GS TEST SERIES – 9
1. With reference to capital markets, ‘rights issue’ essentially refers to ?
(a) An offering of shares to the new shareholders by a company to generate additional capital.
(b) Buying of shares from the secondary markets by the existing shareholders of a company.
(c) An invitation to existing shareholders of a company to buy additional shares directly from the company.
(d) Buying back of shares by the company to increase the rights of existing shareholders.
2. With reference to ‘multi-bagger stocks’, consider the following statements:
1. A stock is considered a multi-bagger if it gives a return of 100% or more.
2. They are highly overvalued stocks with a low price-to-earnings ratio.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
3. Consider the following statements with reference to Priority Sector Lending (PSL) norms:
1. Under the norms, small finance banks must allocate 75 percent of Adjusted Net Bank Credit (ANBC) to the priority sectors.
2. MSME credit and export credit are included under the category of PSL.
3. The provisions of priority sector lending shall not apply to foreign banks.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
4. With reference to off-budget borrowings by the Indian government, which of the following statements is/are correct?
1. These loans are not taken by the centre directly, but by another public institution that borrows on the directions of the central government.
2. These loans are included in the national fiscal deficit.
3. These borrowings can be used to fund both capital and revenue expenditure.
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
5. Consider the following statements:
1. India’s GDP in terms of Purchasing Power Parity (PPP) is more than its nominal GDP.
2. Recently, India became the fifth-largest economy in the world in terms of PPP.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
6. Which of the following funds invest exclusively in government securities?
(a) Index Funds
(b) Open-ended Fund
(c) Equity Oriented Scheme
(d) Gilt Funds
7. Joshimath recently seen in the news is culturally famous because:
1. It is one of the maths established by Shankaracharya.
2. It is one of the prominent route to Badrinath and Hemkund Sahib Gurudwara.
3. It was ruled by Katyuri kings.
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
8. Consider the following statements:
1. Money multiplier increases with increase in Cash Reserve Ratio.
2. Since demonetisation in 2016, currency held with public has steadily decreased.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
9. As a banker of banks, how does the Reserve Bank of India (RBI) assist banks?
1. By opening current accounts of individual banks in e-Kuber
2. By providing short term loans
3. By acting as a lender of last resort
Select the correct answer using code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
10. In the context of government financing, the term helicopter drop is best defined as:
(a) the recovery of unpaid taxes from tax havens and using the same for government expenses.
(b) the abrupt increase in government subsidies to give a boost to ailing sectors in an economy.
(c) a monetary stimulus strategy to spur inflation and economic output.
(d) a situation in which the revenue income of a government in a given financial year is more than the estimated amount.
11. Consider the following statements with reference to the National Small Savings Fund (NSSF) in India:
1. All deposits under small savings schemes are credited to the NSSF which forms the part of Consolidated Fund of India.
2. NSSF invests the net collections of small savings in the special state government securities (SSGS) and special central government securities (SCGS).
3. The investments from NSSF in special central government securities (SCGS) carry a rate of interest fixed by the Reserve Bank of India from time to time.
Which of the statements given above is/are correct?
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 2 only
12. Consider the following statements regarding National Bank for Financing Infrastructure Development (NaBFID):
1. It will solve the long-term credit bottlenecks of infrastructural projects.
2. It will be regulated and supervised as an All-India Financial Institution by RBI.
3. It is the second All India Financial Institution developed in India.
Which of the statements given above is/are correct?
(a) 2 only
(b) 1, 2 and 3
(c) 1 and 2 only
(d) 1 only
13. Consider the following statements:
1. Written-off loans are still counted as assets as the borrowers are still liable for repayment.
2. The tax liability of a bank reduces if it writes off a loan.
3. Private sector banks accounts for more than 50% of the total banking sector write-offs in India.
Which of the statements given above are not correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
14. Consider the following statements about green ammonia:
1. It is produced by using hydrogen from water electrolysis and nitrogen separated from the air.
2. It is cost efficient as compared to conventionally produced ammonia.
3. It can be used in the production of zero carbon fuel.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
15. Which of the following is not correct with respect to Phillips Curve?
(a) A higher unemployment rate is associated with lower inflation.
