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Set 5: Part 3: Economics MCQ for Prelims
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Set 5: Part 3: Economics MCQ For Prelims!!

Akshay Kadam is teaching live on Unacademy Plus

Akshay Kadam
I have 4 Years of Experience in Coaching. My Wife & My First Student in UPSC journey, Mrs. Madhulika Kadam, Cracked UPSC with AIR 190 Rank.

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Thank You, Ma'am!
  1. Economics Test Series For Prelims Master Economics with the help of Conceptual Objective unacademy Practice Questions, By Prof. Akshay D Kadam https://unacademy.com/user/AkshayDKadan


  2. Consider the following statements Consider the following statements about India's Forex about different economic terms- 1) Higher value of Primary deficit is a 1) Indian Forex reserves are on account of capital key vulnerability of India compared to account surplus while Chinese forex reserves are on other emerging economies. 2) Fiscal deficit includes SLR in it. 3) Fiscal deficit includes debt creating Chinese Forex reserves as they got accumulated as well as non debt creating capital through capital account flows instead of trade surplus. receipts Which of the above statements are a) Only 1 correct a) 2 and 3 b) 1 and 3 c) 1 and 2 d) 2 Reserve viz viz China's and mark correct statements - account current account surplus. 2) Quality of Indian Forex reserves is much better than Options - b) Only 2 c) Both 1 and 2 are correct d) Both 1 and 2 are wrong https://unacademy.com/user/AkshayDKadam


  3. Unemployment which exists in Nirbhaya Fund is Administered by? any economy due to changes in a) Ministry of Women and Child economic factors like introduction Development of computers or Artificial intelligence is termed as? a) Cyclical unemployment b) Structural unemployment c)Frictional unemployment d) None of the above b) Department of Economic Affairs (DEA) c) Ministry of Home affairs d) Empowered Committee of Officers appointed by Women and child development Minister. https://unacademy.com/userlAkshayDKadam


  4. If foreign banks with less than 20 Finances to Which of the following branches do not meet RBI's Priority sector lending targets; classification as per RBl rules? they contribute their fund to a) NABARD's Rural Infrastructure 2) Housing loan Development Fund (RIDF) b) Small Industries development 4) Women fund of SIDBI c) Natinal equity fund of SIDBI Options d) Contribute to Reginal Rural a) 2 3 4 and 5 Banks funds. comes under Priority sector 1) Export credit 3) Medium enterprises 5) Minorities b) 2 4 and5 c) 1 2 34 and 5 d) 2 and 3 https://unacademy.com/user/AkshayDKadam


  5. Which of the following Consider the following statements about WPI and factors increase the Velocity of Money in 1) WPl is Compiled by Office of Economic Circulation? 1) Money in the hands of with base year of 2011-12 rich people 2) Inflationary times in prepared by Central Statistical Organisation economy 3) Financial inclusion Programme Implementation with base year of 4) Developed economy. 2011-12. Options- a) 1 2 and 4 b) 1 3 4 c) 2 3 4 d) 3 and 4 CPI Adviser under Ministry of Commerce and Industry 2) CPI Urbal, Rural and consolidated are (CSO) under Ministry of Statistics and Which of the above statements are correct a) Only 1 b) Only 2 c) Both are correct d) None of the above


  6. Consider the following statements about GDPWhich of the following is 1) GDP makes no adjustment for leisure time calculated as National 2) GDP doesn't adjust for the distribution of goods 3) GDP is not good indicator to judge whether thee economy is contracting or expanding, whether a threat such as a recession or inflation looms on the horizon. 4) GDP does not cover negative externalities but c) GVA at basic prices of covers opportunity costs involved Which of the above statements are correct a)3and 4 b) 1 2 and3 c) 1 2 and 4 d) 1 2 Income of India? a) GDP at factor cost of factor cost prices of 2011-12 n or inflation looms on ) GDP at cons prices of 2011-12 2011-12 d) Net national product at factor cost prices of 2011-12 https://unacademy.com/user/AkshayDKadam


  7. Consider the following statements Consider the following statements about about government securities 1) All government securities are fully are commercial loans borrowed from tradable and are eligible for SLR collateral transactions. 2) Only Central govt can issue treasury 2) In case of FDI, foreign money is used bills while dated securities are issued only to finance the equity Capital. But in by state as well as central govts. 3) Treasury bills carry fixed interest finance any kind of funding other than rates while dated securities carry floating interest rates. Which of the above statements are Options correct a) 2 b) 1 2 c) 1 2 3 d) 2 and 3 External Commercial Borrowings 1) ECBs foreign sources for financing the commercial activities in India. case ECBs, foreign money is used to equity Which of the above statements are correct? a. 1 only b. 2 only c. Both 1 and 2 d. Neither 1 nor 2 https:/lunacademy.com/user/AkshayDKadam


