UPSC MCQ On Economy - IAS Prelims 2021

Indian Economy MCQ for UPSC preparation is immensely helpful for IAS Exam aspirants. As the Civil Services Prelims Examination is an objective-type paper that also carries negative marking; we have compiled a list of UPSC MCQ to give aspirants an idea about the intricacies of the IAS Prelims.

How to approach UPSC Economy MCQ for IAS Prelims?

The download link for UPSC MCQ/UPSC Quiz on the economy (with answers) can be found below. To ascertain your preparation level for IAS prelims, you can refer to the sample questions in the article. In total there are more than 100 questions based on UPSC Prelims Economy Syllabus.

For UPSC Prelims preparation, candidates can also check similar MCQs based on various IAS subjects:

  1. UPSC MCQ on Polity
  2. UPSC MCQ on GK
  3. UPSC MCQ on Environment
  4. UPSC MCQ on International Relations
  5. UPSC MCQ on Science and Technology

Help yourself with current affairs preparation using the following additional resources:

  1. Best of PIB
  2. Daily Video Analysis of The Hindu Newspaper
  3. Gist of Yojana
  4. Gist of Kurukshetra

UPSC Economy MCQs – Vol 1:-Download PDF Here

UPSC Economy MCQs – Vol 2:-Download PDF Here

The questions on the economy in the IAS prelims cover issues/terms/policies/institutions in the news and also test basic understanding of important concepts. Check the following questions to get a hint of the kinds of questions asked in the examination.

UPSC 2021

The economy notes on the topics mentioned are also linked after each question. Candidates can find the compilation of the previous year UPSC Prelims Economy Questions in the linked article.

Q. Consider the following about Call Money Market

  1. It is an inter-bank money market where funds are borrowed and lent for one day
  2. Collateral is required to borrow money from this market

Select the correct answer using the code given below.

  1. Only 1
  2. Only 2
  3. All of the above
  4. None of the above

Read about Financial Market in the linked article.

Q. Which of the following are money market instruments

  1. Equity
  2. Fully and partially convertible debentures
  3. Shares

Select the correct answer using the code given below.

  1. Only 1
  2. 1 and 2
  3. 1 and 3
  4. None of them

Q. Consider the following statements regarding Non Scheduled banks

  1. They are subject to Cash reserve requirement
  2. They are not entitled to borrow from the RBI for normal banking purposes

Select the correct answer using the code given below.

  1. Only 1
  2. Only 2
  3. All of the above
  4. None of the above

Candidates can learn about the types of banks in India in the linked article.

Q. Consider the following statements about Inflation:

  1. Headline Inflation measures the price rise in food, fuel and all other commodities.
  2. Core Inflation does not measure the price rise in fuel and food articles.

Which of the above statements are correct?

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

If you want to read about inflation, types of inflation; check the linked article.

Q. Consider the following statements about the Marginal Cost of Funds Based Lending Rate (MCLR):

  1. RBI has replaced Base Rate with MCLR.
  2. MCLR is more sensitive to policy changes in comparison to Base Rate.

Which of the above statements are correct?

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

Get the list of important Economic Terms for UPSC in the linked article.

For answers to the above questions and more UPSC MCQ on the economy, you can download the UPSC MCQ – Economy pdf.

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