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 commercial paper is considered to be a fairly low-risk investment because of the extremely short-term nature of the securities and the fact...
At present, CP can be issued in denominations of Rs. 5 lakh or multiple thereof and the amount invested by a single investor should not be less...
Commercial paper is a short-term debt instrument issued by companies to raise funds generally for a time period up to one year. It is a...
The farmers applying for KCC must reside in the jurisdiction of the given bank.  The applicants must be able to pool out a production credit...
The following type of farmers fulfill the eligibility for Kisan Credit Card scheme -  All farmers-individuals/Joint borrowers who are owner...
A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit....
The Kisan Credit Card scheme is a Government of India scheme which provides farmers with timely access to credit. It was launched in 1998 with...
The main purpose of Kisan Card is to mitigate any financial shortcoming experienced by farmers during crop cultivation, harvesting, and...
The  Indian banks introduced the Kisan Credit Card (KCC) scheme in August 1998 to provide term loans for agricultural needs of the farmers. The...
The evolution in agricultural loan KCC stands for Kisan Credit Card.  Know more about the Kisan Credit Card Scheme (KCC) on the given link....
Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue commercial papers. Further readings - ...
The Uniform Commercial Code identifies four basic kinds of commercial papers, they are- Promissory notes- is a written pledge to pay money. An...
Commercial paper is a short-term, unsecured debt instrument with a duration of 1 to 270 days. It is unsecured because it is not usually backed by...
A “bad” interest coverage ratio is any number less than one. It means that the business’s earnings are not sufficiently high enough to serve...
The ideal debt to equity ratio is 2:1. This means that at no given point of time should the debt be more than twice the equity because it becomes...
The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total amount of interest expense on all of...
A high interest coverage ratio indicates there are enough profits available to service the debt, but it may also mean the company is not using...
Higher Ratio means solvent - The higher the interest coverage ratio of any firm, the more solvent it is.  If an organization, under normal...
The 80/20 budget is a financial plan that helps people manage their money while prioritizing saving. It’s basically a simplified version of the...
WP stands for Wholesale Price Index. It represents the price of a basket of wholesale goods and does not concentrate on goods purchased by the...