Economy previous Year Questions from 2017 (UPSC/ IAS)

1. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC / IAS 2017)

(1) It decides the RBI’s benchmark interest rates.

(2) It is a 12-member body including the Governor of RBI and is reconstituted every year.

(3) It functions under the chairmanship of the Union Finance Minister.

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2. Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (UPSC / IAS 2017)

3. What is the purpose of setting up Small Finance Banks (SFBs) in India? (UPSC / IAS 2017)

(1) To supply credit to small business units

(2) To supply credit to small and marginal farmers

(3) To encourage young entrepreneurs to set up business particularly in rural areas.

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4. Consider the following statements : (UPSC / IAS 2017)

(1) Tax revenue as a percent of GDP of India has steadily increased in the last decade.

(2) Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.

Which of the statements given above is/are correct ?

5. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? (UPSC / IAS 2017)

(1) It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

(2) It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.

(3) It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.

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6. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct? (UPSC / IAS 2017)

(1) It is an organ of NITI Aayog.

(2) It has a corpus of Rs. 4, 00,000 crore at present.

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