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Civil Services Prelims Examination Economic & Social Development- GS Paper I

Civil Services Examination 2019


1. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:

  1. AIIB has more than 80 member nations.
  2. India is the largest shareholder in AIIB.
  3. AIIB does not have any members from outside Asia.

Which of the statements given above is / are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

  1. To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit
  2. To support the infrastructure Projects of Central and State Governments
  3. To act as independent regulator in case of applications for loans of Rs. 50 crore or more
  4. To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending


3. The Chairmen of public sector banks are selected by the

  1. Banks Board Bureau
  2. Reserve Bank of India
  3. Union Ministry of Finance
  4. Management of concerned bank


4. Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?

  1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
  2. Enterprises with crèches must allow the mother minimum six crèche visits daily.
  3. Women with two children get reduced entitlements.

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2 only
  3. 3 only
  4. 1, 2 and 3


5. Which one of the following is not a sub-index of the World Bank’s “Ease of Doing Business Index”?

  1. Maintenance of law and order
  2. Paying taxes
  3. Registering property
  4. Dealing with construction permits


6. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

  1. Transportation cost only
  2. Interest cost only
  3. Procurement incidentals and distribution cost
  4. Procurement incidentals and charges for godowns


7. In the context of any country, which one of the following would be considered as part of its social capitals?

  1. The proportion of literates in the population
  2. The stock of its buildings, other infrastructure and machines
  3. The size of population in the working age group
  4. The level of mutual trust and harmony in the society


8. The Services Area Approach was implemented under the purview of:

  1. Integrated Rural Development Programme
  2. Lead Bank Scheme
  3. Mahatma Gandhi National Rural Employment Guarantee Scheme
  4. National Skill Development Mission


9. With reference to the management of minor minerals in India, consider the following statements:

  1. Sand is a ‘minor mineral’ according to the prevailing law in country.
  2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
  3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.

Which of the statements given above is/are correct?

  1. 1 and 3 only
  2. 2 and 3 only
  3. 3 only
  4. 1, 2 and 3


10. Consider the following statements:

  1. Most of India’s external debt is owed by governmental entities.
  2. All of India’s external debt is denominated in US dollars.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. both 1 and 2
  4. neither 1 nor 2


11. Which of the following is not included in the assets of a commercial bank in India?

  1. Advances
  2. Deposits
  3. Investments
  4. Money at call and short notice


12. In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

  1. The foreign currency earnings of India’s IT sector
  2. Increasing the government expenditure
  3. Remittances from Indians abroad

Select the correct answer using the code given below:

  1. 1 only
  2. 1 and 3 only
  3. 2 only
  4. 1, 2 and 3


13. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

  1. Certificate of Deposit
  2. Commercial Paper
  3. Promissory Note
  4. Participatory Note


14. With reference to India’s Five-Year Plans, which of the following statements is/are correct?

  1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries.
  2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
  3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2 only
  3. 3 only
  4. 1, 2 and 3


15. Consider the following statements:

  1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
  2. In terms of PPP dollars, India is the sixth largest economy in the world.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


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

  1. Curbing imports of non-essential goods and promoting exports
  2. Encouraging Indian borrowers to issue rupee denominated Masala Bonds
  3. Easing conditions relating to external commercial borrowing
  4. Following an expansionary monetary policy


17. 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 date 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?

  1. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 1, 2 and 3


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

  1. Increase in the Cash Reserve Ratio
  2. Increase in the banking habit of the population
  3. Increase in the Statutory Liquidity Ratio
  4. Increase in the population of the country


19. Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:

  1. PVTGs reside in 18 States and one Union Territory.
  2. A stagnant or declining population is one of the criteria for determining PVTG status.
  3. There are 95 PVTGs officially notified in the country so far.
  4. lrular and Konda Reddi tribes are included in the list of PVTGs.

Which of the statements given above are correct?

