FORTUNE IAS ACADEMY

FORTUNE PTS PRIME 2024 - TEST 02

GENERAL STUDIES

Time Allotted: 2 Hours

PAPER – I Maximum Marks: 200

INSTRUCTIONS
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SHOULD CHECK THAT THIS TEST BOOKLET DOES NOT HAVE ANY UNPRINTED OR
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3. DO NOT Write anything else on the Test Booklet.
4. This Booklet contains 100 Items (Questions). Each item is printed ONLY IN ENGLISH. Each
item comprises four responses (Options). You shall select the response which you want to mark
on the Answer Sheet. In case you feel that there is more than one correct response for an item,
mark the response which you consider the best. In any case, choose ONLY ONE response per
item.
5. You have to mark all your responses ONLY on the separate Answer Sheet provided.
6. All items carry equal marks.
7. Before you proceed to mark in the Answer Sheet the response to various items in the Test
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8. After you have completed filling in all your responses on the Answer Sheet and the examination
has concluded, you should hand over to the Invigilator Only the Answer Sheet. You are
permitted to take away with you the Test Booklet.
9. Sheets for rough work are appended in the Test Booklet at the end.
10. Penalty for wrong answers:
THERE WILL BE PENALTY FOR WRONG ANSWERS MARKED BY A CANDIDATE IN
THE OBJECTIVE TYPE QUESTION PAPER.
i) There are four alternatives for the answer to every question. For each question
which has a penalty for which a wrong answer has been given by the candidate,
one-third of the marks assigned to that question will be deducted as penalty.
ii) If a candidate gives more than one answer, it will be treated as a wrong answer
even if one of the given answers happens to be correct and there will be same
penalty as above to that question, if it has a penalty.
iii) If a question is left blank, i.e., no answer is given by the candidate, there will be
no penalty for that question.

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FORTUNE IAS PTS 2024

1) Consider the following statements: (c) Statement I is correct, but Statement

Statement I: II is incorrect.
The National Housing Bank (NHB) is a (d) Statement I is incorrect, but
regulatory body rather than a Statement II is correct.
developmental agency.
Statement II:
4) Which one of the following statements is
National Housing Bank (NHB) was
correct?
created through an Act passed by the
Parliament of India. (a) In India, monetary policy is formulated
by the Union Ministry of Finance but
Which one of the following is correct in implemented by the RBI.
respect of the above statements? (b) In India, the Union Government's
(a) Both Statement I and Statement II are internal debt and external debt are
correct, and Statement II is the correct managed by the RBI.
explanation for Statement I.
(c) In India, fiscal policy is formulated
(b) Both Statement I and Statement II are
and implemented by the RBI.
correct, but Statement II is not the
correct explanation of Statement I. (d) In India, public debt of both the Union
(c) Statement I is correct, but Statement and the state governments is managed
II is incorrect. by the RBI.
(d) Statement I is incorrect, but
Statement II is correct. 5) National Bank for Agriculture and Rural
Development (NABARD) has the
2) India adopted a ‘flexible inflation targeting supervisory power to conduct periodic
regime’ in accordance with which one of inspections of which of the following
the following? institutions?

(a) Fiscal Responsibility and Budget 1. District Central Cooperative Banks

Management Act, 2003 2. Regional Rural Banks
(b) Urjit Patel Committee Report, 2014
3. Small Finance Banks
(c) Amendment to the Banking
Regulation Act in 2017
(d) Recommendations of the Basel Select the correct answer using the code
Committee on Banking Supervision given below:
(a) 1 only
3) Consider the following statements: (b) 1 and 2 only
Statement-I:
(c) 2 and 3 only
As of 2023, India is not the fastest
(d) 1, 2 and 3
growing economy in the world.
Statement-II:
The base year for calculating India's Real 6) Consider the following statements:
GDP has not been changed for a while and Statement I:
it is fixed at 2011-12. The Standing Deposit Facility (SDF),
recently introduced by the Reserve Bank
Which one of the following is correct in of India (RBI), is a non-collateralized
respect of the above statements? monetary policy instrument.
(a) Both Statement I and Statement II are
Statement II:
correct, and Statement II is the correct
explanation for Statement I. The main purpose of the SDF is to reduce
(b) Both Statement I and Statement II are the excess liquidity in the market, and
correct, but Statement II is not the control inflation.
correct explanation of Statement I.

