[Answerkey] CSAT 2013 GS: Economy: Questions solved with explanation, reference, all four sets (A,B,C,D)

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IAS Mock Interviews
  1. Prologue
  2. Banking Related
  3. Foreign Trade Related
  4. Inflation
  5. GDP and allied topics


  • Out of 100 GS questions in UPSC CSAT 2013, there were 18 questions from Economy.
  • All questions from Static portion, Not even one Economy related question from current affairs.
  • But don’t think that your majoori (labour) has gone in vain. Whatever you prepared for Economy current affairs –that will definitely help you directly/indirectly in Mains, Essay and interview (or atleast let’s hope so again hahaha.)
  • Thankfully no question on trivial dates and numbers of Economy (bad news for the next year sales of those special issues/editions on Economy).

Almost all of these questions can be solved by reading following:

  1. NCERT Textbooks on Economics
  2. NIOS PDF set on Economics
  3. Indian Economy by Ramesh Singh (McGraw Hill Education)
  4. Finance Chapter from India 2013 (Yearbook).
  5. And of course the Main Villain: Mrunal.org/economy

Within Economy topic, the internal breakup looks like this:

Foreign trade3
GDP, Development and allied topics5


Banking Related

bank rate

1. An increase in the Bank Rate generally indicates that the

  1. market rate of interest is likely to fall
  2. Central Bank is no longer making loans to commercial banks
  3. Central Bank is following an easy money policy
  4. Central Bank is following a tight money policy

Bank Rate=RBI lends money to its clients for long term loans @this interest rate.

Tight monetary policy= when RBI raises the rates to decrease liquidity.

Answer choiceComment
  1. market rate of interest is likely to fall
Not possible. because if RBI lends money to its clients @higher rate, they won’t reduce their loan interest rates, because it’ll reduce their profit margin.
  1. Central Bank is no longer making loans to commercial banks
  1. Central Bank is following an easy money policy
Reverse is happening.
  1. Central Bank is following a tight money policy
This is the answer.

RBI’s regulatory powers

2. The Reserve Bank of India regulates the commercial banks in matters of

  1. liquidity of assets
  2. branch expansion
  3. merger of banks
  4. winding-up of banks

Select the correct answer using the codes given below.

  1. 1 and 4 only
  2. 2, 3 and 4 only
  3. 1, 2 and 3 only
  4. 1, 2, 3 and 4

RBI regulates Liquidity of Assets via SLR hence B is false, because it doesn’t have (1)

If existing bank requires RBI permission. Hence (A) is false because it doesn’t have (2).

Amalgamation /Merger of two bank require RBI’s approval. Thus final answer is D.

credit to villagers

3. Which of the following grants/ grant direct credit assistance to rural households?

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3

NABARD doesn’t give “direct” credit assistance. It provides credit via intermediaries such as Microfinance companies, cooperative society, RRB. Therefore, 2 is false. Any answer choice that contains 2 is false. And thus we’re left with C only 1 and 3.

liquid assets

4. Consider the following liquid assets:

  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency

The correct sequence of these decreasing order of Liquidity is

  1. 1-4-3-2
  2. 4-3-2-1
  3. 2-3-1-4
  4. 4-1-3-2
  • Currency (#4) is most liquid, because you can use it as and when you want.
  • Time deposit with bank (#1) (e.g. fixed deposit), are least liquid compared to savings/demand deposit with banks and currency(#4).
  • That means decreasing order of liquidity will be 4-*-*-1.
  • and Demand deposit with bank >more liquid> savings deposit
  • final order is 4-1-3-2 Answer choice D


  1. In the context of Indian economy, Open Market Operations refers to
  1. borrowing by scheduled banks from the RBI
  2. lending by commercial banks to industry and trade
  3. purchase and sale of government securities by the RBI
  4. None of the above

Recall the Liquidity adjustment facility article: Click me

Open market operation= when RBI buys/sells securities in open market…. in case of OMO, first party permanently sells the Government security to second party. Second party is free to do whatever it wants with that security.

Hence Answer C

Another source: NCERT Macroeconomics class 12, page 44

Open market operations: RBI purchases or sells government securities to general public…


6. Priority Sector Lending by banks in India constitutes the lending to

  1. agriculture
  2. micro and small enterprises
  3. weaker sections
  4. All of the above

Answer is (D) all of above. For more, refer

money supply

7. Supply of money remaining the same when there is an increase in demand for money, there will be

  1. a fall in the level of prices
  2. an increase in the rate of interest
  3. a decrease in the rate of interest
  4. an increase in the level of income and employment

If supply of onion is same, but junta demands more onion, what will vegetable-seller do? Increase price to get more profit. When same thing happens with money, the banks/lenders will do the same by increasing interest rates.

Answer is (B).

Foreign Trade Related


1. The balance of payments of a country is a systematic record of

  1. all import and export transactions of a country during a given period of time, normally a year
  2. goods exported from a country during a year
  3. economic transaction between the government of one country to another
  4. capital movements from one country to another

Question contains problematic wording. Consider this:

Balance of Payment (BoP)As per definition in ch.6, NCERT Macroeconomics, class 12.

  • Balance of payment records the transaction in goods, service and assets between ‘residents’ (and not governments) of one country with the rest of world.

This makes option C is wrong.

Balance of trade (BoT)It is the balance of exports and imports. So option (A) is actually talking about BoT and not BoP.BoP is a more than just import and export transactions because it includes Current account (inside that balance of trade, gifts, remittance, dividend etc.) + Capital account (FDI, FII, ECB etc.)


  • B and D are irrelevant.
  • anyways in the given the mess, I pick A as the answer.

