UPSC (Prelims) 2023 Indian Economy Previous Year Questions

Consider the following statements:
Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax in India.
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?

Consider the following statements:
Statement-I: In the post-pandemic recent past, many Central Banks worldwide have 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?

Which of the following activities of the Reserve Bank of India are considered to be part of 'Open Market Operations'?

1. Conducting 'Repo' and 'Reverse Repo' Operations
2. Conducting 'Marginal Standing Facility' Operations
3. Debt and cash management for the Central Government
4. Regulating of Non-banking Financial Institutions
   How many of the above are considered as part of OMO?

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?

Which one of the following best describes the concept of 'Small Farmer Large Field'?
(a) Resettlement of a large number of people, uprooted from their homeland, in a large tract of land allotted to them to cultivate collectively and share the produce.
(b) Many marginal farmers in an area put their land together and synchronize and harmonize actions related to agricultural operations.
(c) Many marginal farmers in an area form a farmer collective body, make a contract with a corporate body and surrender the management of their land to the corporate body, which makes a payment to the farmers and carries out farming.
(d) A company extends loans, technical knowhow and material inputs to a number of small farmers in its vicinity, and the produce is harvested by the company for its commercial production.

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?

Consider the investments in the following:

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

Consider the following infrastructure sectors:

1. Affordable housing
2. Mass rapid transport
3. Health care
4. Renewable energy
   How many of the above are included in the capital markets?

With reference to coal-based thermal power plants in India, consider the following statements:

1. None of them are set up in proximity of coal mines.
2. None of them is privately owned.
   Which of the statements given above is/are correct?

'Microsatellite DNA' is used in the case of
(a) Collecting DNA samples from air
(b) Forensic identification of individuals
(c) Using air-borne devices to collect blood samples
(d) Converting crop residues

Actual Q70 from paper: 'Microsatellite DNA' is used in the case of forensic identification — but per the actual page_029 image content:
Consider the following activities:

1. Spreading finely ground basalt rock on farmlands extensively.
2. Capturing carbon dioxide released from the air by adding chemicals.
3. Capturing carbon dioxide released from the air by buildings and converting it into fuels.
   How many of the above activities are considered as being related to carbon capture and utilisation?

Actual Q70 from page_029: Consider the following statements:

1. All bank loans to the Micro, Small and Medium Enterprises (MSME) sector are automatically classified as priority sector loans.
2. MSMEs borrowing up to ₹25 crore and with a turnover up to ₹125 crore are eligible for restructuring of their loans under the priority sector.
   Which of the statements given above is/are correct?

With reference to Central Bank Digital Currency, consider the following statements:

1. It is possible to make payments in a digital currency without going through the internet.
2. A digital currency can be converted into any amount into currency notes.
3. It can be used for making payments only in a fixed time frame for spending it.
   Which of the statements given above is/are correct?

In the context of finance, the term 'beta' refers to which one of the following?
(a) The simultaneous processing of buying and selling of a strategy of a portfolio manager
(b) Converting crop residues into building materials
(c) Producing biodegradable plastics
(d) A numeric value that measures the fluctuations of a stock with respect to changes in the overall stock market

Actual Q73 from paper (page_041): With reference to India, consider the following statements:

1. The United States of America (USA) and the European Union (EU) have proportionately more foreign direct investments in India.
2. Many local companies and start-ups in India have received large investments from foreign companies and institutions.
3. FDI in India is defined as 'Production-linked Incentive' scheme.
   Which of the statements given above is/are correct?

Consider the following statements:
Statement-I: The 'Stability and Growth Pact' of the European Union is a treaty that limits the budgetary deficit of the countries of the European Union.
Statement-II: Switzerland is one of the leading gold reserves in the world.
Which one of the following is correct in respect of the above statements?

Consider the following statements:
Statement-I: India's public health expenditure as a percentage of GDP is less than that of Brazil, Russia, China and South Africa.
Statement-II: In India, the Central Government's expenditure on health as a proportion of its total expenditure is less than that of some other lower-middle-income countries.
Which one of the following is correct in respect of the above statements?

Consider the following statements in respect of election to the President of India:

1. The members nominated to either House of the Parliament or the Legislative Assemblies of States are also eligible to be included in the Electoral College.
2. Higher the number of elective Assembly seats in a State, higher is the value of vote of each MLA from that State.
3. The value of vote of each MLA of Madhya Pradesh is greater than that of Kerala.
4. The value of vote of each MLA of Puducherry is higher than that of Arunachal Pradesh because the ratio of total population to total number of elective seats of Puducherry is greater as compared to Arunachal Pradesh.

Actual Q96 from page_043 (correct):
Consider the following statements with regard to green industries:

1. India accounts for 2% of global exports of goods.
2. Many local companies in India have received large investments from foreign companies.
3. FDI in India is defined as 'Production-linked Incentive' scheme.