Indian Economy PYQs

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1. Prelims 2023Q73Financial Markets & Institutions

   In the context of finance, the term ‘beta’ refers to

   athe process of simultaneous buying and selling of an asset from different platformsban investment strategy of a portfolio manager to balance risk versus rewardca type of systemic risk that arises where perfect hedging is not possibleda numeric value that measures the fluctuations of a stock to changes in the overall stock market
2. Prelims 2023Q74Money & Banking

   Consider the following statements :

   1.The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.

   2.In an SHG, all members of a group take responsibility for a loan that an individual member takes.

   3.The Regional Rural Banks and Scheduled Commercial Banks support SHGs.

   How many of the above statements are correct?

   aOnly onebOnly twocAll threedNone
3. Prelims 2023Q75Poverty, Unemployment & Social Sector

   Consider the following statements :

   Statement–I :

   India’s public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care.

   Statement–II :

   Under India’s decentralized approach to health care delivery, the States are primarily responsible for organizing health services.

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

   aBoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IbBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–IcStatement–I is correct but Statement–II is incorrectdStatement–I is incorrect but Statement–II is correct
4. Prelims 2023Q86International Trade & WTO

   Consider the following statements :

   Statement–I :

   Switzerland is one of the leading exporters of gold in terms of value.

   Statement–II :

   Switzerland has the second largest gold reserves in the world.

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

   aBoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IbBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–IcStatement–I is correct but Statement–II is incorrectdStatement–I is incorrect but Statement–II is correct
5. Prelims 2023Q88International Trade & WTO

   Consider the following statements :

   Statement–I :

   India accounts for 3·2% of global export of goods.

   Statement–II :

   Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.

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

   aBoth Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–IbBoth Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–IcStatement–I is correct but Statement–II is incorrectdStatement–I is incorrect but Statement–II is correct
6. Prelims 2022Q1International Organisations & Reports

   “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following ?

   aAsian Development BankbInternational Monetary FundcUnited Nations Environment Programme Finance InitiativedWorld Bank
7. Prelims 2022Q2External Sector: BoP, FDI & Exchange Rate

   With reference to the Indian economy, consider the following statements :

   1.An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.

   2.An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.

   3.An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

   Which of the above statements are correct ?

   a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
8. Prelims 2022Q3Money & Banking

   With reference to the Indian economy, consider the following statements :

   1.If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.

   2.If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.

   3.If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

   Which of the statements given above are correct ?

   a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
9. Prelims 2022Q4International Organisations & Reports

   With reference to the “G20 Common Framework”, consider the following statements :

   1.It is an initiative endorsed by the G20 together with the Paris Club.

   2.It is an initiative to support Low Income Countries with unsustainable debt.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
10. Prelims 2022Q5Financial Markets & Institutions

    With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)” ?

    1.Government can reduce the coupon rates on its borrowing by way of IIBs.

    2.IIBs provide protection to the investors from uncertainty regarding inflation.

    3.The interest received as well as capital gains on IIBs are not taxable.

    Which of the statements given above are correct ?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
11. Prelims 2022Q6External Sector: BoP, FDI & Exchange Rate

    With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ?

    1.They can sell their own goods in addition to offering their platforms as market-places.

    2.The degree to which they can own big sellers on their platforms is limited.

    Select the correct answer using the code given below :

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
12. Prelims 2022Q7National Income & Growth

    Which of the following activities constitute real sector in the economy ?

    1.Farmers harvesting their crops

    2.Textile mills converting raw cotton into fabrics

    3.A commercial bank lending money to a trading company

    4.A corporate body issuing Rupee Denominated Bonds overseas

    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
13. Prelims 2022Q8Taxation

    Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India ?

    aAn Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investmentbA foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investmentcAn Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to IndiadA foreign company transfers shares and such shares derive their substantial value from assets located in India
14. Prelims 2022Q9Financial Markets & Institutions

    With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct ?

    1.Acquiring new technology is capital expenditure.

    2.Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.

    Select the correct answer using the code given below :

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
15. Prelims 2022Q10Fiscal Policy & Budget

    With reference to the Indian economy, consider the following statements :

    1.A share of the household financial savings goes towards government borrowings.

    2.Dated securities issued at market-related rates in auctions form a large component of internal debt.

    Which of the above statements is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
16. Prelims 2022Q19Poverty, Unemployment & Social Sector

    With reference to Ayushman Bharat Digital Mission, consider the following statements :

    1.Private and public hospitals must adopt it.

    2.As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.

    3.It has seamless portability across the country.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb3 onlyc1 and 3 onlyd1, 2 and 3
17. Prelims 2022Q63Financial Markets & Institutions

    Consider the following statements :

    1.In India, credit rating agencies are regulated by Reserve Bank of India.

    2.The rating agency popularly known as ICRA is a public limited company.

    3.Brickwork Ratings is an Indian credit rating agency.

    Which of the statements given above are correct ?

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
18. Prelims 2022Q64Money & Banking

    With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct ?

    1.The Governor of RBI is the Chairman of BBB.

    2.BBB recommends for the selection of heads for Public Sector Banks.

    3.BBB helps the Public Sector Banks in developing strategies and capital raising plans.

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
19. Prelims 2022Q65Financial Markets & Institutions

    With reference to Convertible Bonds, consider the following statements :

    1.As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.

    2.The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
20. Prelims 2022Q68Inflation

    In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

    aDepartment of Consumer AffairsbExpenditure Management CommissioncFinancial Stability and Development CouncildReserve Bank of India