  1. 1, 2 and 3
  2. 2, 3 and 4
  3. 1, 2 and 4
  4. 1, 3 and 4


20. Consider the following statements

As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018

  1. If rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers.
  2. No notice of termination of employment shall be necessary in the case of temporary workman.

Which of the statements given above is / are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


21. In a given year in India, official poverty lines are higher in some States than in others because

  1. poverty rates vary from State to State
  2. price levels vary from State to State
  3. Gross State Product varies from State to State
  4. quality of public distribution varies from State to State


Civil Services Examination 2018


1. 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 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. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


2. Consider the following items:

  1. Cereal grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. Newspapers containing advertising material

Which of the above items is/are exempted under GST (Goods and Services Tax)?

  1. 1 only
  2. 2 and 3 only
  3. 1, 2 and 4 only
  4. 1, 2, 3 and 4


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

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


4. Consider the following:

  1. Areca nut
  2. Barley
  3. Coffee
  4. Finger millet
  5. Groundnut
  6. Sesamum
  7. Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

  1. 1, 2, 3 and 7 only
  2. 2, 4, 5 and 6 only
  3. 1, 3, 4, 5 and 6 only
  4. 1, 2, 3, 4, 5, 6 and 7


5. Consider the following events:

  1. The first democratically elected communist party government formed in a State in India.
  2. India’s then largest bank, ‘Imperial Bank of India’, was renamed ‘State Bank of India’.
  3. Air India was nationalized and became the national carrier.
  4. Goa became a part of independent India.

Which of the following is the correct chronological sequence of the above events?

  1. 4-1-2-3
  2. 3-2-1-4
  3. 4-2-1-3
  4. 3-1-2-4


6. 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. 1 and 2 only
  2. 3 only
  3. 2 and 3 only
  4. 1, 2 and 3


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

  1. the opportunity cost is zero.
  2. the opportunity cost is ignored.
  3. the opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4. the opportunity cost is transferred from the consumers of the product to the Government.


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

  1. industrial output fails to keep pace with agricultural output.
  2. agricultural output fails to keep pace with industrial output.
  3. poverty and unemployment crease.
  4. imports grow faster than exports.


9. 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 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. 1 and 2
  2. 2 only
  3. 2 and 4
  4. 1, 3 and 4


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

  1. weak administrative machinery
  2. illiteracy
  3. high population density
  4. high capital-outputs ratio


11. 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. 1 and 2
  2. 2 only
  3. 1and 3
  4. 3 only


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

  1. ILO
  2. IMF
  3. UNCTAD
  4. WTO


13. Consider the following statements:

  1. In India, State Governments do not have the power to auction non-coal mines.
  2. Andhra Pradesh and Jharkhand do not have gold mines.
  3. Rajasthan has iron ore mines.

Which of the statements given above is / are correct?

  1. 1 and 2
  2. 2 only
  3. 1 and 3
  4. 3 only


14. 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 authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


15. Consider the following statements:

  1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
  2. The Food Safety and Standard Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


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

  1. Indian Banks’ Association
  2. National Securities Depository Limited
  3. National Payments Corporation of India
  4. Reserve Bank of India


17. 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 any account-holders fail to repay dues.
  2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


18. 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 that offers advertisement services in India.
  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. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


19. 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 later.

Which of the statements given above is / are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


20. 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?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


21. With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

  1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
  2. 2GM mustard has the genes that allow the plant cross-pollination and hybridization.
  3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

Which of the statements given above is/are correct?

  1. 1 and 3 only
  2. 2 only
  3. 2 and 3
  4. 1, 2 and 3


22. Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

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


Civil Services Examination 2017


1. Who among the following can join the National Pension System (NPS)?

  1. Resident Indian citizens only
  2. Persons of age from 21 to 55 only
  3. All State Government employees joining the services after the date of notification by the respective State Governments
  4. All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004


2. The Trade Disputes Act of 1929 provided for

  1. the participation of workers in the management of industries.
  2. arbitrary powers to the management to quell industrial disputes.
  3. an intervention by the British Court in the event of a trade dispute.
  4. a system of tribunals and a ban on strikes.


