UPSC Prelims Economy Question Papers (2011-2026)

Contents

UPSC Prelim GS Question Paper – 2026

Consider the following statements with reference to the Sagarmala Programme of the Government of India:
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings. III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.

Which of the following relationships among the above statements is/are correct?

Statement II validates the effectiveness of the strategies envisioned in statement I.
Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.

Select the answer using the code given below:

(A) 1 only

(B) 1 and 2

(D) 3 only

An e-commerce revenue model where the seller has no stock and instead forwards customer orders and shipment details to a third-party supplier is called:
a) Dropshipping Model
b) Affiliate Revenue Model
c) Transaction Fee Revenue Model
d) Agency Revenue Model

Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of RBI?
a) Credit access, Insurance depth and Banking access
b) Financial literacy, Access, Usage and Quality
c) Access, Usage and Quality
d) Access, Affordability and Transparency

Which one of the following best describes the key objective of India’s Open Network for Digital Commerce (ONDC) initiative?
a) Allow government control over digital commerce transactions
b) Replace private e-commerce platforms
c) Create an open interoperable network enabling interoperability across platforms
d) Mandate UPI-based payments for all online transactions

Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (CBDC) is not correct?
a) UPI is a real-time payment system but Digital Rupee is not sovereign paper currency.
b) In case of UPI, settlement occurs instantly but Digital Rupee transfers can happen without internet.
c) Digital Rupee wallet balance is considered another method by RBI.
d) UPI transactions are routed through banks while Digital Rupee transactions are direct claims on central bank.

Which of the following statements about Real-World Assets (RWA) Tokenisation are correct?

RWA tokenisation is the process of turning real-world assets into digital tokens on blockchain.
Tokenisation of real-world assets allows fractional ownership.
Tokenisation provides investment opportunities for individuals.

Select the answer using the code given below:

a) 1 and 3 only

b) 2 and 3 only

c) 1 and 2 only

d) 1, 2 and 3

A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called:
a) Green Bond
b) Social Bond
c) Sustainability Bond
d) Sovereign Bond

Which of the following statements about M1xchange role in Micro, Small and Medium Enterprises (MSMEs) financing is/are correct?
1. M1xchange provides collateral-based loans to MSMEs.
2. M1xchange facilitates discounting of invoices.
3. M1xchange functions as a credit rating agency.

Select the answer using the code given below:

a) 1, 2 and 3

b) 2 only

c) 2 and 3 only

d) 1 only

Which one of the following best describes the Crowding Out Effect in fiscal policy?
a) Increased private investment due to higher Government spending
b) Government borrowing leads to higher interest rates reducing private investment
c) Taxation leads to increased private investment
d) Government borrowing has no impact on aggregate demand

Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct?

Modern technologies including AI, robotics and space exploration extensively utilise REEs.
China has the highest share in mining of REEs followed by India.
The Government of India launched the National Critical Mineral Mission (NCMM) in 2025.
Rare Earth Elements are not included in critical minerals.

Select the answer using the code given below:

a) 1 and 3 only

b) 3 only

c) 1, 3 and 4

d) 1, 2 and 4

Which of the following statements about insurance in aviation sector is/are correct?

Aviation Hull Insurance covers physical damage caused by war, hijacking and hostile action.
Under the Montreal Convention, airlines are liable to pay compensation to passengers irrespective of negligence.

Select the answer using the code given below:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Which of the following statements about Crowdfunding is/are correct?

Crowdfunding is solicitation of funds from multiple investors through web-based platforms or social networking sites.
Small and Medium Enterprises can raise debt and equity capital without rigorous procedures.

Select the answer using the code given below:

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

With reference to different Committees in India, consider the following details:

Committee | Objective | Organisation

R.N. Malhotra Committee | Comprehensive reforms of insurance sector | IRDAI
L.C. Gupta Committee | Roadmap for derivatives trading | SEBI
Urijit R. Patel Committee | Framework for inflation targeting | RBI
Y.H. Malegam Committee | Reforms for microfinance sector | RBI

How many of the above rows are correctly matched?

a) 2 only

b) 3 only

c) 2, 3 and 4

d) 1, 2 and 4

Consider the following statements about Non-Banking Financial Companies (NBFCs) in India:

NBFCs cannot accept demand deposits.
All NBFCs operating in India have to be registered with RBI.
NBFCs form part of the payment and settlement system and can issue cheques.
Deposit insurance of DICGC is not available for NBFC deposits.

