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 Marginal Cost of Funds Lending Rate (MCLR) is a system which replaced the base rate system. This replacement was done by the RBI. The MCLR...
Some of the differences between base rate and Marginal Cost of Lending Rate (MCLR) are given in the below table Base Rate Marginal Cost...
The MCLR rate keeps changing; it depends on the Repo rates fixed by the Reserve Bank of India (RBI) and depends on the fund costs of the bank....
The base rate is calculated by the RBI. Many factors are taken into consideration while calculating base rate, some of them are, profitability of...
Marginal cost of production is the increase or decrease in total cost of production due to producing one additional unit.You can read about The...
In the case of MCLR linked loans, the result of increase in repo rate is going to take some time to be passed on to the borrower, whereas in the...
The minimum rate set by the Reserve Bank of India (RBI), below which banks cannot lend to its customers, is known as base rate. To make sure that...
The preferred customers of the commercial banks get the prime rate. The individual banks determine the prime rate and it is not determined by the...
Financial stability is a situation in which different mechanisms of the economy for managing financial risks, allocation, pricing etc are...
In the 2020, ease of doing business index ranking, the number 1 ranked nation was New Zealand. The other top 5 ranked nations were Singapore,...
Ease of Doing Business Index is a ranking of countries across the globe done by measuring and comparing the regulations which will affect the...
Scale of 0 to 100 is used to indicate the ease of doing business ranking. 100 indicates the best performance. However, a score of 80 indicates...
New Zealand holds 1st position in the ease of doing business ranking. It means New Zealand has the most favourable regulations for starting a...
To rank nations based on easier, better and simpler regulations for businesses, the World Bank established a system for comparing and measuring...
The Reserve Bank of India (RBI) controls the supply of money and bank credit. Government securities are purchased and sold in the open market by...
The minimum lending rate, below which a bank does not have the permission to lend is known as the Marginal Cost of Lending Rate (MCLR). It was...
The 3 goals of monetary policy in India are Economic Growth, Control of Inflation or price stability, and exchange rate stability. The Monetary...
The examples of monetary policy are reducing the reserve ratio, purchasing government securities, and decreasing the discount rate.You can read...
As of August 6, 2021, the repo rate was pegged at 4%. Repo Rate is the fixed interest rate at which the Reserve Bank of India (RBI) provides...
As per the Reserve Bank of India Act,1934, the responsibility of monetary policy in India was given to the Reserve Bank of India (RBI). The...