DO NOT OPEN THIS BOOKLET UNTIL YOU ARE ASKED TO DO SO

PRESTORMINGTM
TEST BOOKLET
GENERAL STUDIES - PAPER – I
T.B.C: P-SIA-D-UPGI

A
ECONOMICS I
Serial: 202104
TEST – 4

Time Allowed: Two Hours Maximum Marks: 200

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1. Tim accidentally ordered an extra packet of Which of the statements given above is/are
bread online and forgot to order eggs. At the correct?
same time, his roommate Ryan had run out of (a) 1 only
bread but had more than necessary eggs. (b) 2 only
When they both discovered each other’s issue, (c) Both 1 and 2
they were relieved. They exchanged the bread (d) Neither 1 nor 2
and eggs and went on with their day. This kind
of transaction is an example of which of the
4. Which one of the following is the correct
following?
definition of “unemployment rate” in an
(a) Non-monetary exchange
economy?
(b) Barter exchange
(a) Number of people who are not working
(c) Freebies
divided by the population
(d) Remittances
(b) Number of people who are not working
divided by the total number of people who

2. Consider the following statements about a are working or looking for jobs

closed economy: (c) Number of people who are not working and
are looking for jobs divided by the
1. A closed economy is completely self-
population
sufficient, with no imports or exports from
(d) Number of people who are not working and
international trade.
are looking for jobs divided by the total
2. A socialist economy is definitely a closed
number of people who are working or
economy.
looking for jobs
Which of the statements given above is/are
correct?
5. Consider the following statements about
(a) 1 only “capital goods”:
(b) 2 only
1. These are goods that make the production
(c) Both 1 and 2
of other goods feasible, yet they don’t get
(d) Neither 1 nor 2
transformed in the process.
2. These are final goods, but they are not final

3. Consider the following statements: goods to be ultimately consumed.

Which of the statements given above is/are

1. The economic wealth of a country is solely
correct?
decided by the possession of natural
resources. (a) 1 only
2. Countries that possess lesser or no natural (b) 2 only

resources cannot have a wealthy economy. (c) Both 1 and 2

(d) Neither 1 nor 2

SIA-A-GKN (1-A)
6. The difference between the value of production 9. Consider the following statements about the
of a firm and the value of intermediate goods “Statutory Liquidity Ratio” (SLR):
used by the firm gives which one of the
1. It is a proportion of Net Demand and Time
following?
Liabilities that banks have to maintain in
(a) Value-added the form of Securities, Gold, etc.
(b) Factor cost 2. The RBI can penalize the banks for failing
(c) Gross Domestic Product to maintain the mandated SLR.
(d) GDP Deflator
Which of the statements given above is/are
correct?

7. Consider the following pairs: (a) 1 only

Expenditure - Aggregate value (b) 2 only

1.
method of spending that (c) Both 1 and 2

the firms receive (d) Neither 1 nor 2

Product - Aggregate value

2.
method of final goods
10. Which of the following is/are feature(s) of
and services
“public goods”?
produced
1. The benefits of public goods are not limited
Income method - Sum of all factor
3.
to one particular consumer.
payments
2. The consumption of public goods by
Which of the pairs given above is/are correctly
several individuals creates competition
matched?
among consumers.
(a) 1 and 2 only 3. There is no feasible way of excluding people
(b) 2 and 3 only from enjoying public goods.
(c) 1 and 3 only
Select the correct answer using the code given
(d) 1, 2 and 3
below.

(a) 1 only
8. Arrange the following in the increasing order of (b) 2 only
their liquidity: (c) 3 only

1. Cash in hand (d) 1 and 3 only

2. Gold
3. Demand deposits
11. Goods and Services Tax collected by the
4. Land
government is included under which of the
Select the correct answer using the code given following heads in the budget of India?
below.
(a) Capital receipts
(a) 1-2-3-4 (b) Revenue receipts
(b) 4-3-2-1 (c) Revenue expenditure
(c) 4-2-3-1 (d) Capital expenditure
(d) 1-3-2-4

SIA-A-GKN (2-A)
12. Consider the following statements about the 14. Which of the following statements is not
“Market Intervention Scheme” in India: correct about to the “Ayushman Bharat”
scheme?
1. It is for procurement of perishable and
horticultural commodities in the event of a (a) It provides cashless and paperless access
fall in market prices. to services for the beneficiary at the point
2. The area of operation of the scheme is of service
restricted to the concerned state only. (b) It provides an insurance cover upto Rs 5
3. The Department of Agriculture and lakh per person, per year for secondary
Cooperation is implementing this scheme. and tertiary hospitalization
Which of the statements given above is/are (c) It provides free treatment at all public and
correct? empanelled private hospitals in times of
(a) 1 only need
(b) 2 and 3 only (d) Beneficiaries are identified by the
(c) 1 and 2 only government on the basis the Socio-
(d) 1, 2 and 3 Economic and Caste Census-2011
database both in rural and urban areas

