Test - 7: India Economy

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VISION IAS
Test -7
India Economy ▪ BoP, BoT, International trade, IMF, WTO,
National Income Accounting
▪ Definition Trade policies, issues and challenges etc.
▪ Concepts: GDP, GNP, Capital Market
▪ Measurement ▪ Terms and Concepts
Money and Banking Agriculture
▪ Function of Money, Evolution of Money Industry
etc. Services
▪ Banking: Need of Banks, Functions, Types, Infrastructure and Communication
Banking Reforms, Central Bank and its Five year Plans
role Economic Reforms since 1991
Inflation and Employment Foreign Trade
▪ Definition, types etc. India and IMF, WTO, WIPO
India and International Institutions
Government Budgeting and Fiscal Policy
▪ Budgeting, types, its evolution in India,
IPRs
+
Process, Component etc.
▪ Public finance, Revenue and Expenditure, Current Affairs
Deficits, Taxes, Debts etc.
External Sector and Currency Exchange (June, July 2021)
rates
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TEST BOOKLET
GENERAL STUDIES (P) 2022 – Test–3476

C
Time Allowed: Two Hours Maximum Marks: 200
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1. Which of the following is/are the 4. Consider the following statements regarding
components of high-powered money? NIPUN Bharat Mission:
1. Currency held by public 1. It covers children in the age group of
2. Currency held by commercial banks 6-14 years.
3. Foreign Exchange reserves held by RBI 2. NITI Aayog is the nodal agency for
Select the correct answer using the code implementing this scheme.
given below. Which of the statements given above is/are
(a) 1 and 2 only correct?
(b) 2 and 3 only
(a) 1 only
(c) 1 only
(b) 2 only
(d) 1, 2 and 3
(c) Both 1 and 2
(d) Neither 1 nor 2
2. Consider the following statements with
reference to Monetized deficit of the
5. Consider the following statements about the
Government of India:
Livestock Census:
1. It is that part of the government deficit
1. It has been conducted in the country
which is financed solely by borrowing
once every 5 years, since 1919-20.
from the Reserve Bank of India.
2. It involves only printing of high value 2. It covers all domesticated animals and
currency notes by the RBI. their headcounts.

Which of the statements given above is/are 3. It is conducted by the Union Ministry of
correct? Statistics and Program Implementation.
(a) 1 only Which of the statements given above is/are
(b) 2 only correct?
(c) Both 1 and 2 (a) 3 only
(d) Neither 1 nor 2 (b) 1 and 2 only
(c) 2 and 3 only
3. A government cuts taxes and runs a budget (d) 1, 2 and 3
deficit in order to stimulate consumer
spending. However, consumer responds to it 6. Arrange the following renewable sources of
by increasing savings instead of spending energy in increasing order of their
more. The forward looking approach of contribution to total installed capacity in
consumers is based on the fact that increased
India.
borrowings by the government will be repaid
1. Solar Power
by taxes in future. This will lead to a similar
2. Wind Power
impact on the economy as borrowing by the
3. Bio Power
government today.
Select the correct answer using the code
Which of the following is best described in
given below.
the passage given above?
(a) 1-3-2
(a) Ricardian equivalence
(b) 3-2-1
(b) Goodhart’s law
(c) 2-1-3
(c) Okun's Law
(d) Grandfather clause (d) 1-2-3

7. Consider the following statements with 10. With reference to Small Finance Banks
reference to Agriculture sector during 1950- (SFB), consider the following statements:
1990:
1. They are subject to the norms of Cash
1. Indian agricultural productivity had
increased during this period Reserve Ratio (CRR) and Statutory
2. The proportion of GDP contributed by Liquidity Ratio (SLR).
agriculture increased significantly.
2. At least 25 percent of its branches shall
3. The proportion of the population
working/depending on agriculture be in unbanked rural centers.
declined significantly. 3. Priority sector must comprise 75% of
Which of the statements given above is/are
their net credit.
correct?
(a) 1 only Which of the statements given above is/are
(b) 2 and 3 only correct?
(c) 1 and 3 only (a) 1 and 2 only
(d) 1 and 2 only
(b) 2 only
8. Consider the following statements with (c) 1 and 3 only

