MCQOPTIONS
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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 2451. |
Which institution is known as 'soft loan window' of World Bank? |
| A. | IFC |
| B. | IDA |
| C. | IMF |
| D. | Indian Development Forum |
| Answer» C. IMF | |
| 2452. |
A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..? |
| A. | Net Capital Flow |
| B. | Balance of Payment |
| C. | Balance of Trade |
| D. | Absolute Flow |
| Answer» C. Balance of Trade | |
| 2453. |
Many a times we read about Hot Money in newspapers. Which among the following options rightly describes hot money? |
| A. | Hot money is useful and generally durable and is good for the country in all weathers |
| B. | Hot money is dangerous and volatile and leaves the country in bad weather conditions |
| C. | Hot money is good and adds to the development of the country & it comes from exports of services |
| D. | Hot money is bad & useless as its arises from unusual activities like casinos, gambling, horse races, speculations etc. |
| Answer» C. Hot money is good and adds to the development of the country & it comes from exports of services | |
| 2454. |
Foreign Direct Investment involves: |
| A. | A speculator trying to make a profit by buying company shares on a foreign stock exchange. |
| B. | A UK energy company buying territory abroad where it expects to find oil reserves. |
| C. | A tourist purchasing foreign currency to spend on a holiday abroad. |
| D. | A company signing an agreement with a wholesaler to distribute its products in foreign markets. |
| Answer» C. A tourist purchasing foreign currency to spend on a holiday abroad. | |
| 2455. |
Dumping in the context of international trade refers to : |
| A. | Exporting goods at prices below the cost of production |
| B. | Exporting goods of inferior quality |
| C. | Exporting goods only to re-import them at cheaper rates |
| D. | Exporting goods without paying appropriate taxes in the receiving country |
| Answer» B. Exporting goods of inferior quality | |
| 2456. |
Which of the following is not an argument for protectionism? |
| A. | To protect infant industries |
| B. | To increase the level of imports |
| C. | To protect strategic industries |
| D. | To improve the balance of payments |
| Answer» C. To protect strategic industries | |
| 2457. |
Which is the role of the International Monetary Fund (IMF)? |
| A. | To implement and advance global trade agreements |
| B. | To settle industrial and trade disputes between members |
| C. | To help poorer countries with their economic development |
| D. | To maintain international financial stability in global financial markets |
| Answer» E. | |
| 2458. |
TRIPS (Trade Related aspects of Intellectual Property Rights) agreements is administered by |
| A. | United Nations Conference on Trade and Development (UNCTAD) |
| B. | United Nations Organization (UNO) |
| C. | World Trade Organization (WTO) |
| D. | World Bank (WB) |
| Answer» D. World Bank (WB) | |
| 2459. |
A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why? |
| A. | India has preference for certain countries as regards receiving FDI |
| B. | India has double taxation avoidance agreement with Mauritius |
| C. | Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India |
| D. | Impending dangers of global climatic change prompt Mauritius to make huge investments in India |
| Answer» C. Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India | |
| 2460. |
Both Foreign Direct Investment (PDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? |
| A. | FII helps bring better management skills and technology, while FDI only brings in capital. |
| B. | FII helps in increasing capital availability in general, while FDI only targets specific sectors. |
| C. | FDI flows only into the secondary market while FII targets primary market |
| D. | FII is considered to be more stable than FDI. |
| Answer» C. FDI flows only into the secondary market while FII targets primary market | |
| 2461. |
For National Manufacturing and Investment Zones (NMIZ), Special Economic Zone (SEZ) and EOUs (Exports Oriented Units), which of the following statement is true? |
| A. | NMIZs and EOUs will be located within SEZs |
| B. | SEZs and EOUs will be located within NMIZs. |
| C. | NMIZs are independent of SEZs and EOUs. |
| D. | NMIZs and SEZs will be competitors in nature |
| Answer» C. NMIZs are independent of SEZs and EOUs. | |
| 2462. |
Which of the following is/are not FDI policy change(s) after 2010? 1. Permission of 100 percent FDI in automotive sector. 2. Permitting foreign airlines to make FDI up to 49 percent 3. Permission of up to 51 percent FDI under the government approval route in multi-brand retailing, subject to specified conditions 4. Amendment of policy on FDI in single-brand product retail trading for aligning with global practices Select the correct answer using the code given below: |
| A. | 1 only |
| B. | 2 and 4 only |
| C. | 1 and 2 only |
| D. | 1, 2 and 3 only |
| Answer» B. 2 and 4 only | |
| 2463. |
Match the following imports of products with the percentage: Column I PercentageI.Golda.7.3%II.Petroleumb.12.7%III.Electronic goodsc.30.7% |
| A. | I - b, II - c, III - a |
| B. | I - a, II - c, III - b |
| C. | I - c, II - b, III - a |
| D. | I - b, II - a, III - c |
| Answer» B. I - a, II - c, III - b | |
| 2464. |
Imports of India are classified into: I. Petroleum Products II. Pearls and Precious Stones III. Iron and Steel IV. Fertilizers |
| A. | I & II |
| B. | Only II |
| C. | Only IV |
| D. | All the above |
| Answer» E. | |
| 2465. |