(b) A higher unemployment rate is associated with higher inflation.
(c) A lower unemployment rate is associated with higher inflation.
(d) High levels of employment can be achieved at high levels of inflation.
16. “Digital Innovation Alliance” recently in the news, is related to the affairs of which of the following?
(a) Shanghai Cooperation Organisation
(b) G-20
(c) World Economic Forum
(d) World Intellectual Property Organization
17. With reference to the nonaccelerating inflation rate of unemployment (NAIRU), consider the following statements:
1. It accounts for the impact of inflation on unemployment in an economy.
2. The economy operates above its full capacity when the unemployment rate is lower than the NAIRU.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
18. Consider the following statements regarding the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002:
1. The SARFAESI Act is applicable to all secured and unsecured loans.
2. Cooperative Banks can invoke the SARFAESI Act to recover the loans.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
19. With reference to the fundamentals of the capital market, which one of the following statements is not correct?
(a) The cut-off price is the offer price at which the shares get issued to the investors, which could be any price within the price band.
(b) The floor price is the highest price in the share price band.
(c) The face value of a share is the value at which the share is listed on the stock market.
(d) Arbitrage is the practice of buying an asset in one market and simultaneously selling it in another, but at a higher price.
20. With reference to banking operations, which of the following best defines the term “Fractional Reserve Banking”?
(a) A system where the government shares the responsibility of inflation targeting with the central bank.
(b) A system in which banks hold a portion of customer deposits and use the rest in loans to other customers.
(c) A new age supervisory method to tackle blockchain based transactions outside of the traditional banking system
(d) A system of banking where banks do not lend demand deposits and instead, only lend from time deposits.
21. Consider the following statements with reference to legal tender:
1. One rupee coin shall be legal tender for any sum not exceeding one thousand rupees.
2. Cheques drawn on savings or current accounts are not legal tenders.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
22. In the context of National Income Accounting, consider the following statements regarding private income:
1. Private income refers to total factor income earned exclusively within the domestic territory.
2. Like National Income, private income excludes transfer payments.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
23. Which of the following are the likely impacts of inflation on the Indian economy?
1. Increase in fiscal deficit
2. Recession in some sectors
3. Increase in current account deficit
4. Appreciation of Indian currency
Select the correct answer using the code given below.
(a) 1, 3 and 4 only
(b) 1, 2 and 3 only
(c) 2 and 4 only
(d) 1, 2, 3, and 4
24. With reference to the Small Industries Development Bank of India (SIDBI), consider the following statements:
1. The primary function of the Small Industries Development Bank of India (SIDBI) is to provide finance to small and medium enterprises.
2. SIDBI provides credit support for skill development and technology modernisation.
3. RBI is the largest shareholder of SIDBI. Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
25. Which of the following can be possible impacts of the monetization of the deficit from the Reserve Bank of India?
1. Increase in aggregate demand
2. Downgrade ratings of Government bonds
3. Depreciation of the rupee
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
26. Consider the following statements with reference to the Basel norms:
1. These are international banking regulations issued by Basel Committee on Banking Supervision (BCBS).
2. Under the norms, Tier 2 capital is more liquid and considered more secure than Tier 1 capital.
3. Basel III norms prescribe the capital conservation buffer and the countercyclical capital buffer to mitigate systemic risk.
Which of the following statements above are correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
27. With reference to Quantitative Easing, which among the following statements is/are correct?
1. Under this policy, the central bank sells government securities.
2. It is adopted to increase the interest rates and to decrease the money supply.
3. It can lead to higher rates of inflation. Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
28. With reference to Regional Rural Banks (RRBs) in India, consider the following statements:
1. They are owned by the central government and the concerned state government with a 50:50 proportion in shareholding.
2. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.