Update Jun-26-2014: UPSC uploaded official answerkey. Correct answer is: A.

Components of Capital Account

2. Which of the following constitute Capital Account?

  1. Foreign Loans
  2. Foreign Direct Investment
  3. Private Remittances
  4. Portfolio Investment

Select the correct answer using the codes given below.

  1. 1, 2 and 3
  2. 1, 2 and 4
  3. 2, 3 and 4
  4. 1, 3 and 4

Recall article on 6th Chapter of Economic Survey Click me

or just observe the chart given under previous question.

Remittances (item#3) fall under Current Account. Therefore any answer choice that includes #3, is wrong. Eliminate them.

  1. 1, 2 and 3
  2. 1, 2 and 4
  3. 2, 3 and 4
  4. 1, 3 and 4

Thus we’re left with answer (B)

Components of Forex Reserve

3. Which one of the following groups of items is included in India’s foreign-exchange reserves?

  1. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
  2. Foreign-currency assets, gold holdings of the RBI and SDRs
  3. Foreign-currency assets, loans from the World Bank and SDRs
  4. Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

Recall article on ch6 of Economic survey

Click me

India’s foreign exchange reserves is made up of

  1. Foreign currency assets (FCA) (US dollar, euro, pound sterling, Canadian dollar, Australian dollar and Japanese yen etc.)
  2. gold
  3. special drawing rights (SDRs) of IMF
  4. Reserve tranche position (RTP) in the International Monetary Fund (IMF)

Hence the closest answer choice is (B): Foreign-currency assets, gold holdings of the RBI and SDRs

Other answer choices talk about loans from foreign countries/World bank: while those have some relevance in current/capital account classification type MCQs, but in case of forex reserve they’re irrelevant.

Another reference for this answer: India 2013 (Yearbook) Page 334, last two lines.


benefit to debtors

1. Consider the following statements:

  1. Inflation benefits the debtors.
  2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Refer page 7.8 in Indian Economy by Ramesh Singh, topic title “Effects of Inflation”–> I. On Creditors and Debtors.

  • Inflation redistributes wealth from creditors to debtors i.e. lenders suffer and borrowers benefit out of inflation.
  • Bond holders= this person has lend money (to debtor) and received bond in return. So he is lender, he suffers.
  • Therefore Answer choice is (A) 1 only (Debtor benefits from inflation).

by the way, they haven’t specifically used the word “inflation indexed bonds”, hence we cannot say Inflation benefits the bond-holders.

inflation cause

2. A rise in general level of prices may be caused by

  1. an increase in the money supply
  2. a decrease in the aggregate level of output
  3. an increase in the effective demand

Select the correct answer using the codes given below.

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3

All three lead to inflation. Answer (D)

inflation cause

3. Which one of the following is likely to be the most inflationary in its effect?

  1. Repayment of public debt
  2. Borrowing from the public to finance a budget deficit
  3. Borrowing from banks to finance a budget deficit
  4. Creating new money to finance a budget deficit

Printing/creating new money to finance a budget deficit will be the most inflationary effect. Because it increases money supply without any increase in production of goods and services. Recall the Israel Palestine article (click me): How Germany suffered Hyperinflation when government started printing money just to pay war reparation costs under Treaty of Versailles. Check this photo: A German woman burns currency, because its paper was cheaper fuel than coal!


and @Public Administration players, recall the great Laxmikanth and his chapter on Financial administration:

Currency expansion: Under this method, government prints more currency to repay debts. This results in inflation and destroys the fixed value of money claims. This method was used by Germany after First World War.

GDP and allied topics

National income, meaning of

1. The national income of a country for a given period is equal to the

  1. total value of goods and services produced by the nationals
  2. sum of total consumption and investment expenditure
  3. sum of personal income of all individuals
  4. money value of final goods and services produced

Observe the glossary given on page 100 and 101 in NCERT Macroeconomics class 12.
National income= NNP @Market price MINUS indirect tax PLUS subsidies.
then what is NNP @Market price? (NNP_MP)


then what is GNP?

GNP=GDP + Net factor income from abroad. In other words, GNP includes the aggregate income made by all citizens of the country, whereas GDP includes incomes by foreigners within the domestic economy and excludes the incomes earned by the citizens in foreign economy.

Thus answer is (A).

Another source: As per NIOS Economy Chapter 12, topic #12.3

National income of a country is defined as the sum of total factor incomes accruing to the residents of that country from the production activity performed by them both within and outside the economic territory in a year.

Hence the closest answer among the given = (A).
Update Jun-26-2014: UPSC uploaded official answerkey. Correct answer is: D. money value of final goods and services produced.

disguised unemployment, meaning of

2. Disguised unemployment generally means

  1. large number of people remain unemployed
  2. alternative employment is not available
  3. marginal productivity of labour is zero
  4. productivity of workers is low

Suppose three people work in farm, produce 200kg wheat. If one of them is removed, still farm produces 200kg wheat. That is disguised unemployment. Marginal productivity is zero. Hence Answer C.
Another example of disguised unemployment is ministers in Mohan’s cabinet. Whether you keep or remove Pawan and Ashwini, the efficiency of government doesn’t change.
economy disguised unemployment in UPA

Economic growth, factors responsible

3. Economic growth in country X will necessarily have to occur if

  1. there is technical progress in the world economy
  2. there is population growth in X
  3. there is capital formation in X
  4. the volume of trade grows in the world economy

NIOS Economy, Ch 36, bullet point 29.3:

Internally capital formation takes place when a country does not spend all its current income and consumption, but saves a part of it and uses it for investment for increasing further production. This act of saving and investment is described as capital accumulation or capital formation.
Therefore, answer is (C)

B is wrong because
NIOS Economy, Ch 38 population and economic development,

  • The high growth rate of population adversely affects capital formation in the developing economies. More resources are used for meeting the fast increasing consumption needs. This leaves less resources for increasing productivity capacity of the economy. This adversely affects the future growth rate of these economies.
  • The developing countries already have a large labour force, which remains underutilised due to lack of capital. The fast increasing population makes the task of absorbing the labour force in productivity activities all the more difficult. So the large increasing population is more of a liability than an asset in these economies.

