Previous Year Questions Analysis : Economics - Public Finance and Balance of Payments

Analysis of Previous year question papers from Public Finances and Balance of Payments in Economics

Economics Previous Year Questions Analysis
By   @shriyansh,   2 years ago

This article makes an analysis on the questions asked in Previous year UPSC Civil services from Public Finances (Budget and Taxation) and Balance of Payments (BoP) Section of Economics. This analysis will help you in getting an idea of type and depth of questions that are asked in Civil services prilims.

Questions in 2013


Public Finances
Q 1. In India, deficit financing is used for raising resources for
(a) economic development
(b) redemption of public debt
(c) adjusting the balance of payments
(d) reducing the foreign debt

Balance of Payments
Q 2. Which one of the following groups of items is included in India’s foreign-exchange reserves?
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDR’s
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

Q 3. Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment
Select the correct answer using the codes given below.
(a) 1, 2 and 3 
(b) 1, 2 and 4
(c) 2, 3 and 4 
(d) 1, 3 and 4

The balance of payments of a country is a systematic record of
(a) all import and export transactions of a country during a given period of time, normally a year
(b) good exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another

Questions in 2014


Public Finances
Q 2. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below.
(a) 1 only 
(b) 2 and 3 only
(c) 1, 2, 3 and 4 
(d) None

The sales tax you pay while purchasing a toothpaste is a
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government

Balance of Payments
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
Select the correct answer using the code given below.
(a) 1 only 
(b) 2 and 3
(c) 1 and 3 
(d) 1, 2 and 4

Questions in 2015


Public Finances
Q 1. With reference to the Fourteenth Finance Commission, which of the following statements is/ are correct?
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector specific grants.
Select the correct answer using the code given below. (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

Q 2. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.
(a) 1 and 3 only 
(b) 2 and 3 only
(c) 1 only 
(d) 1, 2, 3 and 4

Balance of Payments
Q 3. Convertibility of rupee implies
(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India

Questions in 2016


Public Finances
Which of the following is/are included in the capital budget of the Government of India?
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



Author : Shriyansh Gautam
Shriyansh Gautam
@shriyansh

Civil Services Aspirant

Related Articles



Civil Insights : Prepare for Civil Services(IAS) Exam
Civil Insights Facebook page Civil Insights Twiter page Civil Insights Google plus page Civil Insights Instagram page Civil Insights Youtube page
© 2017 Infistart Solutions LLP