Economy previous Year Questions from 2021 (UPSC/ IAS)

1. Which one of the following is likely to be one of the most inflationary in its effects? (UPSC / IAS 2021)

2. Which one of the following effects of creation of black money in India has been

the main cause of worry to the Government of India? (UPSC / IAS 2021)

3. Consider the following statements: (UPSC / IAS 2021)

The effect of the devaluation of a currency is that it necessarily

1. Improves the competitiveness of the domestic exports in the foreign markets
   2. Increase the foreign value of the domestic currency
   3. Improves the trade balance

Which of the above statements is/are

4. Consider the following: (UPSC / IAS 2021)

1. Foreign currency convertible bonds
   2. Foreign institutional investment with certain conditions
   3. Global depository receipts
   4. Non-resident external deposits

Which of the above can be included in Foreign Direct Investments?

5. Indian Government Bond yields are influenced by which of the following? (UPSC / IAS 2021)

1. Actions of the United States Federal Reserve
   2. Actions of the Reserve Bank of India
   3. Inflation and short-term interest rates.

Select the correct answer using the code given below

6. With reference to Urban Cooperative Banks in India, consider the following statements: (UPSC / IAS 2021)

1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1996
Which of the statements given above is/are correct?

7. Consider the following statements (UPSC / IAS 2021)

Other things remaining unchanged, market demand for a good might increase if

1. Price of its substitute increases
   2. Price of its complement increases
   3. The good is an inferior good and income of the consumers increases
   4. Its price falls

Which of the above statements are correct?

8. Which among the following steps is most likely to be taken at the time of an economic recession? (UPSC / IAS 2021)

9. With reference to the casual workers employed in India, consider the following statements: (UPSC / IAS 2021)

1. All casual workers are entitled to employees Provident Fund Coverage
   2. All casual workers are entitled to regular working hours and overtime payment
   3. The government can by notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

10. Consider the following statements: (UPSC / IAS 2021)

1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
   2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
   3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

11. In India, the central bank’s function as the “lender of last resort” usually refers to which of the following? (UPSC / IAS 2021)

1. Lending to trade and industry bodies when they fail to borrow from other sources
   2. Providing liquidity to the banks having a temporary crisis
   3. Lending to governments to finance budgetary deficits

Select the correct answer using the code given below

12. With reference to India, consider the following statements: (UPSC / IAS 2021)
1. Retail investors through Demat account can invest in Treasury Bills and Government of India Debt Bonds in the primary market
2. The “Negotiated Dealing System-Ordering Matching” is a government securities trading platform of the Reserve Bank of India.
3. The “Central Depository Services Ltd” is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?

13. With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? (UPSC / IAS 2021)

1. Expansionary policies
   2. Fiscal stimulus
   3. Inflation-indexing wages
   4. Higher purchasing power
   5. Rising interest rates

Select the correct answer using the code given below.

14. The money multiplier in an economy increases with which one of the following? (UPSC / IAS 2021)