A and D are wrong because
The positive developments happening in World economy (choice A and D) won’t help economic growth in the given country, if it is a closed economy.
Final answer (C)

Deficit Financing purpose

4. In India, deficit financing is used for raising resources for

  1. economic development
  2. redemption of public debt
  3. adjusting the balance of payments
  4. reducing the foreign debt

as per page 273, Development and Environmental Economics by Ne Thi Somashekar

Deficit financing is a pragmatic tool of economic development and has been used by Indian government to obtain necessary resources to finance the five year plans.

Answer (A)

Demographic Dividend

5. To obtain full benefits of demographic dividend, what should India do?

  1. Promoting skill development
  2. Introducing more social security schemes
  3. Reducing infant mortality rate
  4. Privatization of higher education

To rip maximum demographic dividend, India has to promote skill development. This is what Economic Survey and 12th FYP have been advocating. Ans (A)

Answerkeys for remaining topics, coming soon. + thanks Mr. Palas Nuwal and Mr.Shiva Ram for providing inputs.

Mrunal recommends

  1. (free) NCERT, NIOS, TN-Books 4 History,Geo,Sci
  2. Indian Polity M.Laxmikanth (Hindi | English)
  3. Spectrum: Modern History (Hindi | English)
  4. Maths: Quantam CAT Sarvesh Kumar
  5. Objective General English SP Bakshi
  6. Word Power made Easy -Norman Lowe
  7. Topic wise Solved Paperset by Disha

332 Comments on “[Answerkey] CSAT 2013 GS: Economy: Questions solved with explanation, reference, all four sets (A,B,C,D)”

  1. HELP ME !

    – i am deeply stressed after writing my prelims although i prepared but it was not as much as paper demanded.

    – i am a working professional, and since this prelim 2013, i am trapped with unstability in life = currently i think that i cannot do anything.

    – i have a scarcity of time, i take too much time to understand any topic and forget frequently…

    Please tell me how can i reduce the Mental stress facing right now and start afresh everything !:(

    1. these are some of the few things that you can follow
      1. Dont give a shit about UPSC and enjoy your life. Passing or failing CSE is not what life is about.
      2. If u got a bf/gf- take them to a movie, go for a ride etc etc. If you dont have one- try to get one.
      3. Sit in your office and day dream about or write down the speech that you will be making when you get CSE 2013 Rank 1.
      4. Stop visiting online forums where there is active discussion going on about probable cutoff. Instead find out how to make some quick money through next IPL season and start your preparations accordingly.
      5. If nothing works out- then you can do what I’m doing- Post stupid replies to these kind of questions. Or u can also visit online forums and post ridiculous comments such as- I’ve got 334.67 as per xyz key- should i start my mains preparation? or stir up a hornets nest by quoting some stupid authors and raising idiotic doubts.

      1. haha…really helpful ;)

    2. Are you in Infosys ?
      They are in the process of firing 10 percent of the company fat.

      1. They are not firing, people are leaving (but not the fat, the neurons are leaving,leaving behind the fat) :-)

    3. zenhabits.net

      Read that for mental stress and improving focus etc. It’s no magic potion, but it works.

    4. if u know my story….u will feel like an achiever. it’s all in the mind. upsc is not the end of life. if u get through,fine. if not, still fine.

  2. Mrunal Sir ,
    Many of the selected seniors are advising me not to go for public administration for mains as it has been a letdowner for many in past few years. iam a first timer & from a medical background tho’ not in position to take my own subjects ,& yes iam dud in rote, so finally it comes down to what makes or breaks the final outcome acc to new syllabus. Kindly reply, is it feasible to take pubad?

    1. better take anthropology it fetches you as physical anthropology has more than 100 marks thatinclude genetics you understand thm easily

      1. sir, what about pol-sci, & history?

        1. i mean which is more scoring of all these”?

  3. Mrunal sir…Firstly I would like to thank you from the bottom of my heart for your invaluable resources and inputs.Will always remain indebted to you. I would also like to seek your guidance and help on the crisis that i am facing.

    At the start of the paper II exam, i entered my roll number correctly in the answer sheet, however i darkened a wrong bubble beneath the roll number box. I immediately requested for the change of answer sheet but was declined. I pleaded the exam center authority however they said that its not an issue and will be taken care of during the evaluation of your answer sheet. After i completed the paper they connected me to the UPSC exam control office and the official assured and comforted me over the phone that my answer sheet will be evaluated. However i am still worried. I am confident of clearing the prelims as i am scoring around 115 in paper 1 and around 175 in paper 2. It would really be a big setback for me if my answer sheet is not evaluated. Please advise me on what should i do.Thanks once again……

    1. buddy dont worry… this happened with me in a pg entrance exam.they did evaluate. i was worried then n i made sure that i talk to someone responsible and so i talked to a high ranking official and he said atleast one of the two i.e the hall ticket number or the darkened circles should be correct.i had darkened the circles in a wrong way then. finally it was fine n i did get a rank.dont worry coz anyways the the omr sheets go in sequence.it is not a problem

  4. 1. The balance of payments of a country is a systematic record of

    capital movements from one country to another

    is the correct answer! kindly correct!