  8. Consider the following statements about Consider the following statements about Revenue budget and Capital Budget Macr 1) Though Loan recovery is capital receipt;, the interest received on thesethat the government is spending most of loans is revenue receipt. 2) Though government borrowing to finance fiscal deficit do not fall under government may lead to higher real capital receipts; the interest paid on such interest rates. borrowings is placed under capital expenditure Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 Macroeconomics 1) An Expansionary Fiscal policy means its revenue. 2) Excessive domestic borrowing by the Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam


  9. Consider the following statements about Consider the following are examples of Fiat money? 1) It has no or a negligible intrinsic value. 1) Savings Account. 2) It is not convertible by law to any other 2) Bank Time deposits/Certificates of thing. 3) It is not fixed in value in terms of any 3) It is not fixed in value in terms of any objective standards. 4) It is money that is backed by nothing. 4) Hard foreign currencies. Which among the above are correct statements? Options - ) 2 3 and 4 b) 1 2 and3 c) 1 2 and 4 d) 1 2 3 and 4 Near Money/Quasi-Money? Deposits. objective standards. Which among the above are correct statements? Options - ) 2 3 and 4 b) 1 2 and3 c) 1 2 and 4 d) 1 2 3 and 4 https:/lunacademy.com/userlAkshayDKadam


  10. Which of the following is part of totalConsider the following statements about supply of money in the economy? 1) Money held by the households, firms,1) It Is body under RBi created as part of local authorities and companies etc. 2) Money held by central government in 2) It Gives recommendations for the treasury. 3) Money held as CRR and SLR by n commercial banks with RBI. Which among the above are correct statements? Options - (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) Only 1 Banks Board Bureau Seven Point Indra Dhanush Mission. appointment of full-time Directors as well as non-Executive Chairman of PSBs. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam


  11. Consider the following statements about Which of the following actions are Banks Board Bureau 1) India ranked 130th out of 186 economies in recently released Index of action? Economic Freedom 2018. 2) The index was released by top US Branches based Think Tank, The Heritage Foundation. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 instituted by RBI against banks which are brought under Prompt Corrective 1) Restriction on expansion of Bank 2) Restriction on Staff recruitment 3) Higher provisioning for loans 4) Stop on loans and Advances. Options - a) 1 2 and 3 Only b) 1 2 and 4 Only c) 2 3 and 4 Only d) 1 2 3 and 4 https://unacademy.com/userlAkshayDKadam


  12. Which of the following factors can affectConsider the following statements about the exchange rates? 1) Differentials in Inflation 2) Differentials in Interest Rates 3) Political Stability 4) Current-Account Deficits. Which among the above are correct statements? Options ) 2 3 and 4 b) 1 2 and 3 c) 1 2 and 4 d) 1 2 3 and 4 GDP and GVA measures of economic activity - 1) The GDP methodology gives picture of state of economic activity from producers' side or supply side.. 2) The GVA model gives picture from consumers' side or demand perspective. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 0 https:/lunaca demy.com/user/AkshayDKadam


  13. In order to leverage private sector Which of the following contribute to investment in Green Infrastructure tax revenues of panchayats and projects in the country India has municipal bodies? jointly established "Green Growth 1) House Tax. Equity Fund" with which of the following country? a) USA b) Japan C) UK d) Germany 2) Vehicle Tax. 3) Pilgrim Tax. 4) Water Tax. Options - a) 1 2 and 3 b) 1 2 and 4 c) 2 3 and 4 d) 1 2 3 and 4 https://unacademy.com/user/AkshayDKadam


  14. Consider the following statements about Which of the following organisation has Public Finance Management systemlaunched its GPI (Global Payment It is platform to monitor utilisation of Innovation) Tracker system to help funds provided to implementing agencies and state governments. It is implemented by Controller General activity? of Accounts and administered by the a) SWIFT a global financial messaging Department of Expenditure, both in Ministry of Finance. Which of the above statements are correct? a) 1 Only b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 banks track their global transactions at all times and keep full vigil on payment service b) Bank for International Settlements c) European Central Bank d) Federal Reserve System/Central bank of USA https://unacademy.com/user/AkshayDKadam


  15. Which of the following Consider the different types of disequilibrium in Balance Of are primary functions of Payments and mark the correct pairs money? 1) As a medium of exchange 1) Structural Diseguilibrium - Changes in tastes, fashions, income etc Or Newer and Cheaper substitutes available abroad. 2) Cyclical Disequilibrium - Inelastic imports and increased imports in boom times. 2) As a measure of3 ShoitRun Disequilibrium- Technological improvements in 4 value 3) As a store of value population 4) As a basis of credit 4) Long Run I Secular Disequilibrium - Unexpected contingencies Which of the above are like failure of rains or favorable monsoons, strikes, industrial peace incorrect options? Options a) 1 and 2 b) 1 3 and 4 c) 2 3 and 4 d) 3 and 4 importing countries; Persistent Inflation in economy; or increase in 8 or unrest etc. Which of the above are incorrect pairs? Options a) 1 and 2 b) 1 3 and4 c) 2 3 and4 d) 3 and 4 https://unacademy.com/userlAkshayDKadam


