[T25] UPSC Prelims Mock Testseries Round#38: Economy Practice MCQs from 2020’s CDS, IES & Geoscientist exams

1. Prologue
2. Pill1A2: Monetary Policy
3. Pill1B2: burning issues
4. Pill1C: SEBI Sharemarket
5. Pill1D: Financial Inclusion → Insurance
6. Pill2A: Budget & Taxation
7. Pill3A: Import export
8. Pill3B: BoP & International Org
9. Pill4B Industries, IPR, EoD
10. Pill4C: Planning, NITI, PC
11. Pill4D: Macroeconomic Indicators
12. Roadmap for Economy MCQs in UPSC CDS, IES and Geoscientist

Prologue

• Time Limit: 30 minutes. 2 Marks for correct answer; -0.66 marks for wrong answers.
• Mitron, my [T25] series contains 25 Mock MCQ sets primarily aimed at UPSC IAS/IPS Civil Service exam aspirants.
• This 38^th set contains Economy questions from UPSC’s Geoscientist exam 2020 (conducted on 19^th Jan,2020), IES Engineers 2020 (5^th Jan, 2020) and CDS-i-2020 (conducted on 2^nd Feb 2020).
• The questions are given here, I’ll conducting a FREE live Class on 19^th Feb 2020 at 9:30PM, where we’ll solve these questions with answers explanation and some strategies for 50:50 elimination etc. You’re all invited to attend it.

Pill1A2: Monetary Policy

Q01. The cash reserve ratio refers to  (UPSC-CDS-i-2020)

1. the share of Net Demand and time liabilities that banks have to hold as liquid assets
2. the share of Net Demand and time liabilities that banks have to hold as balances with the RBI
3. the share of Net demand and time liabilities that banks have to hold as part of their cash reserves
4. the ratio of cash holding to reserves of banks

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q02.  Which one of the following is not correct about the Repo rate?  (UPSC-CDS-i-2020)

1. It is the interest rate charged by the Central Bank on overnight loan.
2. It is the interest rate paid by the commercial banks on overnight borrowing.
3. It is the interest rate agreed upon in the loan contract between a commercial bank and the Central Bank.
4. It is the cost of collateral security.

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill1B2: burning issues

Q03. Basel Convention provides:  (UPSC-IES-2020)

1. Indian standards for pollution measurement and prevention
2. International guidelines to control the transboundary movements of hazardous wastes between different countries
3. Indian standards for the disposal of municipal and industrial wastes
4. International standards to categorize pollution in air and wastewater

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q04. Recently the Reserve Bank of India has imposed limitations, initially for a period of six months, on the withdrawal of amount by account holders of which one of the following banks? (UPSC-CDS-i-2020)

1. IndusInd Bank
2. Dhanlaxmi Bank
3. Punjab and Maharashtra Cooperative Bank
4. South Indian Bank

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q05. In September 2019, which one of the following travel giants declared itself bankrupt? (UPSC-CDS-i-2020)

1. Expedia
2. Cox & Kings
3. SOTC
4. Thomas Cook

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill1C: SEBI Sharemarket

Q06. An individual investor who invests in the e-project usually during an early stage is (UPSC-IES-2020)

1. corporate strategic investor
2. founder capital
3. angel investor
4. venture capital

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill1D: Financial Inclusion → Insurance

Q07. Which one of the following is not a feature of the Ayushman Bharat Scheme? (UPSC-CDS-i-2020)

1. There is no cap on family size and age.
2. The scheme includes pre- and post-hospitalization expenses.
3. A defined transport allowance per hospitalization will also be paid to the beneficiary.
4. The scheme provides a benefit cover of Rs. 10 lakh per family.

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q08. Centrally sponsored scheme Ayushman Bharat is a national health insurance system for: (UPSC-Geologist-2020)

1. women.
2. every citizen.
3. old age people.
4. poor and vulnerable.

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill2A: Budget & Taxation

Q09. Which one of the following statements about the Finance Commissions, periodically established by the Government of India, is NOT true? (UPSC-Geologist-2020)

1. It recommends distribution of taxes between the Union and the states
2. It recommends the principles governing the grants-in-aid of revenues of states
3. It recommends measures to augment the consolidated fund of a state
4. It recommends measures regarding the salary of government employees

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q10. Which one of the following is the correct sequence of formation of the Commissions starting from the earliest? (UPSC-CDS-i-2020)

1. Finance Commission, Planning Commission, Investment Commission, Election Commission
2. Election Commission, Planning Commission, Finance Commission, Investment Commission
3. Planning Commission, Election Commission, Finance Commission, Investment Commission
4. Investment Commission, Finance Commission, Planning Commission, Election Commission

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill3A: Import export

Q11. East India Company, to begin with, exported Indian goods to Western countries. Which one of the following is NOT one of the goods in the trade? (UPSC-Geologist-2020)

1. Muslin
2. Calico
3. Silk
4. Wool

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q. Which one of the following control policies leaves no freedom to private enterprise to buy plant, machinery, raw materials from the country of its choice? (UPSC-IES-2020)

1. Import control
2. Export control
3. Exchange control
4. Physical control

Very Easy Q through word association so I’m not even counting it in the t25’s 25 counting. ?

