Indian Economy PYQs

Tap an option to check it. For one question at a time, use Start practice above.

1. Prelims 2019Q86External Sector: BoP, FDI & Exchange Rate

   Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?

   aCurbing imports of non-essential goods and promoting exportsbEncouraging Indian borrowers to issue rupee denominated Masala BondscEasing conditions relating to external commercial borrowingdFollowing an expansionary monetary policy
2. Prelims 2019Q87Money & Banking

   Consider the following statements :

   The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that

   1.they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India

   2.they shall ensure that the systems are owned and operated by public sector enterprises

   3.they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year

   Which of the statements given above is/are correct?

   a1 onlyb1 and 2 onlyc3 onlyd1, 2 and 3
3. Prelims 2019Q90Money & Banking

   The money multiplier in an economy increases with which one of the following?

   aIncrease in the cash reserve ratiobIncrease in the banking habit of the populationcIncrease in the statutory liquidity ratiodIncrease in the population of the country
4. Prelims 2018Q3Agriculture & Food Security

   As per the NSSO 70th Round "Situation Assessment Survey of Agricultural Households", consider the following statements :

   1.Rajasthan has the highest percentage share of agricultural households among its rural households.

   2.Out of the total agricultural households in the country, a little over 60 percent belong to OBCs.

   3.In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities.

   Which of the statements given above is/are correct ?

   a2 and 3 onlyb2 onlyc1 and 3 onlyd1, 2 and 3
5. Prelims 2018Q6Money & Banking

   Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news ?

   aThe incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.bThe amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.cThe charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.dThe incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.
6. Prelims 2018Q8Taxation

   With reference to India's decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct ?

   1.It is introduced as a part of the Income Tax Act.

   2.Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the "Double Taxation Avoidance Agreements".

   Select the correct answer using the code given below :

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
7. Prelims 2018Q9Fiscal Policy & Budget

   Consider the following statements :

   1.The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.

   2.The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.

   3.As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.

   Which of the statements given above is/are correct ?

   a1 onlyb2 and 3 onlyc1 and 3 onlyd1, 2 and 3
8. Prelims 2018Q10Agriculture & Food Security

   Consider the following statements :

   1.The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.

   2.The Government does not impose any customs duty on all the imported edible oils as a special case.

   Which of the statements given above is/are correct ?

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
9. Prelims 2018Q15Money & Banking

   Which one of the following links all the ATMs in India ?

   aIndian Banks' AssociationbNational Securities Depository LimitedcNational Payments Corporation of IndiadReserve Bank of India
10. Prelims 2018Q16Money & Banking

    Consider the following statements :

    1.Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.

    2.CAR is decided by each individual bank.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
11. Prelims 2018Q25Agriculture & Food Security

    With reference to the provisions made under the National Food Security Act, 2013, consider the following statements :

    1.The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised food grains.

    2.The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.

    3.Pregnant women and lactating mothers are entitled to a 'take-home ration' of 1600 calories per day during pregnancy and for six months thereafter.

    Which of the statements given above is/are correct ?

    a1 and 2b2 onlyc1 and 3d3 only
12. Prelims 2018Q26International Trade & WTO

    India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

    aILObIMFcUNCTADdWTO
13. Prelims 2018Q28Money & Banking

    With reference to digital payments, consider the following statements :

    1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

    2.While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

    Which of the statements given above is/are correct ?

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
14. Prelims 2018Q46Money & Banking

    Which one of the following statements correctly describes the meaning of legal tender money ?

    aThe money which is tendered in courts of law to defray the fee of legal casesbThe money which a creditor is under compulsion to accept in settlement of his claimscThe bank money in the form of cheques, drafts, bills of exchange, etc.dThe metallic money in circulation in a country
15. Prelims 2018Q47Fiscal Policy & Budget

    If a commodity is provided free to the public by the Government, then

    athe opportunity cost is zero.bthe opportunity cost is ignored.cthe opportunity cost is transferred from the consumers of the product to the tax-paying public.dthe opportunity cost is transferred from the consumers of the product to the Government.
16. Prelims 2018Q48National Income & Growth

    Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

    aindustrial output fails to keep pace with agricultural output.bagricultural output fails to keep pace with industrial output.cpoverty and unemployment increase.dimports grow faster than exports.
17. Prelims 2018Q49Poverty, Unemployment & Social Sector

    Consider the following statements :

    Human capital formation as a concept is better explained in terms of a process which enables

    1.individuals of a country to accumulate more capital.

    2.increasing the knowledge, skill levels and capacities of the people of the country.

    3.accumulation of tangible wealth.

    4.accumulation of intangible wealth.

    Which of the statements given above is/are correct ?

    a1 and 2b2 onlyc2 and 4d1, 3 and 4
18. Prelims 2018Q50National Income & Growth

    Despite being a high saving economy, capital formation may not result in significant increase in output due to

    aweak administrative machinerybilliteracychigh population densitydhigh capital-output ratio
19. Prelims 2018Q56Financial Markets & Institutions

    Consider the following statements :

    1.The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.

    2.Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.

    3.Treasury bills are issued at a discount from the par value.

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb3 onlyc2 and 3 onlyd1, 2 and 3
20. Prelims 2018Q78Poverty, Unemployment & Social Sector

    With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements :

    1.It is the flagship scheme of the Ministry of Labour and Employment.

    2.It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.

    3.It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

    Which of the statements given above is/are correct ?

    a1 and 3 onlyb2 onlyc2 and 3 onlyd1, 2 and 3