Economy previous Year Questions from 2018 (UPSC/ IAS)

1. With reference to the governance of public sector banking in India, consider the following statements (UPSC / IAS 2018)

(1) Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

(2) To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct ?

2. With reference to digital payments, consider the following statements: (UPSC / IAS 2018)

(1) BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

(2) While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

3. Consider the following statements: (UPSC / IAS 2018)

(1) Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own

funds to offset any loss that banks incur if the account-holders fail to repay dues.

(2) CAR is decided by each individual bank.

Which of the statements given above is/are correct?

4. Consider the following statements: (UPSC / IAS 2018)

(1) The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.

(2) Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.

(3) Treasury bills offered are issued at a discount from the par value.

Which of the statements given above is/are correct?

5. Despite being a high saving economy, capital formation may not result in significant increase in output due to (UPSC / IAS 2018)

6. Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables (UPSC / IAS 2018)

(1) individuals of a country to accumulate more capital.

(2) increasing the knowledge, skill levels and capacities of the people of the country.

(3) accumulation of tangible wealth.

(4) accumulation of intangible wealth.

Which of the statements given above is/are correct?

7. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC / IAS 2018)

8. If a commodity is provided free to the public by the Government, then (UPSC / IAS 2018)

9. Which one of the following statements correctly describes the meaning of legal tender money ? (UPSC / IAS 2018)

10. Which one of the following links all the ATMs in India ? (UPSC / IAS 2018)

11. Consider the following statements (UPSC / IAS 2018)

(1) The quantity of imported edible oils is more than the domestic production of

edible oils in the last five years.

(2) The Government does not impose any customs duty on all the imported edible

oils a special case.

Which of two statements given above is/are correct

12. Consider the following statements (UPSC / IAS 2018)

(1) The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended

a debt to GDP ratio of 60% for the general (combined) government by 2023, c

omprising 40% for the Central Government and 20% for the State Governments.

(2) The Central Government has domestic liabilities of 21% of GDP as compared to that of

war of GDP of the State 2 Governments.

(3) As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for

raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

13. Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in the news? (UPSC / IAS 2018)