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.

GDP is the total value of services and goods produced by a country in a year, whereas debt is the total amount of a country's Government debt....
Mineral fuels, gems, precious metals are the main commodities in which India carries out its trade. You can read about Previous Years Economics...
The 4 types of financial institutions are brokerage firms, insurance companies, investment banks and commercial banks.You can read about The...
The main exports of India are mineral fuels, gems, precious metals, pharmaceuticals.You can read about Previous Years Economics Mains Questions...
Some of the examples of non banking financial companies are Muthoot finance, Mahindra & Mahindra Financial Services, Tata Capital Financial...
The Ministry of Commerce and Industry controls the foreign trade in India.You can read about Previous Years Economics Mains Questions for UPSC...
The difference between the credit-to-GDP ratio and its long-term trend is known as the credit-to-GDP gap. You can read about The Reserve Bank of...
Trade Related Investment Measures (TRIMS) are one of the agreements of the World Trade Organisation (WTO). As per this agreement, the basic...
Trade balancing requirements are the requirements imposed on foreign investors, where the imports should not exceed the amount of the locally...
The inter-bank call money market is an overnight market that mainly assists commercial banks in meeting their immediate liquidity requirements by...
Overnight call money rates, the interest rates at which banks lend money to each other, are on the rise despite liquidity remaining in the...
Banks who seek to avail liquidity approach the call market as borrowers and the ones who have excess liquidity participate there as lenders. It...
Demand and supply of liquidity affect the call money rate. A tight liquidity condition leads to a rise in call money rate and vice versa. It is a...
Commercial paper is considered a liquid asset, the one that can be converted to cash easily with little loss of value because, as noted, the...
Commercial paper and commercial bill are both financial instruments used by banks . Given below are the points of difference between them -...
Yes, Commercial papers are included in the examples of cash and cash equivalents with a maturity date of three months or less. Further Readings...
A commercial paper can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.  However,...
Call money is any type of short-term, interest-earning financial loan that the borrower has to pay back immediately whenever the lender demands...
Call money is a short-term loan the tenure for which ranges from one day to fourteen days after the disbursement of the disbursement of the...
As per the Uniform Commercial Code (UCC), commercial papers are of four kinds - Drafts Cheques Promissory Notes Certificate of Deposits...