Economics MCQs
Indian economy and economics MCQs for UPSC CSE Prelims, with explanations.
ECONOMICS · Cyber Insurance
In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss…
ECONOMICS · Cooperative Banking — DCCBs
Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks…
ECONOMICS · Structural Change after 1991
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 1. Worker productivity (per…
ECONOMICS · Monetary Policy — Expansionist Policy
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liqu…
ECONOMICS · WTO — TRIMS
With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions…
ECONOMICS · Nuclear Energy & International Safeguards
In India, why are some nuclear reactors kept under “IAEA Safeguards” while others are not?
ECONOMICS · Debt — Non-financial Sector
In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owned by households 2. Amounts o…
ECONOMICS · Crude Oil Markets
The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of
ECONOMICS · Foreign Direct Investment
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
ECONOMICS · Money Market Instruments
With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2…
ECONOMICS · Agricultural Policy — MSP Procurement
Consider the following statements: 1. In the case of all cereals, pulses and oil-seeds, procurement at Minimum Support Prices (MSP) is unli…
ECONOMICS · Inflation Indices — CPI and WPI
Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI…
ECONOMICS · Kisan Credit Card
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital f…
ECONOMICS · G20
In which one of the following groups are all the four countries members of G20?
ECONOMICS · India’s Trade Relations in South Asia
Consider the following statements: 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2. “Textile and text…
ECONOMICS · Agricultural Prices — Rice
Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Governmen…
ECONOMICS · Banking — Interest Coverage Ratio
What is the importance of the term “Interest Coverage Ratio” of a firm in India? 1. It helps in understanding the present risk of a firm th…
ECONOMICS · Public Investment in Agriculture
In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural pr…
ECONOMICS · Fiscal Policy — FRBM
Along with the Budget, the Finance Minister also places other documents before Parliament which include the ‘Macro-Economic Framework State…
ECONOMICS · International Monetary Fund — Reserve Tranche
“Gold Tranche” (Reserve Tranche) refers to
ECONOMICS · Money Supply — Demand Deposits
If you withdraw ₹2,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the econ…
ECONOMICS · Financial Stability — Capital Account
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunit…
ECONOMICS · Deficit financing and inflation
Which one of the following is likely to be the most inflationary in its effects?
ECONOMICS · Black money
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?
ECONOMICS · Currency devaluation
Consider the following statements: The effect of devaluation of a currency is that it necessarily 1. improves the competitiveness of the do…
ECONOMICS · Foreign direct investment
Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global deposit…
ECONOMICS · Government bond yields
Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the R…
ECONOMICS · Urban Cooperative Banks
With reference to 'Urban Cooperative Banks' in India, consider the following statements: 1. They are supervised and regulated by local boar…
ECONOMICS · Demand and elasticity
Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute…
ECONOMICS · Counter-cyclical fiscal policy
Which among the following steps is most likely to be taken at the time of an economic recession?
ECONOMICS · Labour laws and casual workers
With reference to casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Pro…
ECONOMICS · RBI governance
Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain pr…
ECONOMICS · Lender of last resort
In India, the central bank's function as the 'lender of last resort' usually refers to which of the following? 1. Lending to trade and indu…
ECONOMICS · WaterCredit and financial inclusion
With reference to 'WaterCredit', consider the following statements: 1. It puts microfinance tools to work in the water and sanitation secto…
ECONOMICS · Commodity boards and tea industry
With reference to the “Tea Board” in India, consider the following statements: 1. The Tea Board is a statutory body. 2. It is a regulatory…
ECONOMICS · Coal sector administration
In India, what is the role of the Coal Controller’s Organization (CCO)? 1. CCO is the major source of coal statistics in Government of Indi…
ECONOMICS · Labour statistics
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employi…
ECONOMICS · Digital assets and NFTs
With reference to Non-Fungible Tokens (NFTs), consider the following statements: 1. They enable the digital representation of physical asse…
ECONOMICS · Vietnamese economic growth and global supply chains
Consider the following statements: 1. Vietnam has been one of the fastest-growing economies in the world in recent years. 2. Vietnam is led…
ECONOMICS · Convertible bonds
With reference to Convertible Bonds, consider the following statements: 1. As there is an option to exchange the bond for equity, Convertib…
ECONOMICS · Public sector banking governance
With reference to the Banks Board Bureau (BBB), which of the following statements are correct? 1. The Governor of the Reserve Bank of India…
ECONOMICS · Financial markets and credit rating agencies
Consider the following statements: 1. In India credit rating agencies are regulated by the Reserve Bank of India. 2. The rating agency popu…
ECONOMICS · Inflation targeting and RBI
In India which one of the following is responsible for maintaining price stability by controlling inflation?