3. Consider the following statements:

  1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
  2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


4. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

  1. Share of agriculture in GDP increased enormously.
  2. Share of India’s exports in world trade increased.
  3. FDI inflows increased.
  4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

  1. 1 and 4 only
  2. 2, 3 and 4 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4


5. Consider the following in respect of ‘National Career Service’:

  1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.
  2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


6. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

  1. It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
  2. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
  3. It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
  4. It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.


7. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

  1. It is an organ of NITI Aayog.
  2. It has a corpus of Rs. 4, 00,000 crores at present.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


8. With reference to ‘Quality Council of India (QCI)’, consider the following statements:

  1. QCI was set up jointly by the Government of India and the Indian Industry.
  2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


9. What is the purpose of setting up of Small Finance Banks (SFBs) in India?

  1. To supply credit to small business units
  2. To supply credit to small and marginal farmers
  3. To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


10. Consider the following statements:

  1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
  2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


11. What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

  1. It is a pan-India electronic trading portal for agricultural commodities.
  2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


12. With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:

  1. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
  2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


13. With reference to ‘National Skills Qualification Framework (NSQF)’, which of the statements given below is/are correct?

  1. Under NSQF, a learner can acquire the certification for competency only through formal learning.
  2. An outcome expected from the implementation of NSQF is the mobility between vocational and general education.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


14. 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. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 2 and 3 only


15. Consider the following statements:

  1. National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.
  2. NPCI has launched RuPay, a card payment scheme.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


16. What is / are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?

  1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
  2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
  3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


Civil Services Examination 2016


1. Consider the following statements:

  1. New Development Bank has been set up by APEC.
  2. The headquarters of New Development Bank is in Shanghai.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


2. With reference to ‘Bitcoins’ sometimes seen in the news, which of the following statements is/are correct?

  1. Bitcoins are tracked by the Central Banks of the countries.
  2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
  3. Online payments can be sent without either side knowing the identity of the other.

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2 and 3 only
  3. 3 only
  4. 1, 2 and 3


3. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?

  1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
  2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below:

  1. 1 Only
  2. 2 Only
  3. Both 1 and 2
  4. Neither 1 nor 2


4. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalizing subsidies
  4. Reducing import duty

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1,2,3 and 4


5. The establishment of “Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?

  1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
  2. Payment Banks can issue both credit cards and debit cards.
  3. Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 1 and 3 only
  3. 2 only
  4. 1, 2 and 3


6. Which of the following is/are included in the capital budget of the Government of India?

  1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
  2. Loans received from foreign governments.
  3. Loans and advances granted to the States and Union Territories.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


7. Which of the following best describes the term “import cover”, sometimes seen in the news?

  1. It is the ratio of value of imports to the Gross Domestic Product of a country.
  2. It is the total value of imports of a country in a year.
  3. It is the ratio between the value of exports and that of imports between two countries.
  4. It is the number of months of imports that could be paid for by a country’s international reserves.


8. The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?

  1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
  2. It is an effort to increase RBI’s control over commercial banks through computerization.
  3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


9. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

  1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances
  2. These guidelines help ensure availability of bank credit & interest rates which are fair to the borrowers as well as the banks

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


10. With reference to ‘Financial Stability and Development Council’, consider the following statements:

  1. It is an organ of NITI Aayog.
  2. It is headed by the Union Finance Minister.
  3. It monitors macro prudential super-vision of the economy.

Which of the statements given above is / are correct?

  1. 1 and 2 only
  2. 3 Only
  3. 2 and 3 only
  4. 1, 2 and 3


11. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of:

  1. mining operation by multinational companies in resource-rich but backward areas.
  2. curbing of the tax evasion by multinational companies
  3. exploitation of genetic resources of a country by multinational companies
  4. lack of consideration of environmental costs in the planning of development projects


12. What is/are the purpose of ‘District Mineral Foundations” in India?

  1. Promoting mineral exploration activities in mineral-rich districts
  2. Protecting the interests of the persons affected by mining operations
  3. Authorizing State Governments to issue licenses for mineral exploration

Select the correct answer using the code given below:

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


13. ‘SWAYAM’, an initiative of the Government of India, which aims at:

  1. promoting the Self-Help Groups in rural areas
  2. providing financial and technical assistance to young start-up entrepreneurs
  3. promoting the education and health of adolescent girls
  4. providing affordable and quality education to the citizens for free


14. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and Gold Monetization Scheme?

