto witness the XIX Common Wealth Games in Indiaamounted to
(a) Export 
(b) Import
(c) Production 
(d) Consumption
Ans: A

4. Which one of the following statements appropriatelydescribes the “fiscal stimulus”?
(a) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods  to  meet  the  demand  surge  caused  by rapid economic growth
(b) It  is  an  intense  affirmative  action  of  the Government to boost economic activity in the country
(c) It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
(d) It  is  an  extreme  affirmative  action  by  the Government  to  pursue  its  policy  of  financial inclusion
Ans: B

5. Consider  the  following  actions  which  theGovernment 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  action/actions  can  help  in reducing the current  account  deficit?
(a) 1  and  2 
(b) 2  and  3
(c) Only 3 
(d) 1  and  3
Ans: A

6. A rapid increase in the rate of inflation is sometimesattributed  to  the  “base  effect”.  What  is  “baseeffect”?
(a) It is the impact of drastic deficiency in supply due to  failure  of  crops 
(b) It is the impact of the surge in demand due to rapid economic growth
(c) It is the impact of the price levels of previous year on the calculation of inflation rate
(d) None of the  statements  (a),  (b) and  (c)  ‘given
above is correct in this  context
Ans: C

7. Why is the offering of “teaser loans” by commercialbanks  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?
(a) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: C

8. In  the  context  of  Indian  economy,  consider  thefollowing 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?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B

9. In  India, which  of the  following  have the  highestshare  in  the  disbursement  of  credit  to  agricultureand allied activities?
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
Ans: A

10. Which  of  the  following  can  aid  in  furthering  theGovernment’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:
(a) Only 1
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1,  2  and  3
Ans: D

11. Why  is  the  Government  of  India  disinvesting  itsequity  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?
(a) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: D

12. Economic growth is usually coupled with
(a) Deflation
(b) Inflation
(c) Stagflation
(d) Hyperinflation
Ans: B

13. The  lowering  of  Bank Rate  by  the Reserve  Bankof  India leads to
(a) More liquidity in the market
(b) Less liquidity in the market
(c) No change in the liquidity in the market
(d) Mobilization  of more  deposits  by  commercial
banks
Ans: A

14. Which  one  of  the  following  is  not  a  feature  of“Value Added Tax”?
(a) It is a multi-point destination-based  system of
taxation
(b) It is a tax levied on value addition at each stage
of transaction in the production-distribution chain
(c) It is a tax on the final consumption of goods or
services  and  must  ultimately  be  borne  by  the
consumer
(d) It  is  basically  a  subject  of  the  Central
Government  and  the  State  Governments  are
only  a  facilitator  for  its  successful
implementation
Ans: C

15. A “closed economy” is an economy in which
(a) The money supply is fully controlled
(b) Deficit  financing takes place
(c) Only  exports take  place
(d) Neither  exports  nor imports take  place
Ans: D

16. Both Foreign Direct Investment (FDI) and ForeignInstitutional Investor (FII) are related to investmentin a country. Which one of the following statementsbest  represents  an  important  difference  betweenthe  two?
(a) FII  helps  bring  better  management  skills  and
technology, while FDI only brings in capital
(b) FII  helps  in  increasing  capital  availability  in
general, while FDI only targets specific sectors
(c) FDI flows only into the secondary market, while
FII  targets  primary  market
(d) FII  is  considered  to  be  more  stable  than  FDI
Ans: B

17. With  what  purpose  is  the  government  of  Indiapromoting 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:
(a) Only 1 
(b) 1 and 2 only
(c) 2 and 3 only 
(d) 1,  2  and  3
Ans: D

18. Microfinance is the provision of financial servicesto people of low-income groups. This includes boththe consumers and the self-employed. The service/services  rendered  under micro-finance 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:
(a) Only 1 
(b) 1 and 4 only
(c) 2 and 3 only 
(d) 1,  2, 3 and  4
Ans: D

