UPSC Indian Economy Test 3 (Old Year Questions)

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?

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?

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.

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:

Which of the following measures would result in an increase in the money supply in the economy?
Purchase of government securities from the public by the Central Bank.
Deposit of currency in commercial banks by the public.
Borrowing by the government from the Central Bank.
Sale of government securities to the public by the Central Bank.
Select the correct answer using the codes given below.

Which of the following would include Foreign Direct Investment in India?

1. Subsidiaries of foreign companies in India.
2. Majority foreign equity holding in Indian companies.
3. Companies exclusively financed by foreign companies.
   Portfolio investment.
   Select the correct answer using the codes given below.

Consider the following statements: The price of any currency in international market is decided by the-
1. World Bank
2. Demand for good/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?

The basic aim of Lead Bank Scheme is that

Despite having large reserves of coal, why does India import millions of tonnes of coal?
1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
3. Steel companies need large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?

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?

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?

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

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 :

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

The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct?

Economic growth is usually coupled with:

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

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?

In terms of economy, the visit by foreign nationals to witness the XIX common Wealth Games in India amounted to

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

Which of the following is/are treated as artificial currency ?