1. Prologue
  2. Banking and Finance
  3. Budgeting
  4. International Trade
  5. Sectors of Economy
  6. Infrastructure
  7. Human Development, Schemes, Portal, Yearbook


  • [T25] series contains 25 Mock MCQ for UPSC IAS/IPS Civil Service exam aspirants.
  • This particular article, gives you practice questions from Economy and Government schemes.
  • Timelimit: 30 minutes.
  • 2 Marks for correct answer; -0.66 marks for wrong answer.

Banking and Finance

Q. Non-performing assets (NPAs) decline in value when (IEnggS-2018)

  1. Demand revives in the economy.
  2. Capacity utilization increases.
  3. Capacity utilization, though substantive, is yet sub-optimal.
  4. Capacity utilization decreases consequent upon merger of units.

Which of the above statements are correct ?

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


  • First statement is given in all four options, so it’s useless to think about its validity.
  • NCERT Class11 Biz.studies ch.9: “Due to lack of marketing skills or lack of demand, many small business firms have to operate below full capacity due to which their operating costs tend to increase. Gradually this leads to sickness and closure of the business.” This means, when #1 happens, #2 will happen and both ought to reduce NPA. This means #A is wrong since it doesn’t contain #2.
  • If two units / companies are merged, then economies of scale ought to come, and accordingly, capacity utilization should improve, per-unit-cost-of production should decline. If the reverse has happened (cap.uti. decreases post-merger), then it’ll lead to further accumulation of NPAs. So, now eliminate between B and C accordingly.

Q. In May 2018, RBI ordered Dena Bank to stop giving new loans and to stop hiring new recruits. From where does RBI get powers to issue such directives

  1. RBI Act
  2. Banking regulation Act.
  3. Insolvency and Bankruptcy Code.
  4. BASEL-III agreement

Hint: Prompt Corrective Action framework under the Banking regulation Act.
Q. What is Crowdfunding? (IEnggS-2018)

  1. Money collected for public welfare projects by having an entry fee to exhibitions, shows, etc.
  2. Money collected by charitable organizations by placing a donation box at prominent locations
  3. Money raised by innovators and inventors· by launching their products and services through the Internet
  4. Money raised by individuals by passmg the hat around to onlookers at a street performance

Hint: Crowdfunding: The practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet. Musicians, filmmakers, and artists have successfully raised funds and fostered awareness through crowdfunding [Oxford dictionary]
Q. Match List I with List II and select the correct answer using the code given below the Lists : (CAPF-2017)
List I: [Committee]

  1. Rangarajan Committee
  2. Narsimhan Committee
  3. Kelkar Committee
  4. Malhotra Committee

List II: [Subject]

  1. Tax Reform
  2. Insurance Reform
  3. Disinvestment of shares in PSEs
  4. Banking Sector Reform

Code : A B C D

  1. 2 1 4 3
  2. 2 4 1 3
  3. 3 4 1 2
  4. 3 1 4 2

Hint: Narsimhan is banking sector (B:4) and Malhotra is “Narsimhan” of insurance sector (D:2). This much info. sufficient to arrive at right answer, but to improve your GK, you should then reverse track- Kelkar and Ranga are famous for what other Committees? Hint- finance commission, poverty estimatees, fiscal deficit, PPP, oil-block auction models….


Q. Why was constitutional amendment needed for introducing GST ? (CDS-2017-ii)

  1. States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
  2. GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
  3. The Empowered Committee of Finance ministers had recommended for constitutional amendment.
  4. The GST Council had recommended for constitutional amendment so that its power enhances.

Hint: Constitution of India provides for clear division of powers in respect of taxation between the Centre and states. While the Centre at present does not have the right to tax sale of goods, except in the case of inter-state sale, states cannot levy tax on services. The divisions are mentioned in the Article 246 under the Seventh Schedule of the Constitution. The Constitution needs to be amended to provide for giving power to both the Centre and states in respect of GST, a single tax on goods and services.

Q. Match List-I with List-II and select the correct answer using the code given below the Lists : (CDS-2017-ii)
List-I (Type of Deficit, & its level in Budget-2018)

  1. Fiscal Deficit (3.3%)
  2. Revenue Deficit (2.2%)
  3. Effective Revenue Deficit (1.2%)
  4. Primary Deficit (0.3%)

List-II (Explanation)

  1. Total Expenditure minus Revenue Receipts
  2. Revenue Expenditure minus Revenue Receipts
  3. Revenue Deficit minus Grants for Creation of Capital Assets
  4. Fiscal Deficit minus Interest Payments

Codes: A|B|C|D

  1. 1 2 3 4
  2. 1 3 2 4
  3. 4 2 3 1
  4. 4 3 2 1

Hint: I’ve deliberately written the each deficit’s %GDP figures from Budget-2018, for faster revision.