reference to the cost-push inflation: (d) 1, 2 and 3
1. It is inflation caused by an increase in
prices of inputs like labor and raw
material. 11. With reference to Ways and Means
2. This inflation is always a strong Advances (WMA), consider the following
indicator of an expanding economy.
statements:
correct? 1. It is a facility for both the Centre and
(a) 1 only states to borrow from the RBI, to
(b) 2 only balance temporary mismatches in cash
(c) Both 1 and 2
flows.
(d) Neither 1 nor 2
2. Normal Ways and Means Advances are
9. Consider the following statements: provided at lower interest rate than the
1. Autonomous transactions are
repo rate.
independent of the deficit or surplus in
the Balance of Payments. 3. The interest levied for Special Drawing
2. Accommodating transactions refer to Facilities/Special WMA is equal to the
transactions that take place to cover
repo rate.
deficit or surplus arising from
autonomous transactions. Which of the statements given above is/are
Which of the statements given above is/are correct?
correct? (a) 1 only
(a) 1 only
(b) 1 and 2 only
(b) 2 only
(c) Both 1 and 2 (c) 2 and 3 only
(d) Neither 1 nor 2 (d) 1, 2 and 3

12. Which of the following are excluded from 15. Aedes aegypti mosquito is an important
the National Income to calculate Personal vector that spreads many diseases. In this
Income? context which of the following diseases are
1. Corporate Tax spread by the Aedes aegypti mosquito?
2. Personal Tax payments 1. Zika Virus
3. Transfer payments to the households 2. Chikungunya
from the Government 3. Dengue
4. Undistributed profits 4. Yellow fever
Select the correct answer using the code Select the correct answer using the code
given below. given below.
(a) 1 and 4 only (a) 1 and 4 only
(b) 1, 3 and 4 only (b) 1, 2 and 3 only
(c) 2 and 3 only (c) 2, 3 and 4 only
(d) 2, 3 and 4 only (d) 1, 2, 3 and 4
13. In the context of the types of Inflation, 16. In the context of Indian economy, which of
consider the following statements: the following measures is regarded as the
1. Headline Inflation refers to the change in National Income?
the value of all goods in the basket (a) Gross Domestic Product at market prices
including food and fuel. (b) Net National Product at factor cost
2. Core Inflation is more volatile than (c) Gross National Product at factor cost
headline inflation. (d) Net National Product at market prices
correct? 17. Consider the following statements:
(a) 1 only 1. The Nominal effective exchange rate
(b) 2 only (NEER) is a multilateral rate
(c) Both 1 and 2 representing the basket of foreign
(d) Neither 1 nor 2 currencies, each weighted by its
importance to the domestic country in
14. Consider the following statements about the international trade.
Micro Small and Medium Enterprises 2. The Real Effective exchange rate
(MSMEs): (REER) is interpreted as the quantity of
1. This sector is the largest employer of domestic goods required to purchase one
human resources in India. unit of a given basket of foreign goods.
2. It generates more employment 3. The nominal exchange rate is the true

measure of a country’s international
opportunities per unit of capital invested
competitiveness.
compared to large industries.
correct?
correct?
(a) 1 and 2 only
(a) 1 only
(b) 2 and 3 only
(b) 2 only
(c) 1 only
(c) Both 1 and 2
(d) 1, 2 and 3
(d) Neither 1 nor 2

18. Consider the following statements regarding 21. With reference to Outright Open Market
Pre-paid Payment Instruments (PPIs) in Operations (OMO), consider the following
India: statements:
1. These are payment instruments that 1. Outright OMO are conducted without
facilitate the purchase of goods and
any promise to buy/sell the securities at
services.
a later stage.
2. Only those companies incorporated in
2. Outright OMO are conducted for
India can issue PPIs in India.
managing overnight liquidity
3. These instruments do not permit cash
withdrawal or redemption. mismatches.
Which of the statements given above is/are Which of the statements given above is/are
correct? correct?
(a) 1 and 2 only (a) 1 only
(b) 2 and 3 only (b) 2 only
(c) 1 only (c) Both 1 and 2
(d) 1, 2 and 3 (d) Neither 1 nor 2
19. With reference to India's foreign trade on the

22. Which of the following characterize a
eve of Independence, consider the following
situation of a 'liquidity trap' in an economy?
statements:
1. Decline in bond prices
1. More than half of India’s foreign trade
2. Lower interest rates
was restricted to Britain.
2. During the colonial period, India often 3. High savings rates
recorded a huge trade deficit. Select the correct answer using the code
Which of the statements given above is/are given below.
correct? (a) 1 and 2 only
(a) 1 only (b) 2 and 3 only
(b) 2 only (c) 1 and 3 only
(c) Both 1 and 2 (d) 1, 2 and 3
(d) Neither 1 nor 2
23. Which of the following taxes are subsumed

within the Goods and Service Tax (GST)?
reference to the voting shares in
1. Central Excise Duty
International Monetary Fund (IMF):
1. United States has the maximum voting 2. Stamp Duty
share followed by United Kingdom. 3. Octroi Tax