  1. To bring the idle gold lying with India households into the economy
  2. To promote FDI in the gold and jewelry sector
  3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below:

  1. 1 Only
  2. 2 and 3 Only
  3. 1 and 3 only
  4. 1, 2 and 3

Civil Services Examination 2015


1. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

  1. The Reserve Bank of India
  2. The Department of Economic Affairs
  3. The Labour Bureau
  4. The Department of Personnel and Training


2. Which one of the following best describes the main objective of ‘Seed Village Concept’?

  1. Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
  2. Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
  3. Earmarking some villages exclusively for the production of certified seeds
  4. Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies


3. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?

  1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
  2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


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

  1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
  2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


5. The substitution of steel for wooden ploughs in agricultural production is an example of

  1. labour-augmenting technological progress
  2. capital-augmenting technological progress
  3. capital-reducing technological progress
  4. None of the above


6. Consider the following statements:

  1. The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
  2. The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


7. A decrease in Tax to GDP ratio of a country indicates which of the following?

  1. Slowing economic growth rate
  2. Less equitable distribution of national income

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


8. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?

  1. Coal production
  2. Electricity generation
  3. Fertilizer production
  4. Steel production


9. The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

  1. Cabinet Committee on Economic Affairs
  2. Commission for Agricultural Costs and Prices
  3. Directorate of Marketing and Inspection, Ministry of Agriculture
  4. Agricultural Produce Market Committee


10. Which one of the following issues the ‘Global Economic Prospects’ report periodically?

  1. The Asian Development Bank
  2. The European Bank for Reconstruction and Development
  3. The US Federal Reserve Bank
  4. The World Bank


11. In India, markets in agricultural products are regulated under the

  1. Essential Commodities Act, 1955
  2. Agricultural Produce Market Committee (APMC) Act enacted by States
  3. Agricultural Produce (Grading and Marking) Act, 1937
  4. Food Products Order, 1956 and Meat and Food Products Order, 1973


12. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

  1. India’s GDP growth rate increases drastically
  2. Foreign Institutional Investors may bring more capital into our country
  3. Scheduled Commercial Banks may cut their lending rates
  4. It may drastically reduce the liquidity to the banking system


13. Convertibility of rupee implies:

  1. being able to convert rupee notes into gold
  2. allowing the value of rupee to be fixed by market forces
  3. freely permitting the conversion of rupee to other currencies and vice versa
  4. developing an international market for currencies in India


14. In India, the steel production industry requires the import of

  1. saltpeter
  2. rock phosphate
  3. coking coal
  4. All of the above


15. With reference to Indian economy, consider the following:

  1. Bank rate
  2. Open market operations
  3. Public debt
  4. Public revenue

Which of the above is/are component/components of Monetary Policy?

  1. 1 only
  2. 2, 3 and 4
  3. 1 and 2
  4. 1, 3 and 4


16. With reference to inflation in India, which of the following statements is correct?

  1. Controlling the inflation in India is the responsibility of the Government of India only
  2. The Reserve Bank of India has no role in controlling the inflation
  3. Decreased money circulation helps in controlling the inflation
  4. Increased money circulation helps in controlling the inflation


17. The problem of international liquidity is related to the non-availability of:

  1. goods and services
  2. gold and silver
  3. dollars and other hard currencies
  4. exportable surplus


18. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing new welfare schemes
  3. Rationalizing subsidies
  4. Expanding industries

Select the correct answer using the code given below:

  1. 1 and 3 only
  2. 2 and 3 only
  3. 1 only
  4. 1, 2, 3 and 4


19. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?