13. The term “Helicopter money” sometimes seen

in the news recently, it means 15. In the context of Public Finance in India,
consider the following statements about the
(a) The amount of money invested aggressively
to make use of derivatives and leverage to “Equalization Levy”:

generate higher returns 1. It is an indirect tax, which is paid at the

(b) The large sums of money printed and time of payment by the service recipient.
distributed to the public by the central 2. The tax applies to e-commerce
bank transactions on websites also.
(c) The capital that investors regularly move 3. It also covers the transactions between
between economies and financial markets non-residents.
to profit from the highest short-term Which of the statements given above is/are
interest rates correct?
(d) The amount of money absorbed by the (a) 1 and 2 only
central bank by issuing government (b) 2 and 3 only
securities (c) 1 only
(d) 1, 2 and 3

SIA-A-GKN (3-A)
16. Which of the following are included as “capital 2. It is used as a means of controlling the money
expenditure”? supply.

1. Loans raised by the union government Which of the statements given above is/are
from the public. correct?
2. Investment by the union government in (a) 1 only
shares. (b) 2 only
3. Loans and advances by the union (c) Both 1 and 2
government to state governments. (d) Neither 1 nor 2
Select the correct answer using the code given
below.
19. The term “Golden Handshake” is related to
(a) 1 and 2 only which one of the following?
(b) 2 and 3 only
(a) Collaboration between two blue-chip
(c) 1 and 3 only
companies
(d) 1, 2 and 3
(b) A generous severance package to those
who lose their job
17. Consider the following statements about the (c) Collaboration between investors and
“Fiscal Responsibility and Budget owners of a company
Management Act” of 2003: (d) An economically favourable trade deal
between the two countries
1. The act originally limited the revenue deficit
to 3% of the GDP.
2. The act mandated to end monetization of 20. Which of the following indicators are included
the deficit. under the “Gender Inequality Index”?
Which of the statements given above is/are 1. Maternal mortality ratio
correct? 2. Parliamentary representation
(a) 1 only 3. Attainment of secondary or higher
(b) 2 only education
(c) Both 1 and 2 4. Labour force participation ratio
(d) Neither 1 nor 2 5. Adolescent birth rate

Select the correct answer using the code given

below.
18. Consider the following statements about the
“Open Market Operations”: (a) 3 and 5 only
(b) 1, 2 and 3 only
1. It is an instrument of monetary policy under
(c) 1, 3 and 4 only
which only purchase of government Treasury
(d) 1, 2, 3, 4 and 5
Bills and bonds takes place.

SIA-A-GKN (4-A)
21. In which one of the following types of
unemployment, the marginal product
employed people is zero?
(a) Underemployment
(b) Voluntary unemployment
(c) Educated unemployment
(d) Disguised unemployment
22. Consider the following statements:
24. Consider the following statements about the
of “Capital Adequacy Ratio”:
1. It is a measurement of a bank's available
capital expressed as a percentage of a
bank's risk-weighted credit exposures.
2. It is to ensure that banks have enough
cushions to absorb a reasonable amount of
losses.
3. The Basel norms dictate the optimum

1. Inequality is measured using the Kuznets capital adequacy ratio for banks.

Curve. Which of the statements given above are

2. When the value of the Gini Coefficient is 1, correct?
it indicates perfect equality.
(a) 1 and 2 only
Which of the statements given above is/are
(b) 2 and 3 only
correct?
(c) 1 and 3 only
(a) 1 only (d) 1, 2 and 3
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 25. Consider the following statements:

1. It is the only sanctuary in India which is

the home to seven different species of wild
23. Consider the following statements:
cats.
1. The fiscal deficit is the difference between
2. It is located within the areas having
total expenditure and total receipts except
deciduous rainforest interspersed with
for borrowings.
semi-evergreen and lush green flora.
2. Primary deficit is the fiscal deficit after
excluding the liability of interest payment 3. It is named from the river that flows

created due to borrowings of the past. through this forest and the hill at the foot
of which the sanctuary lies.
Which of the statements given above is/are
The above statements describe which one of
correct?
the following wildlife sanctuaries in India?
(a) 1 only
(a) NamborDoigrung Wildlife Sanctuary
(b) 2 only
(b) DehingPatkai Wildlife Sanctuary
(c) Both 1 and 2
(c) Bhadra Wildlife Sanctuary
(d) Neither 1 nor 2
(d) Chinnar Wildlife Sanctuary

SIA-A-GKN (5-A)
26. “United for Biodiversity” coalition, sometimes 29. Consider the following statements:
seen in the news recently, is related to 1. Scheduled banks are those which are

(a) United Nations Environment Programme
(b) European Commission
(c) United Nations Framework Convention on
Climate Change
(d) Global Environment Facility
27. “National Chambal Sanctuary” is located
across which of the following states of India?
listed in the 2nd schedule of the RBI Act,
1934.
2. Regional Rural Banks are also a type of
scheduled banks.
3. Scheduled banks are eligible for obtaining
loans on repo rate from the Reserve Bank
of India.
Which of the statements given above are
correct?

