📈 Indian Economy — Solved PYQs 2013–2026
Chapter-wise · All questions covered · Click options to check answers · Detailed explanations · Trend across 14 years of UPSC Prelims General Studies Paper I.
National income is the total value of goods and services produced by a country's nationals in a given period.
1. Slowing economic growth rate
2. Less equitable distribution of national income
A falling tax-to-GDP ratio usually signals a slowing economy, since GDP growth normally lifts tax collections; per UPSC's official key statement 1 alone is correct. The ratio says nothing about how income is distributed, so statement 2 is wrong.
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.
GDP at market prices (in rupees) has risen steadily, but the real GDP *growth rate* has fluctuated year to year rather than steadily increasing — so only statement 2 is correct.
Replacing wooden ploughs with steel raises the productivity of capital (the plough) rather than of labour, making it capital-augmenting technological progress.
Higher per-capita GNP does not imply real development if poverty and unemployment rise, because growth is then not translating into broad human welfare.
A high capital-output ratio means a lot of capital is needed to produce each unit of output, so even large savings and investment yield only a modest rise in output.
1. Farmers harvesting their crops
2. Textile mills converting raw cotton into fabrics
3. A commercial bank lending money to a trading company
4. A corporate body issuing Rupee Denominated Bonds overseas
The real sector deals with actual production of goods/services (harvesting crops, converting cotton to fabric). Bank lending and issuing bonds are financial-sector activities, so only 1 and 2 belong to the real sector.
1. Farmer's plough Working capital
2. Computer Fixed capital
3. Yarn used by the weaver Fixed capital
4. Petrol Working capital
Fixed capital is used repeatedly (computer); working capital is used up in one cycle (plough is a durable tool = fixed, yarn and petrol are consumed = working). Only the Computer→Fixed and Petrol→Working pairs are correct — two pairs.
1. Storage of agricultural produce Secondary
2. Dairy farm Primary
3. Mineral exploration Tertiary
4. Weaving cloth Secondary
Dairy farming is primary and weaving cloth is secondary (both correct); storage of produce is a service (tertiary, not secondary) and mineral exploration is primary (not tertiary) — so only two pairs match.
1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency. The correct sequence of these assets in the decreasing order of liquidity is
Currency is most liquid, followed by demand deposits, then savings deposits, with time deposits least liquid: 4-1-3-2.
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.
Bitcoins are decentralised and not tracked by central banks, so statement 1 is wrong; anyone with an address can transact and payments can be pseudonymous, so 2 and 3 are correct.
Legal tender is money a creditor is legally bound to accept in settlement of a debt — that is its defining feature.
The money multiplier rises when people bank more of their money (higher banking habit), since a larger share of deposits is available for banks to create credit; higher CRR/SLR shrink it.
Cash and demand deposits are both part of money supply (M1), so shifting from a deposit to cash leaves aggregate money supply unchanged.
Among the effects of black money, the government's central worry is the loss of tax revenue to the exchequer through tax evasion.
Same principle as the money-multiplier question: it increases with a stronger banking habit among people, not with higher CRR/SLR or population.
1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI’s balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.
The digital rupee is RBI's sovereign liability, appears on its balance sheet, and is convertible with bank money and cash (1, 2, 4 correct); it is NOT inflation-indexed, so 3 is wrong.
Open Market Operations are the RBI's purchase and sale of government securities to manage liquidity in the banking system.
Lower interest rates make borrowing cheaper, encouraging firms to invest more — investment expenditure rises.
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue.
Which of the above form part of the Monetary Policy?
Bank rate and open market operations are RBI monetary-policy tools; public debt and public revenue are fiscal (government) matters — so only 1 and 2.
Both MSF Rate and Net Demand and Time Liabilities (NDTL) are terms used in banking operations and RBI's regulation of banks.
Cutting SLR frees up funds banks must otherwise park in government securities, giving them room to lend more and possibly cut lending rates.
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Bank rate and open market operations are monetary-policy (RBI) tools; public debt and public revenue are fiscal (government) matters — so only 1 and 2.
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 at interest rates which are fair to the borrowers as well as the banks.
MCLR was introduced to make banks' lending-rate calculation transparent and to ensure credit is priced fairly for both borrowers and banks — both purposes are correct.
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.
The MPC decides the benchmark repo rate (statement 1 correct). It is a 6-member body chaired by the RBI Governor (not 12, not the FM), so 2 and 3 are wrong.
To arrest a sliding rupee the government curbs imports, encourages dollar inflows and eases ECB norms; an *expansionary* monetary policy would add liquidity and weaken the rupee further, so it is NOT such a measure.
1. Cut and optimise the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate
In an expansionary stance RBI cuts SLR, bank rate and repo rate; raising the MSF rate is contractionary, so statement 2 is the one it would NOT do.
1. If the in ation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
If the rupee is depreciating fast RBI sells dollars (2 correct); high inflation calls for *selling* securities to absorb liquidity, not buying, so 1 is wrong; falling US/EU rates would not induce RBI to buy dollars, so 3 is wrong.
Sterilisation neutralises the liquidity impact of forex flows through open market operations — buying/selling government securities — so that activity is the part of sterilisation.
Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
Which one of the following is correct in respect of the above statements?
Both statements are true and the second explains the first: central banks worldwide raised rates recently precisely because they assume monetary policy can counter rising prices.
RBI earns income from operations in government bonds and foreign currency (I and II); it does not manage pension funds, lend to private companies, or treat currency printing (a cost) as income.
Priority Sector Lending covers agriculture, micro & small enterprises and weaker sections — all of these.
1. To promote financial inclusion
2. To provide credit at low interest rate on demand
3. To ensure that every citizen of India has a bank account
The Basic Savings Bank Deposit Account is a no-frills account meant to promote financial inclusion (statement 1); it does not provide credit or guarantee an account to every citizen.
Which of the following statements best describes/describe this term?
1. It is a network 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.
Core Banking Solution networks a bank's branches so a customer can operate the account from any branch — statement 1 alone describes it correctly.
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.
Payment banks can be promoted by mobile/telecom and supermarket firms and cannot lend (1 and 3 correct); they may issue debit cards but NOT credit cards, so 2 is wrong.
S4A is an RBI scheme to rework the financial/debt structure of large corporates facing genuine stress — option (b) describes it correctly.
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.
Small Finance Banks aim to supply credit to small business units and to small/marginal farmers — the financially under-served — so only 1 and 2.
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.
CAR is the buffer of own funds a bank keeps to absorb losses if borrowers default (statement 1 correct); it is prescribed by the RBI/Basel norms, not decided by each bank, so 2 is wrong.
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.
The associate banks of SBI were merged into the parent SBI (statement 2 correct); government capital infusion into PSBs has NOT risen steadily every year, so 1 is wrong.
The Inter-Creditor Agreement was signed to speed up resolution of stressed assets of ₹50 crore and above that are under consortium/multiple-banking arrangements.
Chairmen of public sector banks are selected by the Banks Board Bureau (which recommends appointments of PSB heads).
The Service Area Approach was implemented under the Lead Bank Scheme to assign villages to rural bank branches for planned credit.
Deposits are a bank's *liabilities* (owed to customers); advances, investments and money at call are assets — so deposits are NOT an asset.
1. It helps in understanding the present risk of a rm that a bank is going to give loan to.
2. It helps in evaluating the emerging risk of a rm that a bank is going to give loan to.
3. The higher a borrowing rm's level of Interest Coverage Ratio, the worse is its ability to service its debt.
The Interest Coverage Ratio gauges a firm's present and emerging risk before a loan (1 and 2 correct); a *higher* ratio means better, not worse, debt-servicing ability, so 3 is wrong.
1. The Governor of the Reserve bank of India (RBI) is a appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
3. The Governor of the RBI draws his power from the RBI Act.
The RBI Governor is appointed by the central government and draws power from the RBI Act (1 and 3 correct); it is the RBI Act (Section 7), not the Constitution, that lets the government direct RBI, so 2 is wrong.
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Urban cooperative banks can issue equity/preference shares and were brought under the Banking Regulation Act by a 1966 amendment (2 and 3 correct); they are dually regulated by RBI and state registrars, not local boards set up by states, so 1 is wrong.
1. Lending to trade and industry bodies when they fail to borrow from other sources
2. Providing liquidity to the banks having a temporary crisis
3. Lending to governments to nance budgetary de cits
As lender of last resort the central bank provides liquidity to banks facing a temporary crisis — statement 2 alone captures this.
1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads of Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
BBB recommends selection of PSB heads and helps them with strategy and capital-raising plans (2 and 3 correct); it is chaired by an eminent person, not the RBI Governor, so 1 is wrong.
Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.
Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.
Which one of the following is correct in respect of the above statements ?
Syndicated lending does spread default risk across several lenders (I correct), but a syndicated loan CAN be a credit line, so statement II is incorrect.
1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
3. In India, Stock Exchanges can offer separate trading platforms for debts.
NBFCs can access the LAF window, FIIs can hold G-Secs, and stock exchanges can run separate debt-trading platforms — all three statements are correct.
1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.
For wholly-owned subsidiaries of foreign banks the RBI requires at least half the board to be resident Indians (statement 2 correct); there IS a minimum capital requirement, so 1 is wrong.
1. NBFCs cannot accept demand deposits.
2. All NBFCs operating in India have to be registered with the RBI.
3. NBFCs form part of the payment and settlement system and can issue cheques drawn on itself.
4. Deposit insurance of DICGC is not available to depositors of deposit-taking NBFCs. Which are correct?
NBFCs cannot accept demand deposits and their depositors do not get DICGC deposit insurance (1 and 4); not all NBFCs need RBI registration (some are regulated by other bodies) and NBFCs cannot issue cheques on themselves, so 2 and 3 are wrong.
1. National Payment Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.
NPCI promotes financial inclusion and launched the RuPay card scheme — both statements are correct.
With UPI enabling direct bank-to-bank transfers, separate mobile wallets become unnecessary for online payments — option (a) is the most likely consequence.
The Merchant Discount Rate is the fee a bank charges a merchant for processing customer payments made through cards.
All ATMs in India are linked through the National Payments Corporation of India (via the National Financial Switch).
1. BHIM app allows the user to tranfer 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.
BHIM lets a user send money to anyone with a UPI-enabled account (statement 1 correct); the claim about factor-authentication counts in statement 2 is wrong.
1. they shall ensure that entire data relating to payment systems operated by them are store 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
RBI's data-localisation directive requires the entire payment-system data to be stored only in India (statement 1 correct); it does not require public-sector ownership or CAG audit, so 2 and 3 are wrong.
How many countries amongst the above (other than India) accept international merchant payments under UPI?
UPI merchant acceptance has been enabled in the UAE, France and Singapore among the listed countries — three; Germany and Bangladesh are not part of it.
RTGS settles in real time while NEFT settles in batches (I correct); there are no inward-transaction charges and both RTGS and NEFT are now available 24×7, so II and III are wrong.
The RBI's FI-Index is built on three parameters — Access, Usage and Quality — with quality capturing aspects like financial literacy and consumer protection.
The statement that the Digital Rupee can only be used through UPI is incorrect — the CBDC is central-bank money that exists independently (though it can interoperate with UPI); the other statements are correct.
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.
A higher money supply, lower output and greater effective demand can each push the general price level up — all three.
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
Which of the statements given above is/are correct?
Inflation helps debtors, who repay in cheaper money (statement 1); it hurts bond-holders, whose fixed returns lose real value, so statement 2 is wrong.
The Consumer Price Index for Industrial Workers is compiled by the Labour Bureau.
Reducing money circulation curbs inflation by lowering demand; RBI does have a role and increased money supply would worsen inflation — so option (c) is correct.
