Economy Prelims PYQs, 2022 to 2026

1. UPSC Prelims 2026, Question 2
   The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?
   1. Aiding the flow of remittances from India and maintaining India’s creditworthiness
   2. Providing support to Indian importers
   3. Encouraging export of cotton produce from India
   4. Preventing depreciation of the Rupee in terms of gold
2. UPSC Prelims 2026, Question 24
   In what way(s) does the Vizhinjam International Seaport represent a structural shift in India’s maritime trade and logistics policy?
   1. By functioning exclusively as a domestic cargo hub to reduce reliance on coastal shipping and eliminate the need for foreign collaborations.
   2. By focusing primarily on passenger cruise tourism and heritage shipping to increase Kerala’s profile as a maritime heritage destination.
   3. By leveraging its natural deep draft and strategic location to reduce dependence on foreign trans-shipment ports, enhance revenue retention, and reposition India in regional maritime trade.
   Select the answer using the code given below:
   1. 1 only
   2. 1 and 2
   3. 2 and 3
   4. 3 only
3. UPSC Prelims 2026, Question 28
   Which among the following is/are the objective(s) of the Rainfed Area Development (RAD) initiative under the National Mission for Sustainable Agriculture (NMSA)?
   1. Encouraging monoculture in rainfed areas
   2. Increasing rice cultivation in irrigated regions
   3. Enhancing productivity and minimising climatic risks through Integrated Farming Systems (IFS)
   Select the answer using the code given below:
   1. 1 only
   2. 1 and 2
   3. 2 and 3
   4. 3 only
4. UPSC Prelims 2026, Question 29
   Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry?
   1. It allows Indian exporters to compete in high-end markets that prioritise chemical-free products.
   2. It confirms that Eri Silk meets international safety, environmental, and quality standards, enabling its entry into premium eco-conscious markets.
   Select the answer using the code given below:
   1. 1 only
   2. 2 only
   3. Both 1 and 2
   4. Neither 1 nor 2
5. UPSC Prelims 2026, Question 35
   Consider the following statements with reference to the Sagarmala Programme of the Government of India:
   I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
   II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
   III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
   Which of the following relationships among the above statements is/are correct?
   1. Statement II validates the effectiveness of the strategies envisioned in statement I.
   2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
   3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
   Select the answer using the code given below:
   1. 1 only
   2. 1 and 2
   3. 2 and 3
   4. 3 only
6. UPSC Prelims 2026, Question 83
   Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?
   1. CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics : Gujarat
   2. Tata Semiconductor Assembly and Test Pvt. Ltd. : Assam
   3. HCL-Foxconn Joint Venture India Chip Ltd. : Madhya Pradesh
   4. SicSem Pvt. Ltd. : Odisha
7. UPSC Prelims 2026, Question 87
   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:
   1. Dropshipping Model
   2. Affiliate Revenue Model
   3. Transaction Fee Revenue Model
   4. Agency Revenue Model
8. UPSC Prelims 2026, Question 88
   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)?
   1. Credit access, Insurance depth, and Pension coverage
   2. Banking access, GDP contribution, and Financial literacy
   3. Access, Usage, and Quality
   4. Access, Affordability, and Transparency
9. UPSC Prelims 2026, Question 89
   Which one of the following best describes the key objective of India’s ‘Open Network for Digital Commerce’ (ONDC) initiative?
   1. To allow government control over all digital commerce transactions
   2. To replace private e-commerce players
   3. To break the dominance of large e-commerce platforms by enabling interoperability across networks
   4. To mandate UPI-based payments for all online transactions
10. UPSC Prelims 2026, Question 90
    Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct?
    1. UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency.
    2. In case of UPI, settlement for end users happens instantly as the money gets immediately debited or credited but in case of Digital Rupee, there is no settlement as the wallet balance gets transferred to another wallet.
    3. UPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.
    4. In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.
11. UPSC Prelims 2026, Question 91
    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:
    1. 1, 2 and 3
    2. 2 and 3 only
    3. 1 and 2 only
    4. 1 and 3 only
12. UPSC Prelims 2026, Question 92
    A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called:
    1. Green Bond
    2. Social Bond
    3. Sustainability Bond
    4. Sovereign Bond
13. UPSC Prelims 2026, Question 93
    Which of the following statements about Mixchange’s role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
    1. Mixchange provides collateral based loans to MSMEs.
    2. Mixchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
    3. Mixchange functions as a credit rating agency for MSMEs.
    Select the answer using the code given below:
    1. 1, 2 and 3
    2. 2 only
    3. 2 and 3 only
    4. 1 only
14. UPSC Prelims 2026, Question 94
    Which one of the following best describes the ‘Crowding Out Effect’ in the context of fiscal policy?
    1. A situation where private investment increases due to increased Government spending
    2. A situation where Government borrowing leads to higher interest rates, which reduces private investment
    3. A situation where an increase in taxes leads to increased private sector investment
    4. A situation where Government spending has no impact on aggregate demand
15. UPSC Prelims 2026, Question 96
    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:
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
16. UPSC Prelims 2026, Question 97
    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:
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
17. UPSC Prelims 2026, Question 98
    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 which of the above rows are all the details correctly matched?
    1. 2 only
    2. 2 and 3
    3. 1, 3 and 4
    4. 2 and 4
18. UPSC Prelims 2026, Question 99
    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?
    1. 1 and 4
    2. 1, 2 and 3
    3. 4 only
    4. 2, 3 and 4
19. UPSC Prelims 2026, Question 100
    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?
    1. 1 and 2 only
    2. 1, 2 and 3
    3. 1 and 3 only
    4. 2 only
20. UPSC Prelims 2025, Question 1
    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?
    1. Only one
    2. Only two
    3. Only three
    4. All the four
21. UPSC Prelims 2025, Question 2
    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.
    1. I and II only
    2. II, III and IV
    3. I, III, IV and V
    4. I, II and V
22. UPSC Prelims 2025, Question 4
    Consider the following statements:
    I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).
    II. 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?
    1. I only
    2. II only
    3. Both I and II
    4. Neither I nor II
23. UPSC Prelims 2025, Question 5
    Consider the following statements:
    Statement I: In India, income from allied agricultural activities like poultry 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?
    1. Both Statement I and Statement II are correct and Statement II explains Statement I
    2. Both Statement I and Statement II are correct but Statement II does not explain Statement I
    3. Statement I is correct but Statement II is not correct
    4. Statement I is not correct but Statement II is correct
24. UPSC Prelims 2025, Question 7
    Consider the following statements:
    Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.
    Statement II: Bondholders are lenders to a company whereas stockholders are its owners.
    Statement III: For repayment purpose, bondholders are prioritized over stockholders by a company.
    Which one of the following is correct in respect of the above statements?
    1. Both Statement II and Statement III are correct and both of them explain Statement I
    2. Both Statement I and Statement II are correct and Statement I explains Statement II
    3. Only one of the Statements II and III is correct and that explains Statement I
    4. Neither Statement II nor Statement III is correct
25. UPSC Prelims 2025, Question 8
    Consider the following statements:
    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 the 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?
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
26. UPSC Prelims 2025, Question 10
    Consider the following statements:
    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?
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
27. UPSC Prelims 2025, Question 24
    Consider the following statements about turmeric during the year 2022–23:
    I. India is the largest producer and exporter of turmeric in the world.
    II. More than 30 varieties of turmeric are grown in India.
    III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric producing States in India.
    Which of the statements given above are correct?
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
28. UPSC Prelims 2025, Question 30
    Consider the following statements about the Rashtriya Gokul Mission:
    I. It is important for the upliftment of rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers.
    II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner.
    Which of the statements given above is/are correct?
    1. I only
    2. II only
    3. Both I and II
    4. Neither I nor II
29. UPSC Prelims 2025, Question 60
    Consider the following activities:
    I. Production of crude oil
    II. Refining, storage and distribution of petroleum
    III. Marketing and sale of petroleum products
    IV. Production of natural gas
    How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?
    1. Only one
    2. Only two
    3. Only three
    4. All the four
30. UPSC Prelims 2025, Question 61
    Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores. Which of the following statements are correct?
    I. Revenue deficit is ₹20,000 crores.
    II. Fiscal deficit is ₹10,000 crores.
    III. Primary deficit is ₹4,000 crores.
    Select the correct answer using the code given below.
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
31. UPSC Prelims 2025, Question 65
    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?
    1. ₹48,500 crores
    2. ₹51,500 crores
    3. ₹58,500 crores
    4. None of the above
32. UPSC Prelims 2025, Question 66
    Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
    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.
