Indian Economy PYQs

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1. Prelims 2020Q17International Organisations & Reports

   “Gold Tranche” (Reserve Tranche) refers to

   aa loan system of the World Bankbone of the operations of a Central Bankca credit system granted by WTO to its membersda credit system granted by IMF to its members
2. Prelims 2020Q49External Sector: BoP, FDI & Exchange Rate

   If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India ?

   1.Not depending on short-term foreign borrowings

   2.Opening up to more foreign banks

   3.Maintaining full capital account convertibility

   Select the correct answer using the code given below :

   a1 onlyb1 and 2 onlyc3 onlyd1, 2 and 3
3. Prelims 2020Q50Money & Banking

   If you withdraw ₹ 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

   ato reduce it by ₹ 1,00,000bto increase it by ₹ 1,00,000cto increase it by more than ₹ 1,00,000dto leave it unchanged
4. Prelims 2020Q51External Sector: BoP, FDI & Exchange Rate

   With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

   aIt is the investment through capital instruments essentially in a listed company.bIt is a largely non-debt creating capital flow.cIt is the investment which involves debt-servicing.dIt is the investment made by foreign institutional investors in the Government securities.
5. Prelims 2020Q54Money & Banking

   In the context of the Indian economy, non-financial debt includes which of the following ?

   1.Housing loans owed by households

   2.Amounts outstanding on credit cards

   3.Treasury bills

   Select the correct answer using the code given below :

   a1 onlyb1 and 2 onlyc3 onlyd1, 2 and 3
6. Prelims 2020Q56International Trade & WTO

   With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ?

   1.Quantitative restrictions on imports by foreign investors are prohibited.

   2.They apply to investment measures related to trade in both goods and services.

   3.They are not concerned with the regulation of foreign investment.

   Select the correct answer using the code given below :

   a1 and 2 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
7. Prelims 2020Q57Money & Banking

   If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ?

   1.Cut and optimize the Statutory Liquidity Ratio

   2.Increase the Marginal Standing Facility Rate

   3.Cut the Bank Rate and Repo Rate

   Select the correct answer using the code given below :

   a1 and 2 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
8. Prelims 2020Q58Poverty, Unemployment & Social Sector

   With reference to the Indian economy after the 1991 economic liberalization, consider the following statements :

   1.Worker productivity (₹ per worker at 2004 – 05 prices) increased in urban areas while it decreased in rural areas.

   2.The percentage share of rural areas in the workforce steadily increased.

   3.In rural areas, the growth in non-farm economy increased.

   4.The growth rate in rural employment decreased.

   Which of the statements given above is/are correct ?

   a1 and 2 onlyb3 and 4 onlyc3 onlyd1, 2 and 4 only
9. Prelims 2020Q59Agriculture & Food Security

   Consider the following statements :

   1.In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.

   2.One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
10. Prelims 2020Q60Financial Markets & Institutions

    In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ?

    1.Cost of restoration of the computer system in case of malware disrupting access to one’s computer

    2.Cost of a new computer if some miscreant wilfully damages it, if proved so

    3.Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion

    4.Cost of defence in the Court of Law if any third party files a suit

    Select the correct answer using the code given below :

    a1, 2 and 4 onlyb1, 3 and 4 onlyc2 and 3 onlyd1, 2, 3 and 4
11. Prelims 2020Q61Agriculture & Food Security

    In India, which of the following can be considered as public investment in agriculture ?

    1.Fixing Minimum Support Price for agricultural produce of all crops

    2.Computerization of Primary Agricultural Credit Societies

    3.Social Capital development

    4.Free electricity supply to farmers

    5.Waiver of agricultural loans by the banking system

    6.Setting up of cold storage facilities by the governments

    Select the correct answer using the code given below :

    a1, 2 and 5 onlyb1, 3, 4 and 5 onlyc2, 3 and 6 onlyd1, 2, 3, 4, 5 and 6
12. Prelims 2020Q62Money & Banking

    What is the importance of the term “Interest Coverage Ratio” of a firm in India ?

    1.It helps in understanding the present risk of a firm that a bank is going to give loan to.

    2.It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

    3.The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

    Select the correct answer using the code given below :

    a1 and 2 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
13. Prelims 2020Q63Agriculture & Food Security

    Which of the following factors/policies were affecting the price of rice in India in the recent past ?

    1.Minimum Support Price

    2.Government’s trading

    3.Government’s stockpiling

    4.Consumer subsidies

    Select the correct answer using the code given below :

    a1, 2 and 4 onlyb1, 3 and 4 onlyc2 and 3 onlyd1, 2, 3 and 4
14. Prelims 2020Q64International Trade & WTO

    Consider the following statements :

    1.The value of Indo-Sri Lanka trade has consistently increased in the last decade.

    2.“Textile and textile articles” constitute an important item of trade between India and Bangladesh.

    3.In the last five years, Nepal has been the largest trading partner of India in South Asia.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb2 onlyc3 onlyd1, 2 and 3
15. Prelims 2020Q66Agriculture & Food Security

    Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?

    1.Working capital for maintenance of farm assets

    2.Purchase of combine harvesters, tractors and mini trucks

    3.Consumption requirements of farm households

    4.Post-harvest expenses

    5.Construction of family house and setting up of village cold storage facility

    Select the correct answer using the code given below :

    a1, 2 and 5 onlyb1, 3 and 4 onlyc2, 3, 4 and 5 onlyd1, 2, 3, 4 and 5
16. Prelims 2020Q67Inflation

    Consider the following statements :

    1.The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

    2.The WPI does not capture changes in the prices of services, which CPI does.

    3.Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb2 onlyc3 onlyd1, 2 and 3
17. Prelims 2020Q69Agriculture & Food Security

    Consider the following statements :

    1.In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.

    2.In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
18. Prelims 2020Q70Financial Markets & Institutions

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

    1.‘Commercial Paper’ is a short-term unsecured promissory note.

    2.‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.

    3.‘Call Money’ is a short-term finance used for interbank transactions.

    4.‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb4 onlyc1 and 3 onlyd2, 3 and 4 only
19. Prelims 2020Q94Agriculture & Food Security

    With reference to chemical fertilizers in India, consider the following statements :

    1.At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.

    2.Ammonia, which is an input of urea, is produced from natural gas.

    3.Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.

    Which of the statements given above is/are correct ?

    a1 onlyb2 and 3 onlyc2 onlyd1, 2 and 3
20. Prelims 2019Q2Agriculture & Food Security

    With reference to land reforms in independent India, which one of the following statements is correct?

    aThe ceiling laws were aimed at family holdings and not individual holdings.bThe major aim of land reforms was providing agricultural land to all the landless.cIt resulted in cultivation of cash crops as a predominant form of cultivation.dLand reforms permitted no exemptions to the ceiling limits.