Which statement is correct regarding FDI? I. The success of foreign exchange management by RBI can be seen in the fact that from US 5.8 billion in March 1991 (enough to meet the import requirements for three weeks) the country's reserves have grown to around US 352 billion by December 2015. II. It is pertinent to note here that some of the increase in the reserve is attributed to the weakness of the dollar in the post-Iraq war scenario. |
| A. | Only I |
| B. | Only II |
| C. | Both I & II |
| D. | Neither I & II |
| Answer» D. Neither I & II | |
| 2466. |
Foreign exchange reserves of India comprise of which elements? I. Gold II. Special Drawing Rights (SDR) III. Foreign currency assets IV. Reserve Tranche Position (RTF) in the IMF |
| A. | I & II |
| B. | II & III |
| C. | Only III |
| D. | All the above |
| Answer» E. | |
| 2467. |
Match the following sectors with the percentage of FDI: Sectors PercentageI.Private sector bankinga.49%II.Defenceb.20%III.Print mediac.74%IV.Public sector banksd.26% |
| A. | I - c, II - a, III - d, IV - b |
| B. | I - d, II - a, III - c, IV - b |
| C. | I - a, II - a, III - c, IV - b |
| D. | I - c, II - d, III - a, IV - b |
| Answer» B. I - d, II - a, III - c, IV - b | |
| 2468. |
Which of the following is considered lending for promotion of exports? |
| A. | Packing Credit |
| B. | Overdraft |
| C. | Cash Credit Account |
| D. | Bill Discounting |
| Answer» B. Overdraft | |
| 2469. |
Which of the following does not form part of current account of Balance of Payments? |
| A. | Export and import of goods |
| B. | Export and import of services |
| C. | Income receipts and payments |
| D. | Capital receipts and payments |
| Answer» E. | |
| 2470. |
Which of the following organisation provides guarantee to exporters? |
| A. | EXIM Bank |
| B. | Export Loan Guarantee Corporation |
| C. | RBI |
| D. | Commerce Ministry |
| Answer» C. RBI | |
| 2471. |
DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B wherein column B shows the tax to GDP ratio for respective year in Column-A Column A Column B I. 1950-51 A. 10.60% II. 2007-08 B. 6% III. Present C. 11.89% |
| A. | I-C, II-A, III-B |
| B. | I-A, II-C, III-B |
| C. | I-B, II-C, III-A |
| D. | I-B, II-A, III-B |
| Answer» D. I-B, II-A, III-B | |
| 2472. |
DIRECTION: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B wherein Column B defines Column A Column A Column B I. Public Account A. Consists of all revenues and loans received by the government II. Consolidated B. Comprises of the sum placed at the disposal of the president to meet unforeseen expenditure III. Contingency C. Consists of receipts and payments, which are in from of deposit account with the government, such as provident funds, small saving, etc |
| A. | I-C, II-A, III-B |
| B. | I-A, II-B, III-C |
| C. | I-A, II-D, III-B |
| D. | I-B, II-A, III-C |
| Answer» B. I-A, II-B, III-C | |
| 2473. |
Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct? (IAS Prelims 2016) 1. KKC is calculated in the same way as Service Tax is calculated. 2. The current rate of KKC is 0.50% 3. KKC is similar to the KKS (Krishi Kalyan Surcharge). Select the correct answer using the code given below: |
| A. | 1, 2 and 3 |
| B. | 1 and 2 only |
| C. | 2 and 3 only |
| D. | 1 only |
| Answer» C. 2 and 3 only | |
| 2474. |
Which of the following is/are included in the capital budget of the Government of India? (IAS Prelims 2016) 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below. |
| A. | 1 only |
| B. | 2 and 3 only |
| C. | 1 and 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 2475. |
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? [IAS Prelims 2016] 1. Reducing revenue expenditure 2. Introducing new welfare schemes 3. Rationalizing subsidies 4. Reducing import duty Select the correct answer using the code given below. |
| A. | 1 only |
| B. | 2 and 3 only |
| C. | 1 and 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» D. 1, 2, 3 and 4 | |
| 2476. |
With reference to Indian economy, consider the following. [IAS Prelims 2014] 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Which of the above is/are component/ components of Monetary Policy? |
| A. | 1 only |
| B. | 2, 3 and 4 |
| C. | 1 and 2 |
| D. | 1, 3 and 4 |
| Answer» D. 1, 3 and 4 | |
| 2477. |
In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'? (IAS Prelims 2014)1. To enable the Central Bank to control the amount of advances the banks can create2. To make the people deposits with banks safe and liquid3. To prevent the commercial banks from making excessive profits4. To force the banks to have sufficient vault cash to meet their day-to-day requirementsSelect the correct answer using the code given below. |
| A. | 1 only |
| B. | 1 and 2 only |
| C. | 2 and 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» C. 2 and 3 only | |
| 2478. |
Which of the following is the rate at which RBI lends to commercial banks? 1. Corporate rate 2. Economy rate 3. Bank rate 4. Growth rate |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 4 only |
| Answer» D. 4 only | |
| 2479. |
Which of the following statements of the government gives expression to its fiscal policy? 1. Annual financial statement 2. Deficit financing 3. Open capital account |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» B. 1 and 2 | |
| 2480. |
Which of the following statements is/are correct as per Article 114(3) of the Constitution? 1. No money can be taken out of consolidated fund without the approval of the Rajya Sabha 2. No money can be taken out of consolidated fund without the approval of the Lok Sabha 3. Money can be taken out of consolidated fund without any approval Select the correct answer using the code given below: |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 2481. |
