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UPSC exam Prelims Question paper 2017-Economy


1. Which of the following statements best k describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d) It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.


Answer. B


2. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

1. The share of agriculture in GDP increased enormously.

2. Share of India's exports in world trade increased.

3. FDI inflows increased.

4. India's foreign exchange reserves increased enormously.

Select the correct answer using the codes given below :

(a) 1 and 4 only

(b) 2, 3 and 4 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4


Answer. B


3. Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.

2. NPCI has launched RuPay, a card payment scheme.

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


Answer. c


4.  What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.

2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves.

3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future.

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. a


5. Consider the following statements :

1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.

2. Fiscal deficit as a percent of GDP of India has steadily increased in 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


Answer. d




6. What is the purpose of setting up of Small 9 Finance Banks (SFBs) in India?

1. To supply credit to small business units

2. To supply credit to small and marginal farmers

3. To encourage young entrepreneurs to set up business particularly in rural areas.

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


Answer. a


7. Which of the following is the most likely consequence of implementing the 'Unified Payments Interface (UPI)’?

(a) Mobile wallets will not be necessary for online payments.

(b) The digital currency will totally replace the physical currency in about two decades.

(c) FDI inflows will drastically increase.

(d) Direct transfer of subsidies to poor people will become very effective.


Answer. a


8. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

1. It decides the RBI's benchmark interest rates.

2. It is a 12-member body including the Governor of RBI and is reconstituted every year.

3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below :

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only


Answer. a


9.  The Trade Disputes Act of 1929 provided for

(a) the participation of workers in the management of industries.

(b) arbitrary powers to the management to quell industrial disputes.

(c) an intervention by the British Court in the event of a trade dispute.

(d) a system of tribunals and a ban on strikes.


Answer. d


10.  Consider the following statements:

1. The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions.

2. N.M. Lokhande was a pioneer in organizing the labor movement in British India. Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2


Answer. b


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