1. Madhya Pradesh (a) 1 and 2 only

2. Uttar Pradesh (b) 2 and 3 only
3. Gujarat (c) 1 and 3 only

4. Rajasthan (d) 1, 2 and 3

Select the correct answer using the code given

below. 30. Which of the following instruments have a
(a) 1, 3 and 4 only maturity period of less than one year?
(b) 2 and 3 only 1. Call money
(c) 1, 2 and 4 only 2. Commercial Papers
(d) 1, 2, 3 and 4 3. Treasury Bills

Select the correct answer using the code given

below.
28. Which of the following are the quantitative
methods to control credit used by the Reserve (a) 1 and 2 only
(b) 2 and 3 only
Bank of India?
(c) 1 and 3 only
1. Cash Reserve Ratio
(d) 1, 2 and 3
2. Liquidity Adjustment Facility
3. Variable Portfolio Ceiling
31. Which one of the following is the largest
Select the correct answer using the code given
natural terrestrial carbon store?
below.
(a) Ocean
(a) 1 and 2 only (b) Peatlands
(b) 2 and 3 only (c) Tropical forests
(c) 1 and 3 only (d) Mangroves

(d) 1, 2 and 3

SIA-A-GKN (6-A)
32. Which of the following sectors are included 35. Why the Indian economy is often characterised
under the “Priority Sector Lending” scheme of as having experienced jobless growth?
the banks?
(a) Because the majority of its population is
1. Housing
2. Export credit still dependent on the primary sector

3. Renewable energy (b) Because of the low economic growth rate in

4. Micro, Small and Medium enterprises all sectors
Select the correct answer using the code given (c) Because of the domination of the service
below.
sector in India’s economic growth without
(a) 1, 2 and 3 only creating sufficient jobs
(b) 2, 3 and 4 only
(d) Because of the domination of
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4 manufacturing sector in India’s economic
growth without creating sufficient jobs
33. Consider the following pairs:

Category of NBFC Regulator

36. With reference to the economic growth and
1. Venture Capital Fund - SEBI
2. Chit Funds - RBI economic development, consider the following

3. Nidhi companies - Ministry of statements:

Corporate
1. While the combination of high growth and
Affairs
high development scenario is highly
Which of the pairs given above are correctly
possible, the combination of high growth
matched?
and low development is also possible.
(a) 1 and 2 only
(b) 2 and 3 only 2. While the combination of low growth and
(c) 1 and 3 only low development is highly possible, the
(d) 1, 2 and 3 combination of low growth and high

34. Which of the following measures control development is not at all possible.
inflation in an economy?
Which of the statements given above is/are
1. The decrease in indirect taxes correct?
2. The decrease in direct taxes
3. Reduction in unnecessary expenditure (a) 1 only

Select the correct answer using the code given (b) 2 only

below. (c) Both 1 and 2

(a) 1 and 2 only (d) Neither 1 nor 2

(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

SIA-A-GKN (7-A)
37. When the prices of goods and services, as well 40. Recently, the Reserve Bank of India has
as the rate of unemployment, are at high intervened heavily in the currency market with
levels, then which of the following is the respect to the COVID-19 economic crisis.
economy experiencing? Which of the following intervention(s) will not

(a) Disinflation lead to stimulating the money supply in the

(b) Stagflation economy?
(c) Boom
1. Increase in Repo rate
(d) Deflation
2. Issuance of new government securities
3. Lowering the reserve requirement for
38. Which one of the following scenarios is likely banks
to be the most inflationary in nature?
Select the correct answer using the code given
(a) Repaying public debt along with interest below.
(b) Borrowing from the public sector banks to
(a) 3 only
spend on public welfare
(b) 2 and 3 only
(c) Borrowing from the private sector banks to
(c) 1 and 2 only
spend on public welfare
(d) 1, 2 and 3
(d) Printing new currency to spend on public
welfare

41. A “currency swap line” is an agreement

39. With reference to the legislative bodies in between two central banks to exchange

India, consider the following statements about currencies. In this context, with which of the
the State Legislative Council: following country/countries India has