    1. I, II and III
    2. I, II and IV
    3. I, III and IV
    4. II, III and IV
33. UPSC Prelims 2025, Question 68
    Consider the following statements in respect of RTGS and NEFT:
    I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
    II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
    III. 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?
    1. I only
    2. I and II
    3. I and III
    4. III only
34. UPSC Prelims 2025, Question 69
    Consider the following countries:
    I. United Arab Emirates
    II. France
    III. Germany
    IV. Singapore
    V. Bangladesh
    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?
    1. Only two
    2. Only three
    3. Only four
    4. All the five
35. UPSC Prelims 2025, Question 82
    Consider the following statements:
    I. Indian Railways have prepared a National Rail Plan (NRP) to create a ‘future ready’ railway system by 2028.
    II. ‘Kavach’ is an Automatic Train Protection system developed in collaboration with Germany.
    III. ‘Kavach’ system consists of RFID tags fitted on track in station section.
    Which of the statements given above are not correct?
    1. I and II only
    2. II and III only
    3. I and III only
    4. I, II and III
36. UPSC Prelims 2024, Question 11
    Consider the following airports:
    1. Donyi Polo Airport
    2. Kushinagar International Airport
    3. Vijayawada International Airport
    In the recent past, which of the above have been constructed as Greenfield projects?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
37. UPSC Prelims 2024, Question 26
    Which one of the following is the correct description of “100 Million Farmers”?
    1. It is a platform for accelerating the transition towards food and water systems that are net-zero (carbon), nature-positive and that aims to increase farmer resilience.
    2. It is an international alliance and a network of individuals and farming organisations interested in supporting and strengthening the development of the organic animal husbandry.
    3. It is a digital platform fully integrated with service providers and built on blockchain that lets buyers, sellers and third parties trade fertilizers quickly and securely.
    4. It is a platform with the mission of encouraging the farmers to form Farmer Product Organisations or Agribusiness Consortiums, thus facilitating the access to global open markets to sell their products.
38. UPSC Prelims 2024, Question 40
    With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:
    1. Bond market
    2. Forex market
    3. Money market
    4. Stock market
39. UPSC Prelims 2024, Question 41
    The total fertility rate in an economy is defined as:
    1. the number of children born per 1000 people in the population in a year.
    2. the number of children born to a couple in their lifetime in a given population.
    3. the birth rate minus death rate.
    4. the average number of live births a woman would have by the end of her child-bearing age.
40. UPSC Prelims 2024, Question 42
    Consider the following statements:
    1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
    2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
    3. In India, Stock Exchanges can offer separate trading platforms for debts.
    Which of the statements given above is/are correct?
    1. 1 and 2 only
    2. 3 only
    3. 1, 2 and 3
    4. 2 and 3 only
41. UPSC Prelims 2024, Question 43
    In India, which of the following can trade in Corporate Bonds and Government Securities?
    1. Insurance Companies
    2. Pension Funds
    3. Retail Investors
    Select the correct answer using the code given below:
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
42. UPSC Prelims 2024, Question 44
    Consider the following:
    1. Exchange-Traded Funds (ETF)
    2. Motor vehicles
    3. Currency swap
    Which of the above is/are considered financial instruments?
    1. 1 only
    2. 2 and 3 only
    3. 1, 2 and 3
    4. 1 and 3 only
43. UPSC Prelims 2024, Question 45
    With reference to the sectors of the Indian economy, consider the following pairs:

    	Economic activity	Sector
    1.	Storage of agricultural produce	Secondary
    2.	Dairy farm	Primary
    3.	Mineral exploration	Tertiary
    4.	Weaving cloth	Secondary

    How many of the pairs given above are correctly matched?
    1. Only one
    2. Only two
    3. Only three
    4. All four
44. UPSC Prelims 2024, Question 47
    With reference to physical capital in Indian economy, consider the following pairs:

    	Items	Category
    1.	Farmer’s plough	Working capital
    2.	Computer	Fixed capital
    3.	Yarn used by the weaver	Fixed capital
    4.	Petrol	Working capital

    How many of the above pairs are correctly matched?