Which of the statements given above is/are correct?

a) 1 and 4

b) 1, 2 and 3

c) 4 only

d) 2, 3 and 4

Consider the following statements about Multidimensional Poverty Index (MPI):

MPI is calculated using Alkire-Foster methodology.
MPI calculated by NITI Aayog has a total of twelve indicators.
Maternal Health and Bank Account are among indicators used in MPI.

Which of the statements given above is/are correct?

a) 1 and 2 only

b) 1, 2 and 3

c) 1 and 3 only

d) 2 only

UPSC Prelim GS Question Paper – 2025

With reference to investments, consider the following :
I. Bonds
II. Hedge Funds
III. Stocks
IV. Venture Capital

How many of the above are treated as Alternative Investment Funds?

(A) Only one

(B) Only two

(D) All the four

Which of the following are the sources of income for the Reserve Bank of India?
I. Buying and selling Government bonds
II. Buying and selling foreign currency
III. Pension fund management
IV. Lending to private companies
V. Printing and distributing currency notes

Select the correct answer using the code given below.

(A) I and II only

(B) II, III and IV

(D) I, II and V

Consider the following statements :
I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR)
II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

Which of the statements given above is/are correct?

(A) I only

(B) II only

(D) Neither I or II

Consider the following statements :

Statement I : In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.

Statement II : In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

Which one of the following is correct in respect of the above statements?

(A) Both Statement I and Statement II are correct and Statement II explains Statement I

(B) Both Statement I and Statement II are correct but Statement II does not explain Statement I

(D) Statement I is not correct but Statement II is correct

Consider the following statements :
I. India has joined the Minerals Security Partnership as a member.
II. India is a resource-rich country in all the 30 critical minerals that it has identified.
III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

Which of the statements given above are correct?

(A) I and II only

(B) II and III only

(C) I and III only

(D) I, II and III

Consider the following statements :

Statement I :

As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.

Statement II :

Bondholders are lenders to a company whereas stockholders are its owners.

Statement III :

For repayment purposes, bond-holders are prioritized over stockholders by a company.

Which one of the following is correct in respect of the above statements?

(A) Both Statement II and Statement III are correct and both of them explain Statement I

(B) Both Statement I and Statement II are correct and Statement I explains Statement II

(D) Neither Statement II nor Statement III is correct

Consider the following statements :
I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom.
II. India’s stock market has grown rapidly in the recent past even overtaking Hong Kong’s at some point of time.
III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard.

Which of the statements given above are correct?

(A) I and II only

(B) II and III only

(D) I, II and III

Consider the following statements :
I. Capital receipts create a liability or cause a reduction in the assets of the Government.
II. Borrowings and disinvestment are capital receipts.
III. Interest received on loans creates a liability of the Government.

Which of the statements given above are correct?

(A) I and II only

(B) II and III only

(D) I, II and III

Consider the following statements about turmeric during the year 2022-23 :
I. India is the largest producer and exporter of turmeric in the world
II. More than 30 varieties of turmeric are grown in India.
III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric producing States in India.

Which of the statements given above are correct?

(A) I and II only

(B) II and III only

(D) I, II and III

With reference to India, consider the following pairs :

Organization	Union Ministry
I. The National Automotive Board	Ministry of Commerce and Industry
II. The Coir Board	Ministry of Heavy Industries
III. The National Centre for Trade Information	Ministry of Micro, Small and Medium Enterprises

How many of the above pairs are correctly matched?

(A) Only one

(B) Only two

(D) None

Consider the following activities :
I. Production of crude oil
II. Refining, storage and distribution of petroleum products
III. Marketing and sale of petroleum products
IV. Production of natural gas

How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

(A) Only one

(B) Only two

(D) All the four

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores. Which of the following statements are correct?
I. Revenue deficit is ₹20,000 crores.
II. Fiscal deficit is ₹10,000 crores.
III. Primary deficit is ₹4,000 crores.

