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Indian Economy

621 questions asked in UPSC Prelims.

1995 · Q16Indian EconomyAgriculture & Rural Developmentmoderate

Which of the following are the objectives of the Commission for Agricultural Costs and Prices (CACP)? I. To stabilise agricultural prices. II. To ensure meaningful real income levels to the farmers. III. To protect the interest of the consumers by providing essential agricultural commodities at reasonable rates through public distribution system. IV. To ensure maximum price for the farmer. Select the correct answer from the codes given below:

  1. (a)I, II and III
  2. (b)I, II and IV
  3. (c)I, III and IV
  4. (d)II, III and IV
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Official answer(a) I, II and III

1995 · Q27Indian EconomyBanking & Financial Sectormoderate

As part of the liberalisation programme and with a view to attracting foreign exchange, the Government and the RBI have devised two schemes known as FCNR-‘A’ and FCNR-‘B’. Which of the following is/are true regarding these two schemes? I. Under scheme ‘A’ RBI bears exchange rate fluctuations. II. Under scheme ‘B’, other banks are to meet out the difference in exchange rate fluctuations. III. Both the schemes stand withdrawn now. IV. Only scheme ‘A’ has been withdrawn. Select the correct answer from the codes given below:

  1. (a)III only
  2. (b)I and II
  3. (c)I, II and III
  4. (d)I, II and IV
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Official answer(d) I, II and IV

1995 · Q35Indian EconomyExternal Sector & Balance Of Paymentsdifficult

Which of the following pairs are correctly matched? I. Increase in foreign exchange reserves ................. Monetary expansion II. Low import growth rate in India ...................... Recession in Indian Industry III. Euro issues ................ Shares held by Indian companies in European countries IV. Portfolio investment ............... Foreign institutional investors Select the correct answer by using the following codes:

  1. (a)I, II and IV
  2. (b)III and IV
  3. (c)I, II and III
  4. (d)I, II, III and IV
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Official answer(a) I, II and IV

1995 · Q46Indian EconomyTaxationeasy

Corporation tax

  1. (a)is levied and appropriated by the States
  2. (b)is levied by the Union and collected and appropriated by the States
  3. (c)is levied by the Union and shared by the Union and the States
  4. (d)is levied by the Union and belongs to it exclusively
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Official answer(d) is levied by the Union and belongs to it exclusively

1995 · Q59Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

Which one of the following is true regarding the Jawahar Rozgar Yojana (JRY)?

  1. (a)It was launched during the Prime Ministership of Indira Gandhi
  2. (b)It aims at creating one million jobs annually
  3. (c)The target group of JRY are the urban poor living below the poverty line
  4. (d)Under the scheme 30% of the employment generated is reserved for women
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Official answer(d) Under the scheme 30% of the employment generated is reserved for women

1995 · Q76Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

  1. (a)investment pattern has been directed towards capital-intensive industries
  2. (b)productivity in agriculture has been high enough to induce people to stay with agriculture
  3. (c)ceilings on land holdings have enabled more people to own land and hence their preference to stay with agriculture
  4. (d)people are largely unaware of the significance of transition from agriculture to industry for economic development
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Official answer(a) investment pattern has been directed towards capital-intensive industries

1995 · Q79Indian EconomyInternational Trade & WTOmoderate

Which of the following benefits are likely to accrue to India from the World Trade Organisation? I. India’s share in the world trade is to go up from the present 600 million US dollars to 5 billion US dollars by 2000 A.D. II. It will help boost exports of agricultural commodities from India. III. India’s share in the world trade is likely to triple by the year 2000 A.D. Select the correct answer using the codes given below:

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

1995 · Q144Indian EconomyNational Income & Economic Growthmoderate

Consider the diagram given below: (Pie-chart showing family expenditure with segments labelled T: Transport, Ec: Education of children, H: Housing, C: Clothing, F: Food, S: Savings, O: Others.) From the diagram shown it would be right to conclude that

  1. (a)the family spent more than half the income on food and clothing
  2. (b)the amount saved by the family was too little
  3. (c)the family had no health problems
  4. (d)the family managed to meet all the essential expenses out of the income earned
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Official answer(d) the family managed to meet all the essential expenses out of the income earned

1995 · Q146Indian EconomyFinancial Markets & Capital Marketsdifficult

The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year: Investor 1: 10 of A, 20 of B, 30 of C and 40 of D Investor 2: 40 of A, 10 of B, 20 of C and 30 of D Investor 3: 30 of A, 40 of B, 10 of C and 20 of D Investor 4: 20 of A, 30 of B, 40 of C and 10 of D In the light of the above, which one of the following statements is correct?

  1. (a)Investor 2 has made the best investment
  2. (b)Investor 1 has made the best investment
  3. (c)Investor 2 suffered a net loss during the year
  4. (d)Investor 3 suffered a net loss during the year
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Official answer(b) Investor 1 has made the best investment