    1. Only one
    2. Only two
    3. Only three
    4. All four
45. UPSC Prelims 2024, Question 49
    With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
    1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
    2. 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?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
46. UPSC Prelims 2024, Question 50
    With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
    1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
    2. CSR rules do not specify minimum spending on CSR activities.
    Which of the statements given above is/are correct?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
47. UPSC Prelims 2024, Question 51
    Consider the following statements:
    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 USA 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?
    1. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
    2. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
    3. Statement-I is correct, but Statement-II is incorrect
    4. Statement-I is incorrect, but Statement-II is correct
48. UPSC Prelims 2024, Question 53
    Consider the following statements in respect of the digital rupee:
    1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
    2. It appears as a liability on the RBI’s balance sheet.
    3. It is insured against inflation by its very design.
    4. It is freely convertible against commercial bank money and cash.
    Which of the statements given above are correct?
    1. 1 and 2 only
    2. 1 and 3 only
    3. 2 and 4 only
    4. 1, 2 and 4
49. UPSC Prelims 2024, Question 85
    With reference to Union Budget, consider the following statements:
    1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
    2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India.
    Which of the statements given above is/are correct?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
50. UPSC Prelims 2024, Question 92
    Consider the following statements:
    Statement-I: India does not import apples from the United States of America.
    Statement-II: In India, the law prohibits the import of Genetically Modified food without the approval of the competent authority.
    Which one of the following is correct in respect of the above statements?
    1. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
    2. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
    3. Statement-I is correct, but Statement-II is incorrect
    4. Statement-I is incorrect, but Statement-II is correct
51. UPSC Prelims 2023, Question 2
    Consider the following pairs:

    	Port	Well known as
    1.	Kamarajar Port	First major port in India registered as a company
    2.	Mundra Port	Largest privately owned port in India
    3.	Visakhapatnam Port	Largest container port in India

    How many of the above pairs are correctly matched?
    1. Only one pair
    2. Only two pairs
    3. All three pairs
    4. None of the pairs
52. UPSC Prelims 2023, Question 4
    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?
    1. Only one
    2. Only two
    3. All three
    4. None
53. UPSC Prelims 2023, Question 10
    With reference to India’s projects on connectivity, consider the following statements:
    1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.
    2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.
    3. Bangladesh-China-India-Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.
    How many of the above statements are correct?
    1. Only one
    2. Only two
    3. All three
    4. None
54. UPSC Prelims 2023, Question 21
    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?
    1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
    2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
    3. Statement-I is correct but Statement-II is incorrect
    4. Statement-I is incorrect but Statement-II is correct
55. UPSC Prelims 2023, Question 22
    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?
    1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
    2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
    3. Statement-I is correct but Statement-II is incorrect
    4. Statement-I is incorrect but Statement-II is correct
56. UPSC Prelims 2023, Question 24
    Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?
    1. Conducting ‘Open Market Operations’
    2. Oversight of settlement and payment systems
    3. Debt and cash management for the Central and State Governments
    4. Regulating the functions of Non-banking Financial Institutions
57. UPSC Prelims 2023, Question 25
    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?
    1. Only one
    2. Only two
    3. Only three
    4. All four
58. UPSC Prelims 2023, Question 26
    Which one of the following best describes the concept of ‘Small Farmer Large Field’?
    1. Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
    2. Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
    3. Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
    4. A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production
59. UPSC Prelims 2023, Question 27
    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?
    1. Only one
    2. Only two
    3. All three
    4. None
60. UPSC Prelims 2023, Question 28
    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?
    1. Only one
    2. Only two
    3. Only three
    4. All four
61. UPSC Prelims 2023, Question 29
    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?
    1. Only two
    2. Only three
    3. Only four
    4. All five
62. UPSC Prelims 2023, Question 71
    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 ₹15 crore and ₹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?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
63. UPSC Prelims 2023, Question 72
    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?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
64. UPSC Prelims 2023, Question 73
    In the context of finance, the term ‘beta’ refers to
    1. the process of simultaneous buying and selling of an asset from different platforms
    2. an investment strategy of a portfolio manager to balance risk versus reward
    3. a type of systemic risk that arises where perfect hedging is not possible
    4. a numeric value that measures the fluctuations of a stock to changes in the overall stock market
65. UPSC Prelims 2023, Question 74
    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?
    1. Only one
    2. Only two
    3. All three
    4. None
66. UPSC Prelims 2023, Question 86
    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?