Select the correct answer using the code given below.

(A) I and II only

(B) II and III only

(D) I, II and III

Consider the following statements :

Statement I :

Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter.

Statement II :

Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil.

Which of the statements given above are correct?

(A) Both Statement I and Statement II are correct and Statement II explains Statement I

(B) Both Statement I and Statement II are correct but Statement II does not explain Statement I

(D) Statement I is not correct but Statement II is correct

A country’s fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country’s interest liabilities are ₹1,500 crores. What is the gross primary deficit?

(A) ₹48,500 crores

(B) ₹51,500 crores

(D) None of the above

Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?
I. It has recommended grants of ₹4,800 crores from the year 2022–23 to the year 2025–26 for incentivizing States to enhance educational outcomes.
II. 45% of the net proceeds of Union taxes are to be shared with States.
III. ₹45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It reintroduced tax effort criteria to reward fiscal performance.

Select the correct answer using the code given below.

(A) I, II and III

(B) I, II and IV

(C) I, III and IV

(D) II, III and IV

Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :
I. It provides loans and guarantees to middle income countries.
II. It works single-handedly to help developing countries to reduce poverty.
III. It was established to help Europe rebuild after the World War II.

Which of the statements given above are correct?

(A) I and II only

(B) II and III only

(C) I and III only

(D) I, II and III

Consider the following statements in respect of RTGS and NEFT :
I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments.
II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT.
III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT.

Which of the statements given above is/are correct?

(A) I only

(B) I and II

(D) III only

Consider the following countries :
United Arab Emirates
France
Germany
Singapore
Bangladesh

How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

(A) Only two

(B) Only three

(D) All the five

Consider the following statements about ‘PM Surya Ghar Muft Bijli Yojana’ :
I. It targets installation of one crore solar rooftop panels in the residential sector.
II. The Ministry of New and Renewable Energy aims to impart training on installation, operation, maintenance and repairs of solar rooftop systems at grassroot levels.
III. It aims to create more than three lakhs skilled manpower through fresh skilling, and up-skilling, under scheme component of capacity building.

Which of the statements given above are correct?

(A) I and II only

(B) I and III only

(D) I, II and III

UPSC Prelim GS Question Paper – 2024

Consider the following statements:

Statement-I:

If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.

Statement-II:

The USA Government debt is not backed by any hard assets, but only by the faith of the Government.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

(d) Statement-I is incorrect, but Statement-II is correct

Consider the following statements:

Statement-I:

Syndicated lending spreads the risk of borrower default across multiple lenders.

Statement-II:

The syndicated loan can be fixed amount/lump sum of funds, but cannot be a credit line.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

(d) Statement-I is incorrect, but Statement-II is correct

Consider the following statements in respect of the digital rupee:

It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
It appears as a liability on the RBI’s balance sheet.
It is insured against inflation by its very design.
It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 4

Consider the following statements:
1. India is a member of the International Grains Council.
2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to the Digital India Land Records Modernisation Programme, consider the following statements:

To implement the scheme, the Central Government provides 100% funding.
Under the Scheme, Cadastral Maps are digitised.
An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to the ‘Pradhan Mantri Surakshit Matritva Abhiyan’, consider the following statements:

This scheme guarantees a minimum package of antenatal care services to women in their second and third trimesters of pregnancy and six months post-delivery health care service in any government health facility.
Under this scheme, private sector health care providers of certain specialities can volunteer to provide services at nearby government health facilities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements:

The entry age group for enrolment in the scheme is 21 to 40 years.
Age specific contribution shall be made by the beneficiary.
Each subscriber under the scheme shall receive a minimum pension of ₹3,000 per month after attaining the age of 60 years.
Family pension is applicable to the spouse and unmarried daughters.

Which of the statements given above is/are correct?

(a) 1, 3 and 4

(b) 2 and 3 only

(d) 1, 2 and 4

The total fertility rate in an economy is defined as:

(a) the number of children born per 1000 people in the population in a year.

(b) the number of children born to a couple in their lifetime in a given population.

