UPSC Indian Economy Test 4 (Old Year Questions)

Consider the following actions which the government can take:
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs.
Which of the above action/actions can help in reducing the current account deficit?

A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector,
Select the correct answer using the code given below.

India is regarded as a country with “Demographic Dividend”. This is due to

With what purpose is the Government of India promoting the concept of “Mega Food Parks”?

1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.
Select the correct answer using the codes given below:

Microfinance is the provision of financial services to people of low-income goups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are:

1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities
Select the correct answer using the codes given below the lists:

Regarding the International Monetary Fund, which one of the following statements is correct?

Which one of the following is not a feature of “Value Added Tax”?

A “closed economy” is an economy in which

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

A decrease in tax to GDP ratio of a country indicates which of the following?
Slowing economic growth rate
Less equitable distribution of national income
Select the correct answer using the codes given below.

In the “Index of Eight Core Industries”, which one of the following is given the highest weight?

The Fair and Remunerative Price (FRP) of surgarcane is approved by the

Which one of the following issues the “Global Economic Prospects” report periodically?

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

In India, markets in agricultural products are regulated under the

Which of the following brings out the “Consumer Price Index Number for Industrial Workers?

The terms “Agreement on Agriculture”, Agreement on the Application of Sanitary and Phytosanitary Measure” and “Peace Clause” appear in the news frequently in the context of the affairs of the

Convertibility of rupee implies

As regards the use of international food safety standards as reference point for the dispute settlements, which one of the following does WTO collaborates with ?