3. The target of priority sector lending norms applicable to RRBs is higher than that of commercial banks.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
29. Consider the following statements regarding banking system liquidity:
1. If the banking system is a net lender to the RBI, the system liquidity can be said to be in surplus.
2. A festival season can create a liquidity deficit in the banking system.
3. A widening liquidity deficit can lead to higher interest rates for depositors.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
30. With reference to the Hornbill festival organized recently, consider the following statements regarding the great hornbills:
1. They are the state bird of Kerala and Arunachal Pradesh.
2. They are called ‘engineers of the forests’ as they play a crucial role in dispersing seeds of tropical trees.
3. They are listed as vulnerable species in the IUCN Red List of Threatened Species.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
31. With reference to the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which of the following fiscal indicators have to be projected in the Medium Term Fiscal Policy statement?
1. Revenue Deficit
2. Fiscal Deficit
3. Effective Revenue Deficit
4. Tax to GDP ratio
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 1, 2 and 4 only
(c) 3 and 4 only
(d) 1, 2, 3 and 4
32. Which of the following statements correctly explains the term ‘stagflation’?
(a) It occurs when the price of the commodities remain stagnant over a period of one year.
(b) It occurs when wages press prices up and prices pull wages up.
(c) It is a situation in an economy when inflation is caused due to full employment.
(d) It is a scenario of combination of high inflation and low growth.
33. Consider the following statements regarding call money and notice money:
1. Under the notice money market, funds are transacted on an overnight basis.
2. The Reserve Bank of India decides the interest rates in the call money markets.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
34. With reference to inflation targeting responsibility of the RBI, consider the following statements:
1. The RBI in consultation with the government decides the inflation target in terms of the Consumer Price Index.
2. If average inflation remains higher than the upper tolerance level for two consecutive quarters, it constitutes a failure to achieve the inflation target.
3. The Inflation target and tolerance band have to be reviewed every five years.
Which of the statements given above is/are correct?
(a) 2 only
(b) 3 only
(c) 1 and 2 only
(d) 2 and 3 only
35. Which one of the following statements best explains the “Dark patterns” often talked about in the news?
(a) Points in space where ripples of gravitational waves are not observed.
(b) Unethical user interface designed to mislead or trick online users.
(c) Techniques used to trace database of criminals involved in transboundary embezzlements.
(d) Encrypted networks on the Internet that are not indexed by conventional search engines.
36. With reference to the Project Nilgiri Tahr recently launched by the Tamil Nadu government, consider the following statements regarding the Nilgiri Tahr:
1. It is endemic to the southern parts of the Western Ghats.
2. It is classified as a critically endangered species on the IUCN Red List.
3. It is a keystone species of Mukurthi National Park.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1 and 3 only
37. With reference to India’s Gross National Product (GNP), which of the following statements is correct?
(a) It is the total value of finished goods and services produced by a country’s citizens minus depreciation.
(b) Income earned by Indian citizens from outside the country is excluded from the GNP.
(c) GNP includes the income earned by foreign residents within the country.
(d) India’s GNP is lower than its Gross Domestic Product.
38. Sammakka Saralamma Jatara also known as Medaram Jatara is a biennial tribal festival celebrated in which of the following states?
(a) Jharkhand
(b) Chhattisgarh
(c) Odisha
(d) Telangana
39. Which of the following components forms part of Reserve Money (M0) in India?
1. Balances in the accounts of foreign Central banks and Governments
2. Bankers’ deposits with the RBI
3. Accounts of international agencies such as the International Monetary Fund
4. Net RBI credit to the Government
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 1, 2 and 3 only
(c) 1 only
(d) 1, 2, 3 and 4
40. With reference to Remote Electronic Voting Machines (RVM) recently developed by the Election Commission of India, consider the following statements:
1. It is a standalone and non-networked system unlike Electronic Voting Machine (EVM).
2. It will use printed paper ballot sheets.
3. The Representation of the People Act, of 1951 has to be amended to introduce RVM.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
41. With reference to National Medical Commission, consider the following statements:
1. Its chairperson is the Minister of Health and Family Welfare.
2. It provides for a medical education system that ensures the availability of adequate and high-quality medical professionals.