    1. Yes this is the correct answer
      the BOP reflects total capital tranfer acrosss the nation and total exports and imports only reflects Balance of trade
      total capital ( punji transfer is bop)

      1. i agree with you.how can balance of trade could be equated with balance of payment.a is not right ans d is right answer..

    2. None of the following actually defines the BOP. The Non-capital transfers i.e. under the current account are also included in the BOP.
      Check for yourself.
      Actually none of the options defines the BOP correctly and to the T.

  5. sir getting 50marks in paper 1+125 in paper2.what are my chamces for mains appearing under ortho handicapped.the marks are as per vajirams key.

  6. Hey Mrunal Genius, I rue my luck on Deficit Financing question, thanks…

  7. I owe my knowledge of Economics to you totally.
    Thanks for your great work in all mater.

  8. Hey, i want a guidance urgently..
    I didnt signed attendence list for first paper. Though i filled present circle and other details in it..scoring 250+..but gng through hell…wot shud i do now..

  9. your es notes was very useful for prelim…

  10. iam expecting arnd 215 from various answer keys available.
    wht r the chances for me??
    iam from obc category.

    1. sure u will clear prlms.work for mains

      1. yeah but…everyone is saying that they scored abt 240 or more..
        i dont knw..wht to expect..

  11. Mrunal Sir, I Owe you lots for getting me 282 marks in CSAT…Thanks a tonne sir….

  12. Mrunal sir
    Please provide us with a strategy for mains..desperately waiting..

  13. when will the result of CSAT will be declared?
    anybody has any idea about it?
    I am having 60:40 chance so a little worried.

  14. What a relief! Thank$ to all three again! :)

    1. bro learning new dimension are ok but the traversing through it, canot b said b an outcome of higgs discovery . even in 30 years quantum manuplation to yield macro change will still be sci-fi. how ever option 3 of more efficient fuel might b possible . with better understanding of equation better reactor and more effecient processing and reprocessing of spent fuel cell will b possible and may be even new forms of nuclear isotopes could b created

      1. Hi Rohan, i am not saying that the answer is all the three but not one can be sure what the solution be till upsc declares that next year….

  15. Hi mrunal
    doubt about “money supply” question:
    If the demand for money increases -> currency valuation increase [ex. Rupee vs Dollar case earlier 1$ = 49 INR now after increasing demand for $ its valuation is increasing along with some other factors obviously. Now Increase in valuation -> increase in purchasing power of that money. [your example i will quote here: earling 1$ would get you 1kg onion now it will get you 2 kg onion in Indian market]
    so please tell why answer A is not possible that there will be a fall in the level of prices

    1. hi , i too ended up thinking along the same line and it seems to me the immediate effect would be that people would find it difficult to part with their money unless given higher amount of goods for the same amount of money :hence overall increase in prices.

      1. sorry , correction :overall decrease in prices .

  16. I am a daily wage earner on mrunal blog , and this is my first thanksgiving post to mrunal sir,

    I think if i have had not read mrunal i wud have failed in prelims

    thank you once again from the core of my heart,
    and please keep it up.

  17. here 2 m getting 16/18 correct. ..like polity

  18. Mrunal i know its a silly thing to ask till upsc declares itself but what do you think is the probable cut-off range for prelims this year.Can we expect the same 15-20 marks rise in cut-off this year too just like previous year or we can have an unexpectedly high cut-off because the papers were a little bit easy as compared to previous years?

    1. Cut off is a factor of (1) number of people who appeared in the exam and their overall performance + (2) total seats + (3) level of question paper. Taking (1) and (2) as constants (since there is not much change in both from last year), cut off will be decided by (3) ie level of question asked.

      So if in 2012, cut off was 209, in 2013, the question paper was much easier. The thumb rule to apply is to give 0.5 marks to every easy question over previous year. So if there were 30 easier questions than previous year, then cut off goes up by 15 marks and so on. Even though “easy question” is quite subjective, but it can be made out by number of questions from the static/ conventional part as that is same for everyone to study from common source. As this year, current affairs was almost negligible, questions were asked from common source which makes the paper much easier and hence tough to qualify.

      In my view, Paper-I (General Studies)was a much much easier than last year and hence will prove to be the game changer. Even though in GSAT there were 30 odd reasoning questions, rest was quite easy. Coaching class samples are quite handy as they represent the well prepared candidates and can provide a mean of the average performance of the class. From my friends, i have gathered that in Vajiram, the average score is 250 marks, although someone claims to have even scored as high as 340. Most have scored between 260-170 marks.

      In Vision Ias,average score is around 240 marks, same for some other coaching factories in Mukherjee Nagar. I feel there are many other serious players across India and since paper was “basic and fundamental” in approach without current affairs, cut off is predicted in the range of 245-250 marks (an increase of around 40 marks from 2012)

      1. I totally agree with you that the paper was easy and i can easily accept a rise of 30 marks in cutoff but 245-250 is the worst case scenario.Coachings generally boast 15-20 marks more than their average.Thanks for such a critical analysis

      2. kaafi weird and irresponsible analysis hai, i must say. even if upsc deliberately wanted or wants to increase the cut off exhorbitantly, going beyond 230-232 will be ridiculous. “Ridiculous”; i repeat. i am myself getting around 250 and feel stabbed in the heart when people come with some f*****g stupid opinions. matlab kuch bhi???!!

        how many people do you think are posting their “on steroids” score online?? only those who are scoring around 240-270. how many are there exactly? no one knows, but can be estimated that around 6000 all over india. so the rest of 6k-7k are going where?? people getting 210-220 are shying away from putting up their scores online due to the added pressure of some “gods of pre” declaring their marvellous scores here and there.

        god forbid, if the cut off goes near 240, i will make it a personal mision of my life to do very bad things to the people responsible for it.. ;-)

        P.S.- khud jeeyo, dusro ko bhi jeene do..