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FORTUNE IAS
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, but Statement II is not the
correct explanation of Statement I.
(c) Statement I is correct, but Statement
II is incorrect.
(d) Statement I is incorrect, but
Statement II is correct.
7) The Reserve Bank of India’s Monetary
Policy Committee increased the Policy
Repo rate under the liquidity adjustment
facility by 225 basis points from 4.0 per
cent to 6.25 per cent between May and
December 2022. What was the main
objective behind this measure taken by
the central bank?
(a) Check the depreciation of Indian
Rupee.
(b) Save the Dollar forex reserve of India.
(c) Maintain price stability in India.
(d) Enhance the yield of long-term G-sec
bonds.
8) Consider the following statements:
Statement I:
In India, the value and volume of
banknotes in circulation has considerably
decreased in recent years.
Statement II:
Recently, the mobile payments platform
Unified Payments Interface (UPI) crossed
1,140 crore transactions in a month,
setting a new record with transaction
value surpassing Rs 17.6 lakh crores in
India.
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, but Statement II is not the
correct explanation of Statement I.
(c) Statement I is correct, but Statement
II is incorrect.
(d) Statement I is incorrect, but
Statement II is correct.
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PTS 2024
9) Under the Ways and Means Advances
(WMA) scheme, which of the following can
borrow fund from the Reserve Bank of
India?
1. Scheduled Commercial Banks
2. State Governments
3. Central Government
Select the correct answer using the code
given below:
(a) 1 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
10) Consider the following statements:
Statement I:
The higher the risk-weighted assets a
bank has, the higher the amount of
capital the bank must have in order to
meet minimum Capital Adequacy Ratio
(CAR) requirements.
Statement II:
The Capital Adequacy Ratio (CAR)
compares a bank's capital to its risk-
weighted assets.
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, but Statement II is not the
correct explanation of Statement I.
(c) Statement I is correct, but Statement
II is incorrect.
(d) Statement I is incorrect, but
Statement II is correct.
11) Consider the following statements:
Statement I:
The gross domestic product (GDP) is not
considered as a good indicator of
economic development of a country.
Statement II:
Economic growth refers to an increase in
the overall wealth of a country whereas
economic development focuses on
improving the well-being and quality of
life of its citizens.
FORTUNE IAS PTS 2024

Which one of the following is correct in 14) Consider the following:

respect of the above statements?
1. Loans given to State Governments
(a) Both Statement I and Statement II are
2. Currency in circulation
correct, and Statement II is the correct
3. Foreign currency assets
explanation for Statement I.
4. Deposits of Scheduled Commercial
(b) Both Statement I and Statement II are
Banks
correct, but Statement II is not the
correct explanation of Statement I. How many of the above are considered as
(c) Statement I is correct, but Statement the assets of the Reserve Bank of India
II is incorrect. under its balance sheet?
(d) Statement I is incorrect, but (a) Only one
Statement II is correct. (b) Only two
(c) Only three
12) Which one of the following is the primary (d) All four
objective behind establishing ‘Payments
Banks’ in India? 15) Recently, India has been witnessing the
birth of a large number of unicorn start-
(a) Generating employment opportunities
up companies. Which of the following
for the youth in rural areas. is/are the major reason(s) behind the
(b) Enhancing the credit supply in India’s surge in the inception of such start-ups?
rural economy.
1. Growth of India’s digital payment
(c) Achieve the financial inclusion
ecosystem.
objectives of the government.
2. Recent reduction in non-performing
(d) Elimination of indigenous bankers
assets (NPAs) in India’s banking
from India’s rural economy.
system.
3. Growth of smartphone user-base.
13) Consider the following statements:
Statement I: Select the correct answer using the code
Central banks in many countries often given below:
focus on ‘core inflation’ for forecasting (a) 1 only
underlying trends in inflation. (b) 1 and 2 only
Statement II: (c) 1 and 3 only
‘Core inflation’ is generally measured by (d) 2 and 3 only
excluding highly volatile components
from the ‘headline inflation’. 16) Which one of the following best describes
the term Special Drawing Facility (SDF)?
Which one of the following is correct in Special Drawing Facility (SDF) is a/an:
respect of the above statements?
(a) international reserve asset created by
(a) Both Statement I and Statement II are
the IMF to supplement the official
correct, and Statement II is the correct
reserves of its member countries.
explanation for Statement I.
(b) monetary policy instrument used by
(b) Both Statement I and Statement II are the Reserve Bank of India.
correct, but Statement II is not the (c) special borrowing provision for State
correct explanation of Statement I. governments under the Reserve Bank
(c) Statement I is correct, but Statement of India’s Ways and Means Advances
II is incorrect. scheme.
(d) Statement I is incorrect, but (d) special borrowing mechanism
Statement II is correct. extended by International Finance
Corporation for private sector
enterprises.

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FORTUNE IAS PTS 2024

17) RESIDEX, India's official Housing Price
Index (HPI), is published by:
(a) National Bank for Agriculture and
Rural Development (NABARD)
(b) NITI Aayog
(c) Reserve Bank of India
(d) National Housing Bank
20) Consider the following statements:
Statement – I:
Governments can earn profits by printing
currency.
Statement – II:
The value of money printed is generally
higher than the cost of producing it.