1. Constitution of India prohibits the filling of currency swap line presently?

a vacancy if the remainder of the term of a 1. Japan

member concerning a vacancy is less than
2. United States of America
a year.
3. Sri Lanka
2. For the nomination of members, Governor
Select the correct answer using the code given
of that State is obligated under the Indian
below.
Constitution to act swiftly on the advice of
the Council of Ministers. (a) 3 only

Which of the statements given above is/are (b) 2 and 3 only

correct? (c) 1 and 2 only
(a) 1 only (d) 1, 2 and 3
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

SIA-A-GKN (8-A)
42. Recently, the Indian government has decided 45. Which one of the following statements is
to boost the petroleum stocks in strategic correct about the “Monetary Policy Committee”
reserve of India. Currently, India has strategic of India?
petroleum reserves in (a) It has representation from Reserve Bank of
1. Maharashtra India alone
2. Andhra Pradesh (b) It is chaired by the Finance Minister of
3. Karnataka India
4. Tamil Nadu (c) All its members are appointed by the

5. Gujarat Government of India alone

(d) The current mandate of the committee is to
6. Kerala
maintain 4% annual inflation
Select the correct answer using the code given
below.
46. Consider the following statements about the
(a) 1, 2 and 5 only
“Treasury Bills” in India:
(b) 2 and 3 only
(c) 1, 3, 4 and 6 only 1. They are money market instruments which
(d) 1, 2, 3 and 5 only are long term in nature.
2. They are normally used by the Union
Government to fulfil its short-term liquidity
43. Consider the following pairs:
requirement.
Shadow puppet theatre State 3. They also function as part of requirements
1. ChamadyachaBahulya - Maharashtra of Statutory Liquidity Ratio of banking
2. TolpavaKuthu - Andhra Pradesh institutions
3. Ravanchhaya - Odisha Which of the statements given above are
Which of the pairs given above is/are correctly correct?
matched?
(a) 1 and 2 only
(a) 1 only
(b) 1 and 3 only
(b) 2 and 3 only
(c) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
(d) 1, 2 and 3

47. If the Reserve Bank of India decides to adopt

dear money policy, then it would
44. Which one of the following will help in deriving
“core inflation”? 1. Raise Statutory Liquidity Ratio
2. Raise Repo Rate
(a) Estimating the costs for both goods and
3. Lower Reverse Repo Rate
services
(b) Estimating the costs at wholesale prices Select the correct answer using the code given
rather than retail prices below.
(c) Excluding the prices of volatile items from (a) 1 and 2 only
headline inflation (b) 3 only
(d) Excluding the prices of manufacturing (c) 1 only
items from headline inflation (d) 2 only

SIA-A-GKN (9-A)
48. Which of the following are the functions of the Select the correct answer using the code given
Reserve Bank of India? below.
1. Acting as the banker of the government
(a) 1, 2 and 3 only
2. Stabilising the exchange rate of the rupee
(b) 1, 2 and 4 only
3. Acting as the agent of the Government of
India in International Monetary Fund (c) 1, 3 and 4 only

4. Circulating currency and coins (d) 2, 3 and 4 only

Select the correct answer using the code given

below. 51. The ‘Doctrine of Repugnancy’ sometimes seen
(a) 1 and 2 only in the news recently. Which of the following
(b) 3 and 4 only
articles of the Indian Constitution deals with
(c) 1, 2 and 4 only
the doctrine of repugnancy?
(d) 1, 2, 3 and 4
(a) Article 142
(b) Article 164
49. The term ‘Four Balance Sheet Problem’ was
seen frequently in the news in the context of (c) Article 254

the Indian economy. It refers to which of the (d) Article 368

following four categories of institutions?

1. Banks
52. Consider the following statements about the
2. Non-Banking Financial Companies
3. Software Companies “Drug Prices Control Order”:

4. Real Estate Companies 1. It is an order issued by the Government of

5. Infrastructure Companies
India under the Essential Commodities Act
6. Food Processing Companies
of 1955.
Select the correct answer using the code given
2. It provides ceiling price of every drug sold
below.
in India to ensure drugs are accessible at
(a) 1, 2, 4 and 5 only
reasonable costs.
(b) 1, 2, 3 and 4 only
3. Drugs Controller General of India is vested
(c) 1, 2, 5 and 6 only
(d) 1, 2, 3 and 6 only with the power to implement this order.
Which of the statements given above is/are
correct?
50. The Annual Financial Statement of the
Government of India for the year 2021-22 (a) 1 only

includes which of the following estimates? (b) 1 and 2 only

1. Actual Estimates for the year 2019-20 (c) 2 and 3 only

2. Budget Estimates for the year 2021-22 (d) 1, 2 and 3
3. Revised Estimates for the year 2020-21
4. Actual Estimates for the year 2020-21

SIA-A-GKN (10-A)
53. Consider the following statements about the 2. It leads to an increase in total money
“Counter-cyclical Capital Buffer” which supply in the system and hence can cause
sometimes seen in the news recently: inflation.