        1. yes i too think that 250 is the worst case scenario but phir bhi jis tarah ankh band kar lene se andhera nahi ho jata usi tarah hamare bolne se cutoff kam nahi ho jata… but still anyone getting more than 225(general) should think about mains

          1. you know, it’s very easy to inflate the cut off’s when you know that you are scoring well above it. c’mon, it’s in human nature to take the place of primacy and dictate terms. i completely understood your point and i also understand that if the cut off goes anywhere near 250, i will fail miserably, and will be powerless to change that situation. but i have this gut feeling,and the scorers below it plz don’t curse me coz it’s just a feeling, that cut off would be around 230.

            Cut off means the least marks at which the last candidate is selected. There will be a group of people who will score not more than 225-230 and that is what my prognosis relies on.

        2. Unfortunately, your predictions are based on fiction, not facts. You have just been stating your ‘personal opinion’ rather than citing any facts. I have been in constant touch with the appeared candidates and what i wrote in my previous comment was based on hard facts. Things like ‘gut feeling’ fail miserably before hard and cruel facts.. What makes you think that the last selected candidate will not be scoring more than 230 marks?

          I suggest you venture out in the heat and visit some coaching institutes where you will find loads of candidates who appeared..discuss this with them and come back and then share your opinion…

          Exam was conceptual, not factual or analytical…Else how you explain so many people scoring more than 300 marks this time?

          1. Why take the pain when you have already ventured out in the heat and visited various coaching centres just to form an opinion. And you were saying that your comments are based on hard facts so kindly present us with some as the abovementioned do not suffice. See, i already mentioned in my earlier comment that it was a gut feelimg. Neither did i present it as an infallible argument nor did i try to impose it on anyone, and what you did was reiterate whatever i had written and tried to present a futile argument. And about the question of what makes me feel that 230 would be the cut off, i ask you what makes you think 250 will be. Mine is a feeling, so it is inherently disputable, agreed. But did you derive your “hard and cruel”(lolz.. filmy) facts from the full range of data avilable throughout the Indian territory?

            It’s allright brother. Arguments-counterarguments will always be there. I hope that the cut off remains low so i could pass, write mains, face the interview and become what i aspire to. I hope the same for all.

          2. Bhai log …calm down ,,here everyone is putting their personal opinions ..the same debate took place last year too and most of my wise friends predicted 240+ cutoff for 2012 .(you can search such discussions on this blog too) , most of the coaching institutes predicted minimum 220+ for 2012. so please stop this BaBa-Giri now .

          3. I smell a “Rat” here… :P

          4. haha.. nice one baldev :-)

          5. Baldev- Grow up and be mature.
            Ratpack- Well articulated reply
            Mahesh Meena- Thanks for giving a respite from this hellstorm.

            BTW mine score 230-235 (1st time)

          6. @Baldev…kripya cutoff ke baare me wrong baat na kare. lagta hai ki aapke kaafhi kam marks hai jo 240-250 cutoff bata kar doosaron ko bhi apni tarah depress karna chahte hai..Mrunal sir ka samman karein..aur cutoff ke batein band karein..selection ho ya na ho humko mains ke prep. karni hi hai..karni padegi..is baar nahi to agli baar..apni energy logo ki help karne me lagaye ..discourage karne me nahi…TRY to RESPECT MRUNAL SIR(sir ne cutoff ke bate karne se humesa mana kara hai)…

          7. This Baldev seems to be a paid rumormonger whose sole aim is to scare away serious candidates from preparing for Mains. Quite possibly he might himself be getting well below 200 (may be 150 who knows)…and that’s why he is not able to see others preparing for Mains peacefully.

        3. ratpack agree completely with ur line of thought .especially the last .
          240 cut off is really ridiculous . its really lowering the standers, to have so many to score so high…it just like a button smasher game

      3. @Baldev: Everybody has right to think sh*t but expressing is not allowed. You can think cut-off to be 300 also, We live in free country…but don’t do your super “logical” analysis here. Please maintain the sanctity of this forum and if you have ever learned anything from Sir Mrunal, never ever write anything. Because, if your logic is such junk, God knows how would you act when you are illogical.
        And actively start looking for some job, because you can never be a Civil servant….Period!!!

        1. @Abhishek: Well said, a little too harsh but true.

        2. “Life is a bitch which keeps shitting on your face and all you can do is mop it clean with a towel..”

          Hope you know what i mean! High cutoff or low,remember what i said for your life and you will be happy….

          1. that quote shows how u see life.for u life may be a bitch but not for me. Everyday I learn new things from life which helps me growing. Mr Baldev don’t disrespect life .
            By the way is there any chance u r the same baldev on oyenaukari.com regarding hpsc.

          2. Dude, I am happy…you don’t need to be worried about that.
            And about life it is also said, “Life is what you make out of it”…and for person like you it can be nothing but a ‘B***H’ only.
            May God give you an ounce of Grey Matter.

          3. cutoff would be between 210 to 220.that’s for sure.don’t spread scare…

          4. @Baldev …Life is a bitch // hahaha.. highly frustrated banda .

        3. Well said dear……throw out these type of stupids from this blog ,dont reply to them.

  19. Thanks Mrunal Sir.. all the questions were from your articles on Economy..
    I was never so comfortable attempting questions on Economy..