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Food has a higher weight in CPI than WPI and WPI excludes services that CPI captures (1 and 2 correct); RBI's key inflation gauge is CPI, not WPI, so 3 is wrong.
During a recession the government boosts demand by raising expenditure on public projects (a fiscal stimulus).
1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates
Demand-pull inflation is driven by rising demand — expansionary policy, fiscal stimulus and higher purchasing power (1, 2, 4). Rising interest rates dampen demand, so 5 is excluded.
Under the flexible inflation-targeting framework, the RBI is responsible for maintaining price stability by controlling inflation.
VAT was a state-level tax; describing it as basically a Central subject with states merely facilitating is wrong — so option (d) is not a feature.
Deficit financing (borrowing/creating money to meet a budget gap) is used in India to raise resources for economic development.
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Under the erstwhile Plan/Non-Plan classification, defence, interest payments, salaries/pensions and subsidies were all Non-Plan expenditure — all four.
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.
The 14th Finance Commission raised the states' share of the divisible pool from 32% to 42% (statement 1 correct); it did NOT recommend sector-specific grants, so 2 is wrong.
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
A persistent deficit is reduced by cutting revenue expenditure and rationalising subsidies; new welfare schemes and expanding industries would raise spending, so only 1 and 3.
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
To cut a deficit the government reduces revenue expenditure and rationalises subsidies (1 and 3); new schemes and cutting import duty do not reduce the deficit.
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
The capital budget covers asset creation, loans received from abroad and loans given to states/UTs — all three items belong to it.
1. It is an organ of NITI Aayog.
2. It is headed by the Union Finance Minister.
3. It monitors macroprudential supervision of the economy.
FSDC is headed by the Union Finance Minister and handles macro-prudential oversight (2 and 3 correct); it is a body under the Finance Ministry, not an organ of NITI Aayog, so 1 is wrong.
'Base Erosion and Profit Shifting' (BEPS) refers to the OECD-led effort to curb tax avoidance by multinational companies that shift profits to low-tax jurisdictions.
1. To bring the idle gold lying with Indian households into the economy.
2. To promote FDI in the gold and jewelry sector
3. To reduce India’s dependence on gold imports
Both the Sovereign Gold Bond and Gold Monetization schemes aim to draw idle household gold into the economy and cut India's gold-import dependence (1 and 3); promoting FDI in jewellery is not a purpose.
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.
GST replaces multiple taxes to create a single national market (statement 1 correct); it does not directly cut the current account deficit or guarantee overtaking China, so 2 and 3 are wrong.
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.
Neither India's tax-to-GDP ratio nor its fiscal-deficit-to-GDP ratio has risen *steadily* over the decade, so neither statement is 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".
The equalisation levy is a separate levy under the Finance Act, not part of the Income Tax Act (statement 1 wrong), and no treaty credit is available for it (statement 2 wrong) — hence neither.
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.
The FRBM Review Committee suggested a 60% general-government debt-GDP target (40% Centre, 20% states) and states need Centre's consent to borrow if indebted to it (1 and 3 correct); the liability figures in statement 2 are reversed, so 2 is wrong.
1. Cereals grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material
Basic unbranded food items (hulled cereals, cooked eggs, processed/canned fish) and newspapers carrying ads are exempt/nil-rated categories — items 1, 2 and 4.
1. Most of India’s external debt is owed by governmental entities.
2. All of India’s external debt is denominated in US dollars.
Most of India's external debt is owed by *non-government* (private/corporate) entities and it is denominated in several currencies, not only US dollars — so neither statement is correct.
1. Housing loans owed by households
2. Amounts outstanding on credit cards
3. Treasury bills
Non-financial debt includes borrowing by households (housing loans, credit-card dues) and government (treasury bills) — all three items.
Financing a deficit by creating new money is the most inflationary option because it directly expands the money supply (deficit financing).
1. A share of the household financial savings goes towards government borrowings.
2. Dated securities issued at market-related rates in auctions form a large component of internal debt.
Household financial savings do flow into government borrowings, and market-rate dated securities form a large part of internal debt — both statements are correct.
1. Acquiring new technology is capital expenditure.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
Acquiring new technology is capital expenditure (statement 1 correct); the debt-vs-equity classification in statement 2 is wrong, as neither is 'revenue' expenditure.
'Indirect transfer' refers to a foreign company transferring shares whose value is derived substantially from assets located in India — option (d).
1. Demographic performance
2. Forest and ecology
3. Governance reforms
4. Stable government
5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance?
For horizontal devolution the 15th FC used, besides population/area/income-distance, demographic performance, forest & ecology and tax & fiscal effort — three of the listed criteria; governance reforms and stable government were not used.
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
Brand recognition, intellectual property and a client mailing list are intangible assets; inventory is tangible — so three of the four are intangible investments.
The 15th FC gave education-outcome grants, a ₹45,000 crore agri-reform incentive and reintroduced tax-effort criteria (I, III, IV); it recommended 41% devolution, not 45%, so II is wrong.
Gross primary deficit = fiscal deficit − interest payments = ₹50,000 crore − ₹1,500 crore = ₹48,500 crore; the non-debt capital receipt is a distractor.
Revenue deficit = 80,000 − 60,000 = ₹20,000 crore; fiscal deficit = borrowings = ₹10,000 crore; primary deficit = fiscal deficit − interest = 10,000 − 6,000 = ₹4,000 crore — all three correct.
Capital receipts either create a liability or reduce assets, and borrowings/disinvestment are examples (I and II); interest received is a revenue receipt/income, not a liability, so III is wrong.
The crowding-out effect occurs when heavy government borrowing pushes up interest rates, thereby squeezing out private investment.
The balance of payments records all of a country's international economic transactions (trade, services, capital) over a period, normally a year.
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
The current account comprises the balance of trade (goods) and the balance of invisibles (services, transfers) — items 1 and 3; foreign assets and SDRs belong to the capital account.
The 'Global Economic Prospects' report is issued periodically by the World Bank.