18) Consider the following statements: Which one of the following is correct in
Statement- I:
respect of the above statements?
Similar to the repo rate, the reverse repo
(a) Both Statement-I and Statement-II are
rate is raised by the RBI to lessen the
correct and Statement-II is the correct
impact of inflation.
explanation for Statement-I
Statement- II:
An increase in the reverse repo rate might (b) Both Statement-I and Statement-II are
make private loans more profitable for correct and Statement-II is not the
commercial banks. correct explanation for Statement-I
(c) Statement-I is correct but Statement-
Which one of the following is correct in
II is incorrect
respect of the above statements?
(d) Statement-I is incorrect but
(a) Both statement-I and statement-II are
Statement-II is correct
correct and statement-II is the correct
explanation for statement-I.
(b) Both statement-I and statement-II are 21) Consider the following statements
correct and statement-II is not the regarding Joint Parliamentary Committees
correct explanation for statement-I. (JPC):
(c) Statement-I is correct but statement- 1. A JPC is set up only for the detailed
II is incorrect. scrutiny of a Bill.
(d) Statement-I is incorrect but
2. While it has members from both Lok
statement-II is correct.
Sabha and Rajya Sabha, only Lok
19) Consider the following statements: Sabha can move a resolution to
Statement – I: constitute a JPC.
A monetary system based on 3. Since 2014, less than ten JPCs have
cryptocurrencies eliminates the been set up till date.
possibility of a single point of failure that
can trigger a financial crisis. How many of the statements given above
Statement – II: are correct?
Transactions using cryptocurrencies can (a) Only one
be monitored.
(b) Only two
Which one of the following is correct in (c) All three
respect of the above statements? (d) None
(a) Both Statement-I and Statement-II are
correct and Statement-II is the correct 22) Consider the following pairs:
explanation for Statement-I
(b) Both Statement-I and Statement-II are River Drains into
correct and Statement-II is not the
1. Oder River Caspian Sea
correct explanation for Statement-I
(c) Statement-I is correct but Statement- 2. Yellow River Yellow Sea
II is incorrect 3. Dnieper Black Sea
(d) Statement-I is incorrect but
Statement-II is correct

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FORTUNE IAS PTS 2024

Which of the pairs given above is/are 25) With reference to glacial lake outburst
correctly matched? flood (GLOF), consider the following
(a) 2 only statements:
(b) 1 and 3 only Statement I:
(c) 2 and 3 only India has one of the highest populations
(d) 3 only at risk of glacial lake outburst floods.
Statement II:
23) With reference to aerosols, consider the India has the largest number of glacial
following statements: lakes globally.

1. Aerosols originating from natural Which one of the following is correct in

sources are termed as primary respect of the above statements?
aerosols, while those arising from (a) Both Statement I and Statement II are
human activities are referred to as correct, and Statement II is the correct
secondary aerosols. explanation for Statement I.
2. Most of the aerosols contribute to (b) Both Statement I and Statement II are
global warming. correct, but Statement II is not the
3. Carbon dioxide remains in the correct explanation of Statement I.
atmosphere for a longer duration than (c) Statement I is correct, but Statement
aerosols. II is incorrect.
(d) Statement I is incorrect, but
How many of the statements given above Statement II is correct.
are correct?
(a) Only one 26) Which of the following species exhibit
(b) Only two urohidrosis, the habit of excreting urine on
(c) All three their legs to cool down their body?
(d) None
(a) Kangaroo rat
(b) Camel
24) With reference to the concept of Extended
Producer Responsibility (EPR), consider (c) Vulture
the following statements: (d) Wombat

1. EPR includes a producer's 27) Consider the following statements

responsibility to accept legal liabilities regarding the Shaligram Stone:
for environmental impacts that cannot
be eliminated by design. 1. All temples dedicated to Lord Vishnu
are built using Shaligram stones.
2. In India, producers, importers, as well
2. They are usually found in the west-
as brand owners of plastic products
flowing peninsular rivers.
are responsible for collecting and
managing plastic packaging waste
Which of the statements given above
generated due to their products.
is/are correct?
3. Producers operating in not more than
(a) 1 only
two states have to register only with
(b) 2 only
the concerned State Pollution Control
(c) Both 1 and 2
Boards (SPCBs).
(d) Neither 1 nor 2
How many of the statements given above
are correct?
28) Consider the following books:
(a) Only one 1. Vedanta Gantha
(b) Only two 2. Bhashya Bhoomika
(c) All three 3. Satyartha Prakash
(d) None 4. Gulamgiri