2. India occupies the fourth position with a 4. Luxury Tax
voting share of above 5%. Select the correct answer using the code
Which of the statements given above is/are given below.
correct? (a) 1 and 2 only
(a) 1 only (b) 1, 3 and 4 only
(b) 2 only (c) 1, 2 and 4 only
(c) Both 1 and 2
(d) 2, 3 and 4 only
(d) Neither 1 nor 2

24. Recently, India has exported various 27. Consider the following statements regarding
Geographical Indication (GI) certified Special Drawing Rights (SDRs):
products. In this context which of the 1. SDR is a currency or claim on
following is/are GI-tagged products? International Monetary Fund (IMF).
1. Bhalia Wheat 2. Any currency to be included in the SDR
basket has to meet the export criterion
2. Madurai Malli
and the freely usable criterion.
3. Malda Fazli Mango
3. SDRs cannot be held by private
individuals and entities.
given below. Which of the statements given above are
(a) 1 only correct?
(b) 1 and 2 only (a) 2 and 3 only
(c) 2 and 3 only (b) 1, 2 and 3
(d) 1, 2 and 3 (c) 1 and 3 only
(d) 1 and 2 only
respect to the Association of Southeast Asian 28. Consider the following statements regarding
Nations (ASEAN): the Market Stabilisation Scheme (MSS):
1. It aids in liquidity absorption in case of
1. ASEAN was established in 1967 with
significant capital inflows in the
the signing of the Bangkok Declaration
economy.
by the ten ASEAN member states.
2. MSS securities are included under the
2. The ASEAN Charter is a legally binding country’s ‘internal Central Government
agreement on its member states. debt’.
Which of the statements given above is/are Which of the statements given above are
not correct? correct?
(a) 1 only (a) 1 only
(b) 2 only (b) 2 only
(c) Both 1 and 2 (c) Both 1 and 2
(d) Neither 1 nor 2 (d) Neither 1 nor 2
29. Consider the following statements regarding

26. Which the following are a part of the World
International Criminal Police Organization
Bank Group?
(INTERPOL):
1. International Finance Corporation (IFC)
1. It is a specialized agency of the United
2. Multilateral Investment Guarantee Nations.
Agency (MIGA) 2. The Red Notice often issued by
3. International Centre for Settlement of INTERPOL is only against the persons
Investment Disputes (ICSID) accused of terrorism.
Select the correct answer using the code Which of the statements given above is/are
given below. correct?
(a) 1 and 3 only (a) 1 only
(b) 1 and 2 only (b) 2 only
(c) Both 1 and 2
(c) 1, 2 and 3
(d) Neither 1 nor 2
(d) 2 and 3 only

30. Consider the following statements about 33. Recently, Indian scientists discovered a new
Shell companies: species called Bryum bharatiensis in
1. They are corporate entities that do not Antarctica. It is a type of
have any active business operations. (a) Moss
2. They are defined as illegal entities under
(b) Lichen
the Company Act 2013.
(c) Bird
(d) Mammal
correct?
(a) 1 only
(b) 2 only 34. With reference to Participatory Notes (PNs),
(c) Both 1 and 2 consider the following statements:
(d) Neither 1 nor 2 1. It is a derivative instrument issued by a
SEBI registered Foreign Institutional
31. In the context of macroeconomics, consider Investor (FII) in foreign jurisdictions.
the following statements: 2. The investor in PN does not own the
1. Flows are measured over a period of underlying Indian security.
time and stocks are measured at a 3. PNs are freely tradeable and can be
particular point in time.
easily transferred from one investor to
2. Machines used for production are
another.
examples of capital goods.
3. Part of the final output that comprises
correct?
capital goods constitutes the gross
investment of an economy. (a) 1, 2 and 3 only
Which of the statements given above are (b) 2 and 3 only
correct? (c) 1 and 3 only
(a) 1 and 2 only (d) 1 only
(b) 2 and 3 only
(c) 1 and 3 only 35. Consider the following statements about
(d) 1, 2 and 3 core industries included in all India Index of
Industrial Production (IIP):
32. With reference to Goods and Services Tax
1. Its output data is published by the
(GST), consider the following statements:
National Statistical Office.
1. It is a value added tax imposed at every
2. It comprises more than 50% of the total
stage of the production process.
2. It is a destination based tax. weight of items included in IIP.
3. Integrated Goods and Service Tax 3. Fertilizers have the lowest weight among
(IGST) is levied and collected by the core industries in the index.
state of consumption. Which of the statements given above is/are
Which of the statements given above is/are not correct?
correct? (a) 1 only
(b) 1 and 2 only (c) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
(d) 2 and 3 only