3. Its membership including the part-time membership is restricted to medical practitioners.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
42. Which of the following is not correct with reference to zero coupon bonds?
(a) They are issued at a discount and redeemed at par.
(b) Unlike other bonds, they do not give a regular interest pay-out to investors.
(c) These bonds have high reinvestment risk.
(d) Zero-coupon bonds can be traded in the secondary market.
43. With reference to restructured National Bamboo Mission (NBM) in news recently, consider the following statements regarding bamboo:
1. Bamboo grown in non-forest areas has been included in the definition of the tree under the Indian Forest Act, of 1927.
2. Bamboo has been included as a Minor Forest Produce under the Forest Rights Act, 2006.
3. NBM is a centrally sponsored scheme for the development of the bamboo sector.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
44. Which of the following countries recently conducted a joint training exercise “SURYA KIRAN-XVI” with India?
(a) Singapore
(b) Japan
(c) Sri Lanka
(d) Nepal
45. It is an economic situation, in which, there is a temporary slowing of the pace of price inflation. It is used to describe instances when the inflation rate has reduced marginally over the short term.
Which form of economic situation is being described in the above passage?
(a) Stagflation
(b) Disinflation
(c) Deflation
(d) Structural Inflation
46. With reference to the GDP Deflator, consider the following statements:
1. It reflects the prices of all domestically produced goods and services in the economy.
2. GDP deflator excludes the prices of imported goods.
3. GDP deflator is the best suitable indicator for tracking monthly changes in inflation in the economy.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 3 only
47. Which of the following could lead to an increase in the savings rate in an economy?
1. High inflation
2. Low-interest rates
3. Rise in household income
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
48. In the context of economy, which of the following best describes the term ‘Terms of Trade’?
(a) It refers to the difference between the monetary value of a country’s imports and exports over a given time period.
(b) It is the difference in total value of fuel exports and imports of a country.
(c) It is the ratio of country’s export prices and import prices.
(d) It is a set of rules established by the WTO for trading between any two nations.
49. RBI recently increased the repo rate aggressively to counter the increasing inflation. Which of the following could be its possible impact on Indian economy?
1. Slump in Indian stock market
2. Increase in the short-term bond yield
3. Decrease in the long-term bond yield
4. Outflow of funds from equities towards a less risky debt instrument
Select the correct answer using the code given below.
(a) 1, 2 and 4 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 3 and 4 only
50. Arrange the following sectors of the economy in increasing order of their share in India’s nominal Gross Value added (GVA) 2021-22.
1. Agriculture and allied sectors
2. Service sector
3. Mining & quarrying
4. Manufacturing
Select the correct answer using the code given below.
(a) 3-4-1-2
(b) 2-4-3-1
(c) 1-3-4-2
(d) 1-4-3-2
51. Which of the following situations can lead to demand-pull inflation in an economy?
1. Changing consumption patterns
2. Increase in administered prices
3. Government providing tax rebates
4. An increase in black money
Select the correct answer using the code given below.
(a) 1, 3 and 4 only
(b) 2, 3 and 4 only
(c) 1 and 2 only
(d) 1, 2, 3 and 4
52. Recently, scientists used supercomputers to simulate a rupture in space and time considered as a bridge between two remote regions in the universe. It is consistent with the general theory of relativity, however, its presence has not yet been established through observation or inference by astronomers.
Which of the following space phenomena has been described in the passage given above?
(a) Wormhole
(b) Singularity
(c) White Hole
(d) Event Horizon
53. In the context of National Income Accounting, which of the following constitutes the domestic territory of India?
1. Ships and aircraft operated by the normal residents of the country
2. Natural gas rigs operated by the residents of the country in the international waters
3. Embassies and consulates of a foreign country located in India
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
54. Consider the following statements:
1. All indirect taxes are regressive in nature.
2. All direct taxes are progressive in nature.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
55. In the context of banking, which of the following statements best describes the term ‘haircut’?
(a) It is the difference between the loan amount and the actual value of the asset used as collateral.
(b) It is the reserve requirement that the commercial banks are required to maintain in the form of gold and government approved securities.