ECONOMICS · Public debt and household savings
With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards governm…
ECONOMICS · Capital and revenue expenditure
With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct? 1. Acquiring new…
ECONOMICS · Indirect transfer taxation
Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?
ECONOMICS · Inflation-indexed bonds
With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? 1. Government can reduce the coupon rate…
ECONOMICS · International Economy — G20
Consider the following statements about G-20: 1. The G-20 group was originally established as a platform for the Finance Ministers and Cent…
ECONOMICS · Energy — Green Hydrogen
Consider the following heavy industries : 1. Fertilizer plants 2. Oil refineries 3. Steel plants Green hydrogen is expected to play a signi…
ECONOMICS · European Union — Fiscal Policy
Consider the following statements : The 'Stability and Growth Pact' of the European Union is a treaty that 1. limits the levels of the budg…
ECONOMICS · Industry — Production Linked Incentive
Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II : Many local companies an…
ECONOMICS · International Economy — Trade & Technology
Consider the following statements : Statement-I : Recently, the United States of America (USA) and the European Union (EU) have launched th…
ECONOMICS · International Economy — Gold Trade
Consider the following statements : Statement-I : Switzerland is one of the leading exporters of gold in terms of value. Statement-II : Swi…
ECONOMICS · Financial Inclusion — SHGs
Consider the following statements : 1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing…
ECONOMICS · Financial Markets — Beta
In the context of finance, the term 'beta' refers to
ECONOMICS · Digital Currency — CBDC
With reference to Central Bank digital currencies, consider the following statements : 1. It is possible to make payments in a digital curr…
ECONOMICS · MSMEs
Consider the following statements with reference to India : 1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Ac…
ECONOMICS · Energy — Thermal Power
With reference to coal-based thermal power plants in India, consider the following statements: 1. None of them uses seawater. 2. None of th…
ECONOMICS · Energy — Green Hydrogen
With reference to green hydrogen, consider the following statements : . 1. It can be used directly as a fuel for internal combustion. 2. It…
ECONOMICS · Infrastructure Investment
Consider the following infrastructure sectors : 1. Affordable housing 2. Mass rapid transport 3. Health care 4. Renewable energy On how man…
ECONOMICS · Fiscal Federalism — Finance Commission
Consider the following : 1. Demographic performance 2. Fore~t and ecology 3. Governance reforms 4. Stable government 5. Tax and fiscal effo…
ECONOMICS · Capital & Intangible Assets
Consider the investments in the following assets : 1. Brand recognition 2. Inventory 3. Intellectual property 4. Mailing list of clients Ho…
ECONOMICS · Agriculture — MSP & Crops
Consider the following statements : 1. The Government of India provides Minimum Support Price for niger · ( Guizotia abyssinica) seeds. 2.…
ECONOMICS · Agriculture — Small Farmer Large Field
Which one of the following best describes the concept of 'Small Farmer Large Field'?
ECONOMICS · Financial Markets — Money & Capital Markets
Consider the following markets : 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the abo…
ECONOMICS · Monetary Policy — Sterilization
Which one of the following .activities of the Reserve Bank of India is considered to be part of 'sterilization'?
ECONOMICS · Carbon Markets
Consider the following statements : Statement-I : Carbon markets are likely to be one of the most widespread tools in the fight against cli…
ECONOMICS · Monetary Policy — Inflation & Interest Rates
Consider the following statements : Statement-I : . In the post-pandemic recent past, many Central Banks worldwide had carried out interest…
ECONOMICS · Financial Markets — InvITs
Consider the following statements : Statement-I : Interest income from the deposits in Infrastructure Investment Trusts (InviTs) distribute…
ECONOMICS · Government securities market
With reference to India, consider the following statements: 1. Retail investors through demat account can invest in 'Treasury Bills' and 'G…
ECONOMICS · Demand-pull inflation
With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fisc…
ECONOMICS · Money multiplier
The money multiplier in an economy increases with which one of the following?