The Agreement on Agriculture, SPS Agreement and the 'Peace Clause' are all World Trade Organization terms.
Convertibility of the rupee means freely permitting its conversion into other currencies and vice versa.
Basel III strengthens the banking sector's ability to withstand economic stress and improves risk management through tougher capital and liquidity norms.
The problem of international liquidity concerns the non-availability of dollars and other hard (reserve) currencies for settling international payments.
The European Stability Mechanism is an EU agency that provides financial assistance to eurozone countries in difficulty.
'Amber box, blue box and green box' classify domestic farm subsidies under WTO agreements.
The Chinese Renminbi (yuan) was added to the IMF's SDR currency basket.
1. IMFC discusses matters of concern a ecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as an observer in IMFC’s meetings.
The IMFC advises the IMF on the direction of its work and the World Bank attends as an observer — both statements are correct.
'Import cover' is the number of months of imports that a country's foreign-exchange reserves can pay for.
Which of the following has declared that ranking?
The Ease of Doing Business ranking was published by the World Bank.
The Global Financial Stability Report is prepared by the International Monetary Fund.
The Global Infrastructure Facility is a World Bank collaboration that helps prepare and structure complex infrastructure projects.
The Broad-based Trade and Investment Agreement (BTIA) refers to the long-running India–European Union trade negotiations.
1. India has ratified to Trade Facilitation Agreement (TFA) of WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of
2013. 3. TFA came into force in January 2016.
India ratified the WTO Trade Facilitation Agreement, which came from the 2013 Bali package (1 and 2 correct); the TFA entered into force in Feb 2017, not Jan 2016, so 3 is wrong.
'Domestic Content Requirement' has been in the news over developing solar-power production in India (local sourcing of solar cells/modules).
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.
The National IPR Policy reaffirms India's commitment to TRIPS/Doha and makes DPIIT the nodal agency for IPR — both statements are correct.
1. The first APMCHUD was held in India in 2006 on the theme ‘Emerging Urban Forms – Policy Responses and Governance Structure’.
2. India hosts all the Annual Ministerial Conferences in partnership with ADB, APEC and ASEAN.
The first APMCHUD was held in India in 2006 (statement 1 correct); India does not host all the annual conferences with ADB/APEC/ASEAN, so 2 is wrong — hence only 1... official key marks (d) as neither, treating statement 1's theme detail as incorrect.
The Global Gender Gap Index is released by the World Economic Forum.
India enacted the Geographical Indications Act, 1999 to comply with its obligations under the WTO (TRIPS).
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.
AIIB has more than 80 members (statement 1 correct); India is the *second*-largest shareholder (China is largest) and AIIB has non-Asian members, so 2 and 3 are wrong.
'Maintenance of law and order' is NOT a sub-index of the World Bank's Ease of Doing Business Index (paying taxes, registering property and construction permits are).
The Global Competitiveness Report is published by the World Economic Forum.
1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
IT-sector foreign earnings and remittances from Indians abroad both cushion the risk of a currency crisis by bringing in forex (1 and 3); higher government spending does not reduce that risk, so 2 is excluded.
1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in di erent countries.
2. In terms of PPP dollars, India is the sixth-largest economy in the world.
PPP exchange rates compare the price of the same basket of goods across countries (statement 1 correct); in PPP terms India is the third-largest economy, not sixth, so 2 is wrong.
1. Not depending on short-term foreign borrowings
2. Opening up to more foreign banks
3. Maintaining full capital account convertibility
Avoiding reliance on short-term foreign borrowings gives immunity in a crisis (statement 1); opening to more foreign banks and full capital-account convertibility would increase, not reduce, vulnerability.
The 'Gold Tranche' (Reserve Tranche) is a credit facility that IMF members can draw on.
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. "Textile and textile articles" constitute an important item of trade between India and Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Textiles form an important item of India–Bangladesh trade (statement 2 correct); Indo–Sri Lanka trade has not risen consistently every year and Nepal is not India's largest South-Asian partner, so 1 and 3 are wrong.
FDI is treated as a largely non-debt-creating capital inflow — that is its key characteristic.
1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.
Under TRIMS, quantitative import restrictions on foreign investors are prohibited (statement 1 correct); TRIMS applies to trade in goods only, not services, so 2 is wrong, and it does concern investment measures, so 3 is wrong.
'West Texas Intermediate' is a benchmark grade of crude oil.
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
Foreign-currency convertible bonds, FII investment (with conditions) and global depository receipts are all foreign-investment routes; NRE deposits are debt, so only 1, 2 and 3.
1. improves the competitiveness of the domestic exports in the foreign markets.
2. increases the foreign value of domestic currency.
3. improves the trade balance.
Devaluation necessarily improves export competitiveness by making exports cheaper abroad (statement 1); it lowers the currency's foreign value and its effect on the trade balance is not guaranteed, so 2 and 3 are excluded.
1. It puts microfinance tools to work in the water and sanitation sector.
2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
3. It aims to enable the poor people to meet their water need without depending on subsidies.
'Water Credit' applies microfinance to water and sanitation and aims to let the poor meet water needs without subsidies (1 and 3 correct); it is a Water.org initiative, not a WHO–World Bank one, so 2 is wrong.
The Rapid Financing Instrument and Rapid Credit Facility are lending windows of the International Monetary Fund.
1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
A rising NEER means rupee appreciation and higher relative domestic inflation widens the NEER–REER gap (1 and 3 correct); a rising REER indicates a *loss*, not gain, of trade competitiveness, so 2 is wrong.
1. Affordable housing
2. Mass rapid transport
3. Health care
4. Renewable energy On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus for its investments?
The UNOPS S3i initiative focuses on affordable housing, renewable energy and health infrastructure — three of the four listed sectors (mass rapid transport is not a focus).
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?
Both statements are factually correct but statement II (firms using the PLI scheme) does not explain statement I (India's 3.2% share of global goods exports).
Statement-I: Recently, the United States of America (USA) and the European Union (EU) have launched the 'Trade and Technology Council'
Statement-II: The USA and the EU claim that through this they are trying to bring technological progress and physical productivity under their control.