    1. When Keynes give a definition, it must be the right answer. Mrunal sir has told that from NCERT option A is the CLOSEST and not obviously implied. Whereas we get the actual direct definition of national income from a renowned economist like Keynes. I believe it is option D

  20. I just cant understand the explanation of ques 4 regarding liquidity.. When mrunal sir said that the correct sequence must b 4-x-x-1 then the correct answer must b 4-3-2-1 !! Plz can any1 make me understand this.

    1. Because in the next point in the explanation of that question, sir has given that demand deposit is more liquid than savings deposit..so the order is 4-1-3-2..

    2. He typed it incorrectly.. It should’ve been 4-x-x-2..

  21. Hi Mrunal Bhai…Thanks a ton for ur wonderful help..Now i am eagerly waiting for ur Mains detailed strategy..A detailed strategy from u would be of gr8 help especially this time due to the pattern change..Waiting for a wonderful post from u…


  22. Hey bro..really thanks for tat higgs boson article….and ya its really TRUE don wait for any keys or keep on calculating cut off or worrying abt tat…if u had worked hard god ll answer your prayers for sure.. i think i wasted couple of days and my happiness thinking all about d past which we can never change nw…..just kick t off… take a break kindly don discuss anything……..

    Mrunal ji a kind request better skip d remaining articles abt answer keys which yu r yet to publish…. pls

    Lets start preparing for d mains guyzzz:)remember infinite new challenges awaiting us……. cheer up erase d past ..

    I wish u all d best:)

  23. sir competition commission of india will overlook all the sectors of merger and acquisition… there was dispute also recently.. so is there any queries reg that question?

    1. yes,i too have a doubt regarding that.it was a recent topic and in that it was given that competition commission of india will take care of all mergers

  24. 254 in upsc prelims acc. to vaji keys, I was hopeful to sit in mains, but some ppl are predicting very high cut off due to very easy nature of paper 1. I will have to resign from Auditor in CAG to prepare for mains. Please guide me on following 2 points
    1. Whether cut off cross 250
    2. Is coaching necessary to crack mains? ( means Vajiram, they are denying admission to me as seats are full)

    1. no need to resign. 250??? , still in doubt??? plz continue ur job.

    2. Bhai there is no point in quitting your job. Just give prelims with the job and once the results are out you can take a couple of months off without pay to prepare for mains.

  25. Dear Mrunal,

    A sincere thanx to you and kudos to your work. for Economics just went through your blog without any other book and source and I could do 90% of the questions correctly.

    Keep it up dude.

  26. Hi Mrunal,

    National Income: Sum total of FINAL VALUE of Goods & Services produced by the Country(NOT
    NATIONALS ONLY) counted without duplication within the Domestic Territory of Country…

    Guys straight away u can eliminate first option …
    If UPSC has mentioned REAL NATIONAL INCOME it would hav been CLOSE to first option.

  27. my score 176 sc are tere any chances

  28. sir flipkart is still showing the rate of India Year Book as 258+ 50 for delivery
    plz share the link from where u have provided us the info


    1. Search for “India 2013” in the search bar at homeshop18.com…Shipping is free.

  29. Mrunal please provide an article on GST – BENEFITS AND CHALLENGES .

  30. thanks a lot mrunal!!!!!!!!!!!!!1

  31. Mrunal sr thankas aloot for your support esp for economics anmd basiocs of ENB that helped me in getting 120 odd marks in GS and 181 marks in CSAt- thanks mrunal sir for your comprehension and other tricks that helped me to complete the full CSAT paper 5 mins before the schedule finish time ( as per Vajiram ans )
    I dont get into

    1. congrats buddy dats an amazing score.. my paper 2 score is just 120..:( can u plz guide me how to better my score?

  32. at the end of the whole exam only 900 people will be selected ..chances will always be very low .tension na lo.agar khud ko lagta hai ki ho skta hai to pad lo.vrna maje maaro

  33. expected cut merit for ph candidates for 2013 ias pre. how much candidates of ph r recomended for writing mains exam?

  34. Hi,
    Just wait for 60 days everything will be clear. Please don’t bring the future into present and weep on past wrongs in present otherwise life will be hell. Many of us have put a number of activities on hold to get the positive result so think positive.
    Also getting good marks doesn’t mean cutoff would increase proportionally, it means you had good preparation and also paper was not easy it appears easy. They have played very smartly by using simple words in question paper in a complex way as for an example like “muscle contraction” both Na+ and Ca++ is given, the first is required for for propagating the nerve impulse from Central nervous system to muscle and the other is required for fulfill the sliding filament theory of muscle contraction, even NCERT 20th chapter in biology(11th) not mentioned Na+ but every answer key mentioned both, similarly they have asked leaf modification and one option was smaller leave or no leaf but in is it possible leaf modification means no leaf but every key mentioned it is right. So the same in polity, economy and geography and I have just mentioned the two from science. Finally Anyone getting 90 in first and 130 in 2nd can be called handsome doesn’t matter you are in or out matter is you 55% character like a IAS should have. I am posting first time because forum is taking ugly turn. just wine and dine till last week of July

  35. frnds i m getting 150 in paper 2 from career launcher key and 135 from vajiram and ravi. to whom i should keep faith. plz tell me frnds. plz reply…

  36. plz reply anybody plz

    1. to feel safe , consider the lower score so that u have nothing to lose. also, u can verify from other sources too.