1. It is the minimum capital to be kept by a Which of the statements given above is/are
bank to meet business cycle related risks. correct?
2. It is one of the voluntary set of measures (a) 1 only
under the Basel III norms. (b) 2 only
3. Reserve Bank of India has been mandated (c) Both 1 and 2
Counter-cyclical Capital Buffer norms to (d) Neither 1 Nor 2
all the banks since 2019.
Which of the statements given above is/are
correct? 56. Which of the following can be achieved using a

(a) 1 only well-planned fiscal policy?

(b) 1 and 2 only 1. Controlling inflation

(c) 2 and 3 only
2. Reducing unemployment
(d) 1, 2 and 3
3. Promoting inclusive growth

4. Realising regionally equitable growth

54. In the context of the public finance of India,
arrange the following deficits in the order of 5. Achieving exchange rate stability
high to low based on their values: Select the correct answer using the code given
1. Fiscal Deficit below.
2. Effective Revenue Deficit (a) 2, 3 and 4 only
3. Revenue Deficit
(b) 1, 2 and 4 only
4. Primary Deficit
(c) 2, 3 and 5 only
Select the correct answer using the code given
below. (d) 1, 2, 3, 4 and 5

(a) 1 – 2 – 3 – 4
(b) 2 – 3 – 1 – 4 57. “Deomali Elephant Reserve”, sometimes seen
(c) 2 – 3 – 4 – 1 in the news recently, is located in
(d) 1 – 4 – 3 – 2
(a) Jharkhand
(b) Arunachal Pradesh
55. Consider the following statements about the (c) Karnataka
monetisation of deficit in India: (d) Assam

1. It means an increase in the net RBI credit

to the central government.

SIA-A-GKN (11-A)
58. Which of the following funds is a part of Public 2. Generally, the surcharge can be used for
Account of India? any purpose, but cess has predefined

1. Provident fund objectives and can be used only for that

purpose.
2. Interest from loans

3. Small saving schemes Which of the statements given above is/are

correct?
4. National investment fund
(a) 1 only
5. Surcharge on Income tax

Select the correct answer using the code given (b) 2 only

below. (c) Both 1 and 2

(a) 1, 3 and 4 only (d) Neither 1 nor 2
(b) 1, 2, 4 and 5 only

(c) 1, 3, 4 and 5 only

61. Consider the following statements about the
(d) 2 and 3 only disinvestment policy of the Government of
India:

59. Consider the following statements: 1. Department of Investment and Public

1. All direct taxes are progressive in nature. Asset Management (DIPAM) along with
NITI Aayog has been mandated to identify
2. All indirect taxes are proportional in
nature. PSUs for strategic disinvestment.

3. Income tax in India is progressive in 2. In strategic disinvestment, more than 50

nature. percent share of government in public

Which of the statements given above is/are sector units is sold to private parties but

correct? the management control remains with the

government.
(a) 1 and 2 only
3. There has been a consistent increase in
(b) 3 only
disinvestment target set by the budget in
(c) 1 and 3 only
the last few years.
(d) 2 and 3 only
Which of the statements given above is/are
correct?
60. With reference to Cess and Surcharges in
(a) 1 and 2 only
India, consider the following statements:
(b) 1 and 3 only
1. While cess is shared with states using the
Finance Commission formula by the Union (c) 1 only
Government, the surcharge is not shared
(d) 1, 2 and 3
with states.

SIA-A-GKN (12-A)
62. Consider the following statements: 64. The Government of India can effectively tackle
the situation of deflation in the economy by
1. Inflation is always undesirable for the
economy. 1. Increasing the direct tax rate

2. Decreasing the direct tax rate

2. Disinflation is the reduction in the rate of
inflation. 3. Reducing the repo rate

3. Stagflation makes the application of 4. Increasing the repo rate

monetary policy ineffective. 5. Increasing the government spending

Which of the statements given above is/are Select the correct answer using the code given

correct? below.