  • PD = FD minus interest payment (D:4).
  • ERD = RD minus grants for capital asset creation (C:3)

Q. Which one of the following criteria got the highest weight for determination of shares of States in the formula given by the 14th Finance Commission? (CDS-2017-ii)

  1. Population
  2. Income distance
  3. Area
  4. Tax effort

Hint: In 14th FC, the Horizontal devolution to each state was as following:

  • 17% on Population and 10% on demographic change as per Census 2011.
  • 50% Income distance (Find richest state in per capita GSDP terms, then how far is your state from that ‘rich state? more poorer your state = more money you get.
  • 15% to Area.
  • There is no component for tax-efforts. For more, watch my lecture.

Q. Incorrect statement(s) about 15th Finance Commission under the chairmanship of N.K.Singh

  1. It’s recommendations shall be valid from 1st April 2020 to 31st March 2025
  2. It has part-time members from both NITI Ayog and GST council
  3. 15th FC is mandated to use the data from Census-2011 and not Census-1971.
  4. All of the above

Hint: See the membership photo, right hand corner bottom two guys are part-time members, and other statements are right.
15th Finance Commission

International Trade

Q. Devaluation of currency will be more beneficial if prices of (CDS-2017-ii)

  1. domestic goods remain constant
  2. exports become cheaper to imports
  3. imports remain constant
  4. exports rise proportionality

Select the correct answer using the code given below :

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

Hint: Devaluation of Indian rupee means $1=Rs.60 turning into $1=Rs.70. This means exports become competitive in global market whereas imports become expensive for India. If post-devaluation, imports remain unchanged, and exports rise proportionately, then it’ll be beneficial. Now think whether #1 and #2 are relevent statement, and accordingly pick between A and D. For more on currency exchange rate regimes, watch my lecture.

Sectors of Economy

Q. Which of the following indicators have been used by the World Economic Forum to calculate Global Competitiveness Index for 2016-17? (CDS-2017-ii)

  1. Efficiency enhancer sub index
  2. Innovation and sophistication factors sub index
  3. Life expectancy enhancer sub index

Select the correct answer using the code given below.

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

Hint: The 3 three subindexes are:

  1. basic requirements
  2. efficiency enhancers
  3. innovation and sophistication factors.

This can be solved from GuessmastergiriTM also: Life expectancy could be a component of human development, but not Global Competitiveness Index.

Q. Arrange the following events in sequential order as they happened in India : (CDS-2017-ii)

  1. Mahalanobis Model
  2. Plan Holiday
  3. Rolling Plan

Select the correct answer using the code given below.

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

Hint: Mahalanobis: 56-61, Holiday: 66-69, Rolling Plan: 78-80. Ref: MY NITI Ayog article


Q. Which one of the following is not a feature of the Saansad Adarsh Gram Yojana (SAGY)? (CDS-2017-ii)

  1. It focuses on community participation
  2. It is to be guided by a Member of the Parliament
  3. It aims at creating infrastructure for the village.
  4. A Village Development Plan would be prepared for every identified Gram Panchayat

Hint: Saansad Adarsh Gram Yojana (SAGY) was launched in 2014 with the aim to develop one village by each Member of Parliament as a model village by 2016 and two more by 2019. Gram Panchayats have to prepare Village Development Plan, and they’ll be monitered through Government’s Panchayat Darpan portal. So, think, which option is irrelevant? For more on urban and rural infrastructure schemes, watch my lecture.
Q. Which one of the following authorities has recently launched the mobile apps ‘MyFASTag’ and FASTag Partner’ in 2017-August? (CDS-2017-ii)

  1. Telecom Regulatory Authority
  2. National Highways Authority
  3. Airports Economic Regulatory Authority
  4. National Disaster Management Authority

Hint: In order to remove traffic bottle neck at toll plazas and ensure seamless movement of vehicles and hassle-free collection of toll, the Government has implemented a nationwide Electronic Toll Collection based on passive Radio Frequency Identification (RFID). It provides for electronic collection of toll through FASTags. [Ref: India Yearbook 2018 chapter on Transport] So, accordingly, GUESS which of the above organizations would have launched it?

