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.

The 4 tools of monetary policy are Repo Rate, Reverse Repo Rate, Open Market Operations, Bank Rate policy (discount rate). You can read about the...
The non-banking financial institution which comes under the category of financial institutions cannot accept deposits into savings and demand...
In 1969, Allahabad Bank, Canara Bank, United Bank of India, UCO Bank, Syndicate Bank, Indian Overseas Bank, Bank of Baroda, Punjab National Bank,...
The world's largest development institution is the World Bank Group. International and national development financial institutions are...
The 3 categories of financial institutions are Central Banks, retail and commercial banks, and investment banks.You can read about the...
DFI’s stands for Development Finance Institutions. Economic development of the country is the main objective of DFI. You can read about the...
SIDBI is Small Industries Development Bank of India. It was established on 2nd April 1990 through an act of Parliament. SIDBI was established for...
The M3 money is also known as broad money. The M3 money includes assets that are less liquid than other components of money supply. M3 includes...
The money supply which is required to buy services and goods produced in an economy is known as ideal supply of money.You can read about the...
As per Credit Suisse Research Institute’s Global Wealth report 2021, the total wealth in India was $12,833 billion at the end 2020. The...
The 6 tools of monetary policy are reverse Repo Rate, Reverse Repo Rate, Open Market Operations, Bank Rate policy (discount rate), cash reserve...
The amount of money required for current transactions of companies and individuals is known as transaction demand for money. An example of...
The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and...
Reserve Bank of India (RBI) is the central bank of India. It was established in 1935. RBI handles the monetary policy of India to maintain price...
The Reserve Bank of India (RBI) controls the monetary policy. The Monetary Policy Committee (MPC) is assisted by the Monetary Policy Department...
There are 8 different types of cheque, they are as follows: Crossed Cheque, Bearer Cheque, Post-Dated Cheque, Self Cheque, Stale Cheque, Open...
Contractionary monetary policy is also known as tightening monetary policy. When there is unbridled economic growth, monetary policy gets...
In easy money policy, the interest rates are lower, therefore it is easier to borrow, thereby increasing money circulation in the economy. In the...
The main objective of monetary policy is to maintain price stability as it is important to sustain economic growth. The goal is to control...
The main source of money supply in India is in the form of bank deposits and cash. RBI monitors the money supply in the economy and has the power...