(d) the average number of live births a woman would have by the end of her child-bearing age.

Consider the following statements:
In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
In India, Stock Exchanges can offer separate trading platforms for debts.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(d) 2 and 3 only

In India, which of the following can trade in Corporate Bonds and Government Securities?

Insurance Companies
Pension Funds
Retail Investors

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Consider the following:

Exchange-Traded Funds (ETF)
Motor vehicles
Currency swap

Which of the above is/are considered financial instruments?

(a) 1 only

(b) 2 and 3 only

(d) 1 and 3 only

With reference to the sectors of the Indian economy, consider the following pairs:

Economic activity	Sector
1. Storage of agricultural produce	Secondary
2. Dairy farm	Primary
3. Mineral exploration	Tertiary
4. Weaving cloth	Secondary

How many of the pairs given above are correctly matched?

(a) Only one

(b) Only two

(d) All four

Consider the following materials:

Agricultural residues
Corn grains
Wastewater treatment sludge
Wood mill waste

Which of the above can be used as feedstock for producing Sustainable Aviation Fuel?

(a) 1 and 2 only

(b) 2 and 4 only

(d) 1, 3 and 4 only

With reference to physical capital in Indian economy, consider the following pairs:

Items	Category
1. Farmer’s plough	Working capital
2. Computer	Fixed capital
3. Yarn used by the weaver	Fixed capital
4. Petrol	Working capital

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(d) All four

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:

There is no minimum capital requirement for wholly owned banking subsidiaries in India.
For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:

CSR rules specify that expenditures that benefit the company directly or the employees will not be considered as CSR activities.
CSR rules do not specify minimum spending on CSR activities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

(a) Bond market

(b) Forex market

(d) Stock market

UPSC Prelim GS Question Paper – 2023

41. Consider the following statements:

Statement-I : Interest income from the deposits distributed to their investors in Infrastructure Investment Trusts (InvITs) is exempted from tax, but the dividend is taxable.

Statement-II : InvITs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(d) Statement-I is incorrect but Statement-II is correct

42. Consider the following statements:

Statement-I : In the post-pandemic recent past many Central Banks worldwide had carried out interest rate hikes.

Statement-II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(d) Statement-I is incorrect but Statement-II is correct

43. Consider the following statements:

Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.

Statement-II: Carbon markets transfer resources from the private sector to the State.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(d) Statement-I is incorrect but Statement-II is correct

44. Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

(a) Conducting ‘Open Market Operations’

(b) Oversight payment systems

(d) Regulating the functions of Non-banking Financial Institutions

45. Consider the following markets:

Government Bond Market
Call Money Market
Treasury Bill Market
Stock Market

How many of the above are included in capital markets?

(a) Only one

(b) Only two

(d) All four

48. Consider the investments in the following assets:

Brand recognition
Inventory
Intellectual property
Mailing list of clients

How many of the above are considered intangible investments?

(a) Only one

(b) Only two

(d) All four

49. Consider the following:

Demographic performance
Forest and ecology
Governance reforms
Stable government
Tax and fiscal efforts

For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population, area and income distance?

(a) Only two

(b) Only three

(d) All five

81. Consider the following statements in relation to Janani Suraksha Yojana:

It is a safe motherhood intervention of the State Health Departments.
Its objective is to reduce maternal and neonatal mortality among poor pregnant women.
It aims to promote institutional delivery among poor pregnant women.
Its objective includes providing public health facilities to sick infants up to one year of age.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(d) All four

91. Consider the following statements with reference to India:

According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006′, the ‘medium enterprises’ are those with investments in plant and machinery between 15 crore and 25 crore.
All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

93. In the context of finance, the term “beta” refers to

(a) the process of simultaneous buying and selling of an asset from different platforms

(b) an investment strategy of a portfolio manager to balance risk versus reward

(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

94. Consider the following statements:

The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
In an SHG, all members of a group take responsibility for a loan that an individual member takes.
The Regional Rural Banks and Scheduled Commercial Banks support SHGs.

How many of the above statements are correct?

(a) Only one

(b) Only two

(d) None

UPSC Prelim GS Question Paper – 2022

“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?