  • MyFASTag is a consumer App. A consumer can purchase or recharge FASTags on this App. The App also helps to keep track of transactions and provides for online grievance redressal.
  • FASTag Partner is a merchant App. Agencies like Common Services Centre, banking partners and vehicle dealers can sell and enroll FASTag through this App. This App can also be used to activate the RFID tags that came built in with around 74 lakh cars in the country following the 2013 Gazette Notification in this regard. These RFID tags are already fixed on the cars but are dormant. This App will convert these RFID tags into ETC Tag (FASTag).
  • If you’re curious to learn more, see the Government powerpoint here: http://pibphoto.nic.in/documents/rlink/2017/aug/i201781701.pptx

Q. The Setu Bharatam programme of the Government of India is a programme for (CDS-2017-ii)

  1. building bridges across major rivers for transport of goods
  2. buildings bridges for safe and seamless travel on national highways
  3. building roads to connect coastal areas
  4. training of highway engineers at the entry level and service level

Hint: Setu Bharatam programme for building bridges for safe and seamless travel on national highways was launched in 2016. The Setu Bharatam programme is to make all national highways free of railway level crossings by 2019 by building bridges. This is being done to prevent the frequent accidents and loss of lives at level crossings. For more, watch my lecture on transport schemes.
Q. Consider the following statements: (IEnggS-2018)

  1. IPDS strengthens the distribution network in urban areas while DDUGJY does the same in rural areas.
  2. DELP focuses to substitute LED bulb for incandescent bulbs.
  3. Both A and B
  4. Neither A nor B

Hint: India Yearbook ch.11 on Energy:

  • In order to provide impetus to strengthening of power distribution sector in urban area, Ministry of Power, Government of India launched “Integrated Power Development Scheme” (IPDS) in 2014. DDUGJY: “Deendayal Upadhyaya Gram Jyoti Yojana” name itself is speaking the target area of this scheme.
  • Domestic Efficient Lighting Programme (DELP) was launched in January 2015 urging the people to use LED bulbs in place of incandescent bulbs, tube lights and CFL bulbs as they are more efficient, long lasting and economical in their life cycle duration. For more, watch my lecture

Human Development, Schemes, Portal, Yearbook

Q. PQLI is based on (IEnggS-2018)

  1. Infant mort ality, life expectancy and adult literacy rate
  2. Crime rate, clean environment and quality of housing
  3. Air pollution, water pollution and sanitation conditions
  4. Health, education and environment


  • Physical Quality of Life Index (PQLI): This is measured from 0-100 and combines life expectancy, infant mortality and adult literacy. The higher the score, the higher the quality of life of a country.
  • Human Development Index (HDI) – UNDP devised composite indicator of development which consists of 1) Life expectancy at birth, 2) Education index: Mean years of schooling and Expected years of schooling and 3) A decent standard of living measured in GNI per capita (PPP US$). The HDI is a number from 0-1 where 1 is the highest level of development

Q. Why is demographic dividend considered to be ‘boon’ for a country?

  1. Younger population is more productive and entrepreneurial
  2. Younger population tends to save more
  3. demographic dividend improves govt’s fiscal position.

Select the correct answer using the code given below.

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

Hint: Statement 1 and 2 are right as per ES16 vol1. Third statement also right because demoggraphic dividend means there are fewer dependents (children and elderly) for the government to support (via schemes and subsidies) versus more tax payer (because of working age population)- this improves government’s fiscal position.
Q. Find incorrect statements about Sustainable Development Goals which were adopted in 2015 by UN

  1. India has committed it’ll achieve these goals by 2022, ahead of the international deadline of 2030.
  2. India has designated NITI Ayog to oversee the implementation of SDG.
  3. India has submitted first voluntary national review in 2017 to UNDP.

Answer Codes:

  1. Only 1 and 2
  2. Only 2 and 3
  3. Only 1 and 3
  4. All of them


  • 2022 is Modi’s New India vision (housing for all, 2x income for farmers etc.) but it doesn’t mean we committed to achieve all 17 SDG goals and 169 associated targets! The SDGs are to be achieved by 2030.
  • SDG were adopted at United Nations Headquarters in New York in 2015, and but came into effect from 1/1/2016. So 2017 marked “first” review. Countries have to submit voluntary national review reports to UN Economic and
    Social Council (ECOSOC)’s High-Level Political Forum (HLPF), and not to UNDP. UNDP is for preparation of Human Development Index (HDI).
  • NITI Aayog has been assigned the role of overseeing the implementation of SDGSs.

