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UPSC Prelims 2013–2026 — Indian Economy

Topic-wise UPSC Prelims GS Paper I questions, 2013–2026. Total questions: 271. Instant feedback with explanations.

1. 1A1: Money: Barter to Bitcoins

8 questions Printed pages 207–208

Q1. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. NFTs are ideal for representing physical assets like real estate and artwork. They are cryptographic assets with unique identification codes and metadata. These cant be used as a medium of exchange.
Q2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. NFTs are ideal for representing physical assets like real estate and artwork. They are cryptographic assets with unique identification codes and metadata. These cant be used as a medium of exchange.
Q3. 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:
Explanation: Correct option: (d) 1, 2 and 3. Statement 1: Blockchain = shared public ledger, no single control, needs collective agreement for changes. Statement 2: Blockchain = data structure of linked blocks, not just for cryptocurrency. Statement 3: Permission-free development, decentralized platform, used in voting/banking/messaging/advertising.
Q4. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below.
Explanation: Correct option: (d) 1, 2 and 3. Statement 1: Blockchain = shared public ledger, no single control, needs collective agreement for changes. Statement 2: Blockchain = data structure of linked blocks, not just for cryptocurrency. Statement 3: Permission-free development, decentralized platform, used in voting/banking/messaging/advertising.
Q5. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct?
Explanation: Correct option: (c) 2 and 4 only. The National Payments Corporation of India (NPCI) operates retail payment systems in India and links all ATMs for greater efficiency. 1A1: Money: Barter to Bit coins-Explanation 1
Q6. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions. Which of the statements given above are correct ?
Explanation: Correct option: (d) 1, 2 and 3. Statement 1: Blockchain = shared public ledger, no single control, needs collective agreement for changes. Statement 2: Blockchain = data structure of linked blocks, not just for cryptocurrency. Statement 3: Permission-free development, decentralized platform, used in voting/banking/messaging/advertising.
Q7. Applications that depend on basic features of blockchain can be developed without anybody’s permission. Which of the statements given above is/are correct?
Explanation: Correct option: (d) 1 and 3 only. Statement 1: Blockchain = shared public ledger, no single control, needs collective agreement for changes. Statement 2: Blockchain = data structure of linked blocks, not just for cryptocurrency. Statement 3: Permission-free development, decentralized platform, used in voting/banking/messaging/advertising.
Q8. Which one of the following links all the ATMs in India? (2018)
Explanation: Correct option: (c) National Payments Corporation of India. The National Payments Corporation of India (NPCI) operates retail payment systems in India and links all ATMs for greater efficiency. 1A1: Money: Barter to Bit coins-Explanation 1

2. 1B1: Bank Classification

35 questions Printed pages 209–214

Q9. A digital currency can be distributed with a condition programmed into it such as time-frame for spending it. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. RTGS is real-time, while NEFT operates in batch mode. Inward transactions for both are free for recipients. RTGS can be processed at any time of the day & NEFT are processed in batches.
Q10. Brickwork Ratings is an Indian credit rating agency. Which of the statements given above are correct?
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q11. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct ?
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q12. In India, which one of the following is responsible for maintaining price stability by controlling inflation ? (2022)
Explanation: Correct option: (d) Reserve Bank of India. RBI ensures monetary stability, manages currency, and regulates the financial system to check inflation.
Q13. Lending to governments to finance budgetary deficits Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q14. Printing and distributing currency notes Select the correct answer using the code given below:
Explanation: Correct option: (c) 1, 3, 4 and 5. CBDCs enable digital payments without relying on the US dollar. Smart contracts can enforce conditions on digital currency spending.
Q15. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?
Explanation: Correct option: (a) I only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q16. Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization? (2023)
Explanation: Correct option: (a) Conducting "Open Market Operations'. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q17. Stock Market How many of the above are included in capital markets?
Explanation: Correct option: (b) Only two. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q18. Inflation and short-term interest rates Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q19. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q20. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. RTGS is real-time, while NEFT operates in batch mode. Inward transactions for both are free for recipients. RTGS can be processed at any time of the day & NEFT are processed in batches.
Q21. If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be (2020)
Explanation: Correct option: (d) to leave it unchanged. Converting demand deposits to currency does not change the aggregate money supply, only the form in which it’s held.
Q22. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q23. Which of the following is not included in the assets of a commercial bank in India? (2019)
Explanation: Correct option: (b) Deposits. This choice matches the concept tested under 1B1: Bank Classification; the other alternatives do not satisfy the wording of the item.
Q24. The money multiplier in an economy increases with which one of the following? (2019)
Explanation: Correct option: (b) Increase in the banking habit of the population. Increased banking habits will raise the money multiplier by bringing more deposits into the banking system.
Q25. Goa became a part of independent Indi(a) Which of the following is the correct chronological sequence of the above events?
Explanation: Correct option: (b) 3 - 2 - 1 - 4. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q26. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q27. To encourage young entrepreneurs to set up business particularly in rural areas. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q28. These guidelines help ensure the availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answers using the code given below:
Explanation: Correct option: (a) 1 only. RTGS is real-time, while NEFT operates in batch mode. Inward transactions for both are free for recipients. RTGS can be processed at any time of the day & NEFT are processed in batches.
Q29. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below.
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.
Q30. When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen? (2015)
Explanation: Correct option: (c) Scheduled Commercial Banks may cut their lending rates. A reduction in SLR allows more funds for lending, potentially reducing lending rates and passing benefits to borrowers.
Q31. Public revenue Which of the above is/are component/components of Monetary Policy?
Explanation: Correct option: (b) 2, 3 and 4 only. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q32. Which reference to inflation in India, which of the following statements is correct? (2015)
Explanation: Correct option: (c) Decreased money circulation helps in controlling the inflation. RBI controls inflation using tools like repo rate, CRR, and SLR, impacting money circulation and aggregate demand.
Q33. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’ sometimes appearing in news, are used in relation to: (2014)
Explanation: Correct option: (a) Banking operations. MSF and NDTL refer to RBI’s lending mechanisms and the required reserves that influence money creation in the banking system.
Q34. If the interest rate is decreased in an economy, it will (2014)
Explanation: Correct option: (c) increase the investment expenditure in the economy. RBI’s interest rates affect borrowing costs, investment, and consumer spending, influencing economic growth.g.
Q35. 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:
Explanation: Correct option: (b) 1 and 2 only. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q36. It enables the beneficiaries in the rural areas to make deposits and withdrawals. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. RTGS is real-time, while NEFT operates in batch mode. Inward transactions for both are free for recipients. RTGS can be processed at any time of the day & NEFT are processed in batches.
Q37. Supply of money remaining the same when there is an increase in demand for money, there will be (2013)
Explanation: Correct option: (b) an increase in the rate of interest. If money supply remains constant and demand increases, interest rates will rise due to the scarcity of available funds.
Q38. Currency The correct sequence of these assets in the decreasing order of liquidity is 212 1B1: Bank Classification
Explanation: Correct option: (b) 4-3-2-1. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q39. Priority Sector Lending by banks in India constitutes the lending to: (2013)
Explanation: Correct option: (d) All of the above. Priority Sector Lending (PSL) ensures credit reaches underserved sectors like agriculture, MSMEs, and weaker sections to promote inclusive growth, addressing loan scarcity per RBI mandates.
Q40. In the context of Indian economy, ‘Open Market Operations’ refers to: (2013)
Explanation: Correct option: (c) purchase and sale of government securities by the RBI. Open Market Operations (OMOs) involve RBI buying/selling government securities to regulate money supply and liquidity, conducted through commercial banks to manage interest and inflation rates.
Q41. An increase in the Bank Rate generally indicates that the (2013)
Explanation: Correct option: (d) Central Bank is following a tight money policy. Bank Rate is the rate at which RBI lends to banks without collateral. Raising it increases borrowing costs, reducing lending and money supply, indicating a tight money policy to control inflation.
Q42. winding-up of banks Select the correct answer using the code given below:
Explanation: Correct option: (b) 2, 3 and 4 only. Call money market and treasury bills are part of the money market, while government bonds and stocks are part of the capital market.
Q43. Land Development Banks. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Sterilization uses OMOs to stabilize the money supply and manage inflation.

3. 1B2: NPA, Bad-Loans, BASEL

10 questions Printed pages 215–218

Q44. What was the purpose of the Inter-Creditor Agreement signed by Indian banks and financial institutions recently? [2019]
Explanation: Correct option: (d) To aim at faster resolution of stressed assets of Rs 50 crore or more which are under consortium lending.. An intercreditor agreement (ICA) is an agreement between one or more creditors (lenders) who have shared interests in a particular borrower. Choice (d) is the right one: The agreement is part of project ‘Sashakt’, which was approved under the recommendations of Sunil Mehta Committee to address the bad loan problem of India. The objective is to use this ICA for faster facilitation of resolution of stressed assets.
Q45. The Chairman of public sector banks are selected by the: (2019)
Explanation: Correct option: (a) Banks Board Bureau. The Chairman of public sector banks is selected by the Banks Board Bureau, established based on the P J Nayak Committee’s recommendations.
Q46. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 only. Statement 1 is not correct: Banks Board Bureau comprises the Chairman, three ex-officio members i.e. Secretary, Department of Public Enterprises, Secretary of the Department of Financial Services, and Deputy Governor of the Reserve Bank of India, and five expert members, two of which are from the private sector. The Chairman is selected by the central government and the RBI governor does not head it.
Q47. CAR is decided by each individual bank. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 only. Statement 1 is not correct: Banks Board Bureau comprises the Chairman, three ex-officio members i.e. Secretary, Department of Public Enterprises, Secretary of the Department of Financial Services, and Deputy Governor of the Reserve Bank of India, and five expert members, two of which are from the private sector. The Chairman is selected by the central government and the RBI governor does not head it.
Q48. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (2017)
Explanation: Correct option: (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.. Choice (b) is the right one: Scheme for Sustainable Structuring of Stressed Assets (S4A) aims at deep financial restructuring of big debted projects by allowing lenders (bank) to acquire equity of the stressed project. The scheme makes financial restructuring of large projects at the same time helping the lender’s ability to deal with such stressed assets. It is intended to restore the flow of credit to critical sectors including infrastructure.
Q49. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?
Explanation: Correct option: (b) II only. Statement 1 is not correct: Banks Board Bureau comprises the Chairman, three ex-officio members i.e. Secretary, Department of Public Enterprises, Secretary of the Department of Financial Services, and Deputy Governor of the Reserve Bank of India, and five expert members, two of which are from the private sector. The Chairman is selected by the central government and the RBI governor does not head it.
Q50. BBB helps the Public Sector Banks in developing strategies and capital raising plans. Select the correct answer using the code given below :
Explanation: Correct option: (c) 1 and 3 only. Statement 1 is correct: According to Section 8 of the RBI Act 1934, the Central Government (Union Government) appoints the Governor and Deputy Governors of the Reserve Bank of India (RBI). Statement 2 is not correct: The RBI is an entity independent of the government as it takes its own decisions. However, in certain instances, it has to listen to the government.
Q51. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?
Explanation: Correct option: (c) 1 and 3 only. Statement 1 is correct: According to Section 8 of the RBI Act 1934, the Central Government (Union Government) appoints the Governor and Deputy Governors of the Reserve Bank of India (RBI). Statement 2 is not correct: The RBI is an entity independent of the government as it takes its own decisions. However, in certain instances, it has to listen to the government.
Q52. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:
Explanation: Correct option: (c) 1 and 3 only. Statement 1 is correct: According to Section 8 of the RBI Act 1934, the Central Government (Union Government) appoints the Governor and Deputy Governors of the Reserve Bank of India (RBI). Statement 2 is not correct: The RBI is an entity independent of the government as it takes its own decisions. However, in certain instances, it has to listen to the government.
Q53. ‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to: (2015)
Explanation: Correct option: (b) improve banking sector’s ability to deal with financial and economic stress and improve risk management. Choice (b) is the right one: ‘Basel III Accord’, a global regulatory framework for more resilient banks and banking systems” adopted in December 2010, with the objective to improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of spill over from the financial sector to the real economy. y Basel Committee on Banking Supervision is a consortium of Central Banks from.