(a) 1, 4 and 5 only

(a) 1 and 2 only
(b) 2, 3 and 5 only
(b) 2 and 3 only
(c) 2 and 3 only
(c) 2 only
(d) 1 and 4 only
(d) 1 and 3 only

65. Which of the following nutrients are covered

63. Which of the following are the most likely under the “Nutrient Based Subsidy Scheme”?

impacts of a very high fiscal deficit on the 1. Nitrogen

Indian economy? 2. Phosphorus
3. Potash
1. Increase in borrowings by the government
4. Sulphur
2. Crowding in effect for private sector Select the correct answer using the code given

3. High inflation below.

(a) 1 and 4 only
4. Decrease in credit ratings in the
(b) 2 and 3 only
international market
(c) 2, 3 and 4 only
5. Depreciation of Indian rupees (d) 1, 2, 3 and 4

Select the correct answer using the code given

below. 66. “Major Atmospheric Cerenkov Experiment
Telescope”, sometimes seen in the news
(a) 1, 2, 3 and 4 only
recently, belongs to
(b) 2, 3 and 5 only
(a) Russia
(c) 1, 3, 4 and 5 only (b) United States of America
(c) China
(d) 1, 3 and 4 only
(d) India

SIA-A-GKN (13-A)
67. Consider the following statements: Select the correct answer using the code given

1. Both the Central and the State below.

governments have the power to fix the price (a) 2, 4 and 5 only

of sugarcane in India. (b) 3, 5 and 6 only

(c) 1, 3, 4 and 6 only
2. Fair and remunerative price is the
(d) 1, 2, 3, 4, 5 and 6
minimum price at which rate sugarcane is
to be purchased by the government from
farmers. 70. As per the FRBM Act, 2003, as amended in
3. The price of sugar is market-determined in 2012, which of the following documents are
India. mandatory for the government to present
Which of the statements given above is/are not before the parliament along with the annual
correct? budget?
(a) 2 only 1. Medium-term fiscal policy statement
(b) 1 and 3 only 2. Fiscal policy strategy statement
(c) 1 and 2 only 3. Macroeconomic framework statement
(d) 1, 2 and 3 4. Medium-term expenditure framework
statement

68. Consider the following statements about the Select the correct answer using the code given
‘Blazars’: below.

1. Blazar is an active galactic nucleus with a (a) 1 and 2 only

relativistic jet directed very nearly towards (b) 1, 2 and 3 only
an observer.
(c) 3 and 4 only
2. These are the most luminous and energetic
objects in the known universe. (d) 1, 2, 3 and 4
3. These are the emitters of gamma-rays.
Which of the statements given above is/are
correct? 71. In the Indian context, consider the following
(a) 1 only statements:
(b) 2 and 3 only 1. For full-bodied currency, intrinsic value is
(c) 1 and 2 only less than the face value.
(d) 1, 2 and 3 2. For token currency, intrinsic value is equal
to face value.
69. With reference to the recent scientific 3. The Coinage Act, 2011 prohibits the
developments, which of the following are the melting of coins.
possible applications of “Geo-Fencing”? Which of the statements given above is/are
1. Social networking correct?
2. Marketing (a) 1 and 2 only
3. Smart appliances
(b) 3 only
4. Human Resource management
5. Telematics (c) 1 only
6. Security (d) None of the Above

SIA-A-GKN (14-A)
72. Consider the following statements about the 75. Consider the following statements about the
“Merchant Discount Rate” (MDR) in India: “Marginal Standing Facility” (MSF):

1. It is the discount which merchant gets for 1. MSF window is used by banks to borrow
transactions done through credit or debit
money from RBI for short term
card to promote the digital economy.
requirements at a rate equal to the repo
2. Recently, RBI has allowed Regional Rural
rate.
Banks to act as merchant acquirer banks.
2. Eligible entities can pledge collateral even
Which of the statements given above is/are
from SLR quota to borrow money under
correct?
MSF route.
(a) 1 only
3. The facility is available to banks as well as
(b) 2 only non-bank entities registered with the
(c) Both 1 and 2 Reserve Bank of India.

(d) Neither 1 nor 2 Which of the statements given above is/are

correct?
73. Consider the following statements:
(a) 1 and 2 only
1. The money multiplier is the ratio of the
(b) 1 and 3 only
stock of total money in the economy to the
stock of high-powered money. (c) 3 only
2. Money multiplier has steadily increased
(d) 2 only
over the last few decades in the Indian
economy.
76. Consider the following statements about the
3. It is always greater than one
“Financial Stability Report”:
Which of the statements given above is/are
correct? 1. It is an annual report that reflects risks to
financial stability and the resilience of the
(a) 1 only
Indian financial system.
(b) 1 and 3 only
2. It is released by the Reserve Bank of India.
(c) 2 and 3 only
Which of the statements given above is/are
(d) 1, 2 and 3
correct?