  1. It is a Public Limited Government Company.
  2. It is a Non-Banking Financial Company.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


Civil Services Examination 2014


1. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

  1. Defence expenditure
  2. Interest payments
  3. Salaries and pensions
  4. Subsidies

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3 only
  3. 1, 2, 3 and 4
  4. None


2. In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider/greater implementation?

  1. There is no National Seeds Policy in place.
  2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
  3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below:

  1. 1 and 2
  2. 3 only
  3. 2 and 3
  4. None


3. If the interest rate is decreased in an economy, it will

  1. decrease the consumption expenditure in the economy
  2. increase the tax collection of the Government
  3. increase the investment expenditure in the economy
  4. increase the total savings in the economy


4. What are the benefits of implementing the ‘Integrated Watershed Development Programme’?

  1. Prevention of soil runoff
  2. Linking the country’s perennial rivers with seasonal rivers
  3. Rainwater harvesting and recharge of groundwater table
  4. Regeneration of natural vegetation

Select the correct answer using the code given below:

  1. 1 and 2 only
  2. 2, 3 and 4 only
  3. 1, 3 and 4 only
  4. 1, 2, 3 and 4


5. Which of the following are associated with ‘Planning’ in India?

  1. The Finance Commission
  2. The National Development Council
  3. The Union Ministry of Rural Development
  4. The Union Ministry of Urban Development
  5. The Parliament

Select the correct answer using the code given below:

  1. 1, 2 and 5 only
  2. 1, 3 and 4 only
  3. 2 and 5 only
  4. 1, 2, 3, 4 and 5


6. The sales tax you pay while purchasing a toothpaste is a

  1. tax imposed by the Central Government
  2. tax imposed by the Central Government but collected by the State Government
  3. tax imposed by the State Government but collected by the Central Government
  4. tax imposed and collected by the State Government


7. What does venture capital mean?

  1. A short-term capital provided to industries
  2. A long-term start-up capital provided to new entrepreneurs
  3. Funds provided to industries at times of incurring losses
  4. Funds provided for replacement and renovation of industries


8. The main objective of the 12th Five-Year Plan is

  1. inclusive growth and poverty reduction
  2. inclusive and sustainable growth
  3. sustainable and inclusive growth to reduce unemployment
  4. faster, sustainable and more inclusive growth


9. With reference to Balance of Payments, which of the following constitutes/constitute a Current Account?

  1. Balance of Trade
  2. Foreign Assets
  3. Balance of Invisibles
  4. Special Drawing Rights

Select the correct answer using the code given below:

  1. 1 only
  2. 2 and 3
  3. 1 and 3
  4. 1, 2 and 4


10. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

  1. banking operations
  2. communication networking
  3. military strategies
  4. supply and demand of agricultural products


11. What is/are the facility/facilities the beneficiaries can get from the services of Business correspondent (Bank Saathi) in branchless areas?

  1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
  2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


12. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements?

  1. To enable the Central Bank to control the amount of advances the banks can create.
  2. To make the people’s deposits with banks safe and liquid.
  3. To prevent the commercial banks from making excessive profits.
  4. To force the banks to have sufficient vault cash to meet their day-to-day requirements.

Select the correct answer using the code given below:

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4


Civil Services Examination 2013


1. A rise in general level of prices may be caused by

  1. an increase in the money supply
  2. a decrease in the aggregate level of output
  3. an increase in the effective demand

Select the correct answer using the codes given below:

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3


2. Which one of the following groups of items is included in India’s foreign-exchange reserves?

  1. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
  2. Foreign-currency assets, gold holdings of the RBI and SDRs
  3. Foreign-currency assets, loans from the World Bank and SDRs
  4. Foreign-currency assets, gold holdings of the RBI and loans from the World Bank


3. Which one of the following is likely to be the most inflationary in its effect?

  1. Repayment of public debt
  2. Borrowing from the public to finance a budget deficit
  3. Borrowing from banks to finance a budget deficit
  4. Creating new money to finance a budget deficit


