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UPSC CAPF Indian Economy

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UPSC CAPF Indian Economy

shape Introduction

The UPSC CAPF selection process has 4 phases like written examination, physical & medical examination and Physical Efficiency Test (PET & PI), Interview/Personality Test, and Final Selection / Merit. Written examination would be held on 18-08-2019. The written exam is the combination of Paper I and Paper II. The article UPSC CAPF General Science present the sample questions of UPSC CAPF Paper I related section Indian Economy questions and answers.
An economy is an area of the production, distribution, or trade, and consumption of goods and services by different agents. Indian Economy includes the questions related to Capital Market, Inflation, Taxes, and Products.

shape Samples

1. Which of the following schemes have been subsumed in the recently approved Ayushman Bharat – National Health Protection Mission (AB-NHPM)?
    A. Rashtriya Swasthya Bima Yojana (RSBY) B. Senior Citizen Health Insurance Scheme (SCHIS) C. National Life Insurance Scheme D. A and B

Answer: Option D
2. Which of the following is used to denote broad money?
    A. M1 B. M2 C. M3 D. M4

Answer: Option C
3. Which among the following is NOT a subsidiary of RBI?
    A. National Housing Bank B. NABARD C. Bharatiya Reserve Bank Note Mudran Private Limited D. SIDBI

Answer: Option D
4. Which among the following is a qualitative tool of monetary policy?
    A. Bank Rate B. Credit Ceiling C. Credit rationing D. Cash Reserve Ratio

Answer: Option C
5. Which among the following closest instrument to Gold ETF?
    A. Debenture B. G-Sec security C. Mutual Fund D. Commercial Paper

Answer: Option C
6. Which among the following is NOT a pillar of Basel III?
    A. Minimum capital standards B. Supervisory review C. Market discipline D. Consolidation of assets

Answer: Option D
7. What term is used for maximum capital which the company can raise in its life time?
    A. Authorized Capital B. Registered Capital C. Nominal Capital D. All of them

Answer: Option D
8. Which among the following was the first bank purely managed by Indians?
    A. Oudh Commercial Bank B. Punjab National Bank C. Bank of India D. Allahabad bank

Answer: Option B
9. Inflation Indexed Bonds is pegged to ___?
    A. WPI B. CPI C. Both WPI and CPI D. None of the above

Answer: Option A
10. Which of the following best defines a floating-rate bond?
    A. A bond with a fixed interest rate and has a better yield than varying interest rate bond B. A bond with a fixed interest rate and has a lower yield than varying interest rate bond C. A bond with a varying interest rate and has a better yield than fixed interest rate bond D. A bond with a varying interest rate and has a lower yield than fixed interest rate bond

Answer: Option B
1. What is the minimum public shareholding (MPS) mandated by SEBI for Private Companies and PSUs respectively?
    A. 75% and 90% B. 90% and 75% C. 10% and 25% D. 25% and 10%

Answer: Option D
2. Currently, which among the following products is facing imports ban from China?
    A. Milk and Milk products B. Rice C. Telecom equipment D. Heavy electrical engineering equipment

Answer: Option a
3. Why the Indirect taxes are termed regressive taxing mechanisms?
    A. They are charged at higher rates than direct taxes B. They are charged the same for all income groups C. They are not charged the same for all income groups D. None of the above is a correct reason

Answer: Option B
4. The concept of ‘Universal Banking’ was implemented in India on the recommendations of:
    A. Abid Hussain Committee B. R H Khan Committee C. S Padmanabhan Committee D. Y H Malegam Committee

Answer: Option B
5. Which among the following is the oldest Public Sector Bank of India?
    A. Punjab National Bank B. Imperial Bank of India C. Allahabad Bank D. Central Bank of India

Answer: Option C
6. Which of the following Price Indices of India is considered for measuring ‘Headline Inflation’?
    A. GDP Deflator B. CPI-AL/RL C. CPI-IW D. WPI

Answer: Option D
7. Which of the following agricultural commodity of India gives largest in terms of export value?
    A. Tea B. Basmati Rice C. spices D. cotton

Answer: Option B
8. The central nodal agency for implementing the price support operations for commercial crops is:
    A. NAFED B. NABARD C. TRIFED D. FCI

Answer: Option A
9. Which of the following statements regarding the ‘Viability Gap Funding Scheme (VGF)’ is not true?
    A. Under VGF, the central government meets up to 20% of capital cost of a project being implemented in public private partnership (PPP) mode B. The scheme is administered by the ministry of finance. C. Sectors eligible for VGF are Infrastructure, health and education. D. VGF is a force multiplier, enabling government to leverage its resources more effectively.

Answer: Option C
10. The government has powers under the Essential Commodities Act, 1955 (EC Act) to declare a commodity as an essential commodity to ensure its availability 1.Paper 2.Hank Yarn 3.Fertilizers 4.Petroleum and Petroleum Products 5.Cotton and Jute seeds
    A. 1, 2 and 3 B. 1, 3 and 4 C. 3, 4 and 5 D. 2, 3, 4 and 5

Answer: Option D
1. Bring out the only incorrect statement:
    A. Reverse Repo operation by RBI aims at injecting/increasing liquidity B. SDR refers to special drawing rights C. Rupee appreciation results in decrease in imports D. Increase in inflation rate leads to decline in real interest rate

Answer: Option C
2. Which among the following is the only correct statement?
    A. Money market meets long term financing needs B. Recession in industrial sector in India is normally due to fall in exports C. Ways and means advances is given by RBI are nowhere related to State’s revenue D. Exchange rate is fixed by RBI

Answer: Option C
3. Which among the following body promoted Securities Trading Corporation of India Limited (STCI) jointly with the Public Sector Banks?
    A. Securities Exchange Board of India B. Reserve Bank of India C. IDBI Ltd D. None of the above is a correct reason

Answer: Option B
4. Which among the following is correct about the Vostro Account?
    A. It is an account maintained by a foreign bank with a Bank in India in Indian Rupees. B. It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency. C. It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency. D. It is an account maintained by a Foreign Bank Branch with an Indian Bank in Foreign Currency.

Answer: Option A
5. If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country
    A. Increase B. Decrease C. Remain unaffected D. Either increase or decrease

Answer: Option A
6. Which among the following body authorizes the credit limit to the National Co-operative Marketing Federation?
    A. Reserve Bank of India B. Department of Agriculture C. NABARD D. Department of Finance

Answer: Option C
7. Bring out the only incorrect statement:
    A. Liquidity Adjustment Facility operates through daily repo and reverse repo auctions B. National Housing Bank can lend money to small scale industries towards their working capital C. Board for financial supervision is empowered to supervise primary dealers in India D. Norms for classifying assets of banks into standard and sub-standard categories are prescribed by RBI

Answer: Option B
8. Mutual Funds are regulated in India by which among the following?
    A. RBI B. SEBI C. Stock Exchanges D. RBI and SEBI both

Answer: Option B
9. Which among the following decides the Oil Prices in India?
    A. Government of India B. Government of Respective States C. Ministry of Petroleum D. Oil Companies

Answer: Option D
10. Which among the following duties is applied by a Government to control the exports of a commodity, so that the commodity can be used by the local mark
    A. Custom Duty B. Excise Duty C. Anti Dumping Duty D. Dumping Duty

Answer: Option A