36. Consider the following statements regarding 39. Payments Banks can provide which of the
the Asset Reconstruction Companies (ARCs) following services?
in India: 1. Current account for firms
1. ARCs are regulated by the RBI as non- 2. Retail lending
banking financial companies (NBFCs). 3. Issue prepaid cards
2. The ARC can take over only secured
debts which have been classified as a
given below.
non-performing asset (NPA).
(a) 1 and 2 only
(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
40. With reference to Reserve Ratio in the
(d) Neither 1 nor 2
banking sector, consider the following
37. Recently Kingdom of Eswatini has been in statements:
news for the sudden eruption of protests and 1. It is the percentage of deposits that a
subsequent violence. It is located in bank is mandated to keep with the RBI.

(a) Africa 2. Higher reserve ratio tends to lower the
(b) Europe credit supply in an economy.
(c) Asia Which of the statements given above is/are
(d) South America correct?
(a) 1 only
38. Which of the following provide official
(b) 2 only
sources of data on unemployment in India?
(c) Both 1 and 2
1. Data of National Statistical Organisation
(d) Neither 1 nor 2
(NSO)
2. Data by Director General of
41. As per the Indus Water Treaty between India
Employment and Training
and Pakistan, recently India has decided to
3. Census of India
utilize excess water by diverting the waters
given below. of river Ujh. Ujh is a tributary of the river
(a) 1 and 2 only (a) Sutlej
(b) 2 and 3 only (b) Beas
(c) 1, 2 and 3 (c) Ravi
(d) 1 and 3 only (d) Jhelum


42. The balance sheet is a record of the assets 45. Organization of the Petroleum Exporting
and liabilities of any firm. Which of the Countries (OPEC) is an intergovernmental
following items are classified as assets of a organization that is often seen in news in the
Bank? context of rising crude oil prices. Which of
1. Loans extended to farmers the following countries is not a member of
2. Fixed Deposits of customers OPEC?
3. Cash deposited with RBI (a) Nigeria
Select the correct answer using the code (b) Mexico
given below. (c) Iran
(a) 1 and 2 only (d) Libya
(b) 2 and 3 only
(c) 1 and 3 only 46. Consider the following statements about
(d) 1, 2 and 3 Agricultural Produce Market Committee
(APMC):
43. The Gross Domestic Product (GDP) of a 1. It is a statutory market committee
country is not an index of the well-being of constituted by the Central Government.
the people of that country because it does not 2. It is constituted for trade in certain
take into account notified agricultural or horticultural or
1. Domestic services performed by women livestock products.
at home 3. The whole geographical area in the State
2. Negative externalities caused by is divided and each one is declared as a
market area which is managed by the
companies
APMC.
3. Inequalities among the citizens
correct?
given below.
(a) 1 only
(a) 1 and 2 only
(b) 2 and 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(c) 1 and 3 only
(d) 3 only
(d) 1, 2 and 3

44. Consider the following statements about
the newly proposed Freight Smart Cities
Agricultural Census in India:
initiative:
1. It is carried out every five years as a
1. Only 4-star ranked smart cities are
Central Sector Scheme.
eligible to be selected under this
2. It was first conducted in India in the
initiative.
years 1920-21.
2. It will have participation of both public
3. It is being conducted as a part of the
and private sectors.
World Census of Agriculture.
correct?
correct?
(a) 1 only
(a) 2 only
(b) 2 only
(b) 1 and 2 only
(c) Both 1 and 2
(c) 1 and 3 only
(d) Neither 1 nor 2
(d) 1, 2 and 3

48. Primary Deficit is defined as the difference 51. Which of the following statements about
between: Open Acreage License Policy (OALP) is /are
(a) Fiscal deficit and grants for creation of
correct?
capital assets.
1. it provides uniform licenses for the
(b) Fiscal deficit and net interest liabilities.
(c) Total expenditure and revenue receipts exploration and production of all forms
including non-debt creating capital of hydrocarbons.

