1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All the four

Answer: (b) Only two

Under SEBI's AIF Regulations, Alternative Investment Funds cover privately pooled vehicles such as hedge funds and venture capital funds. Ordinary bonds and stocks are conventional (traditional) investments, not AIFs. Hence only two of the four listed are AIFs.

1. (a) I and II only
2. (b) II, III and IV
3. (c) I, III, IV and V
4. (d) I, II and V

Answer: (d) I, II and V

RBI earns income from open-market operations in government bonds, from buying and selling foreign currency, and from seigniorage on printing and issuing currency notes. It does not run a pension fund business nor lend directly to private companies. Thus I, II and V are its income sources.

1. (a) I only
2. (b) II only
3. (c) Both I and II
4. (d) Neither I nor II

Answer: (b) II only

The Business Responsibility and Sustainability Report is mandated by SEBI (for the top listed companies), not by the RBI, so statement I is wrong. The BRSR captures ESG performance and is therefore largely non-financial in nature, making statement II correct.

1. (a) Both Statement I and Statement II are correct and Statement II explains Statement I
2. (b) Both Statement I and Statement II are correct but Statement II does not explain Statement I
3. (c) Statement I is correct but Statement II is not correct
4. (d) Statement I is not correct but Statement II is correct

Answer: (d) Statement I is not correct but Statement II is correct

Income from allied activities like poultry farming and wool rearing is treated as business income and is taxable, so statement I is false. However, rural agricultural land is specifically excluded from the definition of a capital asset under the Income-tax Act, 1961, making statement II correct.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (c) I and III only

India joined the Minerals Security Partnership as a member in 2023, and the 2023 amendment to the MMDR Act empowered the Centre to exclusively auction leases for specified critical minerals, so I and III are correct. India is not resource-rich in all 30 identified critical minerals, so II is false.

1. (a) Both Statement II and Statement III are correct and both of them explain Statement I
2. (b) Both Statement I and Statement II are correct and Statement I explains Statement II
3. (c) Only one of the Statements II and III is correct and that explains Statement I
4. (d) Neither Statement II nor Statement III is correct

Answer: (a) Both Statement II and Statement III are correct and both of them explain Statement I

Bondholders are lenders to the company while stockholders are its owners, and in repayment bondholders are given priority. Both these facts explain why bondholders bear relatively lower risk than stockholders. Hence statements II and III are correct and both explain statement I.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (a) I and II only

India accounts for a very large share of global equity-option contracts and its market capitalisation briefly overtook Hong Kong's, so I and II are correct. SEBI does regulate and warn small investors about options-trading risks, so statement III is false.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (a) I and II only

Capital receipts either create a liability (like borrowings) or reduce assets (like disinvestment), so I and II are correct. Interest received on loans is a revenue receipt and does not create any liability of the government, so III is false.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (d) I, II and III

In 2022-23 India was the world's largest producer and exporter of turmeric, with more than 30 varieties cultivated across the country. Maharashtra, Telangana, Karnataka and Tamil Nadu are among the major producing states. All three statements are correct.

1. (a) I only
2. (b) II only
3. (c) Both I and II
4. (d) Neither I nor II

Answer: (c) Both I and II

The Rashtriya Gokul Mission was launched to develop and conserve indigenous cattle and buffalo breeds scientifically, and because most low-yielding indigenous animals are owned by small, marginal and landless farmers, it directly benefits the rural poor. Both statements are correct.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All the four

Answer: (b) Only two

The Petroleum and Natural Gas Regulatory Board regulates the downstream activities of refining, storage, distribution, transportation, marketing and sale of petroleum and petroleum products. It does not regulate the production of crude oil or natural gas, which are upstream activities. So only two of the four are regulated by it.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (d) I, II and III

Revenue deficit is revenue expenditure minus revenue receipts, i.e. 80,000 minus 60,000 = 20,000 crore. The fiscal deficit equals the borrowings of 10,000 crore, and the primary deficit is fiscal deficit minus interest payments, i.e. 10,000 minus 6,000 = 4,000 crore. All three statements are correct.

