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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.
| 2551. |
Current account in the Balance of Payment comprise is |
| A. | difference of total exports and imports in one year |
| B. | invisible account like tourism, shipping, insurance, etc. |
| C. | transactions like net external assistance, NRI deposits, etc. |
| D. | trade balance plus invisible balance |
| Answer» E. | |
| 2552. |
Budget deficit is: |
| A. | excess of total expenditure including loans net of lending over revenue receipts |
| B. | difference between revenue receipts and revenue expenditure |
| C. | difference between all receipts and all expenditure |
| D. | fiscal deficit less interest payments |
| Answer» D. fiscal deficit less interest payments | |
| 2553. |
An instrument of qualitative credit control is |
| A. | Open market operations |
| B. | variable reserve ratio |
| C. | Bank rate |
| D. | Credit rationing |
| Answer» E. | |
| 2554. |
States' debt does not include: |
| A. | loos from State Bank of India |
| B. | loans from the Central government |
| C. | provident fund |
| D. | treasury bills issued to inter-national financial institutions |
| Answer» E. | |
| 2555. |
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 defines Column A Column A Column B I. External debt of the A. Includes small saving schemes, provident fund, reserve II. Includes debt B. Includes loan from foreign countries and international financial institutions III. Other internal liabilities C. Includes market loans from banks and financial institutions |
| A. | I-C, II-A, III-B |
| B. | I-B, II-C, III-A |
| C. | I-A, II-D, III-B |
| D. | I-B, II-A, III-C |
| Answer» C. I-A, II-D, III-B | |
| 2556. |
DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B Column A Column A Column B I. Planned expenditure A. 2,21,733 Crores II. Non-Planned B. 4,65,277 Crores expenditure III. Tax revenue C. 13,12,200 Crores IV. Non-tax revenue D. 9,19,842 Crores |
| A. | I-C, II-A, III-B, IV-D |
| B. | I-B, II-C, III-D, IV-A |
| C. | I-A, II-C, III-D, IV-B |
| D. | I-D, II-C, III-D, IV-A |
| Answer» C. I-A, II-C, III-D, IV-B | |
| 2557. |
Value-added tax is |
| A. | ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale |
| B. | ad valorem tax on final consumption collected at manufacturing level |
| C. | tax on final consumption collected at the consumption stage |
| D. | special tax levied by states on products from other states |
| Answer» B. ad valorem tax on final consumption collected at manufacturing level | |
| 2558. |
Which of the following is not viewed as a national debt? |
| A. | Provident Fund |
| B. | Life Insurance Policies |
| C. | National Saving Certificate |
| D. | Long-term Government Bonds |
| Answer» D. Long-term Government Bonds | |
| 2559. |
As per Economic survey, what is twin balance sheet problem? |
| A. | overleveraged companies and bad-loan encumbered banks |
| B. | underleveraged companies and bad-loan-encumbered banks |
| C. | underleveraged government and bad-loan encumbered banks |
| D. | overleveraged economy and bad-loan-encumbered banks |
| Answer» B. underleveraged companies and bad-loan-encumbered banks | |
| 2560. |
Lok Sabha has passed four Bills relating to the implementation of the Goods and Services Tax (GST). It paves way for implementing a new, consolidated indirect tax regime from the proposed date of July 1, 2017. In this context consider the following statements. 1. The four bills passed were Central GST Bill, Integrated GST Bill, GST Compensation Bill, and the Union Territory GST Bill, 2017. 2. These Bills were passed as Money Bills, thus eliminates the role of Rajya Sabha. 3. The GST laws passed by Parliament will apply to Jammu and Kashmir 4. Essential food articles will not taxed and those will continue to be zero rated under the GST. Identify the correct statements. Codes: |
| A. | Only 1, 2 & 3 |
| B. | Only 1, 2 & 4 |
| C. | Only 2 & 4 |
| D. | All of the above |
| Answer» C. Only 2 & 4 | |
| 2561. |
Consider the following statements about GST 1. Both Central and State taxes will be collected at the point of sale. 2. The Central and State GST will be charged on the manufacturing cost. Which of the above statements are correct? Codes: |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both |
