Indian Economy PYQs

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1. Prelims 2014Q27Taxation

   The sales tax you pay while purchasing a toothpaste is a

   atax imposed by the Central Governmentbtax imposed by the Central Government but collected by the State Governmentctax imposed by the State Government but collected by the Central Governmentdtax imposed and collected by the State Government
2. Prelims 2014Q28Financial Markets & Institutions

   What does venture capital mean?

   aA short-term capital provided to industriesbA long-term start-up capital provided to new entrepreneurscFunds provided to industries at times of incurring lossesdFunds provided for replacement and renovation of industries
3. Prelims 2014Q29Planning & NITI Aayog

   The main objective of the 12th Five-Year Plan is

   ainclusive growth and poverty reductionbinclusive and sustainable growthcsustainable and inclusive growth to reduce unemploymentdfaster, sustainable and more inclusive growth
4. Prelims 2014Q30External Sector: BoP, FDI & Exchange Rate

   With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

   1.Balance of trade

   2.Foreign assets

   3.Balance of invisibles

   4.Special Drawing Rights

   Select the correct answer using the code given below.

   a1 onlyb2 and 3c1 and 3d1, 2 and 4
5. Prelims 2014Q31Money & Banking

   The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

   abanking operationsbcommunication networkingcmilitary strategiesdsupply and demand of agricultural products
6. Prelims 2014Q32Money & Banking

   What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?

   1.It enables the beneficiaries to draw their subsidies and social security benefits in their villages.

   2.It enables the beneficiaries in the rural areas to make deposits and withdrawals.

   Select the correct answer using the code given below.

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
7. Prelims 2014Q33Money & BankingAnswer disputed

   In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

   1.To enable the Central Bank to control the amount of advances the banks can create

   2.To make the people’s deposits with banks safe and liquid

   3.To prevent the commercial banks from making excessive profits

   4.To force the banks to have sufficient vault cash to meet their day-to-day requirements

   Select the correct answer using the code given below.

   a1 onlyb1 and 2 onlyc2 and 3 onlyd1, 2, 3 and 4
8. Prelims 2014Q40Agriculture & Food Security

   In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance. Which one of the following statements is correct in this context?

   aThe oil extracted from seeds is used in the manufacture of biodegradable plasticsbThe gum made from its seeds is used in the extraction of shale gascThe leaf extract of this plant has the properties of anti-histaminesdIt is a source of high quality biodiesel
9. Prelims 2014Q56Agriculture & Food Security

   What are the benefits of implementing the ‘Integrated Watershed Development Programme’?

   1.Prevention of soil runoff

   2.Linking the country’s perennial rivers with seasonal rivers

   3.Rainwater harvesting and recharge of groundwater table

   4.Regeneration of natural vegetation

   Select the correct answer using the code given below.

   a1 and 2 onlyb2, 3 and 4 onlyc1, 3 and 4 onlyd1, 2, 3 and 4
10. Prelims 2014Q57Planning & NITI AayogAnswer disputed

    Which of the following are associated with 'Planning' in India?

    1.The Finance Commission

    2.The National Development Council

    3.The Union Ministry of Rural Development

    4.The Union Ministry of Urban Development

    5.The Parliament

    Select the correct answer using the code given below.

    a1, 2 and 5 onlyb1, 3 and 4 onlyc2 and 5 onlyd1, 2, 3, 4 and 5
11. Prelims 2014Q61Money & Banking

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

    adecrease the consumption expenditure in the economybincrease the tax collection of the Governmentcincrease the investment expenditure in the economydincrease the total savings in the economy
12. Prelims 2014Q73Agriculture & Food Security

    Consider the following statements :

    1.Maize can be used for the production of starch.

    2.Oil extracted from maize can be a feedstock for biodiesel.

    3.Alcoholic beverages can be produced by using maize.

    Which of the statements given above is/are correct?

    a1 onlyb1 and 2 onlyc2 and 3 onlyd1, 2 and 3
13. Prelims 2014Q94Agriculture & Food Security

    In the context of food and nutritional security of India, enhancing the 'Seed Replacement Rates' of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider/greater implementation?

    1.There is no National Seeds Policy in place.

    2.There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.

    3.There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

    Select the correct answer using the code given below.

    a1 and 2b3 onlyc2 and 3dNone
14. Prelims 2014Q99International Organisations & Reports

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

    aThe International Monetary FundbThe United Nations Development ProgrammecThe World Economic ForumdThe World Bank
15. Prelims 2014Q100Fiscal Policy & Budget

    With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

    1.Defence expenditure

    2.Interest payments

    3.Salaries and pensions

    4.Subsidies

    Select the correct answer using the code given below.

    a1 onlyb2 and 3 onlyc1, 2, 3 and 4dNone
16. Prelims 2013Q41External Sector: BoP, FDI & Exchange Rate

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

    aall import and export transactions of a country during a given period of time, normally a yearbgoods exported from a country during a yearceconomic transaction between the government of one country to anotherdcapital movements from one country to another
17. Prelims 2013Q42Money & Banking

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

    1.Liquidity of assets

    2.Branch expansion

    3.Merger of banks

    4.Winding-up of banks

    Select the correct answer using the codes given below.

    a1 and 4 onlyb2, 3 and 4 onlyc1, 2 and 3 onlyd1, 2, 3 and 4
18. Prelims 2013Q43Money & Banking

    An increase in the Bank Rate generally indicates that the

    amarket rate of interest is likely to fallbCentral Bank is no longer making loans to commercial bankscCentral Bank is following an easy-money policydCentral Bank is following a tight-money policy
19. Prelims 2013Q44Fiscal Policy & Budget

    In India, deficit financing is used for raising resources for

    aeconomic developmentbredemption of public debtcadjusting the balance of paymentsdreducing the foreign debt
20. Prelims 2013Q56External Sector: BoP, FDI & Exchange Rate

    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.

    a1, 2 and 3b1, 2 and 4c2, 3 and 4d1, 3 and 4