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How many of the books given above were 32) Consider the following statements with
written by Dayanand Saraswati? reference to the Pradhan Mantri Mudra
(a) Only one Yojana (PMMY):
(b) Only two 1. Pradhan Mantri Mudra Yojana (PMMY)
(c) Only three is a government initiative in India
(d) All four aimed at providing financial support to
small and micro enterprises.
29) ‘Icefin’, often seen in the news, refers to: 2. PMMY offers three categories of loans,
namely Shishu, Kishor, and Tarun,
(a) Prosthetic fins for fishes based on the size and stage of
(b) An underwater vehicle development of the businesses.
(c) A species of whale
(d) An instrument to detect the presence Which of the statements given above
of ice on moon is/are correct?
(a) 1 only
30) With respect to internet shutdowns in (b) 2 only
India, consider the following statements: (c) Both 1 and 2
(d) Neither 1 nor 2
1. Internet shutdowns in India is
governed by the Information
Technology Act, 2000.
33) Consider the following statements with
reference to the Securitization and
2. The order issued for an internet Reconstruction of Financial Assets and
shutdown has to be confirmed by the Enforcement of Security Interest
Secretary to the Ministry of Home (SARFAESI) Act:
Affairs within 24 hours.
3. Orders of internet shutdowns enforced 1. SARFAESI Act empowers banks and
in the interest of national sovereignty financial institutions to take
are exempt from judicial review. possession of collateral assets and sell
them without intervention from the
court.
Which of the statements given above are
not correct? 2. The SARFAESI Act allows banks to
initiate the recovery process only after
(a) 1 and 2 only
a non-performing asset (NPA) has been
(b) 1 and 3 only
classified as such for a minimum of six
(c) 2 and 3 only months.
(d) 1, 2 and 3
Which of the statements given above
31) Which of the following best describes the is/are correct?
objective of the Lead Bank Scheme? (a) 1 only
(a) To encourage foreign direct (b) 2 only
investment (FDI) in the banking (c) Both 1 and 2
sector. (d) Neither 1 nor 2
(b) To promote entrepreneurship and
small-scale industries. 34) Consider the following statements
(c) To identify and develop potential regarding the Insolvency and Bankruptcy
Code (IBC) in India:
leaders within the banking industry.
(d) To facilitate the expansion of banking 1. The primary objective of the IBC is to
services and credit in rural and semi- facilitate the resolution of stressed
urban areas. assets in a time-bound manner,
ensuring maximization of the value of
assets and recovery for creditors.

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2. Under the IBC, the National Company
Law Tribunal (NCLT) is responsible for
overseeing insolvency proceedings for
individuals and partnership firms.
3. One of the key features of the IBC is
the provision for the initiation of
insolvency proceedings by financial
creditors, operational creditors, and
the corporate debtor itself.
Which of the statements given above are
correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
35) Consider the following statements with
reference to inflation indices:
1. In GDP Deflator, imported items are
not included.
2. In Consumer Price Index, services are
not included.
3. In Whole Price Index, indirect taxes are
not included.
How many of the statements given above
are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
36) Consider the following statements with
reference the calculation of Gross
Domestic Product (GDP) in India:
1. GDP in India is calculated using three
approaches: the production approach,
the income approach, and the
expenditure approach.
2. In the expenditure approach, GDP is
calculated as the sum of consumption
expenditure, investment expenditure,
government spending, and net
exports.
3. The base year for calculating GDP at
constant prices in India is revised
every five years to reflect changes in
the economy's structure and
composition.
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PTS 2024
Which of the statements given above are
correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
37) Consider the following statements with
reference to the Capital Output Ratio:
1. A high Capital Output Ratio (COR)
indicates that an economy is using
relatively more capital investment to
produce one unit of output.
2. The Capital Output Ratio (COR) is a
fixed and unchanging metric in
economics, independent of changes in
technology or investment patterns.
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
38) Consider the following statements:
1. Cost-push inflation is characterized by
rising prices resulting from increases
in the cost of production, such as
higher wages or raw material costs.
2. Hyperinflation is a moderate and
manageable form of inflation that
central banks aim to achieve to
stimulate economic growth.
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
39) Consider the following statements with
reference to Systemically Important
Financial Institutions (SIFIs):
1. Systemically Important Financial
Institutions (SIFIs) are financial
institutions whose failure could
potentially destabilize the entire
financial system and economy due to
their size and interconnectedness.
FORTUNE IAS PTS 2024

2. Regulatory authorities subject SIFIs to 43) Consider the following statements

stricter oversight and regulations to regarding money creation by Banks:
reduce the risks they pose to the
financial system. 1. Banks can create money by lending
out a portion of the deposits they hold.
2. Higher the cash reserve ratio, more will
Which of the statements given above be the money creation.
is/are correct? 3. The total money supply in an economy
(a) 1 only can exceed the initial deposits made in
(b) 2 only banks as a result of the money
(c) Both 1 and 2 creation process.
(d) Neither 1 nor 2
Which of the statements given above
40) What is the primary characteristic of is/are correct?
stagflation in an economy? (a) 1 and 3 only
(a) High inflation accompanied by low (b) 2 only
economic growth. (c) 2 and 3 only
(b) Low inflation with high economic (d) 1, 2 and 3
growth.
(c) Stable prices and moderate economic
44) Consider the following statements with
growth.
reference to the Reserve Bank of India
(d) High unemployment with low (RBI):
inflation.
1. RBI issues all the currency notes and
41) Which of the following best defines coins in India.
headline inflation? 2. RBI can regulate the money supply in
the economy.
(a) Inflation that includes all goods and
services except food and energy. 3. RBI directly lends money to
(b) Inflation that includes all goods and individuals and businesses to
services, including food and energy. stimulate economic growth.
(c) Inflation that affects only consumer
goods and excludes producer goods. How many of the statements given above
(d) Inflation caused solely by changes in are correct?
currency exchange rates. (a) Only one
(b) Only two
42) Consider the following statements with (c) All three
reference to the Gross Value Added (GVA):
(d) None
1. The GVA provides a glimpse of the
growth in the economy from supply 45) Consider the following statements with
side. reference to the Provisioning Coverage
2. The GVA is considered a better gauge Ratio (PCR):
of the economy than GDP.
1. A Provisioning Coverage Ratio is the
Which of the statements given above percentage of funds that a bank sets
is/are correct? aside for losses due to bad debts.
(a) 1 only 2. A high PCR can be beneficial to banks
(b) 2 only to buffer themselves against losses if
(c) Both 1 and 2 the NPAs (Non-Performing Assets)
(d) Neither 1 nor 2 start increasing faster.