| D. | None |
| Answer» D. None | |
| 2562. |
According to the Economic Survey, what are pre requisites to Universal Basic Income: |
| A. | JAM: Jan Dhan, Aadhar and Mobile |
| B. | Centre-state negotiations for program cost sharing |
| C. | Both of the above |
| D. | Neither of the above |
| Answer» D. Neither of the above | |
| 2563. |
Which of the following state taxes are not included in GST? 1. State Value Added Tax 2. Luxury tax 3. Taxes on lottery, betting and gambling Codes: |
| A. | Only 1, 2 |
| B. | Only 1, 3 |
| C. | All of the above |
| D. | None of the above |
| Answer» E. | |
| 2564. |
Which of the following subjects will be omitted from the Seventh Schedule? 1. Entry 54 from State List 2. Entry 55 from State List 3. Entry 92 and 92C from Union List Codes: |
| A. | 1, 2 |
| B. | 2, 3 |
| C. | 1, 3 |
| D. | All of the above |
| Answer» C. 1, 3 | |
| 2565. |
The establishment of 'Payment Banks' is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? 1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks. 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities. Select the correct answer using the code given below. Codes: |
| A. | 1 and 2 only |
| B. | 1 and 3 only |
| C. | 2 only |
| D. | 1, 2 and 3 |
| Answer» C. 2 only | |
| 2566. |
What are common challenges for India in regaining competitiveness in Apparel and Leather Sector? 1. Stringent Labour regulations. 2. Skewed taxation & tariff policies. 3. Poor logistics 4. Discrimination in export markets 5. Limited availability of cattle for slaughter despite a large cattle population. Identify the correct statements: Codes: |
| A. | All except 5 |
| B. | 2 & 3 only |
| C. | All are correct |
| D. | None are correct |
| Answer» B. 2 & 3 only | |
| 2567. |
While advanced economies (AEs) are increasingly opting for fiscal activism, India should not go for such a move. Which of following are reasons for continuing with fiscal prudence:1. Indian growth rates are substantially higher, while inflation rates are also substantially greater.2. India's own recent experience highlights the risks associated with increasing growth rates through fiscal activism. The two episodes of Indian macro vulnerability in the last 35 years - 1991 and 2013 - were associated with large increases in fiscal deficits.Identify the correct statements:Codes: |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 & 2 |
| D. | None of the above |
| Answer» D. None of the above | |
| 2568. |
Economic survey envisages certain scenarios in which India's TBS may be sustainable. With regard to it, consider the following scenarios: 1. Under Containment scenario. Economy grows with improvement in cash flows to stressed companies so that they can service debts. 2. Under Phoenix scenario, NPAs are limited to a small proportion of the GDP and GDP growth is increased. In this way problem is not solved but fades in importance. Identify the correct statements: Codes: |
| A. | 1 only |
| B. | 2 only |
| C. | Both |
| D. | Neither of the above |
| Answer» E. | |
| 2569. |
Consider the following statements w.r.t UBI:1. The economy wide cost of UBI will be 4.9 percent of GDP2. The survey assumes that in practice any program cannot strive for strict universality, so a target quasi-universality rate of 75 percent is set (de facto UBI).Identify the correct statements: |
| A. | 1 only |
| B. | 2 only |
| C. | Both |
| D. | Neither of the above |
| Answer» D. Neither of the above | |
| 2570. |
Which factors provided impetus to the impressive fiscal performance by the states?1. Passing of Fiscal responsibility legislations2. Acceleration of GDP growth3. Decline in interest payments4. increased transfers from the Centre and central CSS expenditureIdentify the incorrect statements: |
| A. | 1 & 2 only |
| B. | 2 & 3 only |
| C. | All |
| D. | None |
| Answer» E. | |
| 2571. |
Consider the following statements regarding fiscal consolidation in India:1. India like several other countries, embarked ii the mid-2000s on an ambitious project of fiscal consolidation.2. Fiscal Responsibility and Budget Managemen' (FRBM) Act was adopted by the centre in 2003.Identify the correct statements: |
| A. | 1 only |
| B. | 2 only |
| C. | Both |
| D. | Neither of the above |
| Answer» D. Neither of the above | |