receipts. 2. Private players are allowed to carve out
(d) Fiscal deficit and external grants areas they want to explore oil and gas in.
received.
3. It is a part of the Hydrocarbon
Exploration and Licensing Policy
49. Gene based vaccines are said to be superior
to conventional vaccines in many aspects. In (HELP).
this context, which of the following is/are Select the correct answer using the code
possible benefits of gene based vaccines? given below.
1. They are made with live or inactivated
(a) 1 and 2 only
pathogens which can cause infection
(b) 2 only
when the virus is not inactivated
properly. (c) 1 and 3 only
2. They can generate both cellular and (d) 1, 2 and 3
humoral immunity.
3. They can be produced rapidly. 52. Consider the following statements with
reference to the Minimum Support Prices
given below.
(MSP):
(a) 1 only
(b) 2 only 1. It is the price fixed by State Government
(c) 2 and 3 only to protect the producer-farmers against
(d) 1, 2 and 3 excessive falls in price during the
bumper production years.
2. It is announced just after the sowing
Public Debt Management in India:
1. Public Debt in India includes both season for certain crops.
Internal and External Debt incurred by 3. It is announced on the basis of the
the Central Government. recommendations of the Department of
2. In India, Public Dent Management Agriculture & Cooperation.
Agency (PDMA) is the sole agency
responsible for managing public debt.
correct?
correct? (a) 2 only
(b) 2 only (c) 1 and 2 only
(c) Both 1 and 2
(d) None
(d) Neither 1 nor 2

53. With reference to the sectoral pattern of 56. What do you understand by the term 'Green
consumption of commercial energy in India, GDP'?
consider the following statements:
(a) It refers to the monetary value of goods
1. At present, the transport sector is the
and services produced in renewable
largest consumer of commercial energy
sectors in a country.
in India.
2. Over the decades, there has been a (b) It refers to total monetary value of
continuous fall in energy consumption of finished goods and services produced in

the agriculture sector. a country after adjusting for
Which of the statements given above is/are environmental damage.
correct?
(c) It refers to the potential GDP that can be
(a) 1 only
achieved when a country's resources are
(b) 2 only
fully exploited.
(c) Both 1 and 2
(d) Neither 1 nor 2 (d) It refers to the expected monetary value
of the biodiversity in a country.

54. Recently an orbiter named HOPE has
captured images of auroras on Mars. It was 57. Consider the following statements regarding
launched by which of the following
the Current Account of Balance of Payment:
countries?
1. It represents the trade in goods, services
(a) Europe
and assets between residents of a
(b) United States of America
(c) United Arab Emirates country with the rest of the world for a
(d) France specified time.
2. The Net Invisibles component of the

55. Consider the following statements with current account includes services and
reference to India's first Five Year Plan
transfer of income.
(FYP):
3. The Balance of Trade (BOT) component
1. The plan made huge allocations for
includes the difference in value of
large-scale irrigation projects.
2. It focused on land reforms as the key to exports and imports of goods only.
the country’s development. Which of the statements given above are

Which of the statements given above is/are correct?
correct?
(a) 1, 2 and 3
(a) 1 only
(b) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(c) Both 1 and 2
(d) Neither 1 nor 2 (d) 1 and 3 only

58. Consider the following statements about 61. Consider the following statements with
Micro-insurance:
reference to inflation:
1. It is to promote insurance coverage
among economically vulnerable sections 1. Inflation is the decline of purchasing
of society. power of a given currency over time.
2. NGOs, Self Help Groups, or Micro
2. Generally a decrease in money supply
Finance Institutions can be appointed by
an insurer to act as a micro-insurance triggers inflation.
agent.
3. It is regulated by the Ministry of
Finance. not correct?
Which of the statements given above is/are (a) 1 only
correct?
(b) 2 only
(a) 3 only
(b) 1 and 2 only (c) Both 1 and 2
(c) 1 and 3 only (d) Neither 1 nor 2
(d) 2 and 3 only
59. Under the New Economic Policy of 1991, 62. Gross Domestic Product (GDP) at Market
which of the following reform policies were
price is obtained from GDP at Factor cost
initiated by the government to promote
liberalization of trade and investment? by
1. Abolition of import quotas (a) adjusting for depreciation
2. Removal of export duties
3. Abolition of import licensing for all (b) accounting for inflation
industries (c) adjusting for net indirect taxes
(d) adjusting for current transfers from
given below.
(a) 1 and 2 only abroad
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 63. Securities Transaction Tax (STT), a type of
financial transaction tax in India, is levied on
60. Which of the following statements regarding
transactions of which of the following?
the International Development Association
(IDA) of World Bank is/are correct? 1. Commodity trading
1. It aims to reduce poverty by providing 2. Gold exchange-traded funds
loans only to the very poor developing
3. Equity derivatives
nations.
2. IDA loans have a zero or very low- Select the correct answer using the code
interest charge and repayments.
given below.
given below. (a) 1 and 2 only
(a) 1 only (b) 3 only
(b) 2 only
(c) 1 and 3 only
(c) Both 1 and 2
(d) Neither 1 nor 2 (d) 1, 2 and 3

