Economy Questions - upsc Practice

#1

Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3 .Currency swap Which of the above is/are considered financial instruments?

1 only 2 and 3 only 1, 2 and 3 1 and 3 only

#2

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?

Only one Only two Only three All four

#3

Consider the following statements: 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?

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I Statement-I is correct, but Statement-II is incorrect. Statement-I is incorrect, but Statement-II is correct.

#4

With reference to the Digital India Land Records Modernisation Programme, consider the following statements: 1. To implement the scheme, the Central Government provides 100% funding. 2. Under the Scheme, Cadastral Maps are digitised. 3. 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?

1 and 2 only 2 and 3 only 1 and 3 only 1, 2 and 3

#5

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 and 2 only 2 and 3 only 1 and 3 only 1, 2 and 3

#6

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 only 2 only Both 1 and 2 Neither 1 nor 2

#7

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 and 2 only 1 and 3 only 2 and 4 only 1, 2 and 4

#8

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 and 2 only 3 only 1, 2 and 3 2 and 3 only

#9

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 only 2 only Both 1 and 2 Neither 1 nor 2

#10

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?

Only one Only two Only three All four

#11

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

Bond market Forex market Money market Stock market

#12

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?

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I Statement-I is correct, but Statement-II is incorrect. Statement-I is incorrect, but Statement-II is correct.