| 2572. |
Consider the following statements w.r.t part XIII I Indian constitution?1. Trade, commerce and intercourse throughout tl territory of India shall be free subject to son- provisions2. Parliament has the power to restrict free trade between and within states on grounds of public interest.3. State legislature by law can impose 'reasonabl. restrictions' on freedom of trade in public interest.4. No law by Parliament or State legislatures ca discriminate between states in terms of trade.5. State can by law impose such taxes that prevents an discrimination between goods imported and good manufactured in the State.Identify the correct statements. |
| A. | 1 & 5 only |
| B. | 2 & 3 only |
| C. | All are correct |
| D. | None are correct |
| Answer» D. None are correct | |
| 2573. |
Which of following are short term consequences demonetisation move of government?1. Decline in Interest rates2. Increase in financial savings3. Increase in Public sector wealth4. Digitalisation of economy5. Job lossesIdentify the correct statements: |
| A. | 1, 2, 4 & 5 only |
| B. | 2, 3 & 4 only |
| C. | All are correct |
| D. | None are correct |
| Answer» B. 2, 3 & 4 only | |
| 2574. |
Which of the following area selected by the government to transform economy in recent economic renovation?1. Growth and stability2. Public service delivery3. Fiscal management4. Digital economyWhich is/are correct? |
| A. | Only 1, 2 and 3 |
| B. | Only 2, 3 and 4 |
| C. | Only 1, 3 and 4 |
| D. | All of the above |
| Answer» E. | |
| 2575. |
Consider the following statements:1. The Lok Sabha in February 2017 passed the Specified Bank Notes Cessation of Liabilities Bill 2017.2. The bill replaces the Specified Bank Notes (Cessation of Liabilities) Ordinance, 20153. The bill exempts a person to hold up to 25 old notes for the purpose of study, research or numismatics (collection or study of coins or notes)Select the correct answer using the codes given below: |
| A. | Only 1 & 3 |
| B. | Only 1 & 2 |
| C. | Only 2 & 3 |
| D. | All of the above |
| Answer» B. Only 1 & 2 | |
| 2576. |
Consider the following statements: 1. Banknotes in India are currently being issued in the denomination of Rs. 10 Rs. 20 Rs. 50 Rs. 100 Rs. 500 and 2000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank). 2. The printing of notes in the denominations of Rs. 1, Rs. 2 and Rs. 5 has been discontinued as The process is expensive these denominations have been discontinued as 3. However such banknotes issued earlier can still be found in circulation and these banknotes continue to be legal tender. Select the correct answer using the codes given below: |
| A. | Only 1 & 2 |
| B. | Only 2 & 3 |
| C. | Only 1 & 3 |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 2577. |
Consider the list I and II and choose the correct code given below-List-I (Financial Year):2013-142014-152015-162016-17List-II (Fiscal Deficit of Central Government as % of GDP)1. 4.5%2. 4.1%3. 3.9%4. 3.5% |
| A. | A - 1; B - 2; C - 3; D - 4 |
| B. | A - 2; B - 3; C - 4; D - 1 |
| C. | A - 3; B - 4; C - 1; D - 2 |
| D. | A - 4; B - 5; C - 2; D - 1 |
| Answer» B. A - 2; B - 3; C - 4; D - 1 | |
| 2578. |
Demonetisation affected the Indian economy through three different channels. These are potentially -J. An aggregate demand shock because it reduce the supply of money and affected private wealth, especially of those holding unaccounted money.K. An aggregate supply shock to the extent that economic activity relies on cash.L. An uncertainty shock because economic agents faced imponderables related to the magnitude and duration of the cash shortage and the policy responses.M. Consumers deferred or reduce discretionary con- sumption.N. Firms scaled back investments.Correct code is- |
| A. | All are correct |
| B. | I, K, L are correct |
| C. | M & N are correct |
| D. | K, L, M & N are correct |
| Answer» B. I, K, L are correct | |
| 2579. |
Consider the following Assertion and Reason (R) and choose the correct code given below -Assertion (A): State government finances are under stress now a days.Reason (R): The consolidated deficit of the states has increased steadily in recent years, rising from 2.5 per cent of GDP in 2014-15 to 3.6 percent of GDP in 2015-16. |
| A. | Assertion and reason are correct and reason is the correct explanation of assertion |