Q. ‘Pragati scholarship scheme of the Government of India is meant for (CDS-2017-ii)

  1. higher education of girls
  2. technical education of girls
  3. secondary education of girls
  4. elementary education of girls

Hint: Pragati (Scholarship for Girl Students) – Pragati is a scheme of AICTE aimed at providing assistance for advancement of girls participation in technical education. [Ref: India Yearbook 2018 chapter 10 on Education]
Q. Correct statement(s) about UGC’s Swami Vivekananda Scholarship for girls pursuing PHD?

  1. A girl student is eligible ONLY IF she’s the single girl child in her family.
  2. This PH-D scholarship is available ONLY for research in social science.
  3. Both A and B
  4. Neither A nor B

Hint: While the GuessmastersTM would vouch that both statements ought to be wrong since they’ve extreme words “ONLY”, but both statements are right. [Ref: India Yearbook 2018 Ch.10 on Education.]
Q. Find incorrect pair(s)

  1. E-IPO portal: SEBI’s portal for obtaining online clearance to issue IPO.
  2. CPGRAMs portal: Rural development Ministry’s portal to monitor central projects’ implementations at Gram Panchayat level.
  3. Vikaspedia: NITI Ayog’s portal to moniter the implementation of sustainable development goals in India.
  4. All of the above.


  • e-IPO is eletronic India post order. It facilitates Indians living abroad to pay RBI fees. If they were in India, they could have purchased ordinary Indian Post order (IPO), but since they’re abroad, they needed online acility.
  • Centralized Public Grievance Redress And Monitoring System (CPGRAMS) is an online complaint portal by Department of Administrative Reforms and Public Grievances (DARPG) under Personnel Ministry.
  • Vikaspedia is Ministry of Electronics and Information Technology (MeitY)’s portal for providing scheme information.

Q. Correct pairs of portals vs. their parents and purposes:

  1. TAMRA Portal: Ministry of Mines’s portal for online auction of mining blocks.
  2. PENCIL Portal: Labour ministry’s portal against child labour.
  3. INAM Pro+ portal: Highway Ministry’s portal to bring sellers/buyers of construction material and Service.
  4. All of the above.

Hint: Parents and platforms are correctly paired, and as far as the “मार-पिट के जोड़े गये abbreviations” are concerned:

  • TAMTRA= Transparency, Auction, Monitoring and Resource Augmentation (TAMRA) Portal and mobile application
  • PENCIL = Platform for Effective Enforcement for No Child Labour (PENCIL) Portal
  • INAM-Pro= Platform for Infrastructure and Materials Providers

Q. Vidhyanjali Yojana

  1. It aims to enhance community participation and private sector involvement in educational and skill development activities.
  2. It targets elementary schools, highschools and vocational training institutes.
  3. Both 1 and 2
  4. Neither 1 nor 2

Hint: Vidyanjali, a sub-programme under SSA, was launched to enhance community and private sector involvement in Government run elementary schools across the country. It runs co-scholastic activities in government schools through services of volunteers. [Ref: India Yearbook 2018 ch. 10 on Education]
Q. Following are the notable online portals related to HRD ministry. Which of them is incorrectly paired with its feature?

  1. Shala Darpan: Online School management system for Kendriya Vidyalayas
  2. Shaala Siddhi: Online portal for schools to evaluate their own performance on set benchmarks.
  3. ShaGun portal: Online portal to moniter implementation of Sarva Siksha Abhiyan.
  4. Prashikshak portal: Providing online training to teachers.

Hint: India Teacher Education Portal (Prashikshak) is for monitoring of Teachers Education Institutions and providing database to prospective students and teachers to select the right DIETS/PTC institute as per choice. वो सीधी ऑनलाइन ट्रेनिंग के लिए नही है. [Ref: India Yearbook 2018 ch. 10 on Education]

I’m unable to find the ‘actual’ Prashikshak portal or its URL. Only its launch video / Press-coverage is available on HRD ministry, PIB, and other sites. So what’s the point of launching such non-existing portals with fancy Sanskritized names, except to harass UPSC aspirants!? नाक में दम कर दिया है.

Government Apps and Portals
Q. What is the use of LIMBS portal?

  1. Divyang Department’s online portal to apply for artificial limbs.
  2. Law minister’s online portal to moniter court cases.
  3. Health Ministry’s online portal about indigenous medicine systems.
  4. External Affairs Ministry’s special portal for OCI & SAARC citizens seeking medical treatment in India.

Hint: LIMBS stands for Legal Information and Management Based System. तो सोचो वो क्या करता होगा?