  16. Union government has set up Subhash Garg Committee', with GeM 3.0 which of the following mandate? 1) It is third version of Government e- a) Regulation of Fintech sector in Marketplace; launched by Ministry of India b) Addressing technological loopholes in banking sector c) Addressing aftereffects of demonetization and gst to revive Government growth d) To bring more stringent laws on a) 1 Only banking frauds. Consider the following statements about Commerce and Industry. 2) GeM is an Online Market platform to facilitate procurement of goods and services by various Ministries and agencies of the Which of the above statements are correct? b) 2 Only c) Both 1 and 2 d) Neither 1 nor 2 https://unacademy.com/user/AkshayDKadam


  17. According to recent report published by No money can be withdrawn without World Steel Association (WSA); which prior parliamentary approval from of the following is correct order of top 1) Consolidated fund of India. three largest crude steel producer of the 2) Contingency Fund of India. world? a) CHINA JAPAN INDIA b) USA> JAPAN INDIA c) USA>CHINA>INDIA d) CHINA> USA INDIA 3) Public Account Of India Options - a) Only 1 b) Only 1 and 2 c) Only 3 d) 1 2 and3 https://unacademy.com/user/AkshayDKadam


  18. The Finance commission through system of tax devolution and grants in 1) The expenditure that does not result in to aid addresses which of the following creation of assets for government of India is factors? 1) Horizontal imbalance among states 2) Vertical imbalance between Centre is treated as revenue receipt. and states. 3) Inter State inequality. 4) Intra State inequality. Which among the above are correct statements? statements? a) Only 1 and 3 b) Only 1 and 4 c) Only 1 2 and 3 d) Only 3 and 4 Consider the following statements about treated as revenue expenditure. 2) The receipt that does not result in to creation of liabilities for government of India 3) All grants given to State and UT's are treated as revenue expenditure. Which among the above are correct a) Only 1 and 3 b) Only 2 and 3 c) Only 1 and 2 d) 1 2 and 3


  19. Consider the following statements about The Asian Development Bank (ADB) has Index of Industrial Production (IIP) 1) Index of Industrial Production (IIP) is released by the Central Statistics Office 2022 to help fasten inclusive economic (CSO) of the Ministry of Statistics and Programme Implementation with base year status. The ADB's programme in India will focus of 2011-12 2) The Eight Core Industries comprise around 50 per cent of the weight of items more and well-paid jobs. included in the Index of Industrial Production (IP) Which of the above statements is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 decided to increase its annual lending to India to maximum of $4 billion between 2018 and transformation towards upper middle income on which of the following parameters? 1) Boost economic competitiveness to create 2) Improve access to infrastructure and services. 3) Address climate change and improving climate resilience. 4) Increasing farm productivity Options - a) 1 and 2 Only b) 3 and 4 Only c) 1 2 and 3 Only d) All the above


  20. Consider the following statements about State Bank of India (SBI) along with FTSE Masala Bonds 1) Masala bonds are bonds issued outside India but denominated in Indian Exchange (LSE). Bond Index aims to- Rupees 2) Currently, masala bonds are reckoned investors in international markets to analyse both under combined corporate debt limit India's government bond market (CCDL) for FPl (Foreign Portfolio Investments) and external commercial investors in international markets to analyse borrowings (ECBs) Which of the above statements are correct? a) Only 1 b) Only 2 c) Both are correct d) None of the above Russell, global index and data provider launched FTSE SBI Bond Index series at London Stock 1) transparent and reliable benchmark for 2) transparent and reliable benchmark for India's Corporate bond market. Which of the above statements are correct? a) Only 1 b) Only 2 c) Both are correct d) None of the above https://unacademy.com/userlAkshayDKadam


  21. Consider the following statements about |Which of the following have been CRR and 'Standing Deposit Facility declared by RBl as Domestically 1) For CRR, RBI requires to issue collaterals in the form of government1) ICICI bank ltd securities; for which RBl pays no interest. 2)RBl will have to pay interest to banks 4) Bank of Baroda for money absorbed by RBl under Standing deposit facility Which of the above statements are correct a) Only 1 b) Only 2 c) Both 1 and 2 are True d) Neither 1 nor 2 correct Systematically important banks? 2) SBl 3) HDFC bank ltd Options- a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d)1 2 and 3 Only https://unacademy.com/user/AkshayDKadam


  22. Which of the following organisation has developed a Composite Water Management Index as a useful tool to 1) Gross Command Area is area which is fit for assess and further improve the performance in cultivating crops; and can be physically efficient management of water resources? a) NITI Aayog b) Ministry of Water Resources | c) Ministry of Drinking Water and Sanitationuncultivable area. d) Ministry of Environment & Forests (MoEF) Options Consider the following statements about Gross Command Area and Cultural command area irrigated by canal irrigation scheme. 2) Cultural command area is a area that includes both cultivable area as well as Which of the above statements are incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct https://unacademy.com/user/AkshayDKadam