(c) It is a process whereby all new restructured loans are classified as bad loans.
(d) It is the downsizing of the banking staff by restructuring the processes and reducing the employees.
56. In the context of the Indian economy, which of the following are included in the Gross Capital Formation (GCF)?
1. Machinery and equipment
2. Livestock
3. Semi-manufactured goods
4. Defence equipment
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 and 4 only
(c) 1, 2 and 3 only
(d) 1, 3 and 4 only
57. Consider the following statements with reference to the Incremental Capital Output Ratio (ICOR):
1. It explains the relationship between the level of investment made in the economy and the consequent increase in GDP.
2. ICOR of the Indian economy has increased over the last decade.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
58. In the context of gender budgeting in India, consider the following statements :
1. Gender budget statement was first released in the budget 2005-06.
2. Gender budget statement includes only those schemes in which there is at least 50 percent provision for women.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
59. Consider the following statements with respect to the Payment and Settlement Systems in India:
1. Reserve Bank of India is the authority for the regulation and supervision of payment systems in India.
2. TReDS facilitate the discounting of both invoices as well as bills of exchange.
3. National Payments Corporation of India (NPCI) is authorised by RBI to act as Bharat Bill Payment Central Unit.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
60. Which of the following can serve as underlying assets for ‘derivatives’?
1. Currency
2. Bonds
3. Stocks
Select the correct answer using the code given below.
(a) 1, 2 and 3
(b) 2 and 3 only
(c) 3 only
(d) 1 and 2 only
61. Which of the following fiscal measures can be taken to control high inflation in the economy?
1. Increasing government spending on infrastructure expansion
2. Increase in direct taxes
3. Increase in the repo rate
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 2 only
62. Consider the following statements regarding Initial Public Offering (IPO):
1. IPO is the selling of securities to the public in the primary market.
2. A company’s share price at the time of the IPO is determined by the Securities and Exchange Board of India (SEBI).
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
63. With reference to mutual funds, consider the following statements:
1. All mutual funds are required to be registered with SEBI before they launch any scheme.
2. Investors of mutual funds are known as trustees.
3. Mutual funds promoted by foreign entities are currently not allowed to operate in India.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1 and 3 only
64. The dearness allowance of Government employees and wage contracts between labour and employer are based on
(a) Wholesale Price Index
(b) Consumer Price Index
(c) Producers Price Index
(d) Consumer Food Price Index
65. With reference to unemployment, consider the following statements:
1. Classical unemployment occurs when real wages are higher than what a company can afford.
2. Technological unemployment refers to the unemployment of workers whose skill is made redundant because of changes in production methods.
3. Residual unemployment refers to unemployment that does not affect aggregate economic output.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
66. Gene therapy curing cancer was in the news recently. In this context, consider the following statements regarding gene editing:
1. Base editing allows altering the molecular structure of one of the four bases in the genetic code.
2. CRISPR, a gene editing technology selectively modifies the DNA of living organisms using a special protein called Cas9.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
67. Which of the following is not a fish?
(a) Andaman Smoothhound
(b) Chocolate-bordered Flitter
(c) Brown Trout
(d) Waikhomia Hira
68. Consider the following statements regarding Digital Banking Units (DBU) in India:
1. Regional Rural Banks and Local Area Banks are allowed to open DBUs.
2. DBUs can issue both debit and credit cards.
3. No physical cash acceptance/disbursal is allowed through physical counters.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
69. With reference to the functions of departments under the Ministry of Finance, consider the following pairs:
Nodal Department : Function
1. Department of Expenditure : International Banking Relation
2. Department of Investment and Public Asset Management : Strategic Disinvestment
3. Department of Financial Services : Overseeing the Public financial management system
4. Department of Economic Affairs : Maintains the cadre of the Indian Economic Service
How many pairs given above are correctly matched?