(a) Asian Development Bank

(b) International Monetary Fund

(d) World Bank

With reference to the Indian economy, consider the following statements:
1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

With reference to the Indian economy, consider the following statements:
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to the “G20 Common Framework”, consider the following statements:
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to the India economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”?
1. Government can reduce the coupon rates on its borrowing by way of IIBs.
2. IIGs provide protection to the investors from uncertainty regarding inflation.
3. The interest received as well as capital gains on IIBs is not taxable.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
1. They can sell their own goods in addition to offering their platforms as market-places.
2. The degree to which they can own big sellers on their platforms is limited.

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

Which of the following activities constitute real sector in the economy?
1. Farmers harvesting their crops
2. Textile mills converting raw cotton into fabrics
3. A commercial bank lending money to a trading company
4. A corporate body issuing Rupee Denominated Bonds overseas

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2, 3 and 4 only

(d) 1, 2, 3 and 4

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?

(a) An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment

(b) A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment

(c) An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India

(d) A foreign company transfers shares and such shares derive their substantial value from assets located in India

With reference to the expenditure made by an organization or a company, which of the following statements is/are correct?
1. Acquiring new technology is capital expenditure.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.

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

With reference to the Indian economy, consider the following statements:
1. A share of the household financial savings goes towards government borrowings.
2. Dated securities issued at market-related rates in auctions form a large component of internal debt.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Consider the following statements :

Tight monetary policy of US Federal Reserve could lead to capital flight.
Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
Devaluation of domestic currency decreases the currency risk associated with ECBs.

Which of the statements given above are correct ?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to the ‘Banks Board Bureau (BBB), which of the following statements are correct ?

The Governor of RBI is the Chairman of BBB.
BBB recommends for the selection of heads for Public Sector Banks.
BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to Convertible Bonds, consider the following statements :

As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

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

Consider the following statements :

Vietnam has been one of the fastest growing economies in the world in the recent years.
Vietnam is led by a multi-party political system.
Vietnam’s economic growth is linked to its integration with global supply chains and focus on exports.
For a long time Vietnam’s low labour costs and stable exchange rates have attracted global manufacturers.
Vietnam has the most productive e-service sector in the Indo-Pacific region.

Which of the statements given above are correct?

(a) 2 and 4

(b) 3 and 5

(c) 1, 3 and 4

(d) 1 and 2

In India, what is the role of the Coal Controller’s Organization (CCO) ?

CCO is the major source of Coal Statistics in Government of India.
It monitors progress of development of Captive Coal/Lignite blocks.
It hears any objection to the Government’s notification relating to acquisition of coal-bearing areas.
It ensures that coal mining companies deliver the coal to end users in the prescribed time.

Select the correct answer using the code given below:

(a) 1, 2 and 3

(b) 3 and 4 only

(d) 1, 2 and 4

In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

(a) Department of Consumer Affairs

(b) Expenditure Management Commission

(d) Reserve Bank of India

Consider the following statements :
1. In India, credit rating agencies are regulated by Reserve Bank of India.
2. The rating agency popularly known as ICRA is a public limited company.
3. Brickwork Ratings is an Indian credit rating agency.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

With reference to the “Tea Board” in India, consider the following statements:
1. The Tea Board is a statutory body.
2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
3. The Tea Board’s Head Office is situated in Bengaluru.
4. The Board has overseas offices at Dubai and Moscow.

Which of the statements given above are correct?

(a) 1 and 3

(b) 2 and 4

(d) 1 and 4

In India, which one of the following compiles information on industrial disputes, closures, entrenchments and lay-offs in factories employing worker?

(a) Central Statistics Office

(b) Department for Promotion of Industry and Internal Trade

(c) Labour Bureau

(d) National Technical Manpower Information System

With reference to Non-Fungible Tokens (NFTs), consider the following statements
1. They enable the digital representation of physical assets.
2. They are unique cryptographic tokens that exist on a block chain.
3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Consider the following:
1. Asian Infrastructure Investment Bank
2. Missile Technology Control Regime
3. Shanghai Cooperation Organisation

India is a member of which of the above ?