Who among the following appoints a Finance Commission under Article 280 of the Constitution? 1. Prime Minister 2. Finance Minister 3. President 4. Public |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 3 and 4 |
| Answer» D. 3 and 4 | |
| 2482. |
Which of the following is the tax on income of the companies? 1. Corporation tax 2. Reliable tax 3. Compensatory tax |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» B. 2 only | |
| 2483. |
Which of the following may lead 10 a pressure on the government for an upward revision in salaries of government employees? 1. Internal Borrowings 2. External aid and borrowings 3. Counting Currency 4. Printing currency |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 4 only |
| Answer» E. | |
| 2484. |
Excess of total expenditure over total revenues is termed as 1. Revenue deficit 2. Fiscal deficit 3. Budget deficit 4. Overall deficit |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 4 only |
| Answer» D. 4 only | |
| 2485. |
Which of the following details can be obtained by Annual financial statement? 1. Government forecasts of receipts and payments for the next year 2. An outline of the results of the last financial year compared with the previous budget estimates 3. Proposed changes in taxes and expenditure allocations |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 2486. |
Which of the following has been introduced as a very important component of Direct Tax code with the objective of preventing such deals and transactions? 1. General Avoidance Rules 2. General Anti Affect Rules 3. General Anti Avoidance Rules 4. General Arm Affect Rules |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2 and 4 |
| Answer» D. 1, 2 and 4 | |
| 2487. |
In which of the following years, did govt introduce Minimum Alternate tax on companies? 1. 1996 2. 1949 3. 1972 4. 2005 |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 2 only | |
| 2488. |
The highest rate of income tax before 1975 was 1. 72.85 2. 97.25 3. 46.89 4. 27.14 |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 3 and 4 |
| Answer» C. 3 only | |
| 2489. |
Which among the following is/are the main objective of Monetary Policy? 1. Maintenance of domestic price level 2. Reducing the impact of business cycles 3. Stability of external value |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 2490. |
Which of the following refers to the use by the government of me various instruments such as taxation, expenditure and borrowing in order to achieve the objectives of balanced economic development etc.? 1. Annual financial statement 2. Fiscal policy 3. Revenue budget |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» C. 3 only | |
| 2491. |
Which of the following refers to the set of measures adopted by the central bank? 1. Monetary policy 2. GAAR 3. Finance Commission 4. Black Money |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 4 only |
| Answer» B. 1 and 2 | |
| 2492. |
Which among the following is/are the nodal agency for implementing the monetary policy? State Bank of India Reserve Bank of India Union Bank |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 2 only |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 2493. |
Consider the following statements with regard to Statutory Liquidity Ratio (SLR) 1. To meet SLR, Commercial banks can use cash only. 2. SLR is maintained by the banks with themselves. 3. SLR restricts the bank?s leverage in pumping more money into the economy Which of the statements given above is/are correct? |
| A. | 1, 2 and 3 |
| B. | 1 and 3 |
| C. | 2 and 3 |
| D. | only 2 |
| Answer» D. only 2 | |
| 2494. |
Consider the following: 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are components(s) of internal debt? |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 2 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 2495. |
Annual financial statement has to be placed before parliament for every financial year i.e. 1. January 1 to December 31 2. March 31 to April 1 3. April 1 to March 31 |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | None of the above |
| Answer» D. None of the above | |
| 2496. |
Choose the correct one from the following. 1. Revenue deficit = Revenue expenditure - Revenue receipts 2. Revenue deficit = Revenue receipts - Revenue expenditure 3. Revenue deficit = Revenue receipts - Total expenditure 4. Revenue deficit = Revenue expenditure - Total receipts |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» B. 1 and 2 | |
| 2497. |
Which of the following is a type of the Public expenditure in India? 1. Plan 2. Non-plan |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 2498. |
Which of the following precautions has to be taken by a country going for foreign aid? 1. Keeping foreign aid strings-free 2. Keeping the borrowing level low so that country does not fall in a debt trap |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 2499. |
With reference to the Finance Commission of India, which of the following statements is correct? |
| A. | It encourages the inflow of foreign capital for infrastructure development |
| B. | It facilitates the proper distribution of finances among the Public Sector Undertakings |
| C. | It ensures transparency in financial administration |
| D. | None of the statements [a], [b] and [c] given above is correct in his context |
| Answer» E. | |
| 2500. |
Regressive tax can be defined as 1. The one by which the revenue collected rises proportionally with income 2. The rates of tax increase for increasing values or volumes on which the tax is levied 3. The one where the proportion of tax paid falls as income rises |
| A. | 1 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |