UPSC Economic Questions and Answers

UPSC Economic Questions and Answers

The civil services exam is one of the toughest examinations conducted in the country, and economy questions constitute a major of the two written phases of the examination. At BYJU’S we bring to you a compiled list of Economy questions along with answers that are suitable from the prelims and mains perspective.

These answers have been provided by UPSC experts for the candidate’s assistance, without any indirect or ambiguous information. Questions based on sustainable development, GDP, economic growth, taxation, etc. are included in the economy syllabus and the list of questions provided below will focus on the same.

The compiled list of questions given below comes with straightforward and crisp answers, with the IAS mains General Studies-III paper syllabus as the focal point. Aspirants can refer to these questions and answers and familiarize themselves with the depth of important economic topics as per the UPSC Syllabus.

Yes, the universal basic income has the potential to replace welfare schemes. It has supporters among the political left and right, and among...
Finland in Europe had undertaken the experiment of giving basic income to the unemployed people. Finland's government had paid €560 ($616) a...
Universal Basic Income (UBI) aspires to lean more towards a capitalist tenet of free market economy although the motivation for socialism...
Vote on account deals with the short term expenditure needs of the Central Government from the Consolidated Fund of India. Vote on account is a...
Vote of credit is the financial grant given to the Executive from the resources of India to meet urgent financial requirements whose details...
For a short period of time, Iran and Mongolia had universal basic income. Currently, no countries in the world have universal basic income. You...
With the objective of stimulating growth in the US economy, the Federal Reserve of the US tried to lower the long-term interest rates with the...
Due to the proposed financial tightening by the Chairman of the Federal Reserve in 2013, investors started moving their capital to safe-haven...
The full form of QE 4 is Quantitative Easing 4. Quantitative Easing 4 started in January 2013 and it ended in October 2014. It was the fourth...
Due to different causes like impending war, deflation, inadequate aggregate demand, or other such adverse events, people start hoarding cash....
Full form of OMO is Open Market Operations. Open Market Operations is a monetary policy instrument used by the RBI. Selling and buying of...
The four balance sheet challenge includes challenges of 4 different sectors - real estate companies, Non-Banking Financial Companies (NBFCs), and...
A high ratio of Non-Performing Assets (NPA) in the balance sheet of the banks affects the financial stability of the bank. It negatively impacts...
Stressed assets are equal to non performing assets plus written off assets plus restructured loans. When assets are not performing, they become...
PARA means Public Sector Asset Rehabilitation Agency (PARA). It is also known as ‘Bad Bank.’Toxic assets can be removed from banks...
A consolidated credit report is known as cibil report. A cibil report will have information on credit summary, loan account, employment, contact...
When the borrower cannot repay the banks in a stipulated time, it begins the process of bad debt recovery. Banks may recover bad debts by selling...
Operation Twist is a program of Quantitative Easing used by the Reserve Bank of India (RBI). The simultaneous sale and purchase of Government...
Operation Twist is a Quantitative Easing measure first implemented by the US Federal Reserves in 1961 ended in 1965. RBI had carried out...
In 2013, there were questions regarding the success of Operation Twist. Operation twist can have a temporary effect on the yield curve. For 2019,...