4. Consider the following liquid assets:

  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency

The correct sequence of this decreasing order of Liquidity is

  1. 1-4-3-2
  2. 4-3-2-1
  3. 2-3-1-4
  4. 4-1-3-2


5. In the context of Indian economy, ‘Open Market Operations’ refers to

  1. borrowing by scheduled banks from the RBI
  2. lending by commercial banks to industry and trade
  3. purchase and sale of government securities by the RBI
  4. None of the above


6. Priority Sector Lending by banks in India constitutes the lending to

  1. agriculture
  2. micro and small enterprises
  3. weaker sections
  4. All of the above


7. Which one among the following industries is the maximum consumer of water in India?

  1. Engineering
  2. Paper and pulp
  3. Textiles
  4. Thermal power


8. To obtain full benefits of demographic dividend, what should India do?

  1. Promoting skill development
  2. Introducing more social security schemes
  3. Reducing infant mortality rate
  4. Privatization of higher education


9. Consider the following statements:

  1. Inflation benefits the debtors.
  2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


10. Disguised unemployment generally means

  1. large number of people remain unemployed
  2. alternative employment is not available
  3. marginal productivity of labour is zero
  4. productivity of workers is low


11. Which of the following constitute Capital Account?

  1. Foreign Loans
  2. Foreign Direct Investment
  3. Private Remittances
  4. Portfolio Investment

Select the correct answer using the codes given below:

  1. 1, 2 and 3
  2. 1, 2 and 4
  3. 2, 3 and 4
  4. 1, 3 and 4


12. The balance of payments of a country is a systematic record of

  1. all import and transactions of a during a given period normally a year
  2. goods exported from a country during a year
  3. economic transaction between the government of one country to another
  4. capital movements from one country to another


13. Economic growth in country X will necessarily have to occur if

  1. there is technical progress in the world economy
  2. there is population growth in X
  3. there is capital formation in X
  4. the volume of trade grows in the world economy


14. The Reserve Bank of India regulates the commercial banks in matters of

  1. liquidity of assets
  2. branch expansion
  3. merger of banks
  4. winding-up of banks

Select the correct answer using the codes given below:

  1. 1 and 4 only
  2. 2, 3 and 4 only
  3. 1, 2 and 3 only
  4. 1, 2, 3 and 4


15. The national income of a country for a given period is equal to the

  1. total value of goods and services produced by the nationals
  2. sum of total consumption and investment expenditure
  3. sum of personal income of all individuals
  4. money value of final goods and services produced


16. Which of the following grants/ grant direct credit assistance to rural households?

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3


17. An increase in the Bank Rate generally indicates that the

  1. market rate of interest is likely to fall
  2. Central Bank is no longer making loans to commercial banks
  3. Central Bank is following an easy money policy
  4. Central Bank is following a tight money policy


18. In India, deficit financing is used for raising resources for

  1. economic development
  2. redemption of public debt
  3. adjusting the balance ofpayments
  4. reducing the foreign debt

Civil Services Examination 2012


1. Which of the following can be said to be essentially the parts of ‘Inclusive Governance’?

  1. Permitting the Non-Banking Financial Companies to do banking
  2. Establishing effective District Planning Committees in all the districts
  3. Increasing the government spending on public health
  4. Strengthening the Mid-day Meal Scheme

Select the correct answer using the codes given below:

  1. 1 and 2 only
  2. 3 and 4 only
  3. 2, 3 and 4 only
  4. 1, 2, 3 and 4


2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

  1. Deprivation of education, health, assets and services at household level
  2. Purchasing power parity at national level
  3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


3. Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

  1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design
  2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend
  3. Devolution of a specified share of central taxes to local bodies as grants

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


4. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

  1. Setting up of National Investment and Manufacturing Zones
  2. Providing the benefit of ‘Single Window Clearance’
  3. Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


5. Consider the following specific stages of demographic transition associated with economic development:

  1. Low birth rate with low death rate
  2. High birth rate with high death rate
  3. High birth rate with low death rate

Select the correct order of the above stages using the codes given below:

  1. 1, 2, 3
  2. 2, 1, 3
  3. 2, 3, 1
  4. 3, 2, 1


6. In India in the overall Index of Industrial Production, the indices of eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Industries?

  1. Cement
  2. Fertilizers
  3. Natural gas
  4. Refinery products
  5. Textiles

Select the correct answer using the codes given below:

  1. 1 and 5 only
  2. 2, 3 and 4 only
  3. 1, 2, 3 and 4 only
  4. 1, 2, 3, 4 and 5


7. Which of the following is the chief characteristic of ‘mixed farming’?

  1. Cultivation of both cash crops and food crops
  2. Cultivation of two or more crops in the same field
  3. Rearing of animals and cultivation of crops together
  4. None of the above


8. Consider the following crops of India:

  1. Cowpea
  2. Green gram
  3. Pigeon pea

Which of the above is/are used as pulse, fodder and green manure?

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3


9. Consider the following:

  1. Hotels and restaurants
  2. Motor transport undertakings
  3. Newspaper establishments
  4. Private medical institutions

The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?

  1. 1, 2 and 3 only
  2. 4 only
  3. 1, 3 and 4 only
  4. 1, 2, 3 and 4


10. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?

  1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.
  2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures
  3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.
  4. DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programmes.

Which of the statements given above is/are correct?

  1. 1, 2 and 3 only
  2. 3 and 4 only
  3. 4 only
  4. 1, 2, 3 and 4


11. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?

  1. Other banks retain their deposits with the RBI.
  2. The RBI lends funds to the commercial banks in times of need.
  3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below:

  1. 2 and 3 only
  2. 1 and 2 only
  3. 1 and 3 only
  4. 1, 2 and 3


12. Under which of the following circumstances may ‘capital gains’ arise?

  1. When there is an increase in the sales of a product.
  2. When there is a natural increase in the value of the property owned
  3. When you purchase a painting and there is a growth in its value due to increase in its popularity

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 2 only
  4. 1, 2 and 3


13. Which of the following measures would, result in an increase in the money supply in the economy?

  1. Purchase of government securities from the public by the Central Bank.
  2. Deposit of currency in commercial banks by the public
  3. Borrowing by the government from’ the Central Bank
  4. Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 4 only
  3. 1 and 3
  4. 2, 3 and 4


14. Which of the following would include Foreign Direct Investment in India (FDI)?

  1. Subsidiaries of companies in India foreign companies in India
  2. Majority foreign equity holding Indian companies
  3. Companies exclusively financed by foreign companies
  4. Portfolio investment

Select the correct answer using the codes given below:

  1. 1, 2, 3, and 4
  2. 2 and 4 only
  3. 1 and 3 only
  4. 1, 2 and 3 only


15. Consider the following statements:

The price of any currency in international market is decided by the

  1. World Bank
  2. demand for goods/services provided by the country concerned
  3. stability of the government of the concerned country
  4. economic potential of the country in question

Which of the statements given above are correct?

  1. 1, 2, 3 and 4
  2. 2 and 3 only
  3. 3 and 4 only
  4. 1 and 4 only


16. The basic aim of Lead Bank Scheme is that

  1. big banks should try to open offices in each district
  2. there should be stiff competition among the various nationalized banks
  3. individual banks should adopt particular districts for intensive development
  4. all the banks should make intensive efforts to mobilize deposits.


Civil Services Examination 2011


1. India has experienced persistent and high food inflation in the recent past, what could be the reasons?

  1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%
  2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change
  3. The food supply chain has structural constraints

Which of the statements given above are correct?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


2. Which one of the following statements appropriately describes the “fiscal stimulus”?

  1. It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.
  2. It is an intense affirmative action of the Government to boost economic activity in the country
  3. It is Government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation
  4. It is an extreme affirmative action by the Government to pursue its policy of financial inclusion


3. Consider the following actions which the Government can take:

  1. Devaluing the domestic currency.
  2. Reduction in the export subsidy.
  3. Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above action/actions can help in reducing the current account deficit?