64. With reference to the Wholesale Price Index 67. Which of the following statements with
(WPI), consider the following statements: regard to National Skill Development
1. The Reserve Bank of India uses the WPI Council (NSDC) is not correct?
as a key measure of inflation to set (a) It is a not-for-profit public limited

company
monetary and credit policy.
(b) It provides funds to companies that
2. WPI is published by the Ministry of
provide skill training.
Commerce and Industry quarterly.
(c) It was set up as part of a national skill
Which of the statements given above is/are development mission.
correct? (d) It is chaired by the Prime Minister of
(a) 1 only India
(b) 2 only
(c) Both 1 and 2 68. Consider the following statements about
(d) Neither 1 nor 2 Aviation Sector in India:
1. It is the third-largest air passenger
market in the world.
2. In this sector, FDI over 49% will require
the World Trade Organization (WTO):
government approval.
1. WTO is a UN specialized agency.
3. The Director-General of Civil Aviation
2. Decision-making at WTO is consensus- regulates tariffs for aeronautical
based rather than majority voting. services.
Which of the statements given above is/ are Which of the statements given above is/are
correct? correct?
(a) 1 only (a) 1 and 3 only

(c) 2 and 3 only
(c) Both 1 and 2
(d) 1, 2 and 3
(d) Neither 1 nor 2

66. With reference to the Second Five Year National Mission for Sustainable
Plan, consider the following statements: Agriculture:
1. It is based on the Mahalanobis model of 1. It is one of the core missions outlined
economic development. under the National Action Plan on
2. Industry and mining sectors received the Climate Change.
highest percentage of resource allocation 2. It is implemented by the Union Ministry
of Environment, Forest, and Climate
during the plan period.
Change.
correct?
correct?
(a) 1 only
(a) 1 only

70. Consider the following statements regarding 73. Which of the following committees was
the Organisation of Islamic Cooperation constituted to review the implementation of
(OIC):
the FRBM (Fiscal Responsibility and Budget
1. India has observer status at the
Organisation of Islamic Cooperation. Management) Act and give its
2. The headquarters of OIC is located at recommendations on the way forward?
Dubai.
(a) Vijay Kelkar Committee
(b) Rangachary Committee
correct?
(a) 1 only (c) N. K. Singh Committee
(b) 2 only (d) P. J. Nayak Committee
(c) Both 1 and 2
(d) Neither 1 nor 2
71. The term MCA21 recently in news is related Fair Price Shop:
to which of the following? 1. It is defined in National Food Security
(a) It is a platform for trading in spot market
Act, 2013.
(b) It is an initiative of 21 countries to
prevent climate change 2. It is a licensed shop for distributing
(c) It is an e-Governance initiative for the essential commodities under the
corporate entities Essential Commodities Act, 1955 to the
(d) It is an indices used in blockchain
ration cardholder.
technology
72. Consider the following pairs: correct?
Business Criteria
(a) 1 only
Enterprises
(b) 2 only
(Manufacturing
& Services) (c) Both 1 and 2
1. Micro : Investment value less (d) Neither 1 nor 2
than 1 crore and turnover
up to 10 crore
75. Which of the following Central government
2. Small : Investment value less
than 10 crores and liabilities constitute the Public Debt in India?
turnover up to 50 crore 1. Internal Debt
3. Medium : Investment value less 2. External Debt
than 50 crores and
3. Public Account Liabilities
turnover up to 250 crore
Which of the pairs given above is/are given below.
correctly matched? (a) 1 and 2 only
(a) 1 only
(b) 2 and 3 only
(b) 2 and 3 only
(c) 1 and 3 only (c) 1, 2 and 3
(d) 1, 2 and 3 (d) 1 and 3 only

76. The term 'Last Ice Area' is often seen in the 79. Consider the following statements:
news. It is located in 1. The measurements of Gross Domestic
Product (GDP) and Gross National
(a) Arctic
Product (GNP) differ by net factor
(b) Antarctica income from abroad.
(c) Himalayas 2. Net National Product is calculated by
deducting depreciation from the Gross
(d) Alps
National Product.
77. With reference to Industrial Policy correct?
(a) 1 only
Resolution 1956, consider the following
(b) 2 only
statements: (c) Both 1 and 2
1. The resolution formed the basis of the (d) Neither 1 nor 2
Third Five Year Plan.