4. 1C: Sharemarket, Companies Act

17 questions Printed pages 219–223

Q54. Venture Capital How many of the above are treated as Alternative Investment Funds (AIFs)?
Explanation: Correct option: (c) Only three. Statement 1 is correct: In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve 1C: Sharemarket, Companies Act-Explanation 4 Bank of India. Primary dealers. Statement 2 is correct: In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
Q55. Consider the following statements: (2025) Statement I:As regards returns from an investment in a company, generally, bondholders are considered to be at relatively 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 by a company. Which one of the following is correct in respect of the above statements?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q56. Consider the following statements: (2025) I. India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom. II. India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point of time. III. There is no regulatory body either to warn small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?
Explanation: Correct option: (a) I and II only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q57. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 and 2 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q58. With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of: (2024)
Explanation: Correct option: (c) Money market. Choice (c) is the right one: The Clearing Corporation of India Ltd. (CCIL) has developed and introduced with effect from January 20, 2003 a money market instrument called Collateralised Borrowing and Lending Obligation (CBLO). The collateral borrowing and lending obligations are a money market instrument that is mostly used by large institutions and usually deal with very large sums of money.
Q59. In the context of finance, the term ‘beta’ refers to (2023)
Explanation: Correct option: (d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market. In finance, the beta (β or market beta or beta coefficient) is a measure of how an individual asset moves (on average) when the overall stock market increases or decreases. Thus, beta is a useful measure of the contribution of an individual asset to the risk of the market portfolio when it is added in small quantities. Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market.
Q60. The interest received as well as capital gains on IIBs are not taxable. Which of the statements given above are correct ?
Explanation: Correct option: (a) 1 and 2 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q61. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices. Which of the statements given above is/are correct ?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q62. The ‘Central Depository Services Ltd.’ is jointly promoted by 1C: Sharemarket, Companies Act 4 220 1C: Sharemarket, Companies Act the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q63. Treasury Bills Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q64. Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period? [2020]
Explanation: Correct option: (c) A bill of exchange. Choice (c) is the right one: The movement of goods during the Medieval period was facilitated by the growth of a financial system which permitted easy transfer of money from one part of the country to another. This was done using Hundis, which were instruments of credit or bills of exchange. The Hundis was a letter of credit payable after a period at a discount.
Q65. ‘Zero-Coupon Bonds’ are the interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations. Which of the statements given above is/are correct?
Explanation: Correct option: (c) 1 and 3 only. Statement 1 is correct: In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve 1C: Sharemarket, Companies Act-Explanation 4 Bank of India. Primary dealers. Statement 2 is correct: In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
Q66. 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? (2019)
Explanation: Correct option: (d) Participatory Note. Choice (d) is the right one: The registered portfolio investors issue Participatory Notes to overseas investors who want to be a part of the Indian stock market without registering themselves directly. Participatory Note is a derivative instrument issued in foreign jurisdictions, by a SEBI registered Foreign Institutional Investor (FII) against underlying Indian securities.
Q67. Treasury bills are issued at a discount from the par value. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 and 2 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q68. They are the rupee-denominated bonds and are a source of debt financing for the public and private sectors. Select the correct answer using the code given below.
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q69. It monitors macroprudential supervision of the economy. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 and 2 only. Statement I is correct : As of 2023–24, India has become the largest market globally for equity derivatives, especially options contracts, reflecting a boom in retail participation. Statement II is correct : India’s stock market, in terms of market capitalization, surpassed Hong Kong briefly in early 2024, making it the fourth-largest globally.
Q70. What does venture capital mean? (2014)
Explanation: Correct option: (b) A long-term start-up capital provided to new entrepreneurs. Choice (b) is the right one: Start-up companies with the potential to grow need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective.

5. 1D1: Insurance, Pension, Financial inclusion

10 questions Printed pages 224–227

Q71. Bangladesh How many of the above countries, excluding India, currently accept international merchant payments via UPI?
Explanation: Correct option: (b) Only three. Choice (b) is the right one: All above benefits except “Cost of a new computer if some miscreant wilfully damages it, if proved so” are generally covered under cyber insurance policies for individuals. For availing the benefit of Cost of new computer under wilful damage by some miscreant a hardware specific insurance would be required.
Q72. Retail Investors Select the correct answer using the code given below:
Explanation: Correct option: (b) 2 and 3 only. Statement 1 (Incorrect): The Self-Help Group (SHG) program was not initiated by the State Bank of India (SBI) but evolved through grassroots initiatives, NGOs, and government agencies. Statement 2 (Correct): SHG members collectively take responsibility for loans, using peer support as social collateral. Statement 3 (Correct): Regional Rural Banks (RRBs) and Scheduled Commercial Banks (SCBs) support SHGs with loans, savings, and financial products.
Q73. The Regional Rural Banks and Scheduled Commercial Banks support SHGs. How many of the above statements are correct?
Explanation: Correct option: (b) Only two. Statement 1 (Incorrect): The Self-Help Group (SHG) program was not initiated by the State Bank of India (SBI) but evolved through grassroots initiatives, NGOs, and government agencies. Statement 2 (Correct): SHG members collectively take responsibility for loans, using peer support as social collateral. Statement 3 (Correct): Regional Rural Banks (RRBs) and Scheduled Commercial Banks (SCBs) support SHGs with loans, savings, and financial products.
Q74. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below:
Explanation: Correct option: (b) 1, 3 and 4 only. Choice (b) is the right one: All above benefits except “Cost of a new computer if some miscreant wilfully damages it, if proved so” are generally covered under cyber insurance policies for individuals. For availing the benefit of Cost of new computer under wilful damage by some miscreant a hardware specific insurance would be required.
Q75. Cost of defence in the Court of Law if any third party files a suit Select the correct answer using the code given below :
Explanation: Correct option: (b) 1, 3 and 4 only. The Kisan Credit Card (KCC) scheme, launched by NABARD, provides farmers timely credit for agriculture, fisheries, and animal husbandry.
Q76. The Service Area Approach was implemented under the purview of: (2019)
Explanation: Correct option: (b) Lead Bank Scheme. Choice (b) is the right one: The Service Area Approach (SAA) was introduced in April 1989 as a part of the Lead Bank Scheme for planned and orderly development of rural and semi-urban areas. It was applicable to all scheduled commercial banks including Regional Rural Banks.
Q77. Same amount of pension is guaranteed for the spouse for life after subscriber’s death. Select the correct answer using the code given below.
Explanation: Correct option: (b) 2 and 3 only. Statement 1 (Incorrect): The Self-Help Group (SHG) program was not initiated by the State Bank of India (SBI) but evolved through grassroots initiatives, NGOs, and government agencies. Statement 2 (Correct): SHG members collectively take responsibility for loans, using peer support as social collateral. Statement 3 (Correct): Regional Rural Banks (RRBs) and Scheduled Commercial Banks (SCBs) support SHGs with loans, savings, and financial products.
Q78. Pradhan Mantri MUDRA Yojana is aimed at [2016]
Explanation: Correct option: (a) bringing the small entrepreneurs into formal financial system. Choice (a) is the right one: MUDRA stands for Micro Units Development and Refinance Agency. Under the Pradhan Mantri MUDRA Yojana non-corporate, non-farm small/micro enterprises can avail loans of up to Rs 10 lakh. It aimed at bringing the small entrepreneurs into a formal financial system.
Q79. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. Which of the statements given above is/are correct? 1D1: Insurance, Pension, Financial inclusion 5 225 1D1: Insurance, Pension, Financial inclusion
Explanation: Correct option: (d) Neither 1 nor 2. All three can invest in corporate bonds and government securities.
Q80. Pradhan Mantri Jan-Dhan Yojana has been launched for (2015)
Explanation: Correct option: (c) promoting financial inclusion in the country. Pradhan Mantri Jan-Dhan Yojana (PMJDY), launched in August 2014, promotes financial inclusion by ensuring universal banking access with at least one basic account per household, financial literacy, and access to credit, insurance, and pensions.

6. 2A1: Budget Direct Taxes

7 questions Printed pages 228–229

Q81. Consider the following statements: (2025) Statement I: Income from agricultural activities in cities like poultry, allied 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 provisions of the Income-tax Act, 1961. Which one of the following is correct in respect of the above statements?
Explanation: Correct option: (d) Statement I is not correct but Statement II is correct. Income from agriculture is exempt under Section 10(1) of the Income Tax Act only if specific conditions are met. Poultry farming and dairy farming are taxable unless they meet agricultural income conditions. Rural agricultural land is excluded from the definition of capital asset, so gains from its sale are not taxable.
Q82. Consider the following statements: (2025) I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q83. Primary deficit is ₹4,000 crores. Select the correct answer using the code given below:
Explanation: Correct option: (d) I, II and III 2A1: Budget Direct Taxes 6. Revenue Deficit = ₹20,000 crores, Fiscal Deficit = ₹10,000 crores, and Primary Deficit = ₹4,000 crores. All statements are correct.
Q84. A country’s fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country’s interest liabilities are ₹1,500 crores. What is the gross primary deficit? (2025)
Explanation: Correct option: (a) ₹48,500 crores. Primary Deficit = Fiscal Deficit – Interest Payments. Given Fiscal Deficit of ₹50,000 crores and Interest Liabilities of ₹1,500 crores, Primary Deficit = ₹48,500 crores.
Q85. 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:
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q86. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is / are correct?
Explanation: Correct option: (d) 1, 2 and 3. Revenue Deficit = ₹20,000 crores, Fiscal Deficit = ₹10,000 crores, and Primary Deficit = ₹4,000 crores. All statements are correct.
Q87. All the disbursements made from Public Account also need Authorization from the Parliament of India. Which of the following statements given above is/are correct?
Explanation: Correct option: (d) 1, 2 and 3 229. Revenue Deficit = ₹20,000 crores, Fiscal Deficit = ₹10,000 crores, and Primary Deficit = ₹4,000 crores. All statements are correct.