  1. 1 and 2
  2. 2 and 3
  3. 3 only
  4. 1 and 3


4. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”, what is “base effect”?

  1. It is the impact of drastic deficiency in supply due to failure of crops
  2. It is the impact of the - surge in demand due to rapid economic growth
  3. It is the impact of the price levels of previous year on the calculation of inflation rate
  4. None of the statements (a), (b) and (c) given above is correct in this context


5. India is regarded as a country with “Demographic Dividend”; this is due to:

  1. Its high population in the age group below 15 years
  2. Its high population in the age group of 15-64 years
  3. Its high population in the age group above 65 years
  4. Its high total population


6. Which one of the following is not a feature of “Value Added Tax”?

  1. It is a multi-point destination-based system of taxation
  2. It is a tax levied on value addition at each stage of transaction in the production-distribution chain
  3. It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer
  4. It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation


7. Karl Marx explained the process of class struggle with the help of which one of the following theories?

  1. Empirical Liberalism
  2. Existentialism
  3. Darwin’s Theory of Evolution
  4. Dialectical Materialism


8. A “closed economy” is an economy in which:

  1. the money supply is fully controlled
  2. deficit financing takes place
  3. only exports take place
  4. neither exports nor imports take place


9. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

  1. FII helps bring better management skills and technology, while FDI only brings in capital
  2. FII helps in increasing capital availability in general, while FDI only targets specific sectors.
  3. FDI flows only into the secondary market, while FII targets primary market
  4. FII is considered to be more stable than FDI


10. India is home to lakhs of persons with disabilities. What are the benefits available to them under the law?

  1. Free schooling till the age of 18 years in government-run schools.
  2. Preferential allotment of land for setting up business.
  3. Ramps in public buildings.

Which of the statements given above is / are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


11. All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the:

  1. Contingency Fund of India
  2. Public Account
  3. Consolidated Fund of India
  4. Deposits and Advances Fund


12. Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/ services rendered under micro- finance is/are:

  1. Credit facilities
  2. Savings facilities
  3. Insurance facilities
  4. Fund Transfer facilities

Select the correct answer using the codes given below:

  1. 1 only
  2. 1 and 4 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4


13. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?

  1. Adult members of only the scheduled caste and scheduled tribe households
  2. Adult members of below poverty line (BPL) households
  3. Adult members of households of all backward communities
  4. Adult members of any household


14. With reference to micro-irrigation, which of the following statements is/are correct?

  1. Fertilizer/nutrient loss can be reduced.
  2. It is the only means of irrigation in dry land farming.
  3. In some areas of farming, receding of ground water table can be checked.

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3


15. Why is the offering of “teaser loans” by commercial banks a cause of economic concern?

  1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
  2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/ are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


16. In the context of Indian economy, consider the following statements:

  1. The growth rate of GDP has steadily increased in the last five years.
  2. The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


17. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

  1. Commercial Banks
  2. Cooperative Banks
  3. Regional Rural Banks
  4. Microfinance Institutions


18. Which of the following can aid in furthering the Government’s objective of inclusive growth?

  1. Promoting Self-Help Groups
  2. Promoting Micro, Small and Medium Enterprises
  3. Implementing the Right to Education Act

Select the correct answer using the codes given below:

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3


19. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

  1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
  2. The Government no longer intends to retain the management control of the CPSEs.

Which of the statements given above is/ are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2


20. Economic growth is with usually coupled:

  1. Deflation
  2. Inflation
  3. Stagflation
  4. Hyperinflation


21. The lowering of Bank Rate by the Reserve Bank of India leads to

  1. More liquidity in the market
  2. Less liquidity in the market
  3. No change in the liquidity in the market
  4. Mobilization of more deposits by commercial-banks