Which one of the following is correct in respect of the above statement?
The US and EU did launch the Trade and Technology Council (statement I correct), but the motive attributed in statement II is inaccurate, so statement II is incorrect.
1. limits the levels of the budgetary deficit of the countries of the European Union
2. makes the countries of the European Union to share their infrastructure facilities
3. enables the countries of the European Union to share their technologies
The EU's Stability and Growth Pact only limits members' budget deficits (and debt); it has nothing to do with sharing infrastructure or technology — so only one statement is correct.
Statement-I : India does not import apples from the United States of America.
Statement-II : In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.
Which one of the following is correct in respect of the above statements ?
India *does* import apples from the USA, so statement I is incorrect; India does prohibit import of GM food without approval, so statement II is correct.
Statement-I : Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II : Venezuela has the world’s largest oil reserves.
Which one of the following is correct in respect of the above statements ?
Venezuela has not achieved a rapid recovery or stopped emigration (statement I incorrect), though it does hold the world's largest oil reserves (statement II correct).
Which of the statements are correct?
The IBRD lends to middle-income countries and was set up to help post-war European reconstruction (I and III); it works as part of the World Bank Group, not single-handedly, so II is wrong.
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,
The IFC that offers Masala Bonds is an arm of the World Bank and these are rupee-denominated debt instruments for public and private borrowers — both statements are correct.
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 statement Governments.
3. Treasury bills o er are issued at a discount from the par value.
Treasury bills are issued at a discount to par (statement 3 correct); RBI manages both central and state government securities and states do issue their own short-term paper, so 1 and 2 are wrong.
Participatory Notes are issued by registered foreign portfolio investors to overseas investors wanting Indian market exposure without registering directly.
1. 'Commercial Paper' is a short-term unsecured promissory note.
2. 'Certi cate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation.
3. 'Call Money' is a short-term nance used for interbank transactions.
4. 'Zero-Coupon Bonds are the interest bearing short-term bond issued by the Scheduled Commercial Banks to corporations.
Commercial Paper is a short-term unsecured promissory note and Call Money is short-term interbank finance (1 and 3 correct); the descriptions of Certificate of Deposit and Zero-Coupon Bonds in 2 and 4 are wrong.
1. Actions of the United States Federal Reserve
2. Actions of the Reserve bank of India
3. In ation and short-term interest rates
Indian G-Sec yields are influenced by the US Fed's actions, RBI's actions, and domestic inflation/short-term rates — all three factors.
1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
3. The 'Central Depository Services Ltd' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
The RBI's NDS-OM is a government-securities trading platform (statement 2 correct); retail investors cannot directly buy T-bills/G-Secs in the primary market that way and CDSL is not RBI-BSE promoted, so 1 and 3 are wrong.
1. Government can reduce the coupon rates on its borrowing by way of IIBs.
2. IIBs provide protection to the investors from uncertainty regarding in ation.
3. The interest received as well as capital gains on IIBs are not taxable.
Inflation-Indexed Bonds let the government lower coupon rates and protect investors against inflation uncertainty (1 and 2 correct); their interest and capital gains are taxable, so 3 is wrong.
1. In India, credit rating agencies are regulated by Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.
ICRA is a public limited company and Brickwork Ratings is an Indian credit-rating agency (2 and 3 correct); credit-rating agencies are regulated by SEBI, not RBI, so 1 is wrong.
1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Because they carry a conversion-to-equity option, convertible bonds pay lower interest, and that option gives some hedge against rising prices — both statements are correct.
1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
Of the listed markets, the government bond, treasury-bill and call-money markets are debt/money markets while the stock market is equity; the intended grouping yields 'only two'.
In finance, 'beta' is a numeric value measuring how a stock's price fluctuates relative to the overall market (systematic risk).
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'.
Which one of the following is correct in respect of the above statements?
Statement I (tax treatment of InvIT income) is incorrect while statement II (InvITs recognised as borrowers under SARFAESI) is correct.
Statement-I : If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.
Statement-II : The US Government debt is not backed by any hard assets, but only by the faith of the Government.
Which one of the following is correct in respect of the above statements ?
If the US defaulted, bondholders' claims would still exist though payment could be delayed, and US debt is indeed backed only by government faith — both statements are correct and II explains I.
1. Insurance Companies
2. Pension Funds
3. Retail Investors
Insurance companies, pension funds and retail investors can all trade in corporate bonds and G-Secs — all three.
1. Exchange-Traded Funds (ETF)
2. Motor vehicles
3. Currency swap
ETFs and currency swaps are financial/tradeable instruments; a motor vehicle is a physical asset — the intended answer treats all three as listed for elimination, keyed (d) 1 and 3.
Collateralised Borrowing and Lending Obligations (CBLO) are money-market instruments.
India does account for a large share of global equity-option volumes and briefly overtook Hong Kong's market cap (I and II); SEBI does regulate and warn on options and unregistered advisors, so III is wrong.
Statement I: As regards returns from an investment in a company, bondholders are generally at lower risk than stockholders.
Statement II: Bondholders are lenders to a company whereas stockholders are its owners.
Statement III: For repayment purposes, bondholders are prioritized over stockholders.
Which one of the following is correct?
All three are correct — bondholders are lenders repaid before stockholders (owners), which is exactly why they bear lower risk; II and III explain I.
How many of the above are treated as Alternative Investment Funds?
Hedge funds and venture capital are Alternative Investment Funds; plain bonds and listed stocks are conventional investments — so only two.
BRSR disclosures are largely non-financial (ESG) in nature (statement II correct); it is SEBI, not the RBI, that mandates BRSR for top listed companies, so I is wrong.
1. Tokenization turns real-world assets into digital tokens using blockchain technology.
2. Tokenization offers 24×7 access, promoting financial inclusion.
3. Tokenization allows access to high-growth investment opportunities for individuals in India.
Tokenization represents real-world assets as blockchain tokens, enables round-the-clock fractional access and can open high-growth opportunities to retail investors — all three statements are correct.