    2. the p2 q were straight forward with very little scope to misinterpret .. do all cal lation with 135 score because it is good and u dont have to top pre now do YA? .
      and the thing that works best is to figure out the ans ur self becausr to Q were tricky but more of factual nature. so u surely to get the ans somewhere

    3. i saw both the keys and was shocked to see even vajiram has wrong answers.
      better is go with cl keys for paper 2 coz without a doubt they are best.
      for paper 1 refer some other keys

  37. thanks mockingbird..
    bt my paper 1 is around 90 from gktoday.in
    so total will be 225 (accd to vajiram) and people here are talking abt 240 cut off… what to do :-(

    1. dont worry dude… just start prep for mains..dont go with cutoffs..only UPSC will decide it so dont bother.

    2. Dont worry… Start mains prep…. people will talk of 250 cutoff as well… dont pay attention to them… 225 is a good score and u will make it to mains….

    3. alok bhai >> 225 will clinch the deal for you.

  38. The Reserve Bank of India had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 200,000 per financial year for any permitted capital and current account transactions or a combination of both(please note it can be a part of capital account transactions)

  39. @Murali

    time deposits are the least liquid assets. So, the correct order is 4-1-3-2

    cut off for GENERAL will hover around 188 to 196 this time
    for OBC will be 163-169
    for SC it will be 155-160
    for ST it will be 150-155

  40. @Mrunal bhai- Thanks a lot for supporting and nurturing the SAPNA of civil services in me. My pre- exam was wonderful and credit goes to you , BUT NOW…..i am not prepared for mains , my subject(sociology) is also not prepared..I have to start from scratch and i am working , the syllabus is like PACIFIC OCEAN and i don’t know the depth also .(may be many Mariana trench are there). Syllabus is scattered like island in the sea of books and IGNOU material.. now What to do?????

    People use to say following thing are needed to be done

    1.Note preparation .(when locating syllabus is such herculean task ,then preparing note ? how to think of that )
    2.answer writing practice (@Mrunal bhai: how to know that my answer is right or wrong )
    3.New paper article tracking and keeping note of that too.(huuh !)
    4.This Four paper of G.S

    Mrunal bhai , can i continue all these with my 9.5 hr Job ,is it practically possible ? but i know one thing that i can’t leave my job(that’s other mater if they fire me).

    i am following your TIPs of “Study in minute”. but i think it is not enough now…

    plz suggest some thing.

    1. Crazy guy! Dont you already know the answer to your questions? Why disturb Mrunal bhai for such silly things!!! Just take a sabbatical and prepare whole heartedly for Mains. Ab yeh mat kehna ki job se break nahin le sakta!!! With your prep level, you need atleast 10-12 hours atleast per day.. if you can manage this with job, then fine…

      Sociology to ho jayegi… GS is a monster!!!!!

      1. there is always a best way to do the things. @baldev i think that you have left your prep. and picked up the job of full time commentary ( khi khi khi). I have solution , i know how to do it, i will do it, OK ! .but dear , MRUNAL bhai always comes with very amazing solution to any problem , Like he is DOCTOR and until and unless you to tell the full problem to doctor he will be not able to cure you. Not only me many of comrades are struggling with this question only

        so be don’t be bully always(as i have seen your earlier comment) be little bit sensitive & ALL the best to you dear.

        1. Dear, sorry if you felt being bulldozed by me. Just that i felt that it is a very naive question at this juncture…You should have asked this question a year back or atleast 6 months before prelims…Anyways, it is never too late…

          Hope you come out with flying colours.. All the best to you too :)

          1. @baldev
            Where did you get at this “at-least” 10-12 hours per day.
            Quality of study is more important than quantity.
            Let Mohit ask the question to Mrunal Sir ,Why are u bothering others unnecessary.Has he asked for ur wise opinion? U do ur own work but if ur work is troubling others without any reason then keep doing it.But u r wasting ur own time.

  41. PAPER 1- 85 + paper 2- 120 total=205 :(….1st attempt GM category..i know der is no possibility of clearing prelims with these marks considering the comparatively ‘easy’ nature of question paper. feeling low..:( somebody plz tell what should i do? continue my prep or call it a quit…?

    1. @Motivation :- dear let us suppose that cutoff will be 210., and you have scored 205 , 210-205= 05 =2 question.
      Only two question dear. you are so close. look, just start mild prep. for mains and continue it till November – December. it will have two benefit

      1. you will enhance your knowledge and wisdom and it will keep you in active mode
      2. Mains syllabus is not going to change in 2014. so if you prep for mains now, your prep level will be good for next time.. :)

      HOW TO DO IT?
      1. make group of like minded people,plz avoid SAD SOULs and POMPOUS SOUL ,be on ground reality ,observe your self and observe reality.

      2. start preparing your notes and add on that notes with various other source(fronline,outook,OP-ED of hindu and indian express)

      3.use AIR FM GOLD , Hindu and try to make opinion whenever you read a article in THEHINDU and comment on it(what ever,don’t worry about quality of your writing it will gradually improve.)
      4.Consider your self as administrator and try to think and behave in that way only.

      COMRADE , follow the strategy of STRUGGLE TRUCE STRUGGLE as it is a long journey of 2-3 years (for average guy ,with average luck).maintain your clam and be +ve always.

  42. hi Mrunal sir,
    am udayakumar. took prelims this time ( Ist attempt)
    i know i wont get select because my preparation was not organised.
    but i came to know about ur blog recently during march month.
    i dont know economics or like economics
    but because of you and your knowledge, i got 15 of 18 correct.
    what would be happy than this for me.

    thanks for the support.
    i read upto only ch 6 of ESurvey, now i am reading the remainings. i getting lured to you.

    long live man.

