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Indian Economy

621 questions asked in UPSC Prelims.

2018 · Q3Indian EconomyAgriculture & Rural Developmentdifficult

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 ?

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

2018 · Q6Indian EconomyDigital Payments & Financial Inclusioneasy

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

  1. (a)The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
  2. (b)The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
  3. (c)The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.
  4. (d)The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.
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Official answer(c) The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.

2018 · Q8Indian EconomyTaxationmoderate

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 :

  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(d) Neither 1 nor 2

2018 · Q9Indian EconomyFiscal Policy & Budgetdifficult

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 ?

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

2018 · Q25Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

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 ?

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

2018 · Q46Indian EconomyMoney and Bankingeasy

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

  1. (a)The money which is tendered in courts of law to defray the fee of legal cases
  2. (b)The money which a creditor is under compulsion to accept in settlement of his claims
  3. (c)The bank money in the form of cheques, drafts, bills of exchange, etc.
  4. (d)The metallic money in circulation in a country
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Official answer(b) The money which a creditor is under compulsion to accept in settlement of his claims

2018 · Q47Indian EconomyNational Income & Economic Growthmoderate

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

  1. (a)the opportunity cost is zero.
  2. (b)the opportunity cost is ignored.
  3. (c)the opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4. (d)the opportunity cost is transferred from the consumers of the product to the Government.
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Official answer(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.

2018 · Q49Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

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 ?

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

2018 · Q56Indian EconomyFinancial Markets & Capital Marketsmoderate

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 offer are issued at a discount from the par value. Which of the statements given above is/are correct ?

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

2018 · Q96Indian EconomyBanking & Financial Sectormoderate

With reference to the governance of public sector banking in India, consider the following statements : 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade. 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. 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(b) 2 only

2017 · Q3Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

'Recognition of Prior Learning Scheme' is sometimes mentioned in the news with reference to

  1. (a)Certifying the skills acquired by construction workers through traditional channels.
  2. (b)Enrolling the persons in Universities for distance learning programmes.
  3. (c)Reserving some skilled jobs to rural and urban poor in some public sector undertakings.
  4. (d)Certifying the skills acquired by trainees under the National Skill Development Programme.
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Official answer(a) Certifying the skills acquired by construction workers through traditional channels.

2017 · Q11Indian EconomyBanking and Financeeasy

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC) ? 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below :

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