A sustainability bond funds a mix of both environmental (green) and social projects; a green bond funds only environmental projects and a social bond only social ones.
1. M1xchange provides collateral-based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3. M1xchange functions as a credit rating agency for MSMEs.
M1xchange is a TReDS platform that lets MSMEs get their invoices/bills discounted (statement 2); it neither gives collateral-based loans nor acts as a credit rating agency, so 1 and 3 are wrong.
1. 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine and on-board equipment.
2. Under the Montreal Convention (1999), adopted by over 130 countries including India, airlines are strictly liable to compensate the family of every deceased passenger without the family having to prove fault.
Aviation hull insurance covers the physical aircraft, and the Montreal Convention imposes strict (no-fault) liability on airlines for passenger death/injury up to prescribed limits — both statements are correct.
1. Crowdfunding is the solicitation of small amounts of funds from multiple investors through a web-based platform or social networking site for a specific project.
2. Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures.
Crowdfunding pools small contributions from many people via an online platform for a project, and it lets SMEs raise capital cheaply without the rigorous formalities of conventional financing — both statements are correct.
1. R.N. Malhotra Committee — reforms of the Insurance sector — formed under IRDAI.
2. L.C. Gupta Committee — roadmap for derivatives trading — formed under SEBI.
3. Urjit R. Patel Committee — reforming bank lending to the Housing sector — formed under RBI.
4. Y.H. Malegam Committee — reforms in the Microfinance sector — formed under RBI.
In which of the above rows are all the details correctly matched?
The L.C. Gupta (derivatives, SEBI) and Y.H. Malegam (microfinance, RBI) rows are fully correct; the Malhotra Committee predated and led to IRDAI's creation, and the Urjit Patel Committee dealt with the monetary-policy framework, not housing — so rows 1 and 3 are mismatched.
1. To implement the scheme, the Central Government provides 100% funding.
2. Under the Scheme, Cadastral Maps are digitized.
3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.
Under DILRMP cadastral maps are digitised and records of rights are transliterated into scheduled languages, and the Centre provides full funding — all three statements are correct.
The Fair and Remunerative Price (FRP) of sugarcane is approved by the Cabinet Committee on Economic Affairs (on CACP's recommendation).
Agricultural product markets are regulated under the state-enacted Agricultural Produce Market Committee (APMC) Acts.
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.
The Command Area Development Programme (1974-75) aimed at improving water-use efficiency (statement 2 correct); the AIBP was for irrigation projects, not loans to poor farmers, so 1 is wrong.
The Seed Village Concept trains farmers in quality seed production so that good seed becomes locally available — option (b).
1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate for any reason of the year.
2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.
PMFBY covers post-harvest losses from cyclones/unseasonal rain (statement 2 correct); premiums are 2% (kharif)/1.5% (rabi), not a uniform 2% for every crop, so 1 is wrong.
1. This initiative aims to demonstrate the improved production and post-harvest technologies, and to demonstrate value addition techniques, in an integrated manner, with cluster approach.
2. Poor, small, marginal and tribal farmers have a larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro irrigation equipment.
The millets-promotion initiative demonstrates improved production, post-harvest and value-addition technologies in a cluster mode, with poor/small/tribal farmers as key stakeholders (1 and 2); it does not push commercial-crop farmers to switch via free kits, so 3 is wrong.
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
The Soil Health Card Scheme's aim among the listed options is to check the overuse of fertilizers by giving soil-based nutrient recommendations — statement 3 only.
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.
e-NAM is a pan-India electronic trading portal that gives farmers access to a nationwide market with quality-linked prices — both statements are correct.
1. The quantity of imported edible oils is more than the domestic production of edible oils in the last ve years.
2. The Government does not impose any customs duty on all the imported edible oils as a special case.
Imported edible oil exceeds domestic production (statement 1 correct); the government does levy customs duty on edible oils, so statement 2 is wrong.
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?
Of the listed items, MSP is announced for barley, finger millet (ragi), groundnut and sesamum — a mix of cereals, millets, pulses/oilseeds — items 2, 4, 5 and 6.
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 source other than agricultural activities.
Per the NSSO 70th round, over 60% of agricultural households belonged to OBCs and in Kerala most drew maximum income from non-farm sources (2 and 3 correct); Rajasthan did not have the highest share, so 1 is wrong.
1. 'The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
2. 'The Agricultural and Processed Food Productds Export Development Authority' (APEDA) functions as the Secretatiat for the implementation of NPOP.
3. Sikkim has become India's first fully organic State.
APEDA is the secretariat for the NPOP and Sikkim is India's first fully organic state (2 and 3 correct); NPOP is run by the Commerce Ministry, not Rural Development, so 1 is wrong.
FCI's economic cost is MSP plus bonus plus procurement incidentals and distribution costs — option (c).
Vegetable (edible) oils account for the highest-value agricultural import for India.
India has been the largest exporter of rice in the world in recent years.
1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
2. Ammonia, which is an input of urea, is produced from natural gas.
3. Sulphur, which is a raw material for phosphoric acid fertilizer, is a by -product of oil refineries.
Ammonia for urea comes from natural gas and sulphur is a by-product of oil refineries (2 and 3 correct); retail fertilizer prices remain subsidised/administered, so 1 is wrong.
1. Fixing Minimum Support Price for agricultural produce of all crops.
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments.
Public investment in agriculture includes computerising PACS, social-capital development and government cold-storage (2, 3 and 6); MSP, free power and loan waivers are subsidies/transfers, not investment.
1. Minimum Support Price
2. Government's trading
3. Government's stockpiling
4. Consumer subsidies
Rice prices were affected by MSP, government trading, stockpiling and consumer subsidies — all four factors.
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks.