    1. nice ! keep it up…. there is always 1st time . there is always next time , so if not this time then next time….

      you have very +ve attitude , you will definitely do it man. :)

  43. Does anyone have economics as their optional? Could you please share your strategy..which book are u referring for micro? I have done eco.hons n I’m more comfortable with varian…i just need a second opinion since this is my first attempt

    1. Hello Tanya,

      I have economics optional. I am referring to Varian for Micro. Henderson and Quandt would also be helpful.

      All the best,


  44. for commerce which coaching is best,……rankers or vajiram ?

    1. go for rankers, i took from vajiram and i tell u they dont explain half of the syllabus and will just give u print outs, total waste of money. go to vajiram only if u have strong background in commerce. Moreover hardly practice questions are given in the class….all the time notes dictation.

  45. the greatest problem with ppl who predict. high cut off is tat they go to coaching centers all of indians who take this exams dnt have deep pockets to join a center.at the v start wen I just completed my college (2012) passout I checked sites of these teaching institutions who ask from 40k to 70k even a lakh. I ran away. for a guy like me who had to take loan even for my degree this was too much.there are ppl outside coaching centers and mind u they form the majority. there are ppl who join coaching thinking u join u pass attitude. so lets not speculate on cut offs more importantly on opinion from coaching center students. which in my opinion is silly.I did my own studies completely am around 220+(obc) thou disappointed. I did my best.my plan was target 60% and I did get it.so just c if u reached ur target and start preparation folks.civil servants cant be ppl who believe in rumours.remember a civil servant represents STEEL FRAME OF INDIA for heavensake lets SHOW SOME STEEL

  46. So well friends, i hv been seeing this cut off talks and blah blah
    ok let me tell you something “An EXAM like GSI can never be tagged as easy or difficult” reason you may be knowing economics and may be polity or even history but you may not know every aspect of EnB or you may know about EnB but wud lack in even simplest of questions, you see the pressure situation in exam gets us to do many a times silly mistakes which we cant even think know but trust me frnds it must have happened with many like even after knowing an answer had ticked mark some other ,some questions in economy were simple but myself applied logic in every question and it became over logical thus my came out to be wrong
    and how the hell just the day passed from morning to evening on sunday and people started giving analysis about how this exam was even before getting the answers verified
    i am so sure many wud have thot so as well but in these aftermath your thinking is now been changed reason u analysed every thing u did verify from multiple sources and come to a conclusion that u have made mistakes rather silly mistakes chanting here about studies is one thing but solving it in examination hour is completly different and this wud happens and wud happen even in mains as well,may we all succeed to that.
    Ok now since everyone has given talks of cut offs then let me tell you something i completely agree wid d person someone who talked abt CUT OFF FACTORS: attendance,vacancies,level of examz
    so here let me inform you
    this years exam has seen too poor attendance 50-55% that u also know, and vacancies have slightly increased ,i m just saying the facts
    now the difficulty level of exams: so hell is everyone talking abt GSI but i think u need to know abt an xam GSII which is primarily important no online site or big names of institutions other than giving answers keys for GS II talked abt deep analysis and outcomes, i wud remind u that cut off is made up of both these not just of 1 exam, and since many say GS 1 was easy but there were many for whom
    GS II was equally tough, in respect of time as u know in apti u need to be hard fast which is not a tendancy of every student.
    I am amazed many many many ppl saying they did 85-90-95/100 and 75-79/80 qstions in both exams respectively but ask them HOW ?they will say RANDOM.
    ok lets say both xams were easy as a cakewalk even a X class adolescent can do so everyone shud…. BUT even after that u cant say that cut off will go INA MINA DIKA etc. there are few questions whose answers wont be find as right ,that only teachers wud know and we get sum shocks after seeing official answerkey, Did anyone thot abt 2011 cut off 198? everyone assumed some or other equation and last year since exam was milky many experts gave opionon of merit being 220 or 230 and this time i m seeing 250 :D :D
    as mrunal said last year, since India won WC 2011 by 6 wickets wud it mean any oder team wud win the next WC by 6±1 wickets? cant it win by Runs or cant it be a draw?
    so cut off talks are rather useless if u believe in god then can ask for his help as u did watever u cud now its matter of destiny which is not in our hands

    1. Wonderful honey…but one simple doubt..”An EXAM like GSI ” what exam is this GSI??? Geological Survey of India???

      1. it is “GENERAL STUDIES PAPER ONE”. bhai @deejay- are you joking or you really don’t know ? if you answer is later question is yes , then LOLZ . puri ramayan khatam ho gayi at last -sita kyoun thi ???

  47. HELP MRUNAL!!!

    The Reserve Bank of India regulates the commercial banks in matters of

    liquidity of assets
    branch expansion
    merger of banks
    winding-up of banks
    ans 1,2,3,4 Amalgamation /Merger of two bank require RBI’s approval. Thus final answer is D

    but mrunal in banking regulation bill u hav mentioned that merger of bank is regulated by CCI(competition commisiion of India)
    please help me out friends!!! totally confused

      1. Banking Mergers and acquisition fall under purview of CCI which is concurrent with RBIs jurisdiction and not CCIs or RBIs exclusive jurisdiction.
        That was the issue which was explained in the article as—copy pasting from there,read it carefully:
        “Chindu: Friends, I also propose that only RBI’s permission should be necessary for Bank mergers and acquisitions. Competition Commission of India should not play any role in it.
        Opposition: Not acceptable. Again this is new provision added after Standing Committee gave its report. So, send the bill back to Standing Committee.
        Chindu: No, no, no. if bill goes back to standing Committee, then it’ll delay the implementation.Ok I back off, I remove this provision.CCI will have the power to investigate and clear mergers and acquisitions in the banking sector.”
        ==> concurrent powers of cci n rbi

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