1. (a) Both Statement I and Statement II are correct and Statement II explains Statement I
2. (b) Both Statement I and Statement II are correct but Statement II does not explain Statement I
3. (c) Statement I is correct but Statement II is not correct
4. (d) Statement I is not correct but Statement II is correct

Answer: (d) Statement I is not correct but Statement II is correct

The United States, not Brazil, is the world's largest ethanol producer, so statement I is false. Statement II is correct: Brazil uses sugarcane as its principal ethanol feedstock while the US relies mainly on corn. Hence only statement II is correct.

1. (a) ₹48,500 crores
2. (b) ₹51,500 crores
3. (c) ₹58,500 crores
4. (d) None of the above

Answer: (a) ₹48,500 crores

The primary deficit is the fiscal deficit minus interest payments (liabilities), so it is 50,000 minus 1,500 = 48,500 crore. The non-debt-creating capital receipts figure is a distractor and is not subtracted in this calculation.

1. (a) I, II and III
2. (b) I, II and IV
3. (c) I, III and IV
4. (d) II, III and IV

Answer: (c) I, III and IV

The 15th Finance Commission recommended 4,800 crore for improving educational outcomes, a 45,000 crore performance-based incentive for states undertaking agricultural reforms, and reintroduced a tax-effort criterion to reward fiscal performance, so I, III and IV are correct. It fixed the states' share of the divisible pool at 41 percent, not 45 percent, so statement II is wrong.

1. (a) I and II only
2. (b) II and III only
3. (c) I and III only
4. (d) I, II and III

Answer: (c) I and III only

The IBRD provides loans and guarantees to middle-income and creditworthy low-income countries and was set up to help rebuild war-torn Europe after World War II, so I and III are correct. It works alongside the other World Bank Group institutions rather than single-handedly, so statement II is false.

1. (a) I only
2. (b) I and II
3. (c) I and III
4. (d) III only

Answer: (a) I only

RTGS settles transactions instantaneously on a real-time gross basis whereas NEFT settles in batches with some delay, so statement I is correct. There are no charges on inward RTGS transactions, and both RTGS and NEFT now operate 24x7, so statements II and III are false.

1. (a) Only two
2. (b) Only three
3. (c) Only four
4. (d) All the five

Answer: (b) Only three

Among the listed countries, UPI-based international merchant payments are accepted in the UAE, France and Singapore. Germany and Bangladesh have not enabled such merchant acceptance, so only three of the five qualify.

1. (a) I and II only
2. (b) I and III only
3. (c) II and III only
4. (d) I, II and III

Answer: (d) I, II and III

The PM Surya Ghar Muft Bijli Yojana targets one crore residential solar-rooftop installations, envisages MNRE-led training in installation, operation, maintenance and repair, and aims to create more than three lakh skilled workers through skilling and up-skilling. All three statements are correct.

1. (a) Bond market
2. (b) Forex market
3. (c) Money market
4. (d) Stock market

Answer: (c) Money market

Collateralised Borrowing and Lending Obligations (CBLO) are short-term, collateral-backed money market instruments once operated by CCIL for banks and financial institutions. They belong to the money market, not the bond, forex or stock markets.

1. (a) the number of children born per 1000 people in the population in a year.
2. (b) the number of children born to a couple in their lifetime in a given population.
3. (c) the birth rate minus death rate.
4. (d) the average number of live births a woman would have by the end of her child-bearing age.

Answer: (d) the average number of live births a woman would have by the end of her child-bearing age.

Total fertility rate is defined as the average number of live births a woman would have by the end of her child-bearing years, given prevailing age-specific fertility rates. It differs from the crude birth rate (births per 1,000 population) and from the natural growth rate (birth minus death rate).

1. (a) 1 and 2 only
2. (b) 3 only
3. (c) 1, 2 and 3
4. (d) 2 and 3 only

Answer: (c) 1, 2 and 3

The official key treats all three as correct: FIIs are permitted to hold Government Securities, and stock exchanges do offer separate debt-trading platforms. Note that access to the RBI's Liquidity Adjustment Facility is conventionally limited to banks and primary dealers, so statement 1's inclusion is contentious.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (d) 1, 2 and 3

Insurance companies, pension funds and retail investors can all trade in corporate bonds and Government Securities; retail investors gained direct G-Sec access through the RBI Retail Direct scheme. Hence all three qualify.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1, 2 and 3
4. (d) 1 and 3 only