ECONOMICS · Sovereign debt restructuring and G20
With reference to the “G20 Common Framework”, consider the following statements: 1. It is an initiative endorsed by the G20 together with t…
ECONOMICS · Monetary policy and foreign exchange intervention
With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is li…
ECONOMICS · Exchange rates: NEER and REER
With reference to the Indian economy, consider the following statements: 1. An increase in Nominal Effective Exchange Rate (NEER) indicates…
ECONOMICS · International financial institutions and IMF facilities
“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?
ECONOMICS · Real sector versus financial sector
Which of the following activities constitute real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw…
ECONOMICS · FDI policy in e-commerce
With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell the…
ECONOMICS · Indian Economy: Social Security
Consider the following statements regarding the Pradhan Mantri Shram Yogi Maandhan: 1. The entry age is between 21 and 40 years. 2. The con…
ECONOMICS · International Economy: Venezuela
Consider the following statements: Statement-I: Venezuela has rapidly recovered from its economic crisis and prevented large-scale emigrati…
ECONOMICS · International Economy: Green Industry
Consider the following statements: Statement-I: The European Parliament approved the Net-Zero Industry Act. Statement-II: The European Unio…
ECONOMICS · International Economy: Trade
Consider the following statements: Statement-I: India does not import apples from the United States of America. Statement-II: India has a l…
ECONOMICS · International Economy: Food Trade
Consider the following statements: 1. India is a member of the International Grains Council. 2. Membership of the International Grains Coun…
ECONOMICS · Indian Economy: Digital Currency
Consider the following statements regarding the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India. 2. It app…
ECONOMICS · Indian Economy: Public Finance
Consider the following statements regarding the public debt of the United States: 1. In the event of a default, debt holders cannot exercis…
ECONOMICS · Indian Economy: Corporate Regulation
Consider the following statements regarding Corporate Social Responsibility: 1. Expenditure that directly benefits the company or its emplo…
ECONOMICS · Indian Economy: Banking
Consider the following statements regarding foreign banks operating in India: 1. There is no minimum capital requirement for a wholly owned…
ECONOMICS · Indian Economy: Physical Capital
Consider the following pairs: 1. Farmer's plough — Working capital 2. Computer — Fixed capital 3. Yarn — Fixed capital 4. Petrol — Working…
ECONOMICS · Indian Economy: Green Energy
Consider the following as possible feedstocks for Sustainable Aviation Fuel: 1. Agricultural residues 2. Corn grain 3. Wastewater treatment…
ECONOMICS · Indian Economy: Sectors
Consider the following pairs: 1. Storage of agricultural produce — Secondary sector 2. Dairy farming — Primary sector 3. Mineral exploratio…
ECONOMICS · Indian Economy: Financial Instruments
Consider the following: 1. Exchange-Traded Funds 2. Motor vehicles 3. Currency swaps Which of the above are financial instruments?
ECONOMICS · Indian Economy: Financial Markets
Consider the following: 1. Insurance companies 2. Pension funds 3. Retail investors Who among the above can trade in Corporate Bonds and Go…
ECONOMICS · Indian Economy: Banking
Consider the following statements: 1. Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Ba…
ECONOMICS · Indian Economy: Demography
Total Fertility Rate refers to which one of the following?
ECONOMICS · Indian Economy: Financial Markets
Collateral Borrowing and Lending Obligations are instruments of which one of the following markets?
ECONOMICS · Indian Economy: Energy
Pumped-storage hydropower is mainly used for which one of the following purposes?
ECONOMICS · Indian Economy: Energy
Consider the following: 1. Battery storage 2. Biomass generators 3. Fuel cells 4. Rooftop solar photovoltaic systems How many of the above…
ECONOMICS · Indian Economy: Agriculture
Which one of the following best describes the initiative '100 Million Farmers'?