(a) 1 and 2 only

(b) 3 only

(d) 1, 2 and 3

UPSC Prelim GS Question Paper – 2021

With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?
1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates

Select the correct answer using the code given below.

a) 1, 2 and 4 only

b) 3, 4 and 5 only

c) 1, 2, 3 and 5 only

d) 1, 2, 3, 4 and 5

With reference to the casual workers employed in India, consider the following statements:
1. All casual workers are entitled for employees Provident Fund Coverage
2. All casual workers are entitled for regular working hours and overtime payment
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Which among the following steps is most likely to be taken at the time of an economic recession?
a) Cut in tax rates accompanied by increase in interest rate
b) Increase in expenditure on public projects
c) Increase in tax rates accompanied by reduction of interest rate
d) Reduction of expenditure on public projects

Consider the following statements

Other things remaining unchanged, market demand for a good might increase if

Price of its substitute increases
Price of its complement increases
The good is an inferior good and income of the consumers increases
Its price falls

Which of the above statements are correct?

a) 1 and 4 only

b) 2, 3 and 4

c) 1, 3 and 4

d) 1, 2 and 3

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
a) Diversion of resources to the purchase of real estate and investment in luxury housing
b) Investment in unproductive activities and purchase of precious stones, jewellery, gold etc.
c) Large donations to political parties and growth of regionalism
d) Loss of revenue to the State Exchequer due to tax evasion

The money multiplier in an economy increases with which one of the following?
a) Increase in the Cash Reserve Ratio in the banks.
b) Increase in the Statutory Liquidity Ratio in the banks
c) Increase in the banking habit of the people
d) Increase in the population of the country

With reference to India, consider the following statements:
1. Retail investors through demat account can invest in Treasury Bills and Government of India Debt Bonds in primary market
2. The ‘’Negotiated Dealing System-Ordering Matching’’ is a government securities trading platform of the Reserve Bank of India.
3. The ‘’Central Depository Services Ltd’’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.

Which of the statements given above is/are correct?

a) 1 only

b) 1 and 2

c) 3 only

d) 2 and 3

In India, the central bank’s function as the ‘’lender of last resort’’ usually refers to which of the following?
1. Lending to trade and industry bodies when they fail to borrow from other sources
2. Providing liquidity to the banks having a temporary crisis
3. Lending to governments to finance budgetary deficits

Select the correct answer using the code given below

a) 1 and 2

b) 2 only

c) 2 and 3

d) 3 only

Consider the following statements:
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

With reference to Urban Cooperative Banks in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1996

Which of the statements given above is/are correct?

a) 1 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

Indian Government Bond yields are influenced by which of the following?
1. Actions of the United States Federal Reserve
2. Actions of the Reserve Bank of India
3. Inflation and short-term interest rates.

Select the correct answer using the code given below

a) 1 and 2 only

b) 2 only

c) 3 only

d) 1, 2 and 3

Consider the following:
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits

Which of the above can be included in Foreign Direct Investments?

a) 1, 2 and 3

b) 3 only

c) 2 and 4

d) 1 and 4

Consider the following statements:

The effect of devaluation of a currency is that it necessarily

Improves the competitiveness of the domestic exports in the foreign markets
Increase the foreign value of domestic currency
Improves the trade balance

Which of the above statements is/are correct?

a) 1 only

b) 1 and 2

c) 3 only

d) 2 and 3

Which one of the following is likely to be one of the most inflationary in its effects?
a) Repayment of public debt
b) Borrowing from the public to finance a budget deficit
c) Borrowing from the banks to finance a budget deficit
d) Creation of new money to finance a budget deficit

UPSC Prelim GS Question Paper – 2020

9. If another global financial crisis happens in the near future , which of the following actions/policies are most likely to give some immunity to India?