2. The policy completely rejected the reference to the Fiscal Responsibility and
private ownership of industries. Budget Management (FRBM) Act, 2003:
1. The Act binds the present and future
3. The policy was used for promoting
governments to adhere to fiscal
industry in backward regions. consolidation.
Which of the statements given above is/are 2. There is no escape clause available to
the government within the Act.
correct?
3. The Act mandates the government to
(a) 1 and 2 only table fiscal policy statements in each
(b) 2 and 3 only financial year before the Parliament.
(c) 3 only
correct?
(d) None (a) 1 and 2 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
the spinner dolphins which were in the news
recently: 81. Consider the following statements with
1. It is found only in the Indian Ocean. reference to tax expenditure:
1. It is the expenditure incurred by the
2. It is critically endangered as per the
Government in the collection of taxes.
International Union for Conservation of 2. A statement of tax expenditure is
Nature (IUCN) Red list. presented to the Parliament at the time of
Union Budget as a separate budget
document.
correct? Which of the statements given above is/are
(a) 1 only correct?
(a) 1 only
(b) 2 only
(b) 2 only

82. Which of the following economic conditions 85. In the context of economics, Phillips Curve
triggered the 1991 economic crisis in India? shows the relationship between
1. Rising prices of essential goods (a) Inflation and GDP growth
2. High fiscal deficit due to continued (b) Inflation and unemployment
government spending on development (c) Unemployment and GDP growth
programmes
(d) Tax rates and tax revenue
3. High growth rate of imports without
matching the growth of exports
86. Consider the following statements:
1. Capital Gains Tax is aimed at those
given below.
companies which show zero or
(a) 1 and 2 only
(b) 2 only negligible income to avoid tax.
(c) 1 and 3 only 2. Minimum Alternate Tax applies on the

(d) 1, 2 and 3 sale of all assets if a profit has been
made by the owner of the asset.
83. Which of the following institutions is/are Which of the statements given above is/are
permitted to participate in the Liquidity correct?
Adjustment Facility (LAF) of RBI? (a) 1 only
1. Scheduled commercial banks (b) 2 only
2. Regional Rural Banks
(c) Both 1 and 2
3. Scheduled Urban Cooperative Banks
(d) Neither 1 nor 2
given below.
(a) 1 only
reference to the Trade-Related Aspects of
(b) 2 and 3 only
(c) 1 and 3 only Intellectual Property Rights (TRIPS)
(d) 1, 2 and 3 Agreement:

1. It is a multilateral agreement negotiated
84. With reference to the inflationary gap, at the WTO that guarantees minimum
consider the following statements: standards of IP protection.
1. An inflationary gap occurs when the 2. TRIPS agreement does not allow
current real GDP is less than the governments to waive intellectual
potential GDP of an economy. property rights in the interest of public
2. Elevated government expenditure is one
health.
of the causes of the inflationary gap.
correct?
correct?
(a) 1 only
(a) 1 only
(b) 2 only
(b) 2 only


88. With reference to the Marginal Standing 91. In the context of the national economy,
Facility (MSF), consider the following consider the following statements:
statements: 1. Total value of annual transactions in an
1. Its aim is to reduce volatility in the economy is greater than the nominal
overnight lending rates in the inter-bank GDP.
market. 2. An increase in nominal GDP implies an
2. Borrowing rate under this facility is increase in the total value of
always higher than the repo rate. transactions.
Which of the statements given above is/are Which of the statements given above is/are
correct? correct?
(a) 1 only (a) 1 only
89. Which of the following reform policies 92. With reference to direct and indirect taxes in
was/were initiated by the Government under India, consider the following statements:
the New Economic Policy of 1991? 1. The burden of direct taxes can be shifted
1. Abolition of Industrial licensing for all to another individual or entity.
product categories. 2. The redistribution function of the
2. Establishment of private sector banks. government budget is achieved through
3. Allowing Foreign Institutional Investors progressive income taxation.
to invest in Indian financial markets.
3. Corporate Tax is a type of indirect tax.
given below.
correct?
(a) 1 only
(a) 1 and 3 only
(b) 2 and 3 only
(b) 2 only
(c) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
(d) None
90. With reference to changing patterns of the