74. “Doha Pact”, sometimes seen in the news (a) 1 only

recently, is mainly related to the affairs of (b) 2 only

(a) Saudi Arabia
(c) Both 1 and 2
(b) Afghanistan
(d) Neither 1 nor 2
(c) Iran
(d) Qatar

SIA-A-GKN (15-A)
77. Consider the following statements about the 79. Consider the following statements about the
“Non-Banking Financial Companies” (NBFC): Small Saving Schemes in India:

1. They are companies registered under the 1. Small Saving Schemes can be accessed
Companies Act, 1956 engaged in the only through the post offices.

business of loans and advances, 2. The interest rate system for small savings

acquisition of shares/stocks/bonds/ schemes is market-linked.

Which of the statements given above is/are
debentures/securities.
correct?
2. They are not part of the payment and
(a) 1 only
settlement system of RBI. (b) 2 only
3. Chit fund companies are not classified (c) Both 1 and 2
under the NBFC category. (d) Neither 1 nor 2

Which of the statements given above is/are

80. Consider the following statements about the
correct?
Bank Deposit Insurance in India:
(a) 1 only
1. Currently, deposits up to Rupees Five Lakh
(b) 1 and 2 only is insured and paid back to depositors in

(c) 1 and 3 only case of bank failure.

2. All bank deposits such as savings, fixed,
(d) 1,2 and 3
current and recurring are insured by
Deposit Insurance and Credit Guarantee

78. Which of the following functions can be Corporation (DICGC).

3. Deposits in cooperative banks are not
performed by the Payment Banks in India?
insured under DICGC Act.
1. Sell mutual funds, insurance, pensions
Which of the statements given above is/are
2. Offer bill payment service for customers correct?
3. Accept NRI deposits (a) 1 and 2 only
4. Function as Business Correspondent of (b) 1 only
another bank
(c) 1 and 3 only
5. Handle cross border remittances
(d) 1, 2 and 3
Select the correct answer using the code given
below. 81. “PhulamGamosa”, sometimes seen in the news
(a) 1, 2, 3 and 5 only recently, culturally belongs to the state of

(b) 1, 2, 4 and 5 only (a) Assam

(b) Sikkim
(c) 2, 3, 4 and 5 only
(c) Meghalaya
(d) 1, 3, 4 and 5 only (d) Gujarat

SIA-A-GKN (16-A)
82. “X-ray Polarimeter Satellite (XPoSat)” is a 85. With reference to the Insurance sector,
planned space observatory of which one of the consider the following statements:
following space agencies?
1. Insurance penetration is measured as a
(a) Indian Space Research Organisation ratio of insurance premium to GDP.
(b) European Space Agency
2. Insurance density is measured as a ratio of
(c) National Aeronautics and Space
insurance premium to population.
Administration
(d) China National Space Administration 3. Insurance penetration for life insurance has
increased while for non-life insurance it has
decreased consistently over the last decade.
83. Consider the following statements about the
Which of the statements given above is/are
“National Investment and Infrastructure
correct?
Fund” (NIIF):
(a) 1 only
1. It is an Alternate Investment Fund
registered with RBI. (b) 2 and 3 only

2. NIIF is used for investment across (c) 1 and 2 only

infrastructure, private equity and other
(d) 1, 2 and 3
diversified sectors.

3. Government of India is the sole investor in

NIIF. 86. Consider the following statements about the
pharmaceutical industries in India:
Which of the statements given above is/are
correct? 1. Globally, India is the largest provider of
generic medicines.
(a) 1 and 2 only
2. 100 percent Foreign Direct Investment is
(b) 2 only
allowed under the automatic route for
(c) 2 and 3 only Greenfield pharmaceutical sector.

(d) 1 and 3 only 3. More than half of India’s active

pharmaceutical ingredients are imported
from China
84. “Clause 49” often seen in news is related to
Which of the statements given above is/are
which one of the following?
correct?
(a) Corporate governance norms (a) 3 only

(b) Provision for liquidation of insolvent (b) 2 and 3 only

companies under IBC (c) 1 and 2 only

(d) 1, 2 and 3
(c) Norms for disclosure by credit rating
agencies

(d) None of these

SIA-A-GKN (17-A)
87. With references to the recent advancements in 90. Consider the following about the Stock
the field of Biotechnology, consider the Exchanges in India:

following statements about the “CRISPR 1. It is an organization where buyers and

technology”: sellers come together to trade financial
instruments.
1. It is a gene-editing technology that can be
2. They trade both money market and capital
used for targeting specific stretches of an
market instruments.
entire genetic code.
3. The shares of even unlisted companies
2. It uses the Cas9 enzyme as molecular
may be traded.
scissors to cut the DNA.
Which of the statements given above is/are
3. There are no side effects with the CRISPR
correct?
technology.
(a) 1 only
Which of the statements given above is/are
(b) 1 and 2 only
correct?
(c) 1 and 3 only
(a) 2 and 3 only
(d) 1, 2 and 3
(b) 1 and 2 only
(c) 1 only
91. Recently, Moody's Investors Service
(d) 1, 2 and 3
downgraded India's sovereign rating. Which of
the following is the most likely implication of
88. The term “Fra Mauro formation”, sometimes this move?
seen in the news recently, is related to (a) Negatively impact India's international