7. 2A2: Budget Indirect Taxes GST

3 questions Printed pages 230–231

Q88. Newspapers containing advertising material Which of the above items is/are exempted under GST (Good and Services Tax)?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q89. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:
Explanation: Correct option: (d) 1, 2 and 3. Sales tax is always a percentage of a product’s value which is charged at the point of exchange or purchase. The different kinds of sales tax are retail, manufacturers, wholesale, use, and value added tax (VAT). Choice (d) is the right one: Sales tax was an indirect tax imposed on the trade of goods and services. Sales tax was imposed and collected by the respective State Government.
Q90. The sales tax you pay while purchasing a toothpaste is: (2014)
Explanation: Correct option: (d) tax imposed and collected by State Government 231. Sales tax is always a percentage of a product’s value which is charged at the point of exchange or purchase. The different kinds of sales tax are retail, manufacturers, wholesale, use, and value added tax (VAT). Choice (d) is the right one: Sales tax was an indirect tax imposed on the trade of goods and services. Sales tax was imposed and collected by the respective State Government.

8. 2BC: Finance Commission, BlackMoney, Subsidies

7 questions Printed pages 232–233

Q91. Which one of the following situations best reflects “Indirect Transfers” often talked about in the media recently with reference to India ? (2022)
Explanation: Correct option: (d) A foreign company transfers shares and such shares derive their substantial value from assets located in India. Indirect transfers involve foreign entities owning Indian assets, with shares transferred abroad. Capital gains tax applies if over 50% of underlying assets are in India.
Q92. Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India? (2021)
Explanation: Correct option: (d) Loss of revenue to the State Exchequer due to tax evasion. Black money, from illegal activities or unreported legal income, fuels corruption but may mitigate oppressive laws. Vulnerable sectors: real estate, bullion, jewellery, financial markets, public procurement, non-profits, external trade, tax havens, informal services. Key issue: tax evasion causing revenue loss (7%–120% of GDP estimates).
Q93. NITI Aayog Select the correct answer using the code given below.
Explanation: Correct option: (d) 2 and 5. Black money, from illegal activities or unreported legal income, fuels corruption but may mitigate oppressive laws. Vulnerable sectors: real estate, bullion, jewellery, financial markets, public procurement, non-profits, external trade, tax havens, informal services. Key issue: tax evasion causing revenue loss (7%–120% of GDP estimates).
Q94. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 only. Tax devolution allocates central tax revenues to states constitutionally. Horizontal devolution criteria: 12.5% demographic performance, 45% income, 15% population, 15% area, 10% forest and ecology, 2.5% tax and fiscal efforts..
Q95. With reference to the Government of India, consider the following information: (2025) Organization Some of its functions It works under I. Directorate of Enforcement Enforcement of the Fugitive Economic Offenders Act, 2018 Internal Security Division-I, Ministry of Home Affairs II. Directorate of Revenue Intelligence Enforces the Provisions of the Customs Act, 1962 Department of Revenue, Ministry of Finance III. Directorate General of Systems and Data Management Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders Department of Revenue, Ministry of Finance In how many of the above rows is the information correctly matched?
Explanation: Correct option: (b) Only two. Statement I (Incorrect): The Directorate of Enforcement (ED) enforces the Fugitive Economic Offenders Act, 2018, under the Department of Revenue, Ministry of Finance, not the Ministry of Home Affairs. Statement II (Correct): The Directorate of Revenue Intelligence (DRI) enforces the Customs Act, 1962, under the Department of Revenue.
Q96. Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? (2025) I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance. Select the correct answer using the code given below.
Explanation: Correct option: (c) I, III and IV. Statement 1 (Correct): The 15th Finance Commission recommended ₹4,800 crore for performance-based grants to states for school education (2022–26). Statement 2 (Incorrect): Vertical devolution is 41%, same as the 14th FC, adjusted for Jammu & Kashmir’s reorganization. Statement 3 (Correct): ₹45,000 crore recommended for agricultural reforms, including market modernization and crop diversification.
Q97. 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?
Explanation: Correct option: (d) All five 2BC: Finance Commission, Black Money, Subsidies 8 233. Black money, from illegal activities or unreported legal income, fuels corruption but may mitigate oppressive laws. Vulnerable sectors: real estate, bullion, jewellery, financial markets, public procurement, non-profits, external trade, tax havens, informal services. Key issue: tax evasion causing revenue loss (7%–120% of GDP estimates).

9. 3A: BoP, CAD Currency Exchange

34 questions Printed pages 234–239

Q98. improves the trade balance Which of the above statements is/are correct?
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q99. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?
Explanation: Correct option: (c) 2 and 4. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q100. Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by [2020]
Explanation: Correct option: (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003. The Macro-Economic Framework Statement is a mandatory document presented to Parliament under Section 3(5) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, during the Union Budget to outline the economic outlook and fiscal strategy.
Q101. In the last five years, Nepal has been the largest trading partner of India in South Asia. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 and 2 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q102. Mailing list of clients How many of the above are considered intangible investments?
Explanation: Correct option: (c) Only three. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q103. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct ?
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q104. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure. Select the correct answer using the code given below :
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q105. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER. Which of the above statements are correct ?
Explanation: Correct option: (a) 1 and 2 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q106. Term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of_ _ (Prelims-2020)
Explanation: Correct option: (a) Crude oil. Choice (a) is the right one: West Texas Intermediate is a particular grade of crude oil. This oil is primarily sourced from Texas and serves as a global benchmark for setting oil prices.
Q107. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (2020)
Explanation: Correct option: (b) It is largely non-debt, creating capital flow.. FDI involves foreign investors establishing business operations in India. It is non-debt creating, stable, and returns depend on project success. It can enter through the Automatic Route (no prior approval) or Government Route (approval needed via the Foreign Investment Facilitation Portal).
Q108. “Gld Tranche” (Reserve Tranche) refers to (2020)
Explanation: Correct option: (d) a credit system granted by IMF to its members. The Gold Tranche (now known as the Reserve Tranche) denotes a portion of a member country’s quota in the International Monetary Fund (IMF) that can be accessed without stringent conditions.
Q109. Maintaining full capital account convertibility Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q110. Among the following, which one is the largest exporter of rice in the world in the last five years? (2019)
Explanation: Correct option: (b) India. This choice matches the concept tested under 3A: BoP, CAD Currency Exchange; the other alternatives do not satisfy the wording of the item.
Q111. Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years? (2019)
Explanation: Correct option: (d) Vegetable oils. India imports ~60% of its vegetable oil needs, primarily palm oil from Malaysia and Indonesia. Despite domestic efforts, demand-supply gaps remain.
Q112. All of India’s external debt is denominated in US dollars. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q113. Remittances from Indians abroad. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q114. Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee? (2019)
Explanation: Correct option: (d) Following an expansionary monetary policy.. Currency depreciation is a fall in value due to high imports, CAD, or low FDI.India’s managed float system allows RBI to curb rupee volatility.Depreciation can be addressed by cutting imports, promoting rupee bonds, and easing external borrowings. Expansionary monetary policy worsens it by increasing money supply, lowering interest rates, and causing capital outflows.
Q115. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q116. 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?
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q117. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q118. The problem of international liquidity is related to the non- availability of: (2015)
Explanation: Correct option: (c) dollars and other hard currencies. International liquidity denotes the availability of global currencies for settling trade imbalances. The modern global system depends heavily on hard currencies like the Dollar, Euro, and Yen, and their shortage can create a liquidity crisis.
Q119. Convertibility of rupee implies: (2015)
Explanation: Correct option: (c) freely permitting the conversion of rupee to other currencies and vice versa. Rupee convertibility denotes it can be exchanged freely with other currencies.
Q120. Expanding industries Select the correct answer using the code given below.
Explanation: Correct option: (c) 1 only. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q121. It has made recommendations concerning sector-specific grants. Select the correct answer using the code given below:
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q122. Subsidies Select the correct answer using the code given below:
Explanation: Correct option: (c) 1, 2, 3 and 4. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q123. The fiscal deficit as a per cent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement and statement 2 are correct : Acquiring new technology is considered as capital expenditure as it will generate profit in the future time and supports creation of new assets. Debt Financing being long term in nature is considered as capital expenditure and equity financing being short term is considered under revenue expenditure.
Q124. Loans and advances granted to the States and Union Territories. Select the correct answer using the code given below.
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q125. Reducing import duty Select the correct answer using the code given below.
Explanation: Correct option: (c) 1 and 3 only. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q126. To reduce Indian’s dependence on gold imports Select the correct answer using the code given below.
Explanation: Correct option: (a) 1 only. Capital expenditures involve purchasing or upgrading long- term assets like buildings, equipment, or technologies. Revenue expenditures are for short-term needs such as operational costs and do not result in asset creation.
Q127. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR? (2016)
Explanation: Correct option: (d) Renminbi. In 2016, the IMF included the Chinese Renminbi in the SDR basket. SDR is not a currency but an international reserve asset and unit of account. It supplements countries’ official reserves, especially during crises.
Q128. Which of the following best describes the term ‘import cover’, sometimes seen in the news? (2016) (a) It is the ratio of value of imports to the Gross Domestic Product of a country. (b) It is the total value of imports of a country in a year. 237 3A: BoP, CAD Currency Exchange Select the correct answer using the code given below:
Explanation: Correct option: (d) 1, 2 and 4. Import Cover shows how many months of imports can be paid using forex reserves. India’s reserves (~$605 billion in 2021) could cover about 15 months of imports, ranking fifth globally.
Q129. The Balance of Payments of a country is a systematic record of (2013)
Explanation: Correct option: (a) all import and export transactions of a country during a given period of time, normally a year. BoP tracks all imports, exports, and transfers in goods, services, and capital.
Q130. Portfolio Investment Select the correct answer using the code given below:
Explanation: Correct option: (c) 2, 3 and 4 only. A rise in the Nominal Effective Exchange Rate (NEER) indicates appreciation of the domestic currency. An increase in the Real Effective Exchange Rate (REER) makes exports more expensive and imports cheaper, reducing trade competitiveness. Higher domestic inflation widens the gap between NEER and REER.
Q131. Which one of the following groups of items is included in India’s foreign – exchange reserves? (2013)
Explanation: Correct option: (b) Foreign – currency assets, gold holdings of the RBI and SDRs.. Forex reserves include foreign currencies, gold, SDRs, and India’s reserve quota with the IMF. Remittances increase forex reserves, reducing currency crisis risk.

