Economy previous Year Questions from 2016 (UPSC/ IAS)

1. Which of the following best describes the term ‘import cover’, sometimes seen in the news? (UPSC / IAS 2016)

2. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements : (UPSC / IAS 2016)

(1) IMFC discusses matters of concern affecting the global economy and advises the International Monetary Fund (IMF) on the direction of its work.

(2) The World Bank participates as an observer in IMFC’s meetings.

Which of the statements given above is/are correct?

3. Recently, which one of the following currencies has been proposed to be added to the basket of

the IMF’s SDR? [  Current Affairs 2015-16] (UPSC / IAS 2016)

4. Which of the following is/are included in the capital budget of the Government of India? (UPSC / IAS 2016)

(1) Expenditure on acquisition of assets like roads, buildings, machinery, etc.

(2) Loans received from foreign governments

(3) Loans and advances granted to the States and Union Territories

Select the correct answer using the code given below.

5. With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct? (UPSC / IAS 2016)

(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.

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6. The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? (UPSC / IAS 2016)

(1) Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.

(2) Payment Banks can issue both credit cards and debit cards.

(3) Payment Banks cannot undertake lending activities.

Select the correct answer using the code given below.

7. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? (UPSC / IAS 2016)

(1) Reducing revenue expenditure

(2) Introducing new welfare schemes

(3) Rationalizing subsidies

(4) Reducing import duty

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8. ‘European Stability Mechanism’, sometimes seen in the news, is an (UPSC / IAS 2016)

9. On which of the following can you find the Bureau of Energy Efficiency Star Label? (UPSC / IAS 2016)

(1) Ceiling fans

(2) Electric geysers

(3) Tubular fluorescent lamps

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10. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in

the context of the affairs of a group of countries known as (UPSC / IAS 2016)

11. ‘Global Financial Stability Report’ is prepared by the (UPSC / IAS 2016)

12. What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? (UPSC / IAS 2016)

(1) To bring the idle gold lying with Indian households into the economy

(2) To promote FDI in the gold and jewellery sector

(3) To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

13. With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct? (UPSC / IAS 2016)

(1) Bitcoins are tracked by the Central Banks of the countries.

(2) Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

(3) Online payments can be sent without either side knowing the identity of the other.

Select the correct answer using the code given below.

14. Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in

[Question from  2015-16 current affair] (UPSC / IAS 2016)

15. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (UPSC / IAS 2016)

16. With reference to ‘Financial Stability and Development Council’, consider the following statements  (UPSC / IAS 2016):

(1) It is an organ of NITI Aayog.

(2)It is headed by the Union Finance Minister.

(3) It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

17. What is/are the purpose/purposes of the `Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI? (UPSC / IAS 2016)

(1) These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

(2) These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

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18. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news.

Which of the following has declared that ranking? (UPSC / IAS 2016)

19. With reference to pre-packaged items in India, it is mandatory to the manufacturer to put

which of the following information on the main label, as per the Food Safety and Standards

(Packaging and Labelling) Regulations, 2011? (UPSC / IAS 2016)

(1) List of ingredients including additives

(2) Nutrition information

(3) Recommendations, if any, made by the medical profession about the possibility of any allergic reactions

(4) Vegetarian/non-vegetarian

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20. The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements

best describes/describe this term? (UPSC / IAS 2016)

(1) It is a networking of a bank’s branches that enables customers to operate their accounts from any

branch of the bank on its network regardless of where they open their accounts.

(2) It is an effort to increase RBI’s control over commercial banks through computerization.

(3) It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

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