(a) Only one pair
(b) Only two pairs
(c) Only three pairs
(d) All four pairs
70. With reference to State Development Loans (SDLs), consider the following statements:
1. They can be used as collateral under Statutory Liquidity Ratio (SLR) securities.
2. Their maturity cannot exceed one year.
3. They are traded in the capital markets like BSE/NSE.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
71. In the context of India, consider the following statements regarding the Financial Stability Report:
1. It is released by the Reserve Bank of India.
2. It is released annually and presents an assessment of the health of the financial system.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
72. Recently, India has become the chairman of Wassenaar Arrangement. Which of the following is the objective of this agreement?
(a) It is to ensure that exports do not contribute to the development of chemical or biological weapons.
(b) It is to exchange information on transfers of conventional weapons and dual-use goods and technologies.
(c) It is to limit the proliferation of missiles and missile technology.
(d) It is to control the proliferation of nuclear weapons by curbing the export of nuclear related materials and technology.
73. Which one of the following statements best describes “Biofloc farming”?
(a) It is a method of growing plants without the use of soil in an air or mist environment.
(b) It is a method of high-density fish farming in a controlled environment converting fish waste to useful nutrition.
(c) It is a method of growing crops using only biofertilisers to ensure soil fertility restoration.
(d) It is a method of cultivation of corals for commercial purposes.
74. With reference to Ratnagiri Prehistoric Geoglyphs in news recently, which of the following statements best describes geoglyphs?
(a) It is a technique of mural painting executed upon freshly laid wet lime plaster.
(b) It is an inscription written on palm leaves.
(c) It is a form of prehistoric rock art made on the surface of laterite plateaus through an incision, picking, carving or abrading.
(d) It is a human-made shapes and patterns made by lining up large rocks on the open ground.
75. Gross Domestic Product (GDP) at market price is obtained from Gross value added (GVA) at basic prices by
(a) addition of product taxes and deduction of product subsidies.
(b) deduction of production taxes and addition of production subsidies.
(c) addition of production taxes and deduction of production subsides.
(d) addition of total taxes and deduction of total subsidies.
76. Which of the following are considered as investment expenditures in an economy?
1. Production of fixed capital assets
2. Production of consumer goods and services
3. Purchase of shares
4. Production of inventory
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 and 4 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4
77. Consider the following statements with reference to the Reserve Bank of India:
1. Its affairs are governed by a central board of directors appointed under Banking Regulation Act, 1949.
2. The central board of directors consists of government officials too.
Which of the statements given above is/are not correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
78. With reference to the ‘living wage’ and ‘minimum wage’ being in the news recently, consider the following statements:
1. The minimum wage is based on labor productivity and skill sets.
2. The living wage is the minimum income necessary to pay for basic needs based on the cost of living in a specific community.
3. The living wages are indexed to inflation. Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
79. Consider the following statements with respect to Headline Inflation:
1. It is the measure of total inflation within an economy.
2. It is less volatile than core inflation.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
80. Consider the following statements:
1. Capital market involves the trading of non-equity debt instruments, whereas the Money market involves transactions in short-term equity debt.
2. As compared to money market instruments, capital market instruments are much safer investments.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
81. With reference to Polar bears, consider the following statements:
1. They are the largest bear species in the world.
2. Their diet mainly consists of crested penguins and bearded seals.
3. The ‘Polar Bear Capital of the World’ is situated in Western Hudson Bay.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
82. With reference to the National Bank for Agriculture and Rural Development (NABARD), consider the following statements:
1. It manages Rural Infrastructure and Development Fund (RIDF) and Rural Innovation Fund (RIF).
2. It provides supervision and guidance to Regional Rural Banks to help them achieve their objectives.
3. It is fully owned by the Reserve Bank of India.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
83. Consider the following statements regarding potential GDP:
1. It is the level of output that an economy can produce at a constant inflation rate.
2. If the potential GDP exceeds the real GDP then inflation is likely to follow.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
84. Which of the following pilgrimage sites have been recently included in the National Mission on Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASAD)?
1. Amritsar, Punjab
2. Bhadrachalam, Telangana
3. Rudreshwara Temple in Mulugu, Telangana
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
85. With reference to the MATSYA 6000, consider the following statements:
1. It is an unmanned vehicle for the exploration of deep-sea resources like minerals.
2. ‘MATSYA 6000’ vehicle is being designed and developed jointly by India and Russia.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
86. Public debt and other liabilities combined together are the Total Debt of the Government of India. In this context, which of the following are considered as Public Debt of the Government of India?
1. Treasury Bills
2. Borrowings from World Bank
3. Public Provident Fund
4. Dated Securities
Select the correct answer using the code given below.
(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
87. In the context of national income accounting, which of the following is/are considered as stock variables?
1. GDP of a country
2. Money supply in an economy
3. External debt of a country
4. Investments in an economy
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 4 only
(d) 3 and 4 only
88. Which of the following are not included in the estimation of the country’s GDP?
1. Transfer payments
2. Intermediate goods
3. Purchase of shares in the secondary market
4. Imputed rents of self-occupied houses Select the correct answer using the code given below.
(a) 1, 2 and 3 only
(b) 2 and 3 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4
89. In the context of fiscal policies, consider the following statements:
1. Increasing government expenditure and reducing tax rates during a recession is an example of counter-cyclical fiscal policy.
2. Reducing government expenditure and increasing tax rates during the boom period is an example of pro-cyclical fiscal policy.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
90. With reference to the Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022, consider the following statements:
1. The Central government will establish a Co-operative Election Authority to conduct elections to the board of multi state cooperative societies.
2. It will allow the merger of state cooperative societies with existing MSCS.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
91. With reference to the Pradhan Mantri Adi Adarsh Gram Yojana, consider the following statements:
1. It aims at preserving the cultural identity of the villages by involving citizens to share what makes their village unique.
2. The scheme is being implemented by the Ministry of Culture.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
92. Consider the following statements with respect to integrated Ombudsman Scheme of RBI:
1. Complaints with respect to banking transactions, NBFCs and digital transactions are included under the ambit of the scheme.
2. A Centralised Receipt and Processing Centre has been set up for receipt and initial processing of complaints in any language.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
93. Which of the following statements correctly describes Qualified Institutional Placement?
(a) It is a way for unlisted companies to raise capital, without having to submit legal paperwork to market regulators.
(b) It is a way for unlisted companies to get listed on the stock exchanges, without having to submit legal paperwork to market regulators.
(c) It is a way for listed companies to raise capital, without having to submit legal paperwork to market regulators.
(d) It is a way for unlisted companies to raise capital, by submitting legal paperwork to market regulators.
94. With reference to Exchange Traded Funds (ETFs), consider the following statements:
1. ETFs are highly flexible funds and can be used as a tool for gaining instant exposure to the equity markets.
2. The maximum tenure for which an investor can hold ETFs is three months.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
95. With reference to capital markets, consider the following statements:
1. The primary market has no physical existence, unlike the secondary markets.
2. National Stock Exchange and the Bombay Stock Exchange are examples of secondary markets.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
96. If the US federal reserve increases the interest rates, what impact could it have on the Indian economy?
1. Depreciation of Indian Rupee
2. More foreign investment in Indian market
3. Imports will be costlier
Select the correct code using the code given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
97. Consider the following statements regarding Non-Banking Financial Companies (NBFCs):
1. All NBFCs do not need to register with the RBI.
2. They can accept public deposits for a maximum period of 10 years.
3. The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is available to depositors of NBFCs.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
98. With reference to Alternative Investment Funds (AIF), consider the following statements:
1. AIFs are not permitted to make an invitation to the public to subscribe to its securities.
2. Hedge funds are a type of alternative investment fund.
3. The amount contributed by the investors in an AIF cannot be utilized for purpose of giving loans.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
99. With reference to the ‘airglow’ phenomenon, consider the following statements:
1. Airglow is the faint luminescence of Earth’s upper atmosphere caused by air molecules and atoms selective absorption of solar ultraviolet and X-radiation.
2. Nitrogen atoms make up a big part of airglow due to their abundance in the air. Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
100. Consider the following statements:
1. All goods and services purchased for final consumption are considered as final products.
2. All products purchased by production units in an economy are considered as intermediate products.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2