10. 3B: WTO, IMF & other International Organisations & Agreeements

18 questions Printed pages 240–243

Q132. Consider the following statements: (2025) I. India has joined the Minerals Security Partnership (MSP) as a member. II. India is a resource-rich country in all the 30 critical minerals that MSP has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957, empowering the Central Government to exclusively auction mining leases and composite licenses for certain critical minerals. Which of the statements given above are correct?
Explanation: Correct option: (c) I and III only. Statement I is correct: India joined the Minerals Security Partnership in 2023, a coalition led by the US, Japan, Australia, and the EU to secure responsible supply chains for critical minerals. Statement II is incorrect: India is not resource-rich in all 30 MSP‐ identified critical minerals and relies on imports for key minerals like cobalt, lithium, and certain rare earths.
Q133. It was established to help Europe rebuild after World War II. Which of the statements given above are correct?
Explanation: Correct option: (d) I, II and III. Statement I is not correct: Emigration from Venezuela remains significant, with millions fleeing ongoing economic collapse, hyperinflation, political instability, and a humanitarian crisis. Statement II is correct: Venezuela possesses the world’s largest oil reserves (over 300 billion barrels), while Saudi Arabia ranks second with 297.5 billion barrels.
Q134. Consider the following statements: (2024) 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?
Explanation: Correct option: (d) Statement-I is incorrect, but Statement-II is correct. Statement I is not correct: Emigration from Venezuela remains significant, with millions fleeing ongoing economic collapse, hyperinflation, political instability, and a humanitarian crisis. Statement II is correct: Venezuela possesses the world’s largest oil reserves (over 300 billion barrels), while Saudi Arabia ranks second with 297.5 billion barrels.
Q135. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement 1 is correct: The IBRD provides loans, financial services, and guarantees to middle-income and creditworthy low-income countries, aiming to promote sustainable development and reduce poverty through infrastructure, human capital, and governance reforms.
Q136. “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following? (2022)
Explanation: Correct option: (b) International Monetary Fund. Choice (b) is the right one: Rapid Financing Instrument (RFI): Provides quick financial assistance to any IMF member facing urgent balance of payments needs, with flexible support and minimal conditions. Rapid Credit Facility (RCF): Offers rapid, concessional aid to low- income countries with urgent BoP needs, without requiring a full economic program or ex post conditionality.
Q137. AIIB does not have any members from outside Asia. Codes:
Explanation: Correct option: (d) 1, 2 and 3 only. Statement I is not correct: Emigration from Venezuela remains significant, with millions fleeing ongoing economic collapse, hyperinflation, political instability, and a humanitarian crisis. Statement II is correct: Venezuela possesses the world’s largest oil reserves (over 300 billion barrels), while Saudi Arabia ranks second with 297.5 billion barrels.
Q138. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below:
Explanation: Correct option: (d) 1, 2 and 3. Statement I is not correct: Emigration from Venezuela remains significant, with millions fleeing ongoing economic collapse, hyperinflation, political instability, and a humanitarian crisis. Statement II is correct: Venezuela possesses the world’s largest oil reserves (over 300 billion barrels), while Saudi Arabia ranks second with 297.5 billion barrels.
Q139. In which one of the following groups are all the four countries members of G20 ? [2020]
Explanation: Correct option: (a) Argentina, Mexico, South Africa and Turkey. Choice (a) is the right one: The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development.
Q140. USA Which of the above are among the 'free-trade partners' of ASEAN ?
Explanation: Correct option: (a) 1, 2, 4 and 5. Statement 1 is correct: The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank focused on infrastructure and sustainable development in Asia, with 103 approved member countries. Statement 2 is not correct: China is the largest shareholder of AIIB followed by India, Russia, and Germany. Statement 3 is not correct: There are many non-regional members in the AIIB. They are Australia,New Zealand, Qatar, Canada, etc.
Q141. India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to (2018)
Explanation: Correct option: (d) WTO 3B: WTO, IMF & other International Organisations & Agreeements 10 241 3B: WTO, IMF & other International Organisations & Agreeements. Choice (d) is the right one: A Geographical Indication (GI) is a sign used on products with qualities or reputation linked to their origin. India enacted the GI Act, 1999 to fulfill WTO obligations under the TRIPS Agreement (1994). Saffron of Jammu & Kashmir is a recent product to receive the GI tag in India.
Q142. The term 'Digital Single Market Strategy' seen in the news refers to [2017]
Explanation: Correct option: (c) EU. Choice (c) is the right one: The Digital Single Market Strategy was adopted by the European Union in 2015. This strategy is based on three broad pillars namely: Improving access to digital goods and services, an environment where digital networks and services can prosper and Digital as a driver for growth.
Q143. TFA came into force in January 2016. Which of the statements given above is/are correct?
Explanation: Correct option: (d) 1, 2 and 3. Statement I is not correct: Emigration from Venezuela remains significant, with millions fleeing ongoing economic collapse, hyperinflation, political instability, and a humanitarian crisis. Statement II is correct: Venezuela possesses the world’s largest oil reserves (over 300 billion barrels), while Saudi Arabia ranks second with 297.5 billion barrels.
Q144. The headquarters of New Development Bank is in Shanghai. Answer Codes:
Explanation: Correct option: (c) Both 1 and 2. Statement 1 is correct: The IBRD provides loans, financial services, and guarantees to middle-income and creditworthy low-income countries, aiming to promote sustainable development and reduce poverty through infrastructure, human capital, and governance reforms.
Q145. The World Bank participates as an observer in IMFC’s meetings. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement 1 is correct: The IBRD provides loans, financial services, and guarantees to middle-income and creditworthy low-income countries, aiming to promote sustainable development and reduce poverty through infrastructure, human capital, and governance reforms.
Q146. ‘Global Financial Stability Report’ is prepared by the [2016]
Explanation: Correct option: (b) International Monetary Fund. Choice (b) is the right one: The Global Financial Stability report is prepared by the International Monetary Fund (IMF). The report provides an assessment of the global financial system and markets and addresses emerging market financing in a global context. The IMF also publishes other report namely, the ‘World Economic Outlook’ report and Fiscal Monitor.
Q147. In the context of which of the following do you sometimes find the terms amber box, blue box, and green box in the news? (2016)
Explanation: Correct option: (a) WTO affairs. Choice (a) is the right one:The World Trade Organization (WTO) classifies agricultural subsidies into three boxes—Amber, Blue, and Green—under the Agreement on Agriculture (AoA). These classifications help regulate and minimize trade-distorting support, ensuring fair global trade in agricultural products. Amber Box: Trade-distorting subsidies; subject to limits — 5% for developed and 10% for developing countries.
Q148. The terms 'Agreement on Agriculture', 'Agreement on the Application of Sanitary and Phytosanitary Measures' and 'Peace Clause' appear in the news frequently in the context of the affairs of the [2015]
Explanation: Correct option: (c) World Trade Organisation. Choice (c) is the right one: The Agreement on the Application of Sanitary and Phytosanitary Measures (the “SPS Agreement”) entered into force with the establishment of the World Trade Organization on 1 January 1995. The SPS Agreement (1995) regulates food safety and animal/plant health standards under the WTO. The Agreement on Agriculture (1995) aims to reform agricultural trade for fairness and competition.
Q149. Which of the following organizations brings out the publication known as ‘World Economic Outlook’? (2014)
Explanation: Correct option: (a) The International Monetary Fund. Choice (a) is the right one: The ‘World Economic Outlook’ report is published by the International Monetary Fund (IMF). It is a biannual report, published twice a year. y The report analyses global economic developments during the near and medium-term. Choice (c) is the right one: Among these, Australia, China, India, and Japan are ASEAN’s FTA partners.

