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 Small Finance Banks are regulated by the Reserve Bank of India (RBI). Small finance banks are governed by Banking Regulation Act 1949,...
Deflation happens when there is less money in circulation in the economy. This happens when consumer spending reduces a lot. As a result...
Consumers will benefit from deflation in the short term, because the prices of goods will reduce. This not only increases the purchasing power of...
The Reserve Bank of India (RBI) uses various instruments of monetary policy to control inflation and deflation. You can read about the Inflation...
Deflation occurs in the economy when the prices of goods and services start falling. This happens due to reduced demand for the goods and...
Deflation can be controlled by using various monetary policy measures. Quantitative easing, cutting tax rates, lowering interest rates, open...
Deflation is worse than inflation because deflation is an indication that the economy is not growing. The prices of goods and services fall down...
Deflation is definitely an economic problem because the lower prices completely impacts the growth of the economy. It will lead to reduced...
Inflation is better than deflation. Deflation completely ruins the economy, whereas moderate levels of inflation helps in the growth of the...
Deflation reduces production of goods and services due to reduction in demand for goods and services from the consumers. Reduction in production...
Some of the steps taken to solve the problem of deflation are cutting tax rates, reducing target interest rates, reducing the reserve limits of...
The general rise in prices of goods and services is known as inflation. Moderate inflation is healthy for economic growth, but high inflation is...
Borrowers who purchase assets will lose because, during deflation, assets lose their worth. During deflation, the lenders will not lend money as...
People can check their Pradhan Mantri Jan Dhan Yojana (PMJDY) account either through the website of the Public financial management system or by...
Small Finance Banks were established with the objective of achieving financial inclusion. Small finance banks focus on providing credit to the...
Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched by the Government of India on 28th August 2014. This was launched with the objective of...
Some of the most popular small finance banks in India are Ujjivan Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, etc....
As per RBI Act 1934, Reserve Bank of India (RBI) has the powers to regulate and control the Non-Banking Financial Companies. As per RBI Act, RBI...
Non Banking Financial Companies (NBFC’s) were incorporated under the Company Act of 1956 whereas the Banks were incorporated under the...
The number of Non-Banking Financial Companies (NBFC’s) registered with the Reserve Bank of India (RBI) is 9507, as of January 31, 2021. You...