| B. | Assertion and reason are correct and reason is not the correct explanation of assertion |
| C. | Assertion is correct but reason is incorrect |
| D. | Assertion is incorrect but reason is correct |
| Answer» B. Assertion and reason are correct and reason is not the correct explanation of assertion | |
| 2580. |
Consider the following Assertion and Reason (R) and choose the correct code given below: Assertion (A): During the boom years between 20032011 India?s real GDP growth averaged 8.2 per cent Reason (R): During the boom years between 2003 2011 exports grew at an annual rate of between 20 and 25 per cent (in real dollar terms, for goods and services). |
| A. | Assertion and reason are correct and reason is the correct explanation of assertion |
| B. | Assertion and reason are correct and reason is not the correct explanation of assertion |
| C. | Assertion is correct but reason is incorrect |
| D. | Assertion is incorrect but reason is correct |
| Answer» C. Assertion is correct but reason is incorrect | |
| 2581. |
Economic Survey 2016-17 suggests the following policy initiatives to boost up the economy :I. On the assumption that the equilibrium cash GDP ratio will be lower than before November 8, the banking system will benefit from a higher level of deposits. Thus, market interest rates deposits, lending, and yields on government securities should be lower in 201718 than 2016 17.II. Despite decline in central government's fiscal deficit from 4.5 per cent of GDP in 2013-14 to 4.1 per cent, 3.9 per cent, and 3.5 per cent in the following years, fiscal policy needs to balance the cyclical imperatives with medium term issues relating to prudence and credibility.III. Create a public sector asset reconstruction company so that the twin balance sheet problem can be addressed, facilitating credit and investment revival.Correct code is- |
| A. | Only I is correct |
| B. | Only II is correct |
| C. | I, II & III are correct |
| D. | Neither I nor II is correct |
| Answer» D. Neither I nor II is correct | |
| 2582. |
Consider the following assertion followed by reason and choose correct code given below -Assertion (A): The current account deficit has declined from 1.0 per cent of GDP in 201517 to reach about 0.3 per cent of GDP in the first half of 2016-17.Reason (R): Gold import declined in 201516 followed by decline in first half of 2016-17. |
| A. | Assertion and reason are correct and reason is the correct explanation of assertion |
| B. | Assertion and reason are correct and reason is not the correct explanation of assertion |
| C. | Assertion is correct but reason is incorrect |
| D. | Assertion is incorrect but reason is correct |
| Answer» B. Assertion and reason are correct and reason is not the correct explanation of assertion | |
| 2583. |
Consider the following assertion followed by reason and choose correct code given below -Assertion (A): The Consumer Price Index (CPI) New Series inflation, which averaged 4.9 per cent during April December 2016, has displayed a downward trend since July 2016.Reason (R): Kliarif agricultural production in general, and pulses in particular is likely to be bountiful in 2016-17. |
| A. | Assertion and reason are correct and reason is the correct explanation of assertion |
| B. | Assertion and reason are correct and reason is not the correct explanation of assertion |
| C. | Assertion is correct but reason is incorrect |
| D. | Assertion is incorrect but reason is correct |
| Answer» B. Assertion and reason are correct and reason is not the correct explanation of assertion | |
| 2584. |
Developments in the US, especially the rise of the dollar, will have implications for China's currency and currency policy. Consider the following statements in relation to it and choose the correct code given below.Statement I: If China is able to successfully re balance its economy, the spillover effects on India and the rest of the world will be positive.Statement II: Further declines in the yuan, even if dollar-induced, could interact with underlying vulnerabilities to create disruptions in China that could have negative spillovers for India.The correct code is - |
| A. | Only I correct |
| B. | Only II is correct |
| C. | I & II both are correct |
