UPSC Civil Services Examination (Prelims) Indian Economy Hard Previous Year Questions

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India:
Statement 1. NBFCs cannot accept demand deposits.
Statement 2. All the NBFCs operating in India have to be registered with the RBI.
Statement 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself.
Statement 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?

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:

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?

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?

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?

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?

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?

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?

'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?

With reference to India, consider the following statements:

1. Retail investors through demat account can invest in 'Treasury Bills' and 'Government of India Debt Bonds' in primary market.
2. The 'Negotiated Dealing System-Order Matching' is a government securities trading platform of the Reserve Bank of India.
3. The 'Central Depository Services Ltd.' is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
   Which of the statements given above is/are correct?

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give greater immunity to India?

1. Not depending on short-term foreign borrowings
2. Opening up to more foreign banks
3. Maintaining full capital account convertibility
   Select the correct answer using the code given below:

If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be:
(a) to reduce it by ₹1,00,000
(b) to increase it by ₹1,00,000
(c) to increase it by more than ₹1,00,000
(d) to leave it unchanged

With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity (₹ per worker) at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
   Which of the statements given above is/are correct?
   (a) 1 and 2 only
   (b) 3 and 4 only
   (c) 3 only
   (d) 1, 2, 3 and 4

In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agricultural produce
2. Computerisation of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans from the banking system
6. Setting up of cold storage facilities by the government
   Select the correct answer using the code given below:
   (a) 1, 2 and 5 only
   (b) 1, 3 and 4 and 6 only
   (c) 2, 3 and 6 only
   (d) 1, 2, 5 and 6 only

In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agricultural produce
2. Computerisation of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans from the banking system
6. Setting up of cold storage facilities by the government
   Select the correct answer using the code given below:
   (a) 1, 2 and 5 only
   (b) 1, 3, 4 and 6 only
   (c) 2, 3 and 6 only
   (d) 1, 2, 5 and 6 only