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    Question Bank

    Practise UPSC MCQs with explanations

    Attempt real previous-year and practice questions, subject by subject. Every question comes with the correct answer and a detailed explanation — free, no sign-up needed.

    218 questions

    Economy
    2025
    hard

    Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

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    Economy
    2025
    hard

    With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds?

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    Economy
    2023
    hard

    Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?

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    Economy
    2023
    hard

    Consider the following statements: Statement-I: Switzerland is one of the leading exporters of gold in terms of value. Statement-II: Switzerland has the second largest gold reserves in the world. Which one of the following is correct in respect of the above statements?

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    Economy
    2023
    hard

    Consider the following statements: 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived. 2. In an SHG, all members of a group take responsibility for a loan that an individual member takes. 3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs. How many of the above statements are correct?

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    Economy
    2023
    medium

    In the context of finance, the term 'beta' refers to

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    Economy
    2023
    hard

    With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?

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    Economy
    2023
    hard

    Consider the following statements with reference to India: 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs 15 crore and Rs 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

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    Economy
    2023
    hard

    With reference to coal-based thermal power plants in India, consider the following statements: 1. None of them uses seawater. 2. None of them is set up in water-stressed district. 3. None of them is privately owned. How many of the above statements are correct?

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    Economy
    2023
    hard

    Consider the following infrastructure sectors: 1. Affordable housing 2. Mass rapid transport 3. Health care 4. Renewable energy On how many of the above does UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) initiative focus for its investments?

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    Economy
    2023
    hard

    Consider the following: 1. Demographic performance 2. Forest and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population, area and income distance?

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    Economy
    2023
    hard

    Consider the investments in the following assets: 1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients How many of the above are considered intangible investments?

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    Economy
    2023
    hard

    Consider the following statements: 1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds. 2. Niger is cultivated as a Kharif crop. 3. Some tribal people in India use niger seed oil for cooking. How many of the above statements are correct?

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    Economy
    2023
    hard

    Which one of the following best describes the concept of 'Small Farmer Large Field'?

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    Economy
    2023
    hard

    Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in capital markets?

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    Economy
    2023
    medium

    Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?

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    Economy
    2023
    hard

    Consider the following statements: 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?

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    Economy
    2023
    hard

    Consider the following statements: Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement-II: InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'. Which one of the following is correct in respect of the above statements?

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    Economy
    2023
    hard

    Consider the following statements: 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?

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    Economy
    2023
    hard

    Consider the following statements: 1. India has more arable area than China. 2. The proportion of irrigated area is more in India as compared to China. 3. The average productivity per hectare in Indian agriculture is higher than that in China. How many of the above statements are correct?

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