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.

Because demand deposits can be rejected by anyone as a mode of payment. Hence, it is a non-legal tender. Banknotes cannot be rejected by anyone,...
Currency notes and coins are known as fiat money. Currency notes and coins are legal tender. They do not have intrinsic value like silver or gold...
No, the cheque is not a legal tender. Postal orders, bills of exchange, bank drafts are also considered as non-legal tenders. Bank notes and...
Opportunity cost is also known as economic cost. An example is, if more resources are used to produce cotton, then less resources will be...
Opportunity Cost = What One Sacrifice / What One Gain, Opportunity Cost = Total Revenue – Economic Profit. These are the formulas for...
The different types of opportunity cost are explicit cost and implicit cost. Under explicit cost, the burden of opportunity cost is transferred...
Opportunity cost is used for understanding what alternative must be given up and which alternative must be chosen. It helps businesses,...
Opportunity Costs help in maximising economic profits, and help in deciding efficient utilisation of available resources. Resources like capital,...
Repo Rate is one of the tools used by the Reserve Bank of India (RBI) to keep inflation under control. Repo rate is the rate at which the Reserve...
Legal tender means banknotes and coins which are offered in payment of debts and which must be accepted.You can read about the RBI - Know More...
Every banknote issued by the Reserve Bank of India (RBI) shall be a legal tender in India, provided those notes are not removed from...
The Reserve Bank of India (RBI) is the Central Bank of India which is tasked with the responsibility of regulating the Indian banking system,...
The Government of India controls the Reserve Bank of India (RBI). RBI comes under the Ministry of Finance. RBI was nationalised on 1st January,...
Reserve Bank of India is spread over 31 different locations in India. It is headquartered in Mumbai. Most of the RBI offices are located in state...
Reserve Bank of India is a statutory body. RBI was established through Reserve Bank of India Act, 1935. RBI is not a constitutional body....
The Reserve Bank of India (RBI) Grade ‘B’ examination is one of the toughest examinations in India. However, with careful and...
The name has always been Reserve Bank of India. It was established through the Reserve Bank of India (RBI) Act, 1934. It took over functions...
The different instruments of credit control used by the Reserve Bank of India are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the...
NPCI is owned by a consortium of major banks in India. NPCI was established by the RBI and Indian Banks Association (IBA). The National Payment...
No, UPI and BHIM are not the same. UPI stands for Unified Payment Interface. BHIM stands for Bharat Interface for Money. The payment model which...