    1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
    2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
    3. Statement-I is correct but Statement-II is incorrect
    4. Statement-I is incorrect but Statement-II is correct
67. UPSC Prelims 2023, Question 88
    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?
    1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
    2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
    3. Statement-I is correct but Statement-II is incorrect
    4. Statement-I is incorrect but Statement-II is correct
68. UPSC Prelims 2022, Question 2
    With reference to the Indian economy, consider the following statements:
    1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
    2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
    3. 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?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
69. UPSC Prelims 2022, Question 3
    With reference to the Indian economy, consider the following statements:
    1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
    2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
    3. 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?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
70. UPSC Prelims 2022, Question 5
    With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”?
    1. Government can reduce the coupon rates on its borrowing by way of IIBs.
    2. IIBs provide protection to the investors from uncertainty regarding inflation.
    3. The interest received as well as capital gains on IIBs are not taxable.
    Which of the statements given above are correct?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
71. UPSC Prelims 2022, Question 6
    With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
    1. They can sell their own goods in addition to offering their platforms as market-places.
    2. The degree to which they can own big sellers on their platforms is limited.
    Select the correct answer using the code given below:
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
72. UPSC Prelims 2022, Question 7
    Which of the following activities constitute real sector in the economy?
    1. Farmers harvesting their crops
    2. Textile mills converting raw cotton into fabrics
    3. A commercial bank lending money to a trading company
    4. A corporate body issuing Rupee Denominated Bonds overseas
    Select the correct answer using the code given below:
    1. 1 and 2 only
    2. 2, 3 and 4 only
    3. 1, 3 and 4 only
    4. 1, 2, 3 and 4
73. UPSC Prelims 2022, Question 8
    Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?
    1. An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
    2. A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
    3. An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
    4. A foreign company transfers shares and such shares derive their substantial value from assets located in India
74. UPSC Prelims 2022, Question 9
    With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct?
    1. Acquiring new technology is capital expenditure.
    2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
    Select the correct answer using the code given below:
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
75. UPSC Prelims 2022, Question 10
    With reference to the Indian economy, consider the following statements:
    1. A share of the household financial savings goes towards government borrowings.
    2. Dated securities issued at market-related rates in auctions form a large component of internal debt.
    Which of the above statements is/are correct?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
76. UPSC Prelims 2022, Question 63
    Consider the following statements:
    1. In India, credit rating agencies are regulated by Reserve Bank of India.
    2. The rating agency popularly known as ICRA is a public limited company.
    3. Brickwork Ratings is an Indian credit rating agency.
    Which of the statements given above are correct?
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
77. UPSC Prelims 2022, Question 64
    With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?
    1. The Governor of RBI is the Chairman of BBB.
    2. BBB recommends for the selection of heads for Public Sector Banks.
    3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
    Select the correct answer using the code given below:
    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
78. UPSC Prelims 2022, Question 65
    With reference to Convertible Bonds, consider the following statements:
    1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
    2. 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?
    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
79. UPSC Prelims 2022, Question 68
    In India, which one of the following is responsible for maintaining price stability by controlling inflation?
    1. Department of Consumer Affairs
    2. Expenditure Management Commission
    3. Financial Stability and Development Council
    4. Reserve Bank of India
80. UPSC Prelims 2022, Question 71
    In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers?
    1. Central Statistics Office
    2. Department for Promotion of Industry and Internal Trade
    3. Labour Bureau
    4. National Technical Manpower Information System
81. UPSC Prelims 2022, Question 72
    In India, what is the role of the Coal Controller’s Organization (CCO)?
    1. CCO is the major source of Coal Statistics in Government of India.
    2. It monitors progress of development of Captive Coal/Lignite blocks.
    3. It hears any objection to the Government’s notification relating to acquisition of coal-bearing areas.
    4. 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:
    1. 1, 2 and 3
    2. 3 and 4 only
    3. 1 and 2 only
    4. 1, 2 and 4
82. UPSC Prelims 2022, Question 79
    With reference to the “Tea Board” in India, consider the following statements:
    1. The Tea Board is a statutory body.
    2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
    3. The Tea Board’s Head Office is situated in Bengaluru.
    4. The Board has overseas offices at Dubai and Moscow.
    Which of the statements given above are correct?
    1. 1 and 3
    2. 2 and 4
    3. 3 and 4
    4. 1 and 4

Take the timed test above to see the answers and explanations.