11. 4A: Sectors of Economy- Agriculture

24 questions Printed pages 244–248

Q150. Consider the following statements: (2025) Statement I: Circular economy reduces the emissions of greenhouse gases. Statement II: Circular economy reduces the use of raw materials as inputs. Statement III: Circular economy reduces wastage in the production process. Which one of the following is correct in respect of the above statements?
Explanation: Correct option: (a) Both Statement II and Statement III are correct and both of them explain Statement I. The circular economy focuses on minimizing waste and maximizing resource efficiency through reuse, recycling, and regeneration of materials and products. Statements I, II, and III are all correct because reducing the need for new raw materials and minimizing waste generation leads to significant reductions in greenhouse gas emissions.
Q151. It was initiated to promote indigenous cattle and buffalo rearing and conservation in scientific and holistic manner. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both I and II. Statement I is correct because the Rashtriya Gokul Mission improves the productivity of indigenous bovine breeds, which in turn enhances rural livelihoods by increasing milk yield and farmer income. Statement II is also correct; launched in 2014, the mission promotes scientific breeding techniques like in-vitro fertilization (IVF) and semen sexing to conserve native cattle breeds.
Q152. Weaving cloth: Secondary How many of the pairs given above are correctly matched?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q153. Which of the following countries are well known as the two largest cocoa producers in the world? (2024)
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q154. Which one of the following best describes the concept of 'Small Farmer Large Field? (2023)
Explanation: Correct option: (b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations. The “Small Farmer Large Field” model enables small and marginal farmers to pool their land and resources for collective farming. This cooperative approach allows them to benefit from economies of scale, access better machinery, and improve productivity and incomes by operating as a larger unit.
Q155. Some tribal people in India use niger seed oil for cooking. How many of the above statements are correct?
Explanation: Correct option: (b) Only two. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q156. It aims to enable the poor people to meet their water needs without depending on subsidies. Which of the statements given above are correct?
Explanation: Correct option: (b) 2 and 3 only. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q157. 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: (2019)
Explanation: Correct option: (c) Procurement incidentals and distribution cost. The economic cost for the Food Corporation of India includes both the acquisition cost and distribution cost of food grains. Acquisition cost includes the MSP and incidental charges like transport, storage, and administrative costs until the grains reach the first storage point.
Q158. Sikkim has become India's first fully organic State. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 and 3 only. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q159. In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 only. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q160. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?
Explanation: Correct option: (c) 1, 3, 4, 5 and 6 only. WaterCredit is an initiative by Water.org, not the Government of India, and it offers small loans through microfinance to enable people to install water and sanitation solutions. This model allows communities to access clean water sustainably, without relying on government subsidies.
Q161. It is a pan-India electronic trading portal for agricultural commodities. Codes:
Explanation: Correct option: (a) 1 only. The circular economy focuses on minimizing waste and maximizing resource efficiency through reuse, recycling, and regeneration of materials and products. Statements I, II, and III are all correct because reducing the need for new raw materials and minimizing waste generation leads to significant reductions in greenhouse gas emissions.
Q162. Sulphur, which is a raw material for phosphoric acid fertiliser, is a by-product of oil refineries. Which of the statements given above is/are correct?
Explanation: Correct option: (b) 2 and 3 only. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q163. 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. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement I is correct because the Rashtriya Gokul Mission improves the productivity of indigenous bovine breeds, which in turn enhances rural livelihoods by increasing milk yield and farmer income. Statement II is also correct; launched in 2014, the mission promotes scientific breeding techniques like in-vitro fertilization (IVF) and semen sexing to conserve native cattle breeds.
Q164. Consumer subsidies Select the correct answer using the code given below:
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q165. Setting up of cold storage facilities by the government. Select the correct answer using the code given below:
Explanation: Correct option: (c) 2, 3 and 6 only. Niger is a Kharif oilseed crop grown in several Indian states during the monsoon season. The Government of India sets an MSP for it to support farmers financially, and its oil is traditionally used in tribal cooking due to its high oil content and nutritional value.
Q166. Which one of the following best describes the main objective of ‘Seed Village Concept? (2015)
Explanation: Correct option: (b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost.. The Seed Village concept empowers farmer groups to produce quality seeds locally, ensuring availability at the right time and at lower costs. It also enhances seed quality confidence and promotes region-specific varieties.
Q167. The substitution of steel for wooden ploughs in agricultural production is an example of (2015)
Explanation: Correct option: (b) capital-augmenting technological progress. This type of progress leads to higher capital efficiency and output without necessarily increasing labor input.
Q168. In India, markets in agricultural products are regulated under the (2015)
Explanation: Correct option: (b) Agricultural Produce Market Committee Act enacted by States. Agriculture and agricultural marketing fall under the State List in the Constitution. Most states regulate these markets through APMCs, which oversee sales, infrastructure, and market fees.
Q169. The Fair and Remunerative Price of Sugarcane is approved by the (2015)
Explanation: Correct option: (a) Cabinet Committee on Economic Affairs. Sugarcane pricing is regulated by the Sugarcane (Control) Order, 1966, and has been determined using the Fair and Remunerative Price (FRP) system since 2009. The CACP recommends both MSP and FRP, which are then approved by the Cabinet Committee on Economic Affairs. handles implementation, and Sikkim was the first Indian state to become fully organic by law.
Q170. It provides the farmers' access to a nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below:
Explanation: Correct option: (c) Both 1 and 2. Statement I is correct because the Rashtriya Gokul Mission improves the productivity of indigenous bovine breeds, which in turn enhances rural livelihoods by increasing milk yield and farmer income. Statement II is also correct; launched in 2014, the mission promotes scientific breeding techniques like in-vitro fertilization (IVF) and semen sexing to conserve native cattle breeds.
Q171. Why does the Govt promote the use of Neem-coated Urea’ in agriculture? (Prelims-2016)
Explanation: Correct option: (b) Neem coating slows down the rate of dissolution of urea in the soil.. Neem-coated urea enhances the absorption of nitrogen, phosphorus, and potassium by crops. The neem coating slows nitrogen release, reducing loss and preventing diversion for non- agricultural use, which improves yields and soil health.
Q172. Reduction in soil erosion Select the correct answer using the code given below.
Explanation: Correct option: (b) 3 only. Pair 1 is incorrectly matched; storing agricultural produce is a service-based activity and thus falls under the tertiary sector. Pair 2 is correctly matched as dairy farming is part of the primary sector. Pair 3 is incorrectly matched because mineral exploration also involves natural resource extraction, making it a primary sector activity. Pair 4 is correctly matched since weaving is a manufacturing process, which belongs to the secondary sector.
Q173. The Command Area Development Program was launched in 1974-75 for the development of water-use efficiency. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement I is correct because the Rashtriya Gokul Mission improves the productivity of indigenous bovine breeds, which in turn enhances rural livelihoods by increasing milk yield and farmer income. Statement II is also correct; launched in 2014, the mission promotes scientific breeding techniques like in-vitro fertilization (IVF) and semen sexing to conserve native cattle breeds.

12. 4B: Sectors- MFG, Services, Ease of Doing Biz, IPR, Startup, MSME

11 questions Printed pages 249–252

Q174. With reference to India, consider the following pairs: (2025) Organization Union Ministry I. The National Automotive Board Ministry of Commerce and Industry II. The Coir Board Ministry of Heavy Industries III. The National Centre for Trade Information Ministry of Micro, Small and Medium Enterprises How many of the above pairs are correctly matched?
Explanation: Correct option: (d) None. Pair I is not correct: National Automotive Board (NAB) works under the Ministry of Heavy Industries, not Commerce and Industry. It supports policy, innovation, and R&D in the automotive sector. Pair II is not correct: Coir Board functions under the Ministry of MSME, promoting the coir industry and supporting rural artisans.
Q175. Currency swap Which of the above is/are considered financial instruments?
Explanation: Correct option: (b) 2 and 3 only. Statement 1 is not correct: The MSMED Act, 2006 originally defined medium enterprises with investments between Rs. 5 crore and Rs. 10 crore, but from July 1, 2020, the limit was revised to Rs. 50 crore.
Q176. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?
Explanation: Correct option: (d) Neither 1 nor 2. Option 1 is correct: Exchange-Traded Funds (ETFs) are financial instruments representing a basket of securities traded on stock exchanges. Option 2 is not correct: Motor vehicles are tangible assets, not financial instruments. Option 3 is correct: Currency swaps are financial instruments involving the exchange of cash flows in different currencies, used for hedging and speculation.
Q177. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? (2022)
Explanation: Correct option: (c) Labour Bureau. Choice (c) is the right one: The “Industrial Disputes, Closures, Retrenchments and Lay-offs in India during 2006” statistics are based on voluntary monthly returns from State Labour Departments and Regional Labour Commissioners. Industrial disputes involve temporary work stoppages caused by strikes (employees) or lockouts (employers), arising from disagreements over employment terms, reflecting inevitable conflicts between management and workers.
Q178. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below :
Explanation: Correct option: (d) Neither 1 nor 2. Option 1 is correct: Exchange-Traded Funds (ETFs) are financial instruments representing a basket of securities traded on stock exchanges. Option 2 is not correct: Motor vehicles are tangible assets, not financial instruments. Option 3 is correct: Currency swaps are financial instruments involving the exchange of cash flows in different currencies, used for hedging and speculation.
Q179. Plant Varieties are not eligible to the patented in India. Which of the statements given above is/ are correct?
Explanation: Correct option: (b) 2 and 3 only. Statement 1 is not correct: The MSMED Act, 2006 originally defined medium enterprises with investments between Rs. 5 crore and Rs. 10 crore, but from July 1, 2020, the limit was revised to Rs. 50 crore.
Q180. Atal innovation mission is set up under the [2019]
Explanation: Correct option: (c) NITI Ayog. Choice (c) is the right one: Atal Innovation Mission is a flagship scheme by the Government of India, set up under NITI Aayog (National Institute for Transforming India), erstwhile Planning Commission, to create and promote a culture of innovation and entrepreneurship across the country.
Q181. Women with two children get reduced entitlements. Select the correct answer using the code given below
Explanation: Correct option: (b) 2 only. Statement 1 is not correct: The MSMED Act, 2006 originally defined medium enterprises with investments between Rs. 5 crore and Rs. 10 crore, but from July 1, 2020, the limit was revised to Rs. 50 crore.
Q182. No notice of termination of employment shall be necessary in the case of temporary workman Which of the following statements given above is/are correct
Explanation: Correct option: (d) Neither 1 nor 2. Option 1 is correct: Exchange-Traded Funds (ETFs) are financial instruments representing a basket of securities traded on stock exchanges. Option 2 is not correct: Motor vehicles are tangible assets, not financial instruments. Option 3 is correct: Currency swaps are financial instruments involving the exchange of cash flows in different currencies, used for hedging and speculation.
Q183. The Food Safety and Standards 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 ? 4B: Sectors- MFG, Services, Ease of Doing Biz, IPR, Startup, MSME 12 250 4B: Sectors- MFG, Services, Ease of Doing Biz, IPR, Startup, MSME
Explanation: Correct option: (d) Neither 1 nor 2. Option 1 is correct: Exchange-Traded Funds (ETFs) are financial instruments representing a basket of securities traded on stock exchanges. Option 2 is not correct: Motor vehicles are tangible assets, not financial instruments. Option 3 is correct: Currency swaps are financial instruments involving the exchange of cash flows in different currencies, used for hedging and speculation.
Q184. 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?
Explanation: Correct option: (d) Neither 1 nor 2 251. Option 1 is correct: Exchange-Traded Funds (ETFs) are financial instruments representing a basket of securities traded on stock exchanges. Option 2 is not correct: Motor vehicles are tangible assets, not financial instruments. Option 3 is correct: Currency swaps are financial instruments involving the exchange of cash flows in different currencies, used for hedging and speculation.

