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Set 1: Part 1: Economics MCQ's For Prelims
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Set 1: Part 1: Economics MCQ For Prelims

Akshay Kadam is teaching live on Unacademy Plus

Akshay Kadam
With 5 yr UPSC coaching experience; I wl help u get conceptual clarity of topics & their Applied Understanding to score more.

U
Unacademy user
sir in question 3...U broke the c triple bond n but I read in a book the when pd-c is used it can't break strong bonds... like ctriple bond n or ctriple bond o
sir minting new money is how going to constitute deficit financing????? please explain
Akshay Kadam
9 months ago
When u are shirt of funds to meet expenditures as unhave less revenue collection. Inbthat case gove asked rbi to orint money so they cldbuee that money to finance deficit is itself deficit financing
sir the solution part should be there soon after question part
Akshay Kadam
8 months ago
Ok But thats time consuming process to add all explanation in detial.
Ajit Kumar Patro
8 months ago
if someone wants to download the pdf, then how come he will know the answers
Ajit Kumar Patro
8 months ago
pls sir upload the answers ur lessons are so much interesting and valuable
sir the solution part should be there soon after question part
thank u sir😊😊
Akshay Kadam
9 months ago
Welcome and and stay tuned for more lessons. Also post any questions if u have any.
Akshay Kadam
9 months ago
Lol...Keep it up.😎
  1. Economics Test Series For Prelims unacademy Master Economics with the help of Conceptual Objective Practice Questions, By Prof. Akshay D Kadam https://unacademy.com/user/AkshayDKadam


  2. Economics Sample Questions 1. If a country has fixed exchange rate and 2. Which of the following constitute deficit wants to maintain independent monetary policy, which of the following it would have to i.External borrowing lose control of, according to The Trilemma? ii.Domestic borrowing a.Free movement of capital across the border ii.Minting new money b.Independent fiscal policy C.Gross national product d.Inflation financing? Select correct answer using codes given below a.1 only b.1 & 2 only c.3 only d.1, 2 and 3 https://unacademy.com/user/AkshayDKadam fppt.com


  3. Economics Sample Questions 3. Which of the following government debt instruments qualify for SLR? i.Cash management bills ii.Treasury bills ii. Development bonds issued by state governments iv.Bonds issued by public sector enterprisesSelect correct answer using codes given Select correct answer using codes given below: a.1 & 2 only b.2 only c.1, 2 and 3 only d.2, 3 and 4 only 4. Which of the following have a function similar to capital adequacy ratio suggested by Basel III norms? i.Cash Reserve Ratio ii. Statutory Liquidity Ratio ili. Repo Rate below: a. 1 only b.1 & 2 only c.1, 2 and3 d.3 only https://unacademy.com/user/AkshayDKadam fppt.com


  4. Economics Sample Questions d. Financial services such as savings 5. What is the meaning of the term 'leveraging' in banking context? a Use borrowed capital for an investment, expecting the profits made to be greater than the interest payable b.Financial strategy used by a bank to change its financial structure in order to help improve the bank's financial stability c.Purchase of goods and services on behalf of government which also include transfer payments consisting of income transfers (pensions, social benefits) and capital transfer accounts, insurance funds and credit provided to poor and low income clients so as to help them increase their income https://unacademy.com/user/AkshayDKadam fppt.com


  5. Economics Sample Questions 6. India's Gini coefficient stands at 35 whereas that of Bhutan stands at 38. What can be inferred from this statement? a.India has higher number of people under poverty line than Bhutan b.India has higher number of millionaires than Bhutan c.India has higher income inequality than Bhutan d.India has lesser income inequality than Bhutan https://unacademy.com/user/AkshayDKadam fppt.com


  6. Economics Sample Questions 7. Consider the following statements: i.M2, a measure of money supply in the economy constitutes currency held by the public, demand deposits held by commercial banks and savings deposits with Post Office savings banks. ii.M3, another measure of money supply constitutes M2 and net time deposits of commercial banks Which of the above statements is/are correct? a.1 only b.2 only c.Both 1 and 2 d.Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam fppt.com


  7. Economics Sample Questions 8. In the product method for calculation of GDP, which of the following is considered while deriving GVA (Gross value added) at basic prices? i.Production subsidy ii.Product subsidy iii. Product taxes iv.Compensation for employees of production firm Select correct answer using codes gi below a.1 and 2 only b.1 and 3 only c.1, 2 and 4 only d.1, 3 and 4 only https://unacademy.com/user/AkshayDKadam fppt.com


  8. Economics Sample Questions 9. Which of the following are shortcomings of GDP? a. It doesn't account for services produced by foreign nationals in domestic economy b. It doesn't account for non-monetised activities c. It doesn't talk about structure of the economy d. It is not a useful tool for measurement of economic growth. 10. Consider the following statements: i. Budget deficit is the gap between to expenditure and total revenue. ii. Fiscal deficit is budget deficit breached by borrowing Which of the above statements is/are correct? a.1 only b.2 only c.Both 1 and 2 d.Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam fppt.com


  9. Economics Sample Questions 11. Weighted average of a country's currency 12. Which of the following are effects of relative to an index or basket of other major currencies, adjusted for the effects of inflation' is typically known as: a. Special drawing rights b. Managed exchange rate c. Nominal effective exchange rate d. Real effective exchange rate inflation on economy? i. Increases cost of borrowing due to increase in interest rates ii. Lowers cost of borrowing due to decrease in real interest rates ii. Reduces unemployment Select correct answer using codes given below: a. 1 only b. 2 only c. 1 and 3 only d. 1, 2 and 3 https://unacademy.com/user/AkshayDKadam fppt.com


  10. Economics Sample Questions 13. Consider the following actions which the 14. The lowering of Marginal Standing Facility Government can take: i. Reducing supply of domestic currency ii. Increase in the export subsidy ii. Adopting suitable policies which attract C. No change in the liquidity in the market greater FDI Which of the above action/actions can help in commercial banks reducing the current account deficit? a. 1 only b. 1 and 2 c. 2 only d. 1 and 3 Rate by the Reserve Bank of India leads to: a. More liquidity in the market b. Less liquidity in the market d. Mobilization of more deposits by https://unacademy.com/user/AkshayDKadam fppt.com


  11. Economics Sample Questions 17. Which of the following constitute fiscal consolidation? i. Reduction in subsidies ii. Rationalization of tax regime ii Disinvestment from public sector enterprises iv. Reduction in grants given for creation of capital assets Select the correct answer using the codes given below a. 1 only b. 1 and 2 only c. 1, 2 and 3 only d. 1, 2, 3 and 4 18. Effective revenue deficit' is best described as: a. Central revenue deficit sans interest payment b. Central Revenue deficit sans grants givern to states for creation of capital assets c. Fiscal deficit breached by monetisation d. Revenue deficit adjusted for inflation https://unacademy.com/user/AkshayDKadam fppt.com