Not depending on the short term foreign borrowing.
Opening up to more foreign banks
Maintaining full capital account convertibility

Select the correct answer using the given code below-

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

10. If you withdraw 1,00,000 from your in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

(a) To reduce it by 1,00,000

(b) To increase it by 1,00,000

(d) To leave it unchanged

27. Gold tranche (Reserve tranche) refers to

(a) A loan system of World bank

(b) One of the operations of a central bank

(d) A credit system granted by IMF to its members

54. With reference to chemical fertilizers in India, consider the following statements:

At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
Ammonia, which is an input of urea, is produced from natural gas.
Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of all oil refineries.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(d) 1,2 and 3

64. According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels?

Cassava
Damaged wheat grains
Groundnut seeds
Horse gram
Rotten potatoes
Sugar beet

Select the correct answer using the code given below:

(a) 1,2,5 and 6 only

(b) 1,3,4 and 6 only

(d) 1,2,3,4,5 and 6

73. Which of the following factors/policies were affecting the price of rice in India in the recent past?

1. Minimum Support Price

2. Government’s trading

3. Government’s stockpiling

4. Consumer subsidies

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

76. Under the Kisan Credit Card Scheme, short-term credit support is given to farmers for which of the following purposes ?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini trucks

3. Consumption requirements of farm households

4. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4 only

71. In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agricultural produce of all crops.

2. Computerization of Primary Agricultural Credit Societies.

3. Social Capital Development.

4. Free Electricity supply to farmers.

5. Waiver of agricultural loans by the banking system.

6. Setting up of cold storage facilities by the government.

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3, 4 and 5 only

(d) 1, 2, 3, 4, 5 and 6

83. The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of

(a) Crude oil

(b) Bullion

(d) Uranium

75. In which one of the following groups are all the four countries members of G20 ?

(a) Argentina, Mexico, South Africa and Turkey

(b) Australia, Canada, Malaysia and New Zealand

(d) Indonesia, Japan, Singapore and South Korea

86. With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ?

Quantitative restrictions on imports by foreign investors are prohibited.
They apply to investment measures related to trade in both goods and services.
They are not concerned with the regulation of foreign investment.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1,2 and 3

88. With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity ( rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.

2. The percentage share of rural areas in the workforce steadily increased.

3. In rural areas, the growth in the non-farm economy increased.

4. The growth rate in rural employment decreased.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 and 4 only

(d) 1, 2 and 4

79. Consider the following statements:

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Prices (MSP) is unlimited in any State/UT of India.

2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct ?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

81. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

(a) It is the investment through capital instruments essentially in a listed company.

(b) It is largely non-debt creating capital flow.

(d) It is the instrument made by foreign institutional investors in the Government securities.

82. With reference to the international trade of India at present, which of the following statements is/are correct ?

1. India’s merchandise exports are less than its merchandise imports.

2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India’s exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 and 4 only

(d) 1, 3 and 4

74. Consider the following statements:

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.

2. “Textile and Textile articles” constitute an important item of trade between India and Bangladesh.

3. In the last five years, Nepal has been the largest trading partner of India in South Asia.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

84. In the context of the Indian economy, non-financial debt includes which of the following?

1. Housing loans owned by household

2. Amounts outstanding on credit cards

3. Treasury Bills

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

87. If the RBI decides to adopt an expansionist monetary policy, which of the following it would NOT do?

1. Cut and optimize the statutory liquidity ratio

2. Increase the Marginal Standing Facility Rate

3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

72. What is the importance of the term “Interest Coverage Ratio” of a firm in India?

1. It helps in understanding the present risk of a firm that a bank is going to give loan to.

2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.

3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

77. Consider the following statements:

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

2. The WPI does not capture changes in the prices of services, which CPI does.

3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 2 only

(d) 1, 2 and 3

80. With reference to the Indian Economy, consider the following statements:

1.’Commercial Paper’ is a short term unsecured promissory note.

2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.

3. ‘Call Money’ is a short term finance used for interbank transactions.

4. ‘Zero-Coupon Bonds’ are the interest bearing short term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct ?

(a) 1 and 2 only

(b) 4 only

(d) 2, 3 and 4 only

89. Consider the following statements:

In terms of short term credit delivery to the agriculture sector, District Central Cooperative Banks(DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements is/are correct ?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Economy – UPSC Prelim – GS – Question Paper

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UPSC Prelim GS Question Paper – 2025

UPSC Prelim GS Question Paper – 2024

UPSC Prelim GS Question Paper – 2023

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UPSC Prelim GS Question Paper – 2020

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