13. 4C: NITI, Planning Commission, FYP, Unemployment

12 questions Printed pages 253–256

Q185. 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. Which of the statements given above are correct?
Explanation: Correct option: (a) 1 and 2 only. Statement 1 is correct: CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.
Q186. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals. Which of the statements given above is/are correct?
Explanation: Correct option: (d) Neither 1 nor 2. Statement 1 is not correct: Minimum capital requirement for wholly owned banking subsidiaries in India is ₹10 billion (not ₹5 billion). Newly set-up wholly owned subsidiaries must bring the entire initial capital upfront, funded by free foreign exchange remittance from the parent.
Q187. CSR rules do not specify minimum spending on CSR activities. Which of the statements given above is/are correct?
Explanation: Correct option: (d) Neither 1 nor 2. Statement 1 is not correct: Minimum capital requirement for wholly owned banking subsidiaries in India is ₹10 billion (not ₹5 billion). Newly set-up wholly owned subsidiaries must bring the entire initial capital upfront, funded by free foreign exchange remittance from the parent.
Q188. Vietnam has the most productive eservice sector in the Indo- Pacific region. Which of the statements given above are correct?
Explanation: Correct option: (b) 3 and 5. Statement 1 is not correct: Casual workers are engaged by various Ministries/Departments and their offices for casual, seasonal, or intermittent work. Not all casual workers are entitled to Employees Provident Fund (EPF) coverage, as certain conditions must be met.
Q189. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct?
Explanation: Correct option: (a) 1 and 2 only. Statement 1 is correct: CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.
Q190. The growth rate in rural employment decreased. Which of the statements given above is/are correct?
Explanation: Correct option: (c) 3 only. Statement 1 is correct: According to the World Bank, Vietnam has been one of the fastest growing economies in the world in recent years. Statement 2 is WRONG: Vietnam is a socialist republic with a one-party system led by the Communist Party of Vietnam (CPV). Statement 3 is correct: Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
Q191. With reference to land reforms in independent India, which one of the following statements is correct? (2019)
Explanation: Correct option: (b) The major aim of land reforms was providing agricultural land to all the landless.. Choice (b) is the right one: Land reforms in India post-independence aimed to address issues from British land revenue systems through abolition of intermediaries, land ceiling, tenant protection, and land consolidation. y Ceiling laws targeted individual land holdings, not family holdings. y Reforms focused on redistributing surplus land to landless poor, boosting productivity, reducing poverty, and promoting social equity. y Land reforms were not.
Q192. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan. 4C: NITI, Planning Commission, FYP, Unemployment 13 254 4C: NITI, Planning Commission, FYP, Unemployment Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Statement 1 is correct: CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities. The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act.
Q193. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below:
Explanation: Correct option: (c) 2 and 3 only. Statement 1 is correct: According to the World Bank, Vietnam has been one of the fastest growing economies in the world in recent years. Statement 2 is WRONG: Vietnam is a socialist republic with a one-party system led by the Communist Party of Vietnam (CPV). Statement 3 is correct: Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
Q194. The main objective of the 12th Five-Year Plan is: (2014)
Explanation: Correct option: (d) faster, sustainable, and more inclusive growth. Choice (d) is the right one: y Five-Year Plans (FYPs) are centralized national economic programs first implemented by Stalin in the 1920s; India adopted its First FYP in 1951 under Nehru’s socialist vision. y The 12th FYP began amid the Eurozone debt crisis, which slowed India’s growth to 6.2% in 2011-12. y The plan aimed to restore rapid growth with a focus on “Faster, Sustainable, and More Inclusive Growth.” y Inclusiveness targets poverty reduction.
Q195. The Parliament Select the correct answer using the code given below.
Explanation: Correct option: (b) 1, 3 and 4 only. Statement 1 is not correct: Casual workers are engaged by various Ministries/Departments and their offices for casual, seasonal, or intermittent work. Not all casual workers are entitled to Employees Provident Fund (EPF) coverage, as certain conditions must be met.
Q196. Disguised unemployment generally means: (2013)
Explanation: Correct option: (c) marginal productivity of labour is zero. Choice (c) is the right one: Disguised unemployment occurs when surplus labour is employed, out of which some employees have zero or almost zero marginal productivity. As such, this type of unemployment does not affect the aggregate output. y Disguised unemployment is a hidden form of unemployment where the work requiring say 10 people, is being done by 15 people.

14. 4D: GDP, GNP

8 questions Printed pages 257–258

Q197. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below :
Explanation: Correct option: (c) 1, 3 and 4 only. Per capita real GNP accurately captures the economic growth of a nation by adjusting for price level changes so that the actual growth in the production of goods and services can be understood. By dividing real GNP on a per capita basis, a clearer comparison can be made with other nations having different populations. But, what these measures cannot accurately capture is development.
Q198. Which among the following steps is most likely to be taken at the time of an economic recession? (2021)
Explanation: Correct option: (b) Increase in expenditure on public projects. Choice (b) is the right one: In a recession—characterized by a fall in GDP, employment, and corporate profits—governments typically respond with expansionary monetary and fiscal policies to revive economic activity. These measures include: y Lowering interest rates to boost borrowing and investment y Increasing government spending to stimulate demand y Reducing tax rates to raise disposable income and consumption
Q199. Despite being a high saving economy, capital formation may not result in significant increase in output due to (2018)
Explanation: Correct option: (d) high capital-output ratio. In the circular flow of income, household savings are channeled to producers, who invest them to enhance capital formation. This investment leads to the production of capital goods (like machines, tools), which boosts output.
Q200. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (2018)
Explanation: Correct option: (c) poverty and unemployment increase.. Per capita real GNP accurately captures the economic growth of a nation by adjusting for price level changes so that the actual growth in the production of goods and services can be understood. By dividing real GNP on a per capita basis, a clearer comparison can be made with other nations having different populations. But, what these measures cannot accurately capture is development.
Q201. Less equitable distribution of national income Select the correct answer using the code given below.
Explanation: Correct option: (b) 2 only. Choice (b) is the right one: In a recession—characterized by a fall in GDP, employment, and corporate profits—governments typically respond with expansionary monetary and fiscal policies to revive economic activity. These measures include: y Lowering interest rates to boost borrowing and investment y Increasing government spending to stimulate demand y Reducing tax rates to raise disposable income and consumption
Q202. 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?
Explanation: Correct option: (b) 2 only. Choice (b) is the right one: In a recession—characterized by a fall in GDP, employment, and corporate profits—governments typically respond with expansionary monetary and fiscal policies to revive economic activity. These measures include: y Lowering interest rates to boost borrowing and investment y Increasing government spending to stimulate demand y Reducing tax rates to raise disposable income and consumption
Q203. Economic growth in country X will necessarily have to occur if (2013)
Explanation: Correct option: (c) there is capital formation in X. Economic Growth is the increase in the production of goods and services over time. y Capital Formation (investment in fixed assets) directly boosts production, leading to economic growth. y Technological Progress (new/improved methods) enhances resource use efficiency and supports growth, but indirectly. y Global Trade Growth can boost global output, but does not ensure growth in a specific country (like X) unless it actively participates in global trade..
Q204. The National Income of a country for a given period is equal to the: (2013)
Explanation: Correct option: (d) Money value of final goods and services produced. 4D: GDP, GNP 14 258. Choice (d) is the right one: National Income denotes the sum total of Income that everyone earns in a nation. As the earning of everyone is dependent or directly related to the production of some sorts of goods or services in the economy, therefore the money value of final goods and services produced in an economy is the most relevant measure of the National Income of a country. 4D: GDP, GNP-Explanation 14

15. 4E: Inflation

10 questions Printed pages 259–261

Q205. Consider the following statements : (2023) 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?
Explanation: Correct option: (a) Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement-I. Statement 1 is correct: Interest rates may return to pre-pandemic levels once inflation is controlled; recent rises are due to tighter monetary policy. Statement 2 is correct: Central banks manage inflation through monetary policy, with many adopting explicit inflation targeting.
Q206. Which one of the following is likely to be the most inflationary in its effects? (2021)
Explanation: Correct option: (d) Creation of new money to finance a budget deficit. Choice (d) is the right one: Printing new currency increases the money supply, which boosts aggregate demand in the economy. If this increased demand is not supported by a corresponding rise in economic output, it creates inflationary pressure, causing prices of goods and services to rise sharply.
Q207. Rising interest rates Select the correct answer using the code given below:
Explanation: Correct option: (c) 1, 2, 3 and 5 only. Choice (c) is the right one: The Consumer Price index (CPI) for Industrial Workers is released by the Labour Bureau, Ministry of Labour and Employment. CPI for Industrial Workers measures the changes in prices over a period of time for a specified basket of commodities consumed by the Industrial Workers.
Q208. The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?
Explanation: Correct option: (a) 1 and 2 only. Choice (a) is the right one: Demand-pull inflation arises when demand exceeds supply, often described as “too many dollars chasing too few goods.” It can be driven by expansionary policies, fiscal stimulus, and higher purchasing power. Central banks use interest rates to manage this inflation—raising rates makes borrowing costlier, reducing consumer and business spending, and thus cooling demand.
Q209. Which of the following brings out the 'Consumer Price Index Number for Industrial Workers'? [2015]
Explanation: Correct option: (c) The Labour Bureau. Choice (c) is the right one: The Consumer Price index (CPI) for Industrial Workers is released by the Labour Bureau, Ministry of Labour and Employment. CPI for Industrial Workers measures the changes in prices over a period of time for a specified basket of commodities consumed by the Industrial Workers.
Q210. In the Index of Eight Core Industries, which one of the following is given the highest weight? (2015)
Explanation: Correct option: (b) Electricity generation. Choice (b) is the right one: The Index of Eight Core Industries is released monthly by the Office of the Economic Adviser, Ministry of Commerce and Industry. Refinery products have the highest weight in this index at 28.04%, not electricity generation (which holds 19.85%).
Q211. an increase in the effective demand Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 only. Choice (a) is the right one: Demand-pull inflation arises when demand exceeds supply, often described as “too many dollars chasing too few goods.” It can be driven by expansionary policies, fiscal stimulus, and higher purchasing power. Central banks use interest rates to manage this inflation—raising rates makes borrowing costlier, reducing consumer and business spending, and thus cooling demand.
Q212. Which one of the following is likely to be the most inflationary in its effect? (2013)
Explanation: Correct option: (d) Creating new money to finance a budget deficit. Choice (d) is the right one: Inflation is a sustained rise in general price levels, reducing money’s purchasing power. y Printing new money to finance a budget deficit increases money supply, boosting aggregate demand and causing prices to rise. y Borrowing from the public or banks to finance the deficit reduces money supply, helping control inflation.
Q213. Inflation benefits the bondholders. Which of the statements given above is/are correct?
Explanation: Correct option: (d) Neither 1 nor 2. Choice (d) is the right one: Printing new currency increases the money supply, which boosts aggregate demand in the economy. If this increased demand is not supported by a corresponding rise in economic output, it creates inflationary pressure, causing prices of goods and services to rise sharply.
Q214. In India, deficit financing is used for raising resources for: (2013)
Explanation: Correct option: (a) economic development. Deficit financing denotes covering the gap when government expenditure exceeds revenue, either by borrowing or printing new money. y Deficit financing can be justified if it stimulates rapid economic development, especially in developing countries like India where higher growth needs more finance.

