Description
Cracking exams like UPSC, SSC, Banking, and State PCS is no longer just about reading NCERTs or scanning the newspaper. Examiners today are testing candidates on the finer, technical details of the economy—the kind of questions most students overlook.
The questions in this PDF are highly beneficial for UPSC and SSC aspirants because they cover the core aspects of the Economy, RBI, monetary system, and financial regulations that frequently appear in competitive exams. They touch on critical areas such as the functioning of the Reserve Bank of India (RBI), monetary policy tools like Repo, Reverse Repo, CRR, SLR, and Open Market Operations, as well as recent innovations like the Digital Rupee and Standing Deposit Facility.
Such concepts are not only factual but also analytical, making them directly relevant for both prelims exams in UPSC and SSC. Importantly, by practicing such detailed MCQs, aspirants can strengthen recall, reduce confusion between closely related terms, and develop exam-ready precision.
In the coming exams, where the focus is increasingly on applied knowledge rather than rote learning, familiarity with such nuanced areas will give candidates a clear edge. Missing these could mean losing out on easy yet high-scoring questions that can decide success or failure in prelims cut-offs.
Thus, these questions are not just practice material—they are a roadmap to mastering the complex yet scoring part of economics for competitive exams.
WHAT YOU WILL GET ?
In this PDF, you will get 200 high-quality, exam-oriented questions on “ECONOMY” covering the most important economic concepts that are in recent news. Answers and Explanations are also provided in this same PDF. PDF will be sent instantly on your email after successful payment. (No Hardcopy, Only PDF)
DEMO QUESTIONS:
Q1. Headline inflation in India is primarily measured by which index?
a) Wholesale Price Index (WPI)
b) Consumer Price Index for Industrial Workers (CPI-IW)
c) Consumer Price Index for Agricultural Labourers (CPI-AL)
d) Consumer Price Index (Combined) – CPI (C)
Q2. The “Marginal Standing Facility (MSF)” rate is always:
a) Equal to the Repo Rate
b) 25 basis points above the Repo Rate
c) 25 basis points below the Repo Rate
d) Equal to the Reverse Repo Rate
Q3. The Full-Financial Autonomy framework, often in news, is related to the management of:
a) State Government finances
b) India’s Foreign Exchange Reserves
c) Fiscal Deficit
d) Public Debt
Q4. The “Treasury Bills” are issued by the Government of India and are:
a) Long-term debt instruments
b) Short-term debt instruments
c) Equity instruments
d) Hybrid instruments
Q5. The “Legal Tender” status of a currency note means:
a) It is backed by gold reserves.
b) It must be accepted for discharge of debt.
c) Its value is fixed by an international agreement.
d) It can be used for foreign transactions.
Q6. The “Nominal Effective Exchange Rate (NEER)” of the rupee is an index of the:
a) Value of the rupee against a basket of currencies of trading partners
b) Value of the rupee against the US Dollar only
c) Inflation-adjusted value of the rupee
d) Interest rate differential between India and the US
Q7. Which of the following is a Prepaid Payment Instrument (PPI) as per RBI?
a) Credit Card
b) Debit Card
c) Mobile Wallets
d) Cheque
Q8. The “RBI Retail Direct” scheme allows retail investors to directly invest in:
a) Corporate Stocks
b) Mutual Funds
c) Government Securities
d) Gold
Q9. The “Financial Stability Report (FSR)” is published by the RBI:
a) Every month
b) Every six months
c) Every year
d) Every quarter
Q10. The “Framework for Scale-Based Regulation (SBR)” for NBFCs was introduced to:
a) Provide a uniform regulatory structure for all NBFCs
b) Provide a differential regulatory approach based on size and risk
c) Phase out all NBFCs
d) Merge all NBFCs with banks
Q11. The “Digital Payment Index (RBI-DPI)” has been constructed by the RBI to capture the extent of digitization of payments across the country. The base period for the index is:
a) March 2018
b) March 2019
c) March 2020
d) March 2021
Q12. The “Liquidity Coverage Ratio (LCR)” for banks, as per Basel III norms, requires banks to hold High-Quality Liquid Assets (HQLA) to survive a stress scenario lasting:
a) 7 days
b) 15 days
c) 30 days
d) 90 days
Q13. The “Hedging of Gold Price Risk in the International Financial Markets” facility was introduced by the RBI for:
a) Individual investors
b) Domestic jewellers
c) Only the RBI
d) Foreign Portfolio Investors
Q14. The “Payments Infrastructure Development Fund (PIDF)” Scheme aims to incentivize the deployment of payment acceptance infrastructure in:
a) Only Metropolitan cities
b) Tier-1 and Tier-2 centres
c) Tier-3 to Tier-6 centres and North Eastern states
d) Only for government transactions
Q15. The “Standing Deposit Facility (SDF)” was introduced based on the recommendations of:
a) Narasimham Committee
b) Urjit Patel Committee
c) Bimal Jalan Committee
d) Nachiket Mor Committee
Q16. If the RBI wants to adopt an “accommodative” monetary policy stance, it is most likely to:
a) Increase the Repo Rate
b) Decrease the Repo Rate
c) Increase the CRR
d) Sell government securities via OMOs
Q17. A rise in the Cash Reserve Ratio (CRR) by the RBI will:
a) Increase the lendable resources of banks
b) Decrease the lendable resources of banks
c) Have no impact on banks’ lending
d) Increase the interest rates on deposits
Q18. An increase in the repo rate by the RBI will most likely lead to:
a) A decrease in bank lending rates
b) An increase in bank lending rates
c) An increase in bond prices
d) An appreciation of the rupee
Q19. The “G-Sec Yield” is considered a benchmark because it reflects:
a) The risk-free rate in the economy
b) The average return of the stock market
c) The inflation rate
d) The bank deposit rates
Q20. The “Money Multiplier” effect is calculated as:
a) M3 / Reserve Money
b) M1 / Reserve Money
c) Total Deposits / Total Reserves
d) 1 / Cash Reserve Ratio
Q21. The “Cash Reserve Ratio (CRR)” is calculated as a percentage of:
a) Net Demand and Time Liabilities (NDTL)
b) Total Assets
c) Capital and Reserves
d) Total Credit
Q22. Banks do not earn any interest on the balances maintained for:
a) CRR
b) SLR
c) Both CRR and SLR
d) Neither CRR nor SLR
Q23. The “Statutory Liquidity Ratio (SLR)” is maintained in the form of:
a) Cash, Gold, and unencumbered Government Securities
b) Cash only
c) Government Securities only
d) Gold and Foreign Exchange
Q24. The “Standing Deposit Facility (SDF)” replaced which earlier tool as the floor of the LAF corridor?
a) Repo Rate
b) Bank Rate
c) Reverse Repo Rate
d) MSF Rate
Q25. The “Effective Revenue Deficit” is a concept introduced to distinguish:
a) Plan and non-plan expenditure
b) Capital and revenue expenditure
c) Grants for creation of capital assets from other revenue expenditure
d) Tax and non-tax revenue
(These type of 200 Questions with Answers & Explanations will be provided in this PDF)
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