UPSC Prelims Economy PYQs 2023

Question 1

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

Accepted Answer

Conducting ‘Open Market Operations’

Answer

Oversight of settlement and payment systems

Answer

Debt and cash management for the Central and State Governments

Answer

Regulating the functions of Nonbanking Financial Institutions

Question 2

Statement I: Switzerland is one of the leading exporters of gold in terms of value.
Statement-II: Switzerland has the second largest gold reserves in the world.

Accepted Answer

Statement I is correct but Statement II is incorrect

Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I

Answer

Both statement-I and Statement-Il are correct and Statement-II is not the correct explanation for Statement-I

Answer

Statement I is incorrect but Statement II is correct

Question 3

1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market
How many of the above are included in capital markets?

Accepted Answer

Only two

Answer

Only one

Answer

Only three

Answer

All four

Question 4

Statement I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.
Statement-II: Carbon markets transfer resources from the private sector to the State.

Accepted Answer

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I

Answer

Statement I is correct but Statement II is incorrect

Answer

Statement I is incorrect but Statement II is correct

Question 5

Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InviTs) distributed to their investors is exempted from tax, but the dividend is taxable.
Statement-II: InviTs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and· Enforcement of Security Interest Act, 2002’.

Accepted Answer

Statement I is incorrect but Statement II is correct

Answer

Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement-I

Answer

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Answer

Statement I is correct but Statement II is incorrect

Question 6

Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.
Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I

Answer

Both Statement-! and Statement-II are correct and Statement II is not the correct explanation for Statement-I

Answer

Statement I is correct but Statement II is incorrect

Answer

Statement I is incorrect but Statement II is correct

UPSC Prelims Economy PYQs 2023

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