IAS Prelims: UPSC MCQ On Economy

The first stage of the Civil Services exam is the Prelims. In IAS prelims, questions are of objective type (MCQ) which also carry negative marks for wrong answers. We have compiled a list of UPSC MCQ to give aspirants an idea about the intricacies of the IAS Prelims. In the list of UPSC MCQ, we have modelled the questions as per the UPSC prelims syllabus. The UPSC MCQ will be regularly updated and more categories will be added so do keep checking regularly.

The download link for UPSC MCQ / UPSC Quiz on economy (with answers) can be found below. To ascertain your preparation level for IAS prelims, you can refer the sample questions in the article.

UPSC 2019 Economy MCQs:-Download PDF Here

UPSC 2018 Economy MCQs:-Download PDF Here

The questions on the economy in the IAS prelims cover issues/terms/policies/institutions in news and also test basic understanding of important concepts.

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

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

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 price rise in fuel and food articles.

Which of the above statements are correct?

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

Q. Consider the following statements about 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. A) 1 only
    2. B) 2 only
    3. C) Both 1 and 2
    4. D) Neither 1 nor 2

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

Put your best foot forward in the coming IAS Prelims. Check out our Target UPSC Prelims 2019 page.

In the links below, check out the Prelims Test series 2019 and find all the important information about UPSC Civil Services Exam 2019 like syllabus, eligibility, previous year questions and more. For UPSC specific analysis of topics in news, follow our comprehensive daily news analysis.

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