16. 5A: Infra: Energy

12 questions Printed pages 262–264

Q215. It aims to create more than three lakh skilled personnel through fresh skilling and upskilling under the capacity building component of the scheme. Which of the above statements are correct?
Explanation: Correct option: (d) I, II and III. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.
Q216. Production of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB) in India?
Explanation: Correct option: (c) Only three. Statement 1 is correct: India uses both conventional and renewable sources to generate electricity, with coal being the dominant source. Statement 2 is incorrect: Uranium-235 is commercially enriched to about 3–5%, not used in its natural state.
Q217. Bangladesh-China -India -Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China. How many of the above statements are correct?
Explanation: Correct option: (d) None. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.
Q218. Consider the following statements : (2023) 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?
Explanation: Correct option: (c) Statement-I is correct but Statement-II is incorrect. Statement 1 is correct: India uses both conventional and renewable sources to generate electricity, with coal being the dominant source. Statement 2 is incorrect: Uranium-235 is commercially enriched to about 3–5%, not used in its natural state.
Q219. It ensures that coal mining companies deliver the coal to end users in the prescribed time. Select the correct answer using the code given below:
Explanation: Correct option: (c) 1 and 2 only. Statement 1 is correct: India uses both conventional and renewable sources to generate electricity, with coal being the dominant source. Statement 2 is incorrect: Uranium-235 is commercially enriched to about 3–5%, not used in its natural state.
Q220. Sillimanite In India, which of the above is/are officially designated as major minerals?
Explanation: Correct option: (c) 1 and 3 only. Statement 1 is correct: India uses both conventional and renewable sources to generate electricity, with coal being the dominant source. Statement 2 is incorrect: Uranium-235 is commercially enriched to about 3–5%, not used in its natural state.
Q221. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Which of the statements given above is/are correct?
Explanation: Correct option: (d) 1, 2 and 3. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.
Q222. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of 5A: Infra: Energy 16 263 5A: Infra: Energy
Explanation: Correct option: (b) 2 only. Statements 2 and 3 are correct. The Petroleum and Natural Gas Regulatory Board (PNGRB) regulates refining, storage, distribution, and marketing of petroleum products. However, it does not regulate crude oil or natural gas production, which are upstream activities managed by the Ministry of Petroleum and DGH.
Q223. Which one of the following is the purpose of ‘UDAY’, a scheme of the Government? (2016)
Explanation: Correct option: (d) Providing for financial turnaround and revival of power distribution companies. UDAY, launched in 2015, aimed to improve financial and operational health of DISCOMs through debt restructuring, renewable energy promotion, and cost reduction. All listed features are part of UDAY, therefore Choice (d) is the right one.
Q224. Authorising State Governments to issue licences for mineral exploration Select the correct answer using the code given below.
Explanation: Correct option: (d) 1, 2 and 3 rules related to the grant of minor minerals lie with the Centre Government.. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.
Q225. State Governments have the power to frame rules to prevent illegal mining of minor minerals. Which of the statements given above is/are correct?
Explanation: Correct option: (d) 1, 2 and 3 only. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.
Q226. Appeals against the decisions of PNGRB go before the Appellate Tribunals of Electricity. Which of the statements given above is/are correct?
Explanation: Correct option: (d) 1,2 and 3. All statements are incorrect. The East–West Corridor connects Silchar and Porbandar but is not part of the Golden Quadrilateral. The India–Myanmar–Thailand Highway is part of the Look East Policy. The BCIM Corridor is a proposed route connecting China, India, Myanmar, and Bangladesh.

17. 5B: Infra: Transport, Urban Rural, Communication, Investment, PPP

10 questions Printed pages 265–268

Q227. Petrol: Working capital How many of the above pairs are correctly matched?
Explanation: Correct option: (c) Only three. Statement 1 is correct: UNOPS S3i initiative prioritizes affordable housing, focusing on large-scale projects for middle and lower- middle-income groups. Statement 2 is not correct: Mass Rapid Transport is not included in the UNOPS S3i initiative. Statement 3 is correct: The initiative supports healthcare infrastructure projects, enhancing quality in public and private sectors, especially primary care clinics, hospitals, diagnostic centers, and labs.
Q228. Vijayawada International Airport In the recent past, which of the above have been constructed as Greenfield projects?
Explanation: Correct option: (d) 1,2 and 3. Statement 1 incorrect: REITs and InvITs make distributions to their unitholders in the form of interest, dividend income, and rental income all of which have pass-through status and are taxed in the hands of unitholders.
Q229. Consider the following statements : (2023) Statement-I : Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors are 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?
Explanation: Correct option: (d) Statement-I is incorrect but Statement-II is correct. Statement 1 incorrect: REITs and InvITs make distributions to their unitholders in the form of interest, dividend income, and rental income all of which have pass-through status and are taxed in the hands of unitholders.
Q230. Renewable energy How many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus on its investments?
Explanation: Correct option: (c) Only three. Statement 1 is correct: UNOPS S3i initiative prioritizes affordable housing, focusing on large-scale projects for middle and lower- middle-income groups. Statement 2 is not correct: Mass Rapid Transport is not included in the UNOPS S3i initiative. Statement 3 is correct: The initiative supports healthcare infrastructure projects, enhancing quality in public and private sectors, especially primary care clinics, hospitals, diagnostic centers, and labs.
Q231. Which one of the following statements best describes the 'Polar Code'? (UPSC-2022)
Explanation: Correct option: (a) It is the international code of safety for ships operating in polar waters.. Choice (a) is the right one: Polar code is International Maritime Organizations (IMOs) Code for Ships Operating in Polar Waters. It is mandatory under both the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL).
Q232. The National Institute of Urban Affairs is an apex body of the Minister of Housing and Urban Affairs in Government of India and provides innovative solutions to address the challenges of Urban India. Which of the statements given above is/are correct?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q233. The district authority must inspect at least 10% of all works under implementation every year Select the correct answer using the code given below:
Explanation: Correct option: (c) 1, 2 and 3 only. Statement 1 is correct: UNOPS S3i initiative prioritizes affordable housing, focusing on large-scale projects for middle and lower- middle-income groups. Statement 2 is not correct: Mass Rapid Transport is not included in the UNOPS S3i initiative. Statement 3 is correct: The initiative supports healthcare infrastructure projects, enhancing quality in public and private sectors, especially primary care clinics, hospitals, diagnostic centers, and labs.
Q234. Connect many of our villages to the Internet and bring Wi- Fi to many of our school, public places and major tourist centres. Select the correct answer using the code given below
Explanation: Correct option: (d) 1, 2 and 3. Statement 1 incorrect: REITs and InvITs make distributions to their unitholders in the form of interest, dividend income, and rental income all of which have pass-through status and are taxed in the hands of unitholders.
Q235. It has a corpus of ` 4, 00,000 crore at present. Select the correct answer using the code given below:
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q236. The Global Infrastructure Facility is a/an [2017]
Explanation: Correct option: (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.. Choice (b) is the right one: The Global Infrastructure Facility (GIF) is a global, open platform that facilitates the preparation and structuring of complex infrastructure public private partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.

18. 6A: HRD: Census, Health Hunger

5 questions Printed pages 269–270

Q237. The total fertility rate in an economy is defined as: (2024)
Explanation: Correct option: (d) the average number of live births a woman would have by the end of her child-bearing age.. Choice (d) is the right one: Total fertility is the mean number of children a woman would have by age 50 if she survived to age 50 and were subject, throughout her life, to the age-specific fertility rates observed in a given year. The total fertility is expressed as the number of children per woman.
Q238. Consider the following statements: (2023) Statement-I: India’s public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care. Statement-II: Under India’s decentralised approach to health care delivery, the States are primarily responsible for organizing health services. Which one of the following is correct in respect of the above statements?
Explanation: Correct option: (b) Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I. Statement 1 is correct: India’s public healthcare system has traditionally focused more on curative care, with limited emphasis on preventive, promotive, and rehabilitative services. Statement 2 is correct: Healthcare in India follows a federal structure, where states have primary responsibility for organizing and delivering health services, as healthcare is a state subject under the Constitution.
Q239. 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?
Explanation: Correct option: (b) 2 only. Statement 1 is not correct: The Act covers only eligible households, primarily priority and Antyodaya beneficiaries, not all BPL and APL categories. Statement 2 is correct: The Act mandates that the eldest woman (18 years or above) in the household be the head for issuing ration cards, promoting women’s empowerment. Statement 3 is not correct: The Act provides 600 calories per person per day, not 1600 calories.
Q240. To promote the consumption of poultry eggs. Select the correct answer using the code given below:
Explanation: Correct option: (a) 1 and 2 only. Statement 1 is correct: The National Nutrition Mission, launched in 2017, aims to create awareness about malnutrition among pregnant women and lactating mothers. Statement 2 is correct: The Mission, overseen by the Ministry of Women and Child Development, focuses on reducing anaemia in young children, adolescent girls, and women of reproductive age (15–49 years).
Q241. Child mortality Select the correct answer using the code given below.
Explanation: Correct option: (b) 2 and 3 only. Statement 1 is not correct: The Act covers only eligible households, primarily priority and Antyodaya beneficiaries, not all BPL and APL categories. Statement 2 is correct: The Act mandates that the eldest woman (18 years or above) in the household be the head for issuing ration cards, promoting women’s empowerment. Statement 3 is not correct: The Act provides 600 calories per person per day, not 1600 calories.

19. 6B: HRD: Education and Skill

7 questions Printed pages 271–272

Q242. Under this scheme, private sector health care providers of certain specialities can volunteer to provide services at nearby government health facilities. Which of the statements given above is/are correct?
Explanation: Correct option: (c) Both 1 and 2. Statement 1 is not correct: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE), implemented by the National Skill Development Corporation. It aims to enable Indian youth to acquire industry-relevant skills for better livelihood.
Q243. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework. Which of the statements given above is/are correct ?
Explanation: Correct option: (d) 1, 2 and 3. it is labour ministry portal so #1 is wrong. It allows educated persons to upload biodata so #2 is wrong. So neither1 nor 2 is right.
Q244. 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?
Explanation: Correct option: (c) Both 1 and 2. Statement 1 is not correct: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE), implemented by the National Skill Development Corporation. It aims to enable Indian youth to acquire industry-relevant skills for better livelihood.
Q245. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools. Select the correct answer using the code given below:
Explanation: Correct option: (d) 2 and 3 only. it is labour ministry portal so #1 is wrong. It allows educated persons to upload biodata so #2 is wrong. So neither1 nor 2 is right.
Q246. What is the aim of the programme 'Unnat Bharat Abhiyan'? [2017]
Explanation: Correct option: (b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.. Choice (b) is the right one: Unnat Bharat Abhiyan was launched by the Ministry of Human Resource Development (MHRD) in 2014. The Mission (Abhiyan) was inspired by the vision of transformational change in rural development processes by leveraging knowledge institutions to help build the architecture of an Inclusive India. It intends to link Higher Educational Institutions with at least 5 villages to uplift their social and economic conditions.
Q247. ‘SWAYAM’, an initiative of the Government of India, aims at [2016]
Explanation: Correct option: (d) providing affordable and quality education to the citizens for free. SWAYAM stands for “Study Webs of Active Learning for Young Aspiring Minds” is basically an integrated MOOCs (massive open online course) platform for distance education that is aimed at offering all the courses from school (Class 9) to post-graduation level for free of cost for resident of India.
Q248. To obtain the full benefits of demographic dividend, what should India do? (2013)
Explanation: Correct option: (a) Promoting skill development. Choice (a) is the right one: Demographic dividend denotes economic growth resulting from changes in a country’s age structure, typically due to declining fertility and mortality rates. y It offers India a significant opportunity for high growth driven by a growing working-age population. y This demographic advantage can be harnessed by investing in skill development. y Many youth with limited education remain inactive or work in low-skilled informal jobs..

