Economy — Prelims MCQs

The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

In India, markets in agricultural products are regulated under the:

In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture?

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

Consider the following statements:

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed at a level to which the market price will never rise.

Which of the statements given above is/are correct?

Which of the following factors/policies were affecting the price of rice in India in the recent past?

1. Minimum Support Price
2. Government's trading
3. Government's stockpiling
4. Consumer subsidies

Select the correct answer using the code given below:

Consider the following:

1. Areca nut
2. Barley
3. Coffee
4. Finger millet
5. Groundnut
6. Sesamum
7. Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

With reference to pulse production in India, consider the following statements:

1. Black gram can be cultivated as both kharif and rabi crop.
2. Green gram alone accounts for nearly half of pulse production.
3. In the last three decades, while production of kharif pulses has increased, production of rabi pulses has decreased.

Which of the statements given above is/are correct?

Why does the Government of India promote the use of “Neem-coated Urea” in agriculture?

The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide:

1. Loan assistance to poor farmers.
2. Development of water-use efficiency.

Which of the statements given above is/are correct?

With reference to the classification of micro, small and medium enterprises in India, consider the following statements:

1. An enterprise is classified as micro, small or medium on the basis of a composite criterion that takes into account both its investment and its turnover.
2. Separate investment thresholds are prescribed for enterprises engaged in manufacturing and for enterprises rendering services.
3. Registration on the Udyam portal is free of cost and is granted on the basis of self-declaration by the enterprise.
4. An enterprise that crosses the prescribed limits ceases to hold its existing status with immediate effect from the date of crossing them.

How many of the statements given above are correct?

Consider the following pairs of economic indicators and the bodies that compile or conduct them:

1. Index of Industrial Production — National Statistical Office
2. Index of Core Industries — Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade
3. Consumer Price Index for Industrial Workers — Labour Bureau
4. Consumer Confidence Survey — Securities and Exchange Board of India

How many of the above pairs are correctly matched?

With reference to Ways and Means Advances, consider the following statements:

1. They are a temporary facility meant to bridge mismatches in the timing of a government's receipts and payments, and not a means of financing its fiscal deficit.
2. The Reserve Bank of India extends the facility under the statute governing it, and such advances are repayable within three months.
3. The facility is available to State Governments as well, and a State that draws beyond its sanctioned limit is said to be in overdraft.
4. Advances to the Central Government carry interest at the policy repo rate, while drawings beyond the limit attract a higher rate.

How many of the statements given above are correct?

In an economy, the "crowding out" effect refers to which one of the following situations?

With reference to pension arrangements in India, consider the following statements:

1. The Pension Fund Regulatory and Development Authority became a statutory body under an Act of Parliament enacted in 2013.
2. The Atal Pension Yojana is open to citizens between eighteen and forty years of age who hold a savings bank account.
3. Every subscriber to the National Pension System receives a pension that is a guaranteed proportion of the salary last drawn.
4. A subscriber to the Atal Pension Yojana is assured a minimum monthly pension on attaining the age of sixty.

Which of the statements given above are correct?

With reference to the recent decision on polymer bank notes in India, consider the following statements:

1. The Central Government has approved the Reserve Bank of India to issue 2 billion polymer bank notes for a field trial in denominations of ₹10 and ₹20.
2. Under Section 22 of the RBI Act, 1934, the design and material of bank notes are recommended by the RBI Central Board and approved by the Central Government.
3. India had previously attempted a polymer note trial in 2012, but it was shelved due to technical hurdles.

Which of the statements given above are correct?

Which of the following institutions are involved in the printing of currency notes in India?

1. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
2. Security Printing and Minting Corporation of India Limited (SPMCIL)
3. India Government Mint
4. National Securities Depository Limited (NSDL)

Select the correct answer using the code given below:

The term "Seigniorage", in the context of currency issuance, refers to:

Consider the following statements regarding currency issuance in India:

1. The Reserve Bank of India has the sole right to issue all denominations of bank notes and coins in India.
2. The one-rupee note in India is issued by the Ministry of Finance and bears the signature of the Finance Secretary.
3. The Clean Note Policy of the RBI was introduced in 1999 to withdraw soiled and damaged notes from circulation.

Which of the statements given above are correct?

Which of the following is/are cited as reasons for introducing polymer bank notes in India?

1. Higher durability compared to cotton-based paper notes
2. Rising currency printing costs
3. Complete elimination of counterfeit currency
4. Reduction in long-term replacement expenditure

Select the correct answer using the code given below:

Australia is often mentioned in the context of polymer bank notes because: