Indian Economy PYQs

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1. Prelims 2025Q8Financial Markets & Institutions

   Consider the following statements :

   I.India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom.

   II.India’s stock market has grown rapidly in the recent past even overtaking Hong Kong’s at some point of time.

   III.There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard.

   Which of the statements given above are correct?

   aI and II onlybII and III onlycI and III onlydI, II and III
2. Prelims 2025Q10Fiscal Policy & Budget

   Consider the following statements :

   I.Capital receipts create a liability or cause a reduction in the assets of the Government.

   II.Borrowings and disinvestment are capital receipts.

   III.Interest received on loans creates a liability of the Government.

   Which of the statements given above are correct?

   aI and II onlybII and III onlycI and III onlydI, II and III
3. Prelims 2025Q30Agriculture & Food Security

   Consider the following statements about the Rashtriya Gokul Mission :

   I.It is important for the upliftment of rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers.

   II.It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner.

   Which of the statements given above is/are correct?

   aI onlybII onlycBoth I and IIdNeither I nor II
4. Prelims 2025Q35International Organisations & Reports

   Which one of the following launched the ‘Nature Solutions Finance Hub for Asia and the Pacific’?

   aThe Asian Development Bank (ADB)bThe Asian Infrastructure Investment Bank (AIIB)cThe New Development Bank (NDB)dThe International Bank for Reconstruction and Development (IBRD)
5. Prelims 2025Q61Fiscal Policy & Budget

   Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores. Which of the following statements are correct?

   I.Revenue deficit is ₹ 20,000 crores.

   II.Fiscal deficit is ₹ 10,000 crores.

   III.Primary deficit is ₹ 4,000 crores.

   Select the correct answer using the code given below.

   aI and II onlybII and III onlycI and III onlydI, II and III
6. Prelims 2025Q65Fiscal Policy & Budget

   A country's fiscal deficit stands at ₹ 50,000 crores. It is receiving ₹ 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹ 1,500 crores. What is the gross primary deficit?

   a₹ 48,500 croresb₹ 51,500 croresc₹ 58,500 croresdNone of the above
7. Prelims 2025Q66Fiscal Policy & Budget

   Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?

   I.It has recommended grants of ₹ 4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes.

   II.45% of the net proceeds of Union taxes are to be shared with States.

   III.₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.

   IV.It reintroduced tax effort criteria to reward fiscal performance.

   Select the correct answer using the code given below.

   aI, II and IIIbI, II and IVcI, III and IVdII, III and IV
8. Prelims 2025Q67International Organisations & Reports

   Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :

   I.It provides loans and guarantees to middle income countries.

   II.It works single-handedly to help developing countries to reduce poverty.

   III.It was established to help Europe rebuild after the World War II.

   Which of the statements given above are correct?

   aI and II onlybII and III onlycI and III onlydI, II and III
9. Prelims 2025Q68Money & Banking

   Consider the following statements in respect of RTGS and NEFT :

   I.In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.

   II.In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.

   III.Operating hours for RTGS are restricted on certain days while this is not true for NEFT.

   Which of the statements given above is/are correct?

   aI onlybI and IIcI and IIIdIII only
10. Prelims 2025Q69Money & Banking

    Consider the following countries :

    I.United Arab Emirates

    II.France

    III.Germany

    IV.Singapore

    V.Bangladesh

    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

    aOnly twobOnly threecOnly fourdAll the five
11. Prelims 2024Q40Financial Markets & Institutions

    With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :

    aBond marketbForex marketcMoney marketdStock market
12. Prelims 2024Q41Poverty, Unemployment & Social Sector

    The total fertility rate in an economy is defined as :

    athe number of children born per 1000 people in the population in a year.bthe number of children born to a couple in their lifetime in a given population.cthe birth rate minus death rate.dthe average number of live births a woman would have by the end of her child-bearing age.
13. Prelims 2024Q42Financial Markets & Institutions

    Consider the following statements :

    1.In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.

    2.In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).

    3.In India, Stock Exchanges can offer separate trading platforms for debts.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb3 onlyc1, 2 and 3d2 and 3 only
14. Prelims 2024Q43Financial Markets & Institutions

    In India, which of the following can trade in Corporate Bonds and Government Securities ?

    1.Insurance Companies

    2.Pension Funds

    3.Retail Investors

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
15. Prelims 2024Q44Financial Markets & Institutions

    Consider the following :

    1.Exchange-Traded Funds (ETF)

    2.Motor vehicles

    3.Currency swap

    Which of the above is/are considered financial instruments ?

    a1 onlyb2 and 3 onlyc1, 2 and 3d1 and 3 only
16. Prelims 2024Q45National Income & Growth

    With reference to the sectors of the Indian economy, consider the following pairs :

    Economic activity	Sector
    1. Storage of agricultural produce	Secondary
    2. Dairy farm	Primary
    3. Mineral exploration	Tertiary
    4. Weaving cloth	Secondary

    How many of the pairs given above are correctly matched ?

    aOnly onebOnly twocOnly threedAll four
17. Prelims 2024Q47National Income & Growth

    With reference to physical capital in Indian economy, consider the following pairs :

    Items	Category
    1. Farmer's plough	Working capital
    2. Computer	Fixed capital
    3. Yarn used by the weaver	Fixed capital
    4. Petrol	Working capital

    How many of the above pairs are correctly matched ?

    aOnly onebOnly twocOnly threedAll four
18. Prelims 2024Q49Money & Banking

    With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements :

    1.There is no minimum capital requirement for wholly owned banking subsidiaries in India.

    2.For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
19. Prelims 2024Q50Industry & Infrastructure

    With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements :

    1.CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.

    2.CSR rules do not specify minimum spending on CSR activities.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
20. Prelims 2024Q51Financial Markets & Institutions

    Consider the following statements :

    Statement-I :

    If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.

    Statement-II :

    The USA Government debt is not backed by any hard assets, but only by the faith of the Government.

    Which one of the following is correct in respect of the above statements ?

    aBoth Statement-I and Statement-II are correct and Statement-II explains Statement-IbBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-IcStatement-I is correct, but Statement-II is incorrectdStatement-I is incorrect, but Statement-II is correct