Q12. Which one of the following countries in Asia established the first Export Processing Zone (EPZ) in 1965? (UPSC-Geologist-2020)

1. China
2. India
3. South Korea
4. Japan

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill3B: BoP & International Org

Q13. Which of the following are the main functions of WTO? (UPSC-IES-2020)

1. To organize meetings of member countries to arrive at trade agreements covering international trade.
2. To ensure that member countries conduct trade practices as per agreements agreed upon and signed by the member countries.
3. To provide a platform to negotiate and settle disputes related to international trade between and among member countries.
4. Answer codes: (a) 1 and 2 only (b) 1 and 3 only(c) 2 and 3 only (d) 1, 2 and 3

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

 Q14. How many member states are there in CARICOM, a grouping of Caribbean nations? (UPSC-Geologist-2020)

1. 10
2. 12
3. 15
4. 18

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q15. BRICS Summit, 2020 will be hosted by (UPSC-CDS-i-2020)

1. India
2. China
3. Russia
4. Brazil

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill4B Industries, IPR, EoD

Q16. Technical textiles are  (UPSC-IES-2020)

1. the high-tenacity fibres which are lightest and toughest fabrics mainly used in automobile and aerospace industries
2. the toughest fabrics which are much heavier than polyester and used in power industries
3. the toughest fabrics having rigidity mainly used in polyhouse construction
4. the high-tenacity fabrics having fire resistance property

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q17. Which one of the following countries was ranked 1st in the IMD World Competitiveness ranking 2019? (UPSC-Geologist-2020)

1. Singapore
2. USA
3. India
4. Switzerland

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q18. The Ministry of Heavy Industries and Public Enterprises consists of (UPSC-CDS-i-2020)

1. the Department of Heavy Industry and the Department for Promotion of Industry and Internal Trade
2. the Department of Public Enterprises and the Department for Promotion of Industry and Internal Trade
3. the Department of Scientific and Industrial Research and the Department of Heavy Industry
4. the Department of Heavy Industry and the Department of Public Enterprises

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q19.The formulation of policy in respect to Intellectual Property Rights (IPRs) is the responsibility of (UPSC-CDS-i-2020)

1. the Ministry of Law and Justice
2. the Department of Science and Technology
3. the Department for Promotion of Industry and Internal Trade
4. the Ministry of Human Resource Development

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill4C: Planning, NITI, PC

Q20. Which one of the following about the Gandhian approach to development is NOT true? (UPSC-Geologist-2020)

1. Voluntary limitation of wants
2. Development of self-sufficient village community
3. Achieve balance between man and nature
4. Industrialization and participation of private players

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q21. Which of the following Five Year Plans emphasized the need for establishing a “Socialist Pattern of Society” in India? (UPSC-Geologist-2020)

1. 2^nd Five Year Plan
2. 3^rd Five Year Plan
3. 4^th Five Year Plan
4. 5^th Five Year Plan

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q22. Which one of the following methods of planning is an attempt to work out the implications of the development effort in terms of factor allocations and product yields so as to maximize income and employment? (UPSC-IES-2020)

1. Perspective planning
2. Physical planning
3. Financial planning
4. Indicative planning

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q23. Who among the following is Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM)? (UPSC-CDS-i-2020)

1. Ratan P. Watal
2. Bibek Debroy
3. Ashima Goyal
4. Saijid Chinoy

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Pill4D: Macroeconomic Indicators

Q24. The National Statistical Commission was established on the basis of the recommendations of which one of the following commissions/committees? (UPSC-Geologist-2020)

1. Rangarajan Commission
2. Lodha Commission
3. Santhanam Committee
4. M.G.K. Menon Committee

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q25.Which of the following two states have the highest per capita income in India?

1. Punjab and Kerala
2. Kerala and Goa
3. Goa and Haryana
4. Haryana and Punjab

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Q26. According to Census of India, ‘Main Worker’ is a person who works for at least: (UPSC-Geologist-2020)

1. 100 days in a year.
2. 153 days in a year.
3. 183 days in a year.
4. 200 days in a year.

Answer & Explanation on FREE live Class on 19^th Feb 2020 at 9:30PM,

Roadmap ahead for Economy MCQs in UPSC CDS, IES and Geoscientist exams

• UPSC’s Combined Defense Service Exam (CDS): atleast last 3 months economy current affairs must be known
• CDS: basics of ‘negative’ economy news like NBFC bankruptcy, Bank scam asked. (But not their modus-operandi so no PHD needs to be done).
• Both in CDS & Geologist exam, “Which of the following is NOT correct” themed questions asked in good number. So because careful in ticking what is asked- correct / not correct.
• More insights on economy preparation in above areas, we’ll see on that wednesday live class itself!