Indian Economy PYQs

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1. Prelims 2012Q39Industry & Infrastructure

   In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37·90%. Which of the following are among those Eight Core Industries?

   1.Cement

   2.Fertilizers

   3.Natural gas

   4.Refinery products

   5.Textiles

   Select the correct answer using the codes given below :

   a1 and 5 onlyb2, 3 and 4 onlyc1, 2, 3 and 4 onlyd1, 2, 3, 4 and 5
2. Prelims 2012Q52Poverty, Unemployment & Social Sector

   The endeavour of 'Janani Suraksha Yojana' Programme is

   1.to promote institutional deliveries

   2.to provide monetary assistance to the mother to meet the cost of delivery

   3.to provide for wage loss due to pregnancy and confinement

   Which of the statements given above is/are correct?

   a1 and 2 onlyb2 onlyc3 onlyd1, 2 and 3
3. Prelims 2012Q55Poverty, Unemployment & Social Sector

   Consider the following :

   1.Hotels and restaurants

   2.Motor transport undertakings

   3.Newspaper establishments

   4.Private medical institutions The employees of which of the above can have the 'Social Security' coverage under Employees' State Insurance Scheme?

   a1, 2 and 3 onlyb4 onlyc1, 3 and 4 onlyd1, 2, 3 and 4
4. Prelims 2012Q58Poverty, Unemployment & Social Sector

   How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?

   1.DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.

   2.DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.

   3.DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.

   4.DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes.

   Which of the statements given above is/are correct?

   a1, 2 and 3 onlyb3 and 4 onlyc4 onlyd1, 2, 3 and 4
5. Prelims 2012Q75Money & Banking

   The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?

   1.Other banks retain their deposits with the RBI.

   2.The RBI lends funds to the commercial banks in times of need.

   3.The RBI advises the commercial banks on monetary matters.

   Select the correct answer using the codes given below :

   a2 and 3 onlyb1 and 2 onlyc1 and 3 onlyd1, 2 and 3
6. Prelims 2012Q76Taxation

   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 :

   a1 onlyb2 and 3 onlyc2 onlyd1, 2 and 3
7. Prelims 2012Q77Money & Banking

   Which of the following measures would result in an increase in the money supply in the economy?

   1.Purchase of government securities from the public by the Central Bank

   2.Deposit of currency in commercial banks by the public

   3.Borrowing by the government from the Central Bank

   4.Sale of government securities to the public by the Central Bank

   Select the correct answer using the codes given below :

   a1 onlyb2 and 4 onlyc1 and 3d2, 3 and 4
8. Prelims 2012Q78External Sector: BoP, FDI & Exchange Rate

   Which of the following would include Foreign Direct Investment in India?

   1.Subsidiaries of foreign companies in India

   2.Majority foreign equity holding in Indian companies

   3.Companies exclusively financed by foreign companies

   4.Portfolio investment

   Select the correct answer using the codes given below :

   a1, 2, 3 and 4b2 and 4 onlyc1 and 3 onlyd1, 2 and 3 only
9. Prelims 2012Q79External Sector: BoP, FDI & Exchange Rate

   Consider the following statements :

   The price of any currency in international market is decided by the

   1.World Bank

   2.demand for goods/services provided by the country concerned

   3.stability of the government of the concerned country

   4.economic potential of the country in question

   Which of the statements given above are correct?

   a1, 2, 3 and 4b2 and 3 onlyc3 and 4 onlyd1 and 4 only
10. Prelims 2012Q80Money & Banking

    The basic aim of Lead Bank Scheme is that

    abig banks should try to open offices in each districtbthere should be stiff competition among the various nationalized bankscindividual banks should adopt particular districts for intensive developmentdall the banks should make intensive efforts to mobilize deposits
11. Prelims 2011Q4Inflation

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

    1.Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.

    2.As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.

    3.The food supply chain has structural constraints.

    Which of the statements given above are correct?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
12. Prelims 2011Q6International Trade & WTO

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

    aExportbImportcProductiondConsumption
13. Prelims 2011Q8Fiscal Policy & Budget

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

    aIt 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 growthbIt is an intense affirmative action of the Government to boost economic activity in the countrycIt 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 inflationdIt is an extreme affirmative action by the Government to pursue its policy of financial inclusion
14. Prelims 2011Q10External Sector: BoP, FDI & Exchange Rate

    Consider the following actions which the Government can take:

    1.Devaluing the domestic currency.

    2.Reduction in the export subsidy.

    3.Adopting suitable policies which attract greater FDI and more funds from FIIs.

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

    a1 and 2b2 and 3c3 onlyd1 and 3
15. Prelims 2011Q13Inflation

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

    aIt is the impact of drastic deficiency in supply due to failure of cropsbIt is the impact of the surge in demand due to rapid economic growthcIt is the impact of the price levels of previous year on the calculation of inflation ratedNone of the statements (a), (b) and (c) given above is correct in this context
16. Prelims 2011Q14Poverty, Unemployment & Social Sector

    India is regarded as a country with “Demographic Dividend”. This is due to

    aIts high population in the age group below 15 yearsbIts high population in the age group of 15-64 yearscIts high population in the age group above 65 yearsdIts high total population
17. Prelims 2011Q16Taxation

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

    aIt is a multi-point destination-based system of taxationbIt is a tax levied on value addition at each stage of transaction in the production-distribution chaincIt is a tax on the final consumption of goods or services and must ultimately be borne by the consumerdIt is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
18. Prelims 2011Q17International Trade & WTO

    “A closed economy” is an economy in which

    athe money supply is fully controlledbdeficit financing takes placeconly exports take placedneither exports nor imports take place
19. Prelims 2011Q28External Sector: BoP, FDI & Exchange Rate

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

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

    aFII helps bring better management skills and technology, while FDI only brings in capitalbFII helps in increasing capital availability in general, while FDI only targets specific sectorscFDI flows only into the secondary market, while FII targets primary marketdFII is considered to be more stable than FDI
20. Prelims 2011Q30Poverty, Unemployment & Social Sector

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

    1.The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless household.

    2.The member insured must be in the age group of 30 to 65 years.

    3.There is a provision for free scholarship for up to two children of the insured who are studying between classes 9 and 12.

    Which of the statements given above is/are correct?

    a1 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3