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FORTUNE IAS PTS 2024

Which of the statements given above Which of the statements given above
is/are correct? is/are 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

49) Consider the following statements with

46) Consider the following statements with
reference to the functions of money:
1. Money is a store of value.
2. Money is a unit of account.
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
47) Consider the following statements with
reference to the Interest Coverage Ratio:
1. Interest coverage ratio is a measure of
a company's ability to meet its debt
obligations.
2. A higher interest coverage ratio
indicates that a company is better able
to meet its debt obligations.
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
reference to the Money Multiplier:
1. The money multiplier is the ratio of the
money supply to the monetary base.
2. The money multiplier is determined by
the central bank's reserve requirement
ratio.
3. The money multiplier can be used by
the central bank to control the money
supply.
How many of the statements given above
are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
50) Consider the following statements with
reference to The Fugitive Economic
Offenders Act, 2018:
1. The Fugitive Economic Offenders Act,
2018, allows the government to
confiscate the assets of fugitives
involved in economic offences.
2. The Fugitive Economic Offenders Act,
2018, applies to individuals who have
fled India to avoid prosecution for
economic offences involving Rs. 100
crores or more.

Which of the statements given above

48) Consider the following statements with is/are correct?
reference to the National Payments (a) 1 only
Corporation of India (NPCI): (b) 2 only
1. NPCI is an umbrella organization that (c) Both 1 and 2
operates retail payments and (d) Neither 1 nor 2
settlement systems in India.
2. NPCI is responsible for developing and 51) What is the primary aim of the newly
managing various payment systems launched MISHTI Scheme?
such as Unified Payments Interface (a) Rehabilitation of manual scavengers
(UPI), Immediate Payment Service (b) Combating malnutrition
(IMPS), and RuPay. (c) Mangrove plantation along the
coastline
(d) None of the above

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FORTUNE IAS PTS 2024

52) With reference to the Office of Profit,
consider the following statements:
1. The Constitution defines an office of
profit as a position that brings to the
office-holder some financial gain, or
advantage, or benefit.
2. The Constitution has provisions for
disqualifying legislators who occupy
offices of profit.
3. The Constitution has listed down the
criteria for deciding whether a position
falls under the category of office of
profit.
55) Which among the following chemicals is
Which of the statements given above is
correct?
(a) 1 only
(b) 2 only
(c) 3 only
(d) None
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 but Statement II is not the
correct explanation for Statement I.
(c) Statement I is correct but Statement II
is incorrect.
(d) Statement I is incorrect but Statement
II is correct.
used as a colour developer in thermal
paper, the type of paper often used for
receipts and tickets?
(a) Teflon
(b) Triclosan
(c) Bisphenol A
(d) Phthalate

53) Consider the following pairs: 56) All the four countries in which one of the
Nuclear Power Plant State following groups are members of the Fab 4
1. Kudankulam : Tamil Nadu Semiconductor Alliance?
2. Tarapur : Gujarat (a) China, USA, Israel, South Korea
3. Kakrapar : Maharashtra (b) USA, Japan, South Korea, Hong Kong
(c) Japan, Germany, Israel, Hong Kong
(d) USA, South Korea, Japan, Taiwan
Which of the pairs given above is/are
correctly matched?
57) Consider the following statements
(a) 1 only
regarding the Indus Waters Treaty:
(b) 2 only
(c) 3 only 1. The treaty was signed in 1960 between
(d) 1 and 3 only India and Pakistan, and brokered by
the World Bank.
2. Under the treaty, the western rivers -
54) Consider the following statements: Jhelum, Chenab and Sutlej - were
Statement I: allocated to Pakistan.
If a foreign bank has a vostro account 3. India is allowed to use the western
with an Indian bank, trade between these rivers for generation of hydroelectric
two countries can be settled in Indian power.
Rupee.
Statement II: Which of the statements given above
A vostro account is a bank account held is/are correct?
by a domestic bank for a foreign bank, (a) 2 and 3 only
denominated in the domestic currency of (b) 1 only
the former. (c) 2 only
(d) 1 and 3 only

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58) Which of the following best describes the
term ‘Deep Fakes', often seen in the news?
(a) Attempt by cybercriminals posing as
legitimate institutions, usually via
email, to obtain sensitive information
from targeted individuals.
(b) Simulated 3D environment that
enables users to explore and interact
with a virtual surrounding.
(c) Crime of obtaining the personal or
financial information of another
person to use their identity to commit
fraud.
(d) A specific kind of synthetic media
where a person in an image or video is
swapped with another person's
likeness.
59) With reference to legal tender money,
which one of the following statements is
correct?
Any government-issued currency that is
declared to be legal tender:
(a) can only be used for transactions
within a single country and will not be
accepted for international trade.
(b) must be accepted by creditors as
payment for debts, regardless of the
amount of the debt.
(c) must be backed by a physical
commodity like gold or silver.
(d) can be exchanged for unlimited
quantities of gold at any national
bank.
60) With reference to the circumstances
surrounding India’s digital economy, the
concept of ‘velocity of money’ assumes
significance. Which of the following
statements about ‘velocity of money’ is/are
correct?
1. The velocity of money is typically lower
in expanding economies and higher in
contracting economies.
2. Digital transactions can increase the
velocity of money.
3. Economies that exhibit a higher
velocity of money relative to others
tend to be more developed.
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Select the correct answer using the code
given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
61) Concepts such as GDP (Gross Domestic
Product) Deflator and Base Year are often
mentioned in the context of national
income accounting. They:
(a) help economists in calculating the
national debt.
(b) provide overall unemployment rate in
an economy over a period of time.
(c) help to forecast stock market trends.
(d) allow economists to compare GDP
growth over time without the
distortion caused by inflation.
62) Consider the following statements with
reference to the Statutory Liquidity Ratio
(SLR):
1. SLR is a tool primarily used by the
Reserve Bank of India (RBI) to regulate
and control the interest rates set by
commercial banks.
2. The assets that qualify for maintaining
SLR include government securities,
cash, and gold.
3. SLR is used to ensure the solvency and
stability of commercial banks in India.
Which of the statements given above are
correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
63) Consider the following statements:
Statement I:
Reserve Bank of India (RBI) employs
Selective Credit Control (SCC) measures
to influence the allocation of credit in the
economy.
Statement II:
Selective Credit Control measures are
primarily aimed at influencing the cost of
credit.
FORTUNE IAS
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, but Statement II is not the
correct explanation of Statement I.
(c) Statement I is correct, but Statement
II is incorrect.
(d) Statement I is incorrect, but
Statement II is correct.
64) Consider the following statements with
reference to the Open Market Operations
(OMO) conducted by the Reserve Bank of
India (RBI):
1. OMO involves the purchase and sale of
government securities by the RBI in
the open market.
2. When the RBI conducts a sale of
government securities through OMO,
it injects liquidity into the banking
system.
3. OMO is primarily used by the RBI to
influence the fiscal policies of the
Indian Government.
How many of the statements given above
are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
65) Consider the following statements
regarding the Cash Reserve Ratio (CRR) in
India:
1. CRR is the portion of a bank’s total
deposits that must be kept in cash
with the RBI.
2. The sole purpose of CRR is to control
inflation by regulating the interest
rates set by commercial banks.
3. The RBI has the authority to change
the CRR to manage liquidity in the
banking system.
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Which of the statements given above are
correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
66) Consider the following statements:
1. Money supply is a ‘stock’ concept.
2. Demand deposits with the bank and
time deposits with the bank come
under the purview of Narrow Money
(M1).
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
67) Consider the following statements:
Statement I:
Capitalist economies are more prone to
inequality than other economic systems.
Statement II:
In capitalist economies, the means of
production are privately owned.
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, but Statement II is not the
correct explanation of Statement I.
(c) Statement I is correct, but Statement
II is incorrect.
(d) Statement I is incorrect, but
Statement II is correct.
68) Consider the following statements with
reference to Neobanks:
1. Neobanks are banks that operate
solely digitally.
2. As of 2023, there aren’t any Neo-banks
in India.
FORTUNE IAS PTS 2024

Which of the statements given above Which of the statements given above
is/are correct? is/are correct?
(a) 1 only (a) 1 only
(b) 2 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 (c) Both 1 and 2
(d) Neither 1 nor 2
69) Consider the following statements with
reference to Long Term Repo rate:
72) Consider the following statements with
1. In Long Term Repo Operations, RBI reference to the Marginal Standing Facility
allows the banks to borrow money at (MSF):
the Repo rate.
1. It is a window for banks to borrow from
2. The maximum time period for which
the Reserve Bank of India when
funds can be availed through this
interbank liquidity dries up
mechanism is one year.
completely.

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
70) What is a ‘bank run’ in the context of
banking and finance?
(a) A situation where customers withdraw
their funds from a bank due to a
sudden increase in interest rates.
(b) A situation where customers withdraw
their funds from a bank due to
concerns about the bank's solvency
and financial stability.
(c) A situation where the central bank
intervenes to provide additional funds
to a bank facing liquidity issues.
(d) A situation where a bank offers special
promotions to attract more customers
and deposits.
71) Consider the following statements:
2. Under this facility, banks can borrow
funds up to one percentage of their net
demand and time liabilities.
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
73) Consider the following statements with
reference to Small Finance Banks (SFB):
1. If a small finance bank is categorized
as 'universal’, its priority sector
lending requirement would be reduced
to 40%, as opposed to the standard
75%.
2. SFBs are required to maintain a
minimum capital adequacy ratio (CAR)
of 15% of their risk weighted assets
(RWA) on a continuous basis.