93. With reference to structural unemployment,
composition of India’s International trade
consider the following statements:
over the past seven decades, consider the
1. Unemployment caused by technological
following statements:
disruptions is known as structural
1. The share of agriculture and allied
unemployment.
products in India's total exports is
2. Fourth Industrial Revolution can cause
increasing continuously.
structural unemployment if the current
2. Import of capital goods maintained a
skillsets are rendered obsolete.
steady decline.
Which of the statements given above is/ are
correct?
correct?
(a) 1 only
(a) 1 only
(b) 2 only
(b) 2 only

94. Consider the following statements about the 97. Rakesh lives in a village where the only
Indian Pharmaceuticals industry: source of employment is agriculture. He
1. It is the largest Pharmaceuticals industry works productively for five months in the
in the world in terms of volume. agricultural fields and gets no work in the
2. It is the largest provider of Generic remaining part of the year.
Drugs globally. Which of the following types of
3. 100% FDI is allowed in both greenfield unemployment is best described in the
and brownfield projects. passage given above?
Which of the statements given above is/are (a) Seasonal unemployment
correct? (b) Disguised unemployment
(a) 1 and 2 only (c) Structural unemployment
(b) 2 only (d) Cyclic unemployment
(c) 1 and 3 only
(d) 1, 2 and 3 98. Infrastructure status given to various sectors
in the economy is granted by which of the
95. Consider the following statements regarding following?
the G20-OECD Tax Framework Agreement: (a) Department of Financial Services
1. This agreement does not cover digital (DFA), Ministry of Finance
companies like Google. (b) Department for Promotion of Industry
2. This framework proposes a maximum and Internal Trade (DPIIT), Ministry of
corporate tax of 15 percent. Commerce and Industry
Which of the statements given above is/are (c) Department of Economic Affairs (DEA),
correct? Ministry of Finance
(a) 1 only (d) Reserve Bank of India (RBI)
(b) 2 only
(c) Both 1 and 2 99. Which of the following is/are the main
(d) Neither 1 nor 2 objectives of setting up Special Economic
Zones (SEZs)?
96. Which of the following are the components
1. Promotion of exports of goods and
of Revenue expenditure of the Government
services
Budget?
2. Promotion of investment from foreign
1. Interest payments
sources
2. Defence services
3. Generation of additional economic
3. Subsidies
activity
4. Investment in shares
given below.
given below.
(a) 1 only
(a) 1 and 2 only
(b) 2 and 3 only
(b) 3 and 4 only
(c) 3 only
(c) 1, 2 and 3 only
(d) 1, 2 and 3
(d) 2, 3 and 4 only


reference to the Horticulture Sector in India:
1. It contributes nearly one-third of the
value of agriculture output.
2. India is the second-largest producer of
fruits, vegetables, and spices in the
world.
correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Test Booklet Series

GENERAL STUDIES (P) 2022 – Test–3476

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

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currency notes by the RBI. their headcounts.

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8. Consider the following statements with (c) 1 and 3 only

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human resources in India. unit of a given basket of foreign goods.

2. It generates more employment 3. The nominal exchange rate is the true

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19. With reference to India's foreign trade on the

23. Which of the following taxes are subsumed

share followed by United Kingdom. 3. Octroi Tax

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29. Consider the following statements regarding

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37. Recently Kingdom of Eswatini has been in statements:

subsequent violence. It is located in bank is mandated to keep with the RBI.

(a) 1 and 2 only (a) Sutlej

(b) 2 and 3 only (b) Beas

(c) 1, 2 and 3 (c) Ravi

(d) 1 and 3 only (d) Jhelum

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47. Consider the following statements regarding

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including non-debt creating capital of hydrocarbons.

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continuous fall in energy consumption of finished goods and services produced in

of the biodiversity in a country.

(d) France specified time.

2. The Net Invisibles component of the

the country’s development. Which of the statements given above are

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as a key measure of inflation to set (a) It is a not-for-profit public limited

(b) 2 only (b) 2 only

69. Consider the following statements about the

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Third Five Year Plan.

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(c) 1 and 3 only 2. Minimum Alternate Tax applies on the

(d) 1, 2 and 3 Agreement:

(d) Neither 1 nor 2 (d) Neither 1 nor 2

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90. With reference to changing patterns of the

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100. Consider the following statements with

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