(a) Big bang theory relations

(b) Reduce RBI's global financial reputation
(b) Lunar surface
(c) Reduce the government's debt raising
(c) Stellar black holes
ability
(d) Global Warming
(d) Increase foreign reserves of India

89. “Natuna Islands” is a disputed territory

92. Which one of the following best describes the
between term “intermediate goods”?

(a) The United Kingdom and Mauritius (a) Goods in transit from one nation to
(b) China and Indonesia another as a part of the trade

(c) Canada and Denmark (b) Goods transferred from the stocks of one
year to another in a firm
(d) Iran and the United Arab Emirates
(c) Goods used as raw materials to produce
final goods
(d) None of the above

SIA-A-GKN (18-A)
93. Consider the following statements about the 95. In the year 1991, the Indian economy was
“GDP Deflator”: liberalised and connected better to the global
economy. Consider the following statements in
1. It is a measure of the level of prices of
regard to the impact of liberalization on the
goods and services produced in an
banking system of India:
economy
1. Commercial banking saw a rapid
2. It helps in comparing the level of real
increase.
economic activities from one year to
2. The procedure of granting banking licence
another
was made stringent to protect the interest
3. It is of limited use as it covers lesser goods of public
and services vis a vis Consumer Price 3. The number of banks was reduced due to
Index mergers
Which of the statements given above is/are
Which of the statements given above are
correct?
correct?
(a) 1 only
(a) 1 and 3 only (b) 1 and 3 only
(b) 2 and 3 only (c) 2 and 3 only
(c) 1 and 2 only (d) 1, 2 and 3

(d) 1, 2 and 3

96. RBI acts as a banker to the Government of

India. Consider the following statements in
94. RBI has reduced the repo rate by a total of 115
this context:
basis points since February 2020. Consider
the following statements in this regard: 1. RBI makes appointments to Public Sector
Banks on behalf of the government.
1. Increase in the rate of inflation
2. RBI handles financial accounts of the
2. Higher economic growth
government.
3. Spike in demand 3. RBI supervises the annual budget
Which of the above can be the result of the presented in the Parliament.
reduction in the repo rate?
Which of the statements given above is/are
(a) 1 only correct?
(b) 1 and 3 only
(a) 1 and 2
(c) 2 and 3 only
(b) 2 and 3
(d) 1, 2 and 3
(c) 2 only
(d) 1, 2 and 3

SIA-A-GKN (19-A)
97. A higher Gross National Product in 99. Consider the following statements about
comparison to Gross Domestic Product may “Green GDP”?
1. Green GDP is an index of economic growth
imply which of the following with respect to the
that factors in the environmental
Indian economy?
consequences of growth
(a) High merchandise exports by India 2. Achieving Sustainable Development Goals
(b) Greater number of Indians working abroad will enable countries to increase their
(c) Greater number of foreign companies Green GDP

headquartered in India 3. India has been measuring Green GDP in

the last decade and NITI Aayog releases the
(d) High external borrowing by India
data annually

Which of the statements given above is/are

98. India observed the world's highest reduction in correct?

multidimensional poverty between 2006 and (a) 1 only

2016 as per the Oxford-UN data. Still, India (b) 1 and 2 only
(c) 1 and 3 only
has a large section of the population in
(d) 1, 2 and 3
poverty. Which of the following
actions/initiatives of Government of India will
100. With reference to the Intergovernmental
help substantially reduce poverty in the next
Platform on Biodiversity and Ecosystem
decade?
Services which sometimes seen in the news
1. Mahatma Gandhi National Rural recently, consider the following statements

Employment Guarantee Act, 2005 1. It is an independent intergovernmental

2. Essential Commodities Act, 1955 body established to strengthen the
science-policy interface for biodiversity and
3. Mutual Logistics Support Agreement
ecosystem services for the conservation
signed with Australia in 2020
and sustainable use of biodiversity, long-
4. Geographical Indication tags are given to term human well-being and sustainable
local products development.
2. United Nations Environment Programme
Select the correct answer using the code given
provides secretariat services to it and all
below.
member states of the United Nations are
(a) 1 only eligible for its membership.
(b) 1 and 2 only Which of the statements given above is/are
(c) 1, 2 and 3 only correct?

(d) 1, 2, 3 and 4 (a) 1 only

(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

SIA-A-GKN (20-A)