1. Moral suasion refers to a method

adopted by the central bank to Which of the statements given above
persuade commercial banks to is/are correct?
advance credit in the country’s (a) 1 only
economic interest. (b) 2 only
2. The ‘Bank Rate’ is the rate at which the
(c) Both 1 and 2
bank lends money to the public.
(d) Neither 1 nor 2

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74) What is the Laspeyres Price Index 77) Consider the following:
primarily used for in economics?
1. Currency with the public
(a) Measuring the changes in the prices of
2. Demand deposits with the banks
a fixed basket of goods and services
over time. 3. Time deposits with the banks
(b) Comparing the price levels of different
baskets of goods and services. How many of the above are part of Broad
(c) Comparing the production Money?
expenditure on a specific set of goods (a) Only one
and services between different (b) Only two
economies/countries.
(c) All three
(d) Analyzing the income distribution in
an economy. (d) None

75) Consider the following statements with 78) Consider the following statements:
reference to the Monetary Policy
Committee (MPC) in India: 1. Inflation results in a redistribution of
income that is unfavorable to fixed
1. The Monetary Policy Committee income earners.
consists of six members.
2. Between debtors and creditors,
2. The Union Finance minister serves as
inflation cause a redistribution of real
the ex-officio Chairperson of the MPC.
income in favor of debtors.
3. The MPC takes decisions based on a
majority vote.
Which of the statements given above
How many of the statements given above is/are correct?
are correct? (a) 1 only
(a) Only one (b) 2 only
(b) Only two (c) Both 1 and 2
(c) All three (d) Neither 1 nor 2
(d) None

79) With reference to the planet Venus,

76) Consider the following statements
consider the following statements:
regarding Cooperative Banks:
1. A cooperative bank can invoke the
provisions of the SARFAESI Act.
2. A cooperative bank is a financial entity
that belongs to its members.
3. Cooperative banks come under the
definition of banks under the Banking
Regulation Act of 1949.
1. It is the hottest planet in the solar
system.
2. Venus is the only planet in the solar
system without its own moon.
3. With Shukrayaan I, India aims to be
the third country to land on Venus,
after USSR and USA.

Which of the statements given above How many of the statements given above
is/are correct? are correct?
(a) 1 and 3 only
(a) Only one
(b) 2 only
(b) Only two
(c) 2 and 3 only
(d) 1, 2 and 3 (c) All three
(d) None

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FORTUNE IAS PTS 2024

80) National Science Day is celebrated in India 83) Consider the following militant groups and
on February 28 each year to mark the the countries they operate in:
discovery of the Raman effect by Indian
physicist Sir C.V. Raman. With reference Militant Group Country
to this, consider the following statements: 1. M23 : Democratic Republic
of the Congo (DRC)
1. CV Raman was the first Indian to win 2. Tahrir al-Sham : Libya
the Nobel Prize - in 1930. 3. Boko Haram : Nigeria
2. The Raman effect involves scattering of
light by molecules of gases, liquids,
How many of the pairs given above are
and solids.
correctly matched?
3. Raman spectroscopy can be used in
(a) Only one
the diagnosis of cancer.
(b) Only two
(c) All three
Which of the statements given above are
(d) None
correct?
(a) 1 and 2 only
84) How many of the exercises given below are
(b) 1 and 3 only
multilateral exercises?
(c) 2 and 3 only
(d) 1, 2 and 3 1. TARKASH
2. Dharma Guardian
81) Consider the following statements 3. Desert Flag
regarding windfall tax and select the 4. DUSTLIK
incorrect one.
Select the correct answer using the code
(a) It is a tax imposed by governments on given below:
polluting industries that have (a) Only one
benefited from economic expansion. (b) Only two
(b) It is considered as a type of progressive (c) Only three
taxation. (d) All four
(c) Taxes on lottery can be construed as a
windfall tax. 85) Consider the following categories of
(d) Both (a) and (b) people:

82) Consider the following statements 1. A food delivery agent buying a two-
regarding the Blackbuck: wheeler for delivering the orders.
2. A farmer buying seeds for the next
1. Blackbuck is native to the Indian cropping season.
subcontinent. 3. A lender lending to shop owners.
2. The blackbuck is listed as Endangered 4. A recent graduate in food processing
in the IUCN’s Red List of Threatened wanting to set up a unit.
Species. 5. A housewife applying for a loan of 12
3. Both male and female blackbucks are lakhs for setting up a business.
black in colour.
Which among the given categories of
Which of the statements given above individuals are eligible to avail a loan
is/are correct? under the Pradhan Mantri Mudra Yojana
(a) 1 and 2 only (PMMY)?
(b) 1 only (a) 2 and 5 only
(c) 1, 2 and 3 (b) 1, 3 and 4 only
(d) 2 only (c) 4 and 5 only
(d) 1, 2, 3, 4 and 5