| D. | Neither I nor II is correct |
| Answer» D. Neither I nor II is correct | |
| 2585. |
The central government alone runs about 950 central sector and centrally sponsored sub-schemes which cost about ............ of GDP. |
| A. | 4% |
| B. | 0.05 |
| C. | 6% |
| D. | 0.07 |
| Answer» C. 6% | |
| 2586. |
Which of the following has been given prominence in the Economic Survey 2016-17? |
| A. | Universal Basic Amenities |
| B. | Universal Basic Income |
| C. | Universal Welfare Measures |
| D. | Redistribution of Wealth |
| Answer» C. Universal Welfare Measures | |
| 2587. |
According to Economic Survey 2016-17 real GDP growth during 2017-18 is most likely to be- |
| A. | 6.75-7.5% |
| B. | 6.5-7.0% |
| C. | 6.25-6.75% |
| D. | 6.0-7.0% |
| Answer» B. 6.5-7.0% | |
| 2588. |
According to Economic Survey 2016-17 at end-December 2016, effective currency was about ......... of estimated demand. |
| A. | 65% |
| B. | 0.7 |
| C. | 75% |
| D. | 0.8 |
| Answer» B. 0.7 | |
| 2589. |
Twin balance sheet problem refers to? |
| A. | Over-indebtedness in the corporate and banking sectors |
| B. | Over-indebtedness of State governments and Central government |
| C. | A malpractice of accounting in corporate sector |
| D. | A malpractice of accounting in MSME sector |
| Answer» B. Over-indebtedness of State governments and Central government | |
| 2590. |
In the transition of Indian economy from 'cash economy' to 'cashless economy', which of the following is playing a vital role? |
| A. | Mobile Phone |
| B. | Plastic money |
| C. | BHIM App |
| D. | Online banking |
| Answer» B. Plastic money | |
| 2591. |
A chapter of Economic Survey 2017-18 has been specifically devoted to- |
| A. | Agriculture and Rural Development |
| B. | Clothes and shoes |
| C. | Sun Rising Industries |
| D. | Infrastructure |
| Answer» C. Sun Rising Industries | |
| 2592. |
Which of the following best defines demonetization of currency notes? |
| A. | Devaluing the currency with respect to international currencies |
| B. | Declaring the currency notes as NOT legal tender |
| C. | Replacing the old and soiled currency notes |
| D. | Replacing notes with coins |
| Answer» C. Replacing the old and soiled currency notes | |
| 2593. |
Economic Survey 2016-17 enlisted eight interesting facts about India. Which of the following is not among them? |
| A. | Annual work-related migration of about 9 million people |
| B. | The districts accounting for the poorest 40 % receive 29% of the total funding. |
| C. | India has 7 taxpayers for every 100 voters |
| D. | Rural development gets highest possible allocation of public funds |
| Answer» E. | |
| 2594. |
Which bank has become the India's first bank to launch Aadhaar Pay service for merchants? |
| A. | ICICI Bank |
| B. | HDFC Bank |
| C. | Axis Bank |
| D. | IDFC Bank |
| Answer» E. | |
| 2595. |
The Andhra Pradesh government has signed MoU with which payment network company to transform Vishakhapatnam into India's first 'less cash' city? |
| A. | MasterCard |
| B. | National Payments Corporation of India (NPCI) |
| C. | American Express |
| D. | Visa |
| Answer» E. | |
| 2596. |
Which public sector bank has launched mobile wallet "Bataua" for digital payments? |
| A. | Oriental Bank of Commerce (OBC) |
| B. | Punjab National Bank (PNB) |
| C. | Canara Bank |
| D. | Central Bank of India (CBI) |
| Answer» B. Punjab National Bank (PNB) | |
| 2597. |
Which article spells formation of GST Council? |
| A. | 270 |
| B. | 246A (2) |
| C. | 269A (1) |
| D. | 279A |
| Answer» E. | |
| 2598. |
To infuse capital in state-run banks what Government is planning to do? |
| A. | To sell off Non-Financial Companies |
| B. | To reduce its shares from Banks |
| C. | To sell Government Securities |
| D. | All of the above |
| Answer» B. To reduce its shares from Banks | |
| 2599. |
The Economic Survey enumerated three downside risks. Which one is not among them? |
| A. | Oil prices rise would increase the drag from consumption |
| B. | options a) and c) |
| C. | turmoil in global could worsen the outlook of exports. |
| D. | Subsidy in LPG will hampered the Growth |
| Answer» E. | |
| 2600. |
The Economic Survey, prepared by: |
| A. | Arvind Subramanian |
| B. | Arun jaitely |
| C. | Jayant Sinha |
| D. | All of these |
| Answer» B. Arun jaitely | |