20. 6C: HRD: Poverty

1 questions Printed pages 273–274

Q249. In a given year in India, official poverty lines are higher in some States than in others because: (2019)
Explanation: Correct option: (b) price levels vary from State to State.. Choice (b) is the right one: In India, the Poverty line is the cut off value in Rupees that a person must earn in a month to be classified as being above the poverty line. The poverty line estimates are last based upon the recommendations of the Suresh Tendulkar Committee 2011.

21. 6D: HRD: Weaker Section, HDI, SDG

4 questions Printed pages 275–276

Q250. Family pension is applicable to the spouse and unmarried daughters. Which of the statements given above is/are correct?
Explanation: Correct option: (c) 2 only. Statement 1 – Not correct: Human Capital Formation denotes enhancing human abilities, not accumulating tangible wealth like land or money. Statement 2 – Correct: Improved skills and knowledge increase people’s ability to generate economic capital, aiding Human Capital Formation. Statement 3 – Not correct: Tangible assets like gold or land are economic capital, not components of human capital.
Q251. Irular and Konda Reddi tribes are included in the list of PVTGs. Which of the statements given above are correct?
Explanation: Correct option: (c) 1, 2 and 4. Statement 1 – Not correct: Human Capital Formation denotes enhancing human abilities, not accumulating tangible wealth like land or money. Statement 2 – Correct: Improved skills and knowledge increase people’s ability to generate economic capital, aiding Human Capital Formation. Statement 3 – Not correct: Tangible assets like gold or land are economic capital, not components of human capital.
Q252. In the context of any country which one of the following would be considered as part of its social capital? [2019]
Explanation: Correct option: (d) The level of mutual trust and harmony in the society.. Choice (d) is the right one: Social capital denotes networks, shared norms, values, and mutual trust that enable cooperation within or among groups. It is one of the three components of Social Resources—along with economic and cultural capital. These forms often overlap and can be converted into one another, reflecting a society’s overall well- being.
Q253. accumulation of intangible wealth Which of the statements given above is/are correct?
Explanation: Correct option: (c) 2 and 4 only. Statement 1 – Not correct: Human Capital Formation denotes enhancing human abilities, not accumulating tangible wealth like land or money. Statement 2 – Correct: Improved skills and knowledge increase people’s ability to generate economic capital, aiding Human Capital Formation. Statement 3 – Not correct: Tangible assets like gold or land are economic capital, not components of human capital.

22. 7: Microeconomics

4 questions Printed pages 277–278

Q254. Consider the following statements: (2024) 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?
Explanation: Correct option: (a) Both Statement-I and Statement-II are correct and Statement- II explains Statement-I. Statement I – Correct: If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds would not be able to exercise their claims to receive payment. Statement II – Correct: US government debt is not backed by any hard assets but only by the faith of the government, which underpins the trust in Treasury Bonds. Conclusion: Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I.
Q255. Consider the following statements: (2024) 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?
Explanation: This item was not linked to a dependable official key during extraction, so the quiz does not force one marked answer for it.
Q256. its price falls Which of the above statements are correct?
Explanation: Correct option: (c) 1, 3 and 4. Opportunity Cost is the value of the next best alternative foregone when making a decision. Because resources are limited, choosing one option denotes giving up others, and the value of those foregone alternatives is the opportunity cost. Choice (c) is the right one: When the government provides a commodity free to the public, the opportunity cost shifts from the consumers to the taxpayers.
Q257. If a commodity is provided free to the public by the Government, then (2018)
Explanation: Correct option: (c) The opportunity cost is transferred from the consumers of the product to the tax-paying public.. Opportunity Cost is the value of the next best alternative foregone when making a decision. Because resources are limited, choosing one option denotes giving up others, and the value of those foregone alternatives is the opportunity cost. Choice (c) is the right one: When the government provides a commodity free to the public, the opportunity cost shifts from the consumers to the taxpayers.

UPSC Prelims 2026 Additions

14 questions Source: UPSC GS Paper I 2026 answer-analysis PDF

Q258. An e-commerce revenue model where the seller has control over pricing but doesn't keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called: (2026)
Explanation: Correct option: (a) Dropshipping Model. Source: UPSC GS Paper I 2026, Q52. In dropshipping, the seller acts as a storefront or "merchant of record". They maintain control over the retail pricing and profit margins but outsource all warehousing, inventory management, and shipping logistics to a third-party manufacturer or wholesaler. Key Advantages Low Startup Costs: Sellers do not need to buy products in bulk or rent warehouses, minimizing upfront capital and inventory risk.
Q259. Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI)? (2026)
Explanation: Correct option: (c) Access, Usage, and Quality. Source: UPSC GS Paper I 2026, Q53. The Reserve Bank of India (RBI) introduced the Financial Inclusion Index (FI-Index) in 2021. The Reserve Bank of India’s Financial Inclusion Index (FI-Index) measures the extent of financial inclusion across the country. Published annually, it is a single composite value ranging from 0 (complete exclusion) to 100 (full inclusion).
Q260. Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative? (2026)
Explanation: Correct option: (c) To break the dominance of large e- commerce platforms by enabling interoperability across networks. Source: UPSC GS Paper I 2026, Q54. The Open Network for Digital Commerce (ONDC) is a transformative initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India aimed at democratizing digital commerce. Launched in April 2022, ONDC is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks.
Q261. Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct? (2026)
Explanation: Correct option: (d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.. Source: UPSC GS Paper I 2026, Q55. Unified Payments Interface (UPI) is a digital payment platform that enables real-time interbank transactions between individuals as well as between customers and merchants. Central Bank Digital Currency (CBDC) or Digital Rupee is a digital form of legal tender issued directly by the central bank.
Q262. Which of the following statements about Real- World Assets (RWA) Tokenization are correct? 1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology. 2. Tokenization of real world assets offers 24×7 access, promoting financial inclusion. 3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India. Select the answer using the code given below: (2026)
Explanation: Correct option: (a) 1, 2 and 3. Source: UPSC GS Paper I 2026, Q56. Real-World Asset (RWA) tokenization involves transforming ownership rights of physical or conventional financial assets (such as real estate, commodities, or bonds) into digital tokens on a blockchain network. Blockchain-driven tokenization provides continuous 24×7 accessibility and trading, unlike traditional financial markets that operate within fixed hours.
Q263. A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called: (2026)
Explanation: Correct option: (c) Sustainability Bond. Source: UPSC GS Paper I 2026, Q57. A Sustainability Bond is a debt instrument in which the funds raised are used solely to finance or refinance a mix of both environmental (green) and social initiatives. Green Bonds are dedicated exclusively to environmental or climate-related projects, whereas Social Bonds support only social initiatives such as affordable housing, healthcare, or community development.
Q264. Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct? 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. Select the answer using the code given below: (2026)
Explanation: Correct option: (b) 2 only. Source: UPSC GS Paper I 2026, Q58. M1xchange, operated by Mynd Solutions, is India’s first Trade Receivables Discounting System (TReDS) platform authorized by the Reserve Bank of India. TReDS platforms are designed to support the financing of MSME trade receivables through the discounting of invoices and bills of exchange. They neither provide direct lending services nor operate as credit rating agencies.
Q265. Which one of the following best describes the 'Crowding Out Effect' in the context of fiscal policy? (2026)
Explanation: Correct option: (b) A situation where Government borrowing leads to higher interest rates, which reduces private investment. Source: UPSC GS Paper I 2026, Q59. The "Crowding Out Effect" describes a phenomenon where increased government involvement in a sector of the market substantially affects the remainder of the market, specifically by reducing private sector spending or investment. therefore option (b) is the correct answer.
Q266. Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct? 1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (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 to establish a robust framework for self- reliance in the critical mineral sector. 4. Rare Earth Elements are a set of 13 metallic elements. Select the answer using the code given below: (2026)
Explanation: Correct option: (a) 1 and 3 only. Source: UPSC GS Paper I 2026, Q60. Rare Earth Elements (REEs) and critical minerals play a vital role in advanced technologies, defense applications, and the global shift toward renewable energy systems. The global supply chains of these minerals remain heavily concentrated in a few regions, encouraging countries to secure reliable sources in order to minimize economic and strategic risks.
Q267. Which of the following statements about insurance in aviation sector is/are correct? 1. 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment. 2. Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault. Select the answer using the code given below: (2026)
Explanation: Correct option: (c) Both 1 and 2. Source: UPSC GS Paper I 2026, Q61. Aviation insurance offers broad protection against risks arising from aircraft operations, including coverage for physical damage as well as different types of liabilities. The Montreal Convention, 1999 is an international treaty designed to standardize rules governing international air transport, with particular emphasis on passenger rights and airline liability.
Q268. Which of the following statements about Crowdfunding is/are correct? 1. Crowdfunding is solicitation of funds (small amount) 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. Select the answer using the code given below: (2026)
Explanation: Correct option: (c) Both 1 and 2. Source: UPSC GS Paper I 2026, Q62. Crowdfunding is a method of raising funds by collecting small contributions from a large number of individuals, generally through online platforms or social networking websites, to support a particular project, business initiative, or cause.
Q269. With reference to different Committees in India, consider the following details: Sl. No. | Committee | Objective | Organization under which it was formed 1 | R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India 2 | L.C. Gupta Committee | Preparing a roadmap for the introduction of derivatives trading in India | Securities and Exchange Board of India 3 | Urjit R. Patel Committee | Preparing a roadmap for reforming bank lending to the Housing sector | Reserve Bank of India 4 | Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India In how many of the above rows are all the details correctly matched? (2026)
Explanation: Correct option: (d) 2 and 4. Source: UPSC GS Paper I 2026, Q63. Row 1 – Incorrect: The R.N. Malhotra Committee was set up by the Government of India in 1993, rather than by the Insurance Regulatory and Development Authority of India (IRDAI). Notably, IRDAI itself was created in 1999 based on the committee’s recommendations for insurance sector reforms.
Q270. Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India: 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct? (2026)
Explanation: Correct option: (a) 1 and 4. Source: UPSC GS Paper I 2026, Q64. Non-Banking Financial Companies (NBFCs) are financial institutions that provide services similar to banks but do not possess a full banking license. They are governed by the Reserve Bank of India under the RBI Act, 1934.
Q271. Consider the following statements about Multidimensional Poverty Index (MPI): 1. MPI is calculated using 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 MPI of United Nations Development Programme (UNDP). Which of the statements given above is/are correct? (2026)
Explanation: Correct option: (a) 1 and 2 only. Source: UPSC GS Paper I 2026, Q65. The Multidimensional Poverty Index (MPI) is computed using the Alkire– Foster methodology, developed by Sabina Alkire and James Foster at the Oxford Poverty and Human Development Initiative. NITI Aayog’s National MPI uses 12 indicators under three dimensions— Health, Education, and Standard of Living. Although it broadly follows the structure of the Global MPI, it incorporates modifications tailored to India’s context.
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