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Indian Economy

621 questions asked in UPSC Prelims.

2004 · Q1Indian EconomyFiscal Policy & Budgetmoderate

With reference to Indian Public Finance, consider the following statements: 1. Disbursements from Public Accounts of India are subject to the Vote of Parliament. 2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State. 3. Appropriations and disbursements under the Railway Budget are subject to the same form of Parliamentary control as other appropriations and disbursements. Which of these statements given above are correct?

  1. (a)1 and 2
  2. (b)2 and 3
  3. (c)1 and 3
  4. (d)1, 2 and 3
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Official answer(b) 2 and 3

2004 · Q9Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

Which one of the following statements is NOT correct?

  1. (a)Under the Targeted Public Distribution System, the families Below Poverty Line are provided 50 kg of food grains per month per family at subsidized price.
  2. (b)Under Annapurna Scheme, indigent senior citizens of 65 years of age or above eligible for National Old Age Pension but not getting pension can get 10 kg of food grains per person per month at BPL rates.
  3. (c)Ministry of Social Justice and Empowerment has a scheme in which indigent people living in welfare institutions like orphanages are given 15 kg of food grains per person per month at BPL rates.
  4. (d)Ministry of Human Resource Development gives financial support to Mid-Day Meal Scheme for the benefit of class I to V students in Government or Government-aided Schools.
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Official answer(a) Under the Targeted Public Distribution System, the families Below Poverty Line are provided 50 kg of food grains per month per family at subsidized price.

2004 · Q22Indian EconomyInfrastructure & Industrymoderate

Consider the following statements: 1. The Oil Pool Account of Government of India was dismantled with effect from 1-4-2002. 2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India. 3. An expert committee headed by Dr. R.A. Mashelkar to formulate a national auto fuel policy recommended that Bharat Stage-II Emission Norms should be applied throughout the country by 1 April, 2004. Which of these statements given above are correct?

  1. (a)1 and 2
  2. (b)2 and 3
  3. (c)1 and 3
  4. (d)1, 2 and 3
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Official answer(a) 1 and 2

2004 · Q36Indian EconomyTaxationmoderate

Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L. Kelkar in the year 2002?

  1. (a)Abolition of Wealth Tax
  2. (b)Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
  3. (c)Elimination of standard deduction
  4. (d)Exemption from tax on dividends and capital gains from the listed equity
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Official answer(b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows

2004 · Q47Indian EconomyBanking & Financial Sectormoderate

Consider the following statements: 1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India. 2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India. Which of the statements given above is/are correct?

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
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Official answer(c) Both 1 and 2

2004 · Q52Indian EconomyEconomic Planning & Five-Year Plansmoderate

Consider the following statements: 1. The highest deciding body for planning in India is the Planning Commission of India. 2. The Secretary of the Planning Commission of India is also the Secretary of the National Development Council. 3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India. Which of the statements given above is/are correct?

  1. (a)1 and 2
  2. (b)2 and 3
  3. (c)2 only
  4. (d)3 only
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Official answer(b) 2 and 3

2004 · Q69Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

Assertion (A): The Central Rural Sanitation Programme was launched in 1986 to improve the quality of life of rural people in India. Reason (R): Rural sanitation is a subject in the Concurrent List in the Constitution of India.

  1. (a)Both A and R are individually true and R is the correct explanation of A
  2. (b)Both A and R are individually true but R is not the correct explanation of A
  3. (c)A is true but R is false
  4. (d)A is false but R is true
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Official answer(c) A is true but R is false

2004 · Q75Indian EconomyExternal Sector & Balance Of Paymentsmoderate

Assertion (A): For the first time, India had no trade deficit in the year 2002-03. Reason (R): For the first time, India's exports crossed worth $50 billion in the year 2002-03.

  1. (a)Both A and R are individually true and R is the correct explanation of A
  2. (b)Both A and R are individually true but R is not the correct explanation of A
  3. (c)A is true but R is false
  4. (d)A is false but R is true
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Official answer(d) A is false but R is true

2004 · Q76Indian EconomyAgriculture & Rural Developmentmoderate

Consider the following statements: 1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India. 2. The Kisan Credit Card holders are provided personal accident insurance of Rs 50,000 for accidental death and Rs 25,000 for permanent disability. Which of these statements given above is/are correct?

  1. (a)1 only
  2. (b)2 only
  3. (c)Both 1 and 2
  4. (d)Neither 1 nor 2
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Official answer(b) 2 only

2004 · Q77Indian EconomyAgriculture & Rural Developmentmoderate

Consider the following statements: 1. Regarding the procurement of food grains, Government of India follows a procurement target rather than an open-ended procurement policy. 2. Government of India announces minimum support prices only for cereals. 3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform central issue prices to the States/Union Territories. Which of these statements given above is/are correct?

  1. (a)1 and 2
  2. (b)2 only
  3. (c)1 and 3
  4. (d)3 only
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Official answer(d) 3 only

2004 · Q78Indian EconomyAgriculture & Rural Developmentmoderate

Consider the following statements: India continues to be dependent on imports to meet the requirement of oilseeds in the country because 1. Farmers prefer to grow food grains with highly remunerative support prices. 2. Most of the cultivation of oil-seed crops continues to be dependent on rainfall. 3. Oils from the seeds of tree origin and rice bran have remained unexploited. 4. It is far cheaper to import oil seeds than to cultivate the oil-seed crops. Which of these statements is/are correct?

  1. (a)1 and 2
  2. (b)1, 2 and 3
  3. (c)3 and 4
  4. (d)1, 2, 3 and 4
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Official answer(b) 1, 2 and 3

2003 · Q58Indian EconomyExternal Sector & Balance Of Paymentsmoderate

Which one of the following statements is correct with reference to FEMA in India?

  1. (a)The Foreign Exchange Regulation Act (FERA), was replaced by Foreign Exchange Management Act (FEMA) in the year 2001
  2. (b)FERA was given a sunset clause of one year till 31st May 2002 to enable Enforcement Directorate to complete the investigation of pending issues
  3. (c)Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
  4. (d)As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rules
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Official answer(c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence