Economy : Civil Services Exam 2016 Question Paper Analysis

Difficulty : Medium

Topic Hierarchy : Sectors of Economy > Agriculture

Resource : Current Affairs

Q1. Which of the following is/are the advantage/advantages of practicing drip irrigation?

1. Reduction in weed

2. Reduction in soil salinity

3. Reduction' in-soil erosion

Select the correct answer using the code given below.

1. 1 and 2 only
2. 3 only
3. 1 and 3 only
4. None of the above is an advantage of practising drip irrigation

Difficulty : Medium

Topic Hierarchy : Public Finance > Budget

Resource : NCERT

Q2. 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?

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.

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2, 3 and 4

Difficulty : Medium

Topic Hierarchy : Money and Banking > Payments Bank

Resource : Current Affairs

Q3. 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.

1. 1 and 2 only
2. 1 and 3 only
3. 2 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : Infrastructure > Energy

Resource : Current Affairs

Q4. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?

1. Providing technical and financial assistance to startup entrepreneurs in the field of renewable sources of energy
2. Providing electricity to every household in the countries by 2018
3. Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
4. Providing for financial turnaround and revival of power distribution companies

Difficulty : Medium

Topic Hierarchy : International Organizations > WTO

Resource : Current Affairs

Q5. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

1. WTO affairs
2. SAARC affairs
3. UNFCCC affairs
4. India-EU negotiations on FTA

Difficulty : Medium

Topic Hierarchy : Public Finance > Budget

Resource : NCERT

Q6. 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.

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : International Organizations > IMF

Resource : Current Affairs

Q7. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:

1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.

2. The World Bank participates as observer in IMFC’s meetings.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Difficulty : Medium

Topic Hierarchy : Balance of Payments

Resource : NCERT

Q8. Which of the following best describes the term ‘import cover’, sometimes seen in the news?

1. It is the ratio of value of imports to the Gross Domestic Product of a country
2. It is the total value of imports of a country in a year
3. It is the ratio between the value of exports and that of imports between two countries
4. It is the number of months of imports that could be paid for by a country’s international reserves

Difficulty : Medium

Topic Hierarchy : Money and Banking

Resource : Current affairs

Q9. The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?

1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.

2. It is an effort to increase RBI’s control over commercial banks through computerization.

3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

Select the correct answer using the code given below.

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : International Organizations > Economic Reports

Resource : Current Affairs

Q10. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?

1. Organization for Economic Cooperation and Development (OECD)
2. World Economic Forum
3. World Bank
4. World Trade Organization (WTO)

Difficulty : Medium

Topic Hierarchy : Money and Banking

Resource : Current Affairs

Q11. What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?

1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.

2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

Select the correct answer using the code given below.

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Difficulty : Medium

Topic Hierarchy : Economic Institutions

Resource : Current Affairs

Q12. With reference to ‘Financial Stability and Development Council’, consider the following statements:

1. It is an organ of NITI Aayog.

2. It is headed by the Union Finance Minister.

3. It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 3 only
3. 2 and 3 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : Sectors of Economy

Resource : Current Affairs

Q13. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

1. Promoting mineral exploration activities in mineral-rich districts

2. Protecting the interests of the persons affected by mining operations

3. Authorizing State Governments to issue licenses for mineral exploration

Select the correct answer using the code given below.

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : Money and Banking > Currency

Resource : Current Affairs

Q14. With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?

1. Bitcoins are tracked by the Central Banks of the countries.

2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.

3. Online payments can be sent without either side knowing the identity of the other.

Select the correct answer using the code given below.

1. 1 and 2 only
2. 2 and 3 only
3. 3 only
4. 1, 2 and 3

Difficulty : Medium

Topic Hierarchy : Balance of Payments

Resource : Current Affairs

Q15. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

1. To bring the idle gold lying with Indian households into the economy.

2. To promote FDI in the gold and jewellery sector

3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Topic wise distribution :

• Money and Banking : 4 Questions
• Public Finance : 2 Questions
• Sector of Economy : 2 Questions
• National Income Accounting : 0 Questions
• Balance of Payments : 2 Questions
• Infrastructure : 1 Question
• International Organisations / Economic Institutions : 4 Questions
• Welfare/Social Schemes : 0 Question

Resource wise distribution :

• NCERTs : 3 Questions
• Current Affairs : 12 Questions
• Economic Survey : 0 Question
• Unknown : 0 Questions

Difficulty wise distribution :

• Easy
• Medium
• Difficult :