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FORTUNE IAS
86) What does the economic term
"sterilization" refer to in the context of
monetary policy?
(a) The process of making a currency
sterile and unusable for transactions.
(b) The method used by central banks to
prevent capital flows.
(c) The actions taken by central banks to
neutralize the monetary impact of
foreign inflows.
(d) The practice of removing
contaminated money from circulation.
87) Which of the following most appropriately
defines shrinkflation in an economy?
(a) Shrinkflation is a manifestation of
deflation in the consumer goods
market.
(b) Shrinkflation is a form of cost-push
inflation leading to reduced product
sizes.
(c) Shrinkflation refers to a reduction in
the size or quantity of a product while
its price remains the same.
(d) Shrinkflation refers to an increase in
the size or quantity of a product with
a corresponding price increase.
88) Consider the following statements:
1. The primary motive of the British
colonial government in India was to
foster the growth of indigenous
industries.
2. India's agricultural sector experienced
high productivity and low
unemployment during the colonial
period.
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
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89) Consider the following statements with
reference to India’s Five-Year Plans:
1. The primary goal of India's five-year
plans was to achieve economic growth.
2. The five-year plans emphasized the
need to achieve modernization, self-
reliance, and equity.
3. The five-year plans were always
successful in balancing competing
goals.
How many of the statements given above
are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
90) Consider the following statements with
respect to the 1991 Economic Reforms in
India:
1. The primary focus of the reform
policies introduced in 1991 was to
achieve self-sufficiency in the
production of food grains.
2. The 1991 Reforms helped half India's
inflation in three years.
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
91) Consider the following statements with
reference to the National Bank for
Agriculture and Rural Development
(NABARD):
1. It was formed on the recommendation
of B. Sivaraman Committee.
2. Government of India holds all the
shares of NABARD.
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
FORTUNE IAS PTS 2024

92) Consider the following statements: Which of the statements given above
Statement I: is/are correct?
The External Benchmark System was (a) 1 only
introduced by the Reserve Bank of India (b) 2 only
(RBI) to make the transmission of policy (c) Both 1 and 2
rate changes more effective in the banking (d) Neither 1 nor 2
system.
Statement II:
95) Consider the following statements with
The External Benchmark System links
reference to the features of ‘perfect
the interest rates of banks to external
competition’:
benchmarks such as the Repo rate or the
government's 3-month and 6-month 1. In perfect competition, there is a large
treasury bill yields. number of buyers and sellers.
Which one of the following is correct in 2. Firms in perfect competition can easily
respect of the above statements? differentiate their products from
those of other firms.
(a) Both Statement I and Statement II are
correct, and Statement II is the correct
explanation for Statement I. Which of the statements given above
(b) Both Statement I and Statement II are is/are correct?
correct, but Statement II is not the (a) 1 only
correct explanation of Statement I. (b) 2 only
(c) Statement I is correct, but Statement (c) Both 1 and 2
II is incorrect. (d) Neither 1 nor 2
(d) Statement I is incorrect, but
Statement II is correct.
96) Consider the following statements with
93) Consider the following statements with reference to e-RUPI vouchers:
reference to the National Electronic Fund 1. e-RUPI was developed by the National
Transfer System (NEFT): Payments Corporation of India.
1. It is a centralized payment system 2. It is a cashless and contactless
owned and operated by the Reserve payment method which can be used in
Bank of India. the direct benefit transfer (DBT) of
2. It can be used to pay credit card dues government schemes and programs.
to the card issuing banks.
3. It can be initiated only during bank Which of the statements given above
working hours. is/are correct?
How many of the statements given above (a) 1 only
are correct? (b) 2 only
(a) Only one (c) Both 1 and 2
(b) Only two (d) Neither 1 nor 2
(c) All three
(d) None 97) Consider the following:
94) Consider the following statements: 1. Any commodity produced by the
1. The law of supply says that, all other government.
things being equal, a higher price 2. Any commodity that is very popular
will lead to producers supplying a among the general public.
higher quantity to the market. 3. A commodity whose benefits are
2. When the price of a product increases, invisibly spread among the entire
the demand for the product always community.
decreases.

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How many of the above can be categorized 100) Which of the following most likely leads to
as public goods? liquidity trap in macroeconomics?
(a) Only one (a) High interest rates that encourage
(b) Only two borrowing and investment.
(c) All three (b) A situation where the central bank
(d) None increases the money supply.
(c) When nominal interest rates are very
low, and people prefer to hold cash
98) Consider the following statements:
rather than interest-bearing assets.
1. Basel Norms require banks to hold a (d) A condition where inflation rates are
sufficient stock of High-Quality high, leading to decreased consumer
Liquidity Assets to meet their liquidity spending.
needs in a stressed scenario.
2. The Counter Cyclical Buffer Stock is a
buffer of capital that banks must
build up during good economic times
to use during downturns.
3. The Liquidity Coverage Ratio is a
measure of a bank's ability to meet its
short-term liquidity needs in a
stressed scenario.

How many of the statements given above

are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

99) Consider the following statements with

reference to Central Bank Digital Currency
(CBDC):

1. CBDCs are digital versions of fiat

currencies that are issued and
regulated by central banks.
2. CBDCs can be used to make payments
without the need for a third party,
such as a bank or a payment
processor.

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

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