19. Among  the  following  who  are  eligible  to  benefitfrom  the  “mahatma  Gandhi  national  ruralemployment   guarantee  act”?
(a) Adult  members   of  only  the   scheduled  caste
and scheduled tribe households.
(b) Adult  members  of  below  poverty  line  (BPL)
households.’
(c) Adult members of households of all backward
communities.
(d) Adult members of any household.
Ans: D

2010 :

1. 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?
(a) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: C

2. Which  one  of  the  following  is  not  a  feature  ofLimited Liability Partnership firm?
(a) Partners  should  be less than  20
(b) Partnership  and  management  need  not  be
separate
(c) Internal governance may be decided by mutual
agreement  among  partners
(d) It is corporate body with perpetual succession
Ans: A

3. In  order  to  comply  with TRIPS Agreement,  Indi aenacted  the  Geographical  Indications  of  Goods(Registration  and  Protection)  Act,  1999.  Thedifference/differences between a “Trade Mark” anda Geographical Indication is/are
1. A Trade Mark is an individual or a company’s
right  whereas  a  Geographical  Indication  is
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?
(a) Only 1 
(b) 1  and  2
(c) 2  and  3 
(d) 1,  2  and  3
Ans: B

4. In the context of the affairs of which of the followingis  the  phrase  “Special  Safeguard  Mechanisms”mentioned in the new  frequently?
(a) United Nations Environment Programme
(b) World Trade Organization
(c) ASEAN-  India  Free  Trade  Agreement
(d) G-20 Summits
Ans: B

5. A great deal of Foreign Direct Investment (FDI) toIndia comes from Mauritius than from many majorand mature economies like UK and France. Why?
(a) India  has  preference  for  certain  countries  as
regards  receiving  FDI
(b) India has double taxation avoidance agreement
with Mauritius
(c) Most citizens of Mauritius have ethnic identity
with India and so they feel secure to invest in
India
(d) Impending  dangers  of  global  climatic  change
prompt Mauritius to make huge investments in
India
Ans: B

6. Consider the following countries:
1. Brazil 2. Mexico
3. South Africa
According to UNCTAD, which of the above is/are
categorized as “Emerging Economies”?
(a) Only 1 
(b) 1  and  3
(c) 2  and  3 
(d) 1,  2  and  3
Ans: D

7. With  reference  to  BRIC  countries,  consider  thefollowing 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?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B

8. Which  of the  following is/are  treated  as  artificiacurrency?
(a) ADR 
(b) GDR
(c) SDR 
(d) Both ADR  and  SDR
Ans: C

9. Stiglitz Commission established by the President ofthe  United  Nations  General Assembly  was  in  theinternational news. The commission was supposedto deal with
(a) The challenges posed by the impending global
climate  change  and  prepare  a  road  map
(b) The  workings  of  the  global  financial  systems
and  to  explore  ways  and  means  to  secure  a
more sustainable global order
(c) Global  terrorism  and  prepare  a  global  action
plan for the mitigation of terrorism
(d) Expansion  of  the  United  Nations  Security
Council in the present global scenario
Ans: B

10. As  regards  the  use  of  international  food  safetystandards  as  reference  point  for  the  disputesettlements, which one of the following does WTOcollaborate with?
(a) Codex Alimentarius Commission
(b) International Federation  of  Standards Users
(c) International Organization for Standardization
(d) World Standards Cooperation
Ans: A

11. As  a  result  of  their  annual  survey,  the  NationalGeographic Society and an international polling firmGlobeScan  gave  India top  rank in Greendex  2009score. What  is  this  score?
(a) It  is  a  measure  of  efforts  made  by  different
countries in adopting technologies for reducing
carbon footprint
(b) It is a measure of environmentally sustainable
consumer behavior in different countries
(c) It  is  an  assessment  of  programmes/schemes
undertaken by different countries for improving
the  conservation  of  natural  resources
(d) It  is  an  index  showing  the  volume  of  carbon
credits sold by different countries
Ans: B