3. Consumption requirements of farm households
4. Post-harvest expense
5. Construction of family house and setting up of village cold storage facility.
KCC short-term credit covers working capital for farm assets, consumption needs and post-harvest expenses (1, 3, 4); buying tractors/trucks or building a house are long-term/investment purposes, so excluded.
1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Neither statement is correct — MSP procurement is not unlimited for all crops in every state, and MSP is not a ceiling the market price never crosses.
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agriculture Credit Societies.
A key function of District Central Cooperative Banks is to fund Primary Agricultural Credit Societies (statement 2 correct); DCCBs do not deliver more short-term farm credit than commercial and regional rural banks, so 1 is wrong.
'Small Farmer Large Field' is where many marginal farmers in an area organise into groups and synchronise/harmonise operations to reap economies of scale — option (b).
1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinicia) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.
Niger seeds have an MSP, niger is a kharif crop, and tribal communities use niger oil for cooking — all three statements are correct.
Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the USA, the former produces more ethanol than the latter.
Statement II: Unlike in the USA where corn is the principal feedstock, sugarcane is the principal feedstock for ethanol production in Brazil.
Which one of the following is correct?
The USA is the world's largest ethanol producer, ahead of Brazil, so statement I is wrong; sugarcane is indeed Brazil's principal feedstock while corn is the USA's, so statement II is correct.
India is the largest producer and exporter of turmeric, grows more than 30 varieties, and Maharashtra, Telangana, Karnataka and Tamil Nadu are major producers — all three correct.
Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.
Statement II: In India, rural agricultural land is not considered a capital asset under the Income-tax Act,
1961.
Which one of the following is correct?
Income from poultry and wool rearing is treated as business income, not tax-exempt agricultural income, so statement I is wrong; rural agricultural land is indeed not a capital asset under the Act, so II is correct.
In the Index of Eight Core Industries, electricity generation carries the highest weight.
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
District Mineral Foundations exist to protect the interests of persons affected by mining (statement 2 only); they don't promote exploration or license it, so 1 and 3 are wrong.
Pradhan Mantri MUDRA Yojana aims to bring small/micro entrepreneurs into the formal financial system through collateral-free loans.
1. They can sell their own goods in addition to offering their platforms as market-places.
2. The degree to which they can own big sellers on their platforms is limited.
Foreign-owned marketplace e-commerce firms cannot sell their own goods on their platforms and their stake in big sellers is limited (statement 2 correct); statement 1 is therefore wrong.
1. According to the 'Micro Small and Medium enterprises Development (MSMED) Act, 2006, the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the Priority sector.
All bank loans to MSMEs qualify as priority-sector lending (statement 2 correct); the investment threshold for 'medium' enterprises in statement 1 is outdated/incorrect, so 1 is wrong.
1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
2. CSR rules do not specify minimum spending on CSR activities.
CSR rules say spending that benefits the company or its employees does not count as CSR (statement 1 correct); the rules DO specify a minimum spend (2% of average net profit), so 2 is wrong.
How many of the above pairs are correctly matched?
None match: the National Automotive Board is under Heavy Industries (not Commerce), the Coir Board under MSME (not Heavy Industries), and the National Centre for Trade Information under Commerce (not MSME).
India joined the Minerals Security Partnership and the 2023 MMDR amendment empowers the Centre to auction certain critical minerals (I and III); India is not self-sufficient in all 30 identified critical minerals, so II is wrong.
1. It allows Indian exporters to compete in high-end markets that prioritise chemical-free products.
2. It confirms that Eri Silk meets international safety, environmental and quality standards, enabling entry into premium eco-conscious markets.
Oeko-Tex certification signals freedom from harmful substances and compliance with safety/environmental standards, letting Eri Silk enter premium, eco-conscious global markets — both statements are correct.
The CG Power–Renesas OSAT unit is set up at Sanand in Gujarat, not Bengaluru — so that pair is not correctly matched; the Micron, Tata–PSMC and Tata-Assam pairs are correct.
1. Modern technologies including AI, robotics and space exploration extensively use REEs.
2. China has the highest share in mining of REEs followed by India.
3. The Government of India launched the National Critical Mineral Mission (NCMM) in
2025. 4. Rare Earth Elements are a set of 13 metallic elements.
REEs are vital to AI, robotics and space tech, and India launched the National Critical Mineral Mission in 2025 (1 and 3); China leads mining but is followed by the USA/Myanmar (not India), and REEs are a set of 17 (not 13) elements, so 2 and 4 are wrong.
1. It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4,00,000 crore at present.
Neither statement is correct — NIIF is not an organ of NITI Aayog and its corpus is around ₹40,000 crore, not ₹4,00,000 crore.
1. Kamarajar Port : First major port in India registered as a company
2. Mundra Port : Largest privately owned port in India
3. Visakhapatnam: Largest container port in India
Kamarajar (Ennore) Port is India's first major port registered as a company and Mundra is the largest privately owned port (two pairs correct); Visakhapatnam is not India's largest container port (JNPT is), so that pair is wrong.
1. Donyi Polo Airport
2. Kushinagar International Airport
3. Vijayawada International Airport In the recent past, which of the above have been constructed as Greenfield projects ?
Donyi Polo (Itanagar) and Kushinagar were built as greenfield airports; Vijayawada was an upgrade, not greenfield — so only 1 and 2.
1. By functioning exclusively as a domestic cargo hub to eliminate the need for foreign collaborations.
2. By focusing primarily on passenger cruise tourism and heritage shipping.
3. By leveraging its natural deep draft and strategic location to reduce dependence on foreign trans-shipment ports, enhance revenue retention and reposition India in regional maritime trade.
Vizhinjam's significance lies in its natural deep draft and location, which cut India's reliance on foreign trans-shipment hubs like Colombo — statement 3 only; it is not a domestic-only or cruise-focused port.
1. It is a Public Limited Government Company.
2. It is a Non-Banking Financial Company.
IREDA is both a public-limited government company and a Non-Banking Financial Company — both statements are correct.
UDAY (Ujwal DISCOM Assurance Yojana) is meant for the financial turnaround and revival of power distribution companies (DISCOMs).
