Era of Militant Nationalism (PYQ)

1. 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 (UPSC / IAS 2020)

2. If another global financial crisis happens in the near future, which of the following

actions/policies are most likely to give some immunity to India? (UPSC / IAS 2020)

(1) Not depending on short-term foreign borrowings

(2) Opening up to more foreign banks

(3) Maintaining full capital account convertibility

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3. Consider the following statements: (UPSC / IAS 2020)

(1) In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs)

deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.

(2) One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct?

4. With reference to the Indian economy after the 1991 economic liberalization, consider the fo llowing statements : (UPSC / IAS 2020)

(1) Worker productivity (Rs 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 the non-farm economy increased.

(4) The growth rate in rural employment decreased.

Which of the statements given above is/are correct?

5. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? (UPSC / IAS 2020)

(1) Cut and optimize the Statutory Liquidity Ratio

(2) Increase the Marginal Standing Facility Rate

(3) Cut the Bank Rate and Repo Rate

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6. With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? (UPSC / IAS 2020)

(1) Quantitative restrictions on imports by foreign investors are prohibited.

(2) They apply to investment measures related to trade in both goods and services.

(3) They are not concerned with the regulation of foreign investment.

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7. In the context of the Indian economy, non-financial debt includes which of the following? (UPSC / IAS 2020)

(1) Housing loans owed by households

(2) Amounts outstanding on credit cards

(3) Treasury bills

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8. With reference to the international trade of India at present, which of the following statements is/are correct? (UPSC / IAS 2020)

(1) India’s merchandise exports are less than its merchandise imports.

(2) India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.

(3) India’s exports of services are more than its imports of services.

(4) India suffers from an overall trade/current account deficit.

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9. With reference to the Indian economy, consider the following statements : (UPSC / IAS 2020)

(1) Commercial Paper is a short-term unsecured promissory note.

(2) Certificate of Deposit is a long-term Instrument issued by RBI to a corporation.

(3) ‘Call Money’ is short-term finance used for interbank transactions.

(4) “Zero-Coupon Bonds’ are the interest-bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct?

10. In India, which of the following can be considered as public investment in agriculture? (UPSC / IAS 2020)

(1) Fixing Minimum Support Price for agricultural produce of all crops

(2) Computerization of Primary Agricultural Credit Societies

(3) Social Capital development

(4) Free electricity supply to farmers

(5) Waiver of agricultural loans by the banking system

(6) Setting up of cold storage facilities by the governments.

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

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11. Consider the following statements : (UPSC / IAS 2020)

(1) The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

(2) The WPI does not capture changes in the prices of services, which CPI does.

(3) The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

12. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? (UPSC / IAS 2020)

(1) Working capital for maintenance of farm assets harvesters,

(2) Purchase of combine tractors and mini trucks requirements of farm

(3) Consumption households

(4) Post-harvest expenses

(5) Construction of family house and setting up of village cold storage facility

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13. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC / IAS 2020)

(1) Minimum Support Price

(2) Government’s trading

(3) Government’s stockpiling

(4) Consumer subsidies

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14. What is the importance of the term “Interest Coverage Ratio” of a firm in India? (UPSC / IAS 2020)

(1) It helps in understanding the present risk of a firm that a bank is going to give a loan to.

(2) It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.

(3) The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

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