12. In the context of bilateral trade negotiation betweenIndia and European Union, what is the  differencebetween  European  Commission  and  EuropeanCouncil?
1. European  Commission  represents  the  EU  in
trade  negotiations  whereas  European  Council
participates  in  the  legislation  of  matters
pertaining to economic policies of the European
Union
2. European Commission comprises the Heads of
State  or  government  of  member  countries
whereas  the  European  Council  comprises  of
the persons nominated by European Parliament.
Which of the statements given above is/are correct?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: A

13. Which one of the following is not related to UnitedNations?
(a) Multilateral  Investment Guarantee Agency
(b) International Finance Corporation
(c) International Centre for Settlement of Investment
Disputes
(d) Bank  for International Settlements
Ans: D

14. The  United  Nations  Framework  Convention  onClimate Change (UNFCCC) is an international treatydrawn  at
(a) United  Nations  Conference  on  the  Human
Environment, Stockholm, 1972
(b) UN  Conference  on  Environment  and
Development, Rio de Janeiro, 1992
(c) World  Summit  on  Sustainable  Development,
Johannesburg, 2002
(d) UN Climate Change Conference, Copenhagen,
2009
Ans: B

15. The  International  Development  Association,  alending agency, is administrated by the
(a) International  Bank  for  Reconstruction  and
Development
(b) International Fund for Agricultural Development
(c) United Nations Development Programme
(d) United  Nations  Industrial  Development
Organization
Ans: A

16. Inclusive growth as enunciated in the Eleventh-FiveYear Plan does not include one of the  following:
(a) Reduction of poverty
(b) Extension of employment opportunities
(c) Strengthening of capital market
(d) Reduction of gender inequality
Ans: C

17. In the context of India’s Five Year Plans, a shift inthe pattern of industrialization, with lower emphasison heavy industries and more on infrastructure beginsin
(a) Fourth Plan 
(b) Sixth Plan
(c) Eight Plan 
(d) Tenth Plan
Ans: B

18. Which of the following terms indicates a mechanismused  by  commercial  banks  for  providing  credit tothe  government?
(a) Cash Credit Ratio
(b) Debt Service Obligation
(c) Liquidity Adjustment Facilities
(d) Statutory Liquidity Ratio
Ans: D

19. Which  one  of  the  following  statements  is  anappropriate description of deflation?
(a) It  is  a  sudden  fall  in  the  value  of  a  currency
against  other  currencies
(b) It is a persistent recession in both the financial
and  real  sectors  of  economy
(c) It is a persistent  fall in the general price level
of  goods  and  services
(d) It is a fall in the rate of inflation over a period
of time
Ans: B

20. With  reference  to  the  Non-banking  FinancialCompanies (NBFCs) in India, consider the followingstatements:
1. They  cannot  engage  in  the  acquisition  of
securities issued  by the government
2. The cannot accept demand deposits like Savings
Account
Which of the statements given above is/are correct?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B

21. Which  one  of the  following was  not  stipulated inthe Fiscal Responsibility and Budget ManagementAct, 2003?
(a) Elimination of revenue deficit by the end of the
fiscal year 2007-08
(b) Non-borrowing by the central government from
circumstances
(c) Elimination of primary deficit by the end of the
fiscal year 2008-09
(d) Fixing government guarantees in any financial
year  as  a  percentage  of  GDP
Ans: C

22. In  the  context  of  Indian  economy,  consider  thefollowing pairs:Term Most appropriatedescription
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?
(a) Only 1 
(b) 2  and  3
(c) 1  and  3 
(d) 1,  2  and  3
Ans: A

23. In India, the interest rate on savings accounts in allthe nationalized commercial banks is fixed by
(a) Union Ministry of Finance
(b) Union Finance Commission
(c) Indian Bank’s Association
(d) None  of  the  above
Ans: D

24. When  the  Reserve  Bank  of  India  announces  anincrease  of  the  Cash  Reserve  Ratio,  what  does  itmean?
(a) The commercial banks will have less money to
lend
(b) The Reserve Bank of India will have less money
to lend
(c) The Union Government will have less money to
lend
(d) The commercial  banks will have more money
to lend
Ans: A