1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.
PNGRB works to ensure competitive gas markets (statement 2 correct); it was not the first regulator set up by the government and appeals go to APTEL only for certain matters, so 1 and 3 are wrong.
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-su cient in coal product.
Coal was nationalised under Indira Gandhi (statement 1 correct); coal blocks are now auctioned, not allotted by lottery, and India still imports coal, so 2 and 3 are wrong.
Statement-I: India, despite having uranium deposits, depends on coal for most of its electricity production.
Statement-II: Uranium, enriched to the extent of at least 60%, is required for the production of electricity.
Which one of the following is correct in respect of the above statements?
India does depend on coal for most electricity despite holding uranium (statement I correct); power reactors use low-enriched uranium (~3-5%), not 60%, so statement II is incorrect.
How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB) in our country?
PNGRB regulates the mid/downstream activities — refining, storage & distribution (II) and marketing & sale (III); upstream production of crude oil and natural gas is not under it, so only two.
1. From the Second Five-Year Plan, there was a determined thrust towards the 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.
The Second Plan thrust toward basic and capital-goods industries and the Fourth Plan sought to curb concentration of wealth (1 and 2 correct); the financial-sector claim about the Fifth Plan in statement 3 is wrong.
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.
After 1991 liberalisation, India's share in world exports, FDI inflows and forex reserves all rose (2, 3, 4); agriculture's share in GDP fell rather than rose, so 1 is wrong.
1. Worker productivity (rs. per worker at 2004 -05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Post-1991, the rural non-farm economy grew (statement 3 correct); the claims in 1, 2 and 4 about productivity, workforce share and rural employment growth are inaccurate.
Official poverty lines differ across states mainly because price levels vary from state to state.
1. MPI is calculated using the Alkire-Foster methodology.
2. MPI calculated by NITI Aayog has a total of twelve indicators.
3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and the MPI of the UNDP. Which are correct?
The MPI uses the Alkire-Foster method and NITI Aayog's National MPI has twelve indicators (1 and 2); Maternal Health and Bank Account are additional indicators unique to India's MPI, not common with the global UNDP MPI, so 3 is wrong.
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.
An outcome of the NSQF is mobility between vocational and general education (statement 2 correct); certification can be earned through non-formal/informal learning too, so 1 is wrong.
The Recognition of Prior Learning scheme certifies skills acquired informally, e.g. by construction workers through traditional channels.
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.
Human capital formation means raising people's knowledge, skills and capacities and accumulating intangible wealth — statements 2 and 4.
Disguised unemployment is where more people are engaged than needed, so the extra workers add nothing — their marginal productivity is zero.
1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2. It provides for refinancing through SIDBI.
Stand-Up India promotes entrepreneurship among SC/ST and women and provides refinance through SIDBI — both statements are correct.
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.
Neither statement is correct — the National Career Service is a Ministry of Labour & Employment initiative (not DoPT) and it serves all job-seekers, not just 'uneducated' youth.
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
Under the 2018 fixed-term employment rules, firms find it easier to end fixed-term jobs and no termination notice is needed for temporary workmen — both statements are correct.
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
A notification can require wage payment only through bank accounts (statement 3 correct); not all casual workers get EPF coverage or guaranteed regular hours/overtime, so 1 and 2 are wrong.
The Labour Bureau compiles data on industrial disputes, closures, retrenchments and lay-offs.
Pradhan Mantri Jan-Dhan Yojana was launched to promote financial inclusion by providing bank accounts to the unbanked.
All central government employees who joined on/after 1 April 2004 come under the NPS — option (d).
1. The families coming under the category of 'Below Poverty Line (BPL)' only are eligible to receive subsidies 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.
Under the NFSA, the eldest woman (18+) is the head of household for the ration card (statement 2 correct); eligibility is not limited to BPL families and the maternity-ration calorie figure in statement 3 is wrong.
1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
2. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
3. The Regional Rural Banks and Scheduled Commercial banks support SHGs.
In an SHG all members are jointly responsible for a member's loan, and RRBs and commercial banks support SHGs (2 and 3 correct); the SHG movement was pioneered by NABARD, not SBI, so 1 is wrong — 'Only two'.
1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
2. AGMARK is a quality Certification Mark issues by the Food and Agriculture Organisation (FAO).
The BIS Standard Mark is mandatory for automotive tyres and tubes (statement 1 correct); AGMARK is issued by the Directorate of Marketing & Inspection, not the FAO, so 2 is wrong.
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.
QCI was set up jointly by the Government of India and Indian industry, and its Chairman is appointed by the PM on industry's recommendation — both statements are correct.
1. It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
2. It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
3. It is a programme aimed at making all the nancial transactions in our country completely digital in a decade.
Smart India Hackathon 2017 was an initiative to crowdsource digital-technology innovations for India's problems — statement 2 only.
1. Cost of restoration of the computer system in case of malware disrupting access to one's computer
2. Cost of a new computer if some miscreant wilfully damages it, if proved so
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.
4. Cost of defence in the Court of Law if any third party les a suit
Individual cyber insurance generally covers system-restoration costs, a specialist consultant during cyber-extortion, and legal-defence costs (1, 3, 4); replacing a wilfully damaged computer is not typically covered, so 2 is excluded.
This describes dropshipping — the seller sets prices and takes orders but holds no inventory, with a third-party supplier fulfilling shipments directly.
ONDC aims to democratise digital commerce through an open, interoperable protocol so buyers and sellers can transact across any compatible app, rather than being locked into a single platform.
When a good is provided free by the government, its opportunity cost is not zero — it is transferred from the consumers to the tax-paying public who fund it.
1. price of its substitute increases
2. price of its complement increases
3. the good is an inferior good and income of the consumers increases
4. its price falls
Market demand for a good rises if a substitute's price increases (buyers switch to it) or if its own price falls (1 and 4); a costlier complement or higher income for an inferior good reduces demand, so 2 and 3 are excluded.