25. In India, which of the following is regulated by theForward Markets Commission?
(a) Currency Futures Trading
(b) Commodities Futures Trading
(c) Equity Futures Trading
(d) Both Commodities Futures and Financial Futures
Trading
Ans: B

26. With  reference  to  the  institution  of  BankingOmbudsman in India, which one of the statementsis  not  correct?
(a) The Banking Ombudsman is appointed by the
Reserve  Bank  of  India
(b) The  Banking  Ombudsman  can  consider
complaints  from Non-Resident  Indians  having
accounts in  India
(c) The orders passed by the Banking Ombudsman
are final and binding on the parties concerned
(d) The  service  provided  by  the  Banking
Ombudsman  is  free  of  any  fee
Ans: C

27. 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?
(a) 1  and  2
(b) 2  and  3
(c) Only 3
(d) 1,  2  and  3
Ans: D

28. Consider the following statements:The functions of commercial banks in India include
1. Purchase  and  sale  of  shares  and  securities  on
behalf  of  customers.
2. Acting  as  executors  and  trustees  of  wills.
Which of the statements given above is/are correct?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: B

29. In the  parlance  of  financial investments, the term‘bear’  denotes
(a) An  investor  who  feels  that  the  price  of  a
particular security is going to fall
(b) An investor who expects the price of particular
shares  to  rise
(c) A  shareholder  or  a  bondholder  who  has  an
interest in a company,  financial or otherwise
(d) Any lender whether by making a loan or buying
a bond
Ans: D

30. 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?
(a) 1  and  2 
(b) Only 2
(c) 1  and  3 
(d) 1,  2  and  3
Ans: A

31. With  reference  to  India,  consider  the  followingstatements:
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?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2
Ans: C

32. With reference to the National Investment Fund towhich  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?
(a) 1  and  2 
(b) Only 2
(c) 3  and  4 
(d) Only 3
Ans: C

33. In  India,  the  tax  proceeds  of  which  one  of  thefollowing as a percentage of gross tax revenue hassignificantly declined in the last five years?
(a) Service  tax 
(b) Personal income tax
(c) Excise duty 
(d) Corporation tax
Ans: C

34. Consider the following statements:In India, taxes on transactions in Stock Exchangesand  Futures  Markets  are
1. levied by the Union
2. collected  by the  States
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: A

35. With  reference  to  Indian  economy,  consider  thefollowing statements:
1. The  Gross  Domestic  Product  (GDP)  has increased  by  four times in the last  10  years 
2. The percentage share of Public Sector in GDP has  declined in the last  10  years
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both  1  and  2
(d) Neither  1  nor  2
Ans: B

36. An objective of the National Food Security Missionis to increase the production of certain crops througharea expansion and productivity enhancement in asustainable manner in the identified districts of thecountry. What  are  those  crops?
(a) Rice  and  wheat  only
(b) Rice, wheat  and pulses  only
(c) Rice, wheat, pulses and oil seeds  only
(d) Rice, wheat,  pulses,  oil  seeds  and  vegetables
Ans: B

37. The  SEZ  Act,  2005  which  came  into  effect  inFebruary 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?
(a) 1  and  2 
(b) Only 3
(c) 2  and  3 
(d) 1,  2  and  3
Ans: A

38. Consider the following statements:
1. The  Commonwealth  has  no  charter,  treaty  or constitution
2. All  the  territories/countries  once  under  the British  empire  (jurisdiction/rule/mandate) automatically joined the Commonwealth as its members
Which of the statements given above is/are correct?
(a) Only 1 
(b) Only 2
(c) Both  1  and  2 
(d) Neither  1  nor  2

UPSC Mains General Studies Study Kit (GS I + GS II + GS III + GS IV)

Printed Study Material for IAS (UPSC) : General Studies PRE Cum MAINS