Answer: (d) 1 and 3 only

Exchange-Traded Funds and currency swaps are financial instruments (representing claims or contractual cash flows), while motor vehicles are physical/real assets, not financial instruments. Therefore only 1 and 3 qualify.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All four

Answer: (b) Only two

Only two pairs are correct: a dairy farm is a primary-sector activity and weaving cloth is secondary (manufacturing). Storage of agricultural produce is a tertiary (service) activity, not secondary, and mineral exploration is primary, not tertiary, so those pairs are wrong.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All four

Answer: (b) Only two

Only two pairs match: a computer is fixed capital (a durable asset used repeatedly) and petrol is working capital (consumed in one use). A farmer's plough is fixed capital, not working capital, and yarn used by a weaver is working capital (raw material), not fixed, so those pairs are wrong.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Neither statement is correct. Wholly owned banking subsidiaries of foreign banks in India face a minimum capital requirement (of the order of Rs 500 crore), so statement 1 is false; and the RBI's board-composition norm is not the 50% figure stated, so statement 2 is false as framed.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

CSR rules do specify that spending which directly benefits the company or its employees does not count as CSR, so statement 1 is correct. Statement 2 is wrong because the rules do mandate minimum spending of 2% of the average net profit of the preceding three years.

1. (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
2. (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
3. (c) Statement-I is correct, but Statement-II is incorrect
4. (d) Statement-I is incorrect, but Statement-II is correct

Answer: (a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

Both statements are correct and the second explains the first: US government debt is backed only by the full faith and credit of the government, not by hard assets, so a default would leave Treasury bond holders unable to enforce payment. The absence of asset backing is precisely what makes a default so consequential.

1. (a) 1 and 2 only
2. (b) 1 and 3 only
3. (c) 2 and 4 only
4. (d) 1, 2 and 4

Answer: (d) 1, 2 and 4

The digital rupee is a sovereign currency issued by the RBI in line with monetary policy (1), appears as a liability on the RBI's balance sheet (2), and is freely convertible against bank money and cash (4). Statement 3 is wrong because, like any currency, it is not inherently protected against inflation.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

India is a member of the International Grains Council, so statement 1 is correct. Statement 2 is wrong because membership of the IGC is not a precondition for exporting or importing rice and wheat; it is an intergovernmental forum, not a trade licensing body.

1. (a) 1, 3 and 4
2. (b) 2 and 3 only
3. (c) 2 only
4. (d) 1, 2 and 4

Answer: (b) 2 and 3 only

For PM-SYM, an age-specific monthly contribution is required (2) and each subscriber gets a minimum pension of Rs 3,000 per month after age 60 (3), so those are correct. Statement 1 is wrong because the entry age is 18-40 years (not 21-40), and statement 4 is wrong because the family pension applies to the spouse, not to unmarried daughters.

1. (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. (c) Statement-I is correct but Statement-II is incorrect
4. (d) Statement-I is incorrect but Statement-II is correct

Answer: (d) Statement-I is incorrect but Statement-II is correct

The first statement is incorrect because it reverses the tax treatment: for InvITs the interest income distributed to investors is generally taxable in their hands. The second statement is correct, as InvITs are recognised as borrowers under the SARFAESI Act, 2002, enabling secured lending against their assets.

1. (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. (c) Statement-I is correct but Statement-II is incorrect
4. (d) Statement-I is incorrect but Statement-II is correct

Answer: (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

In the post-pandemic period many central banks did raise interest rates to tame inflation, so the first statement is correct. Central banks act on the assumption that monetary policy can counter rising consumer prices, and that belief is precisely why they hiked rates, making the second a correct explanation of the first.

1. (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. (c) Statement-I is correct but Statement-II is incorrect
4. (d) Statement-I is incorrect but Statement-II is correct

Answer: (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

Carbon markets are widely regarded as among the most widespread instruments for combating climate change, so the first statement is correct. It is also accepted here that carbon markets can transfer resources, but this pricing mechanism is not the reason carbon markets are a widespread climate tool, so the second does not explain the first.

1. (a) Conducting 'Open Market Operations'
2. (b) Oversight of settlement and payment systems
3. (c) Debt and cash management for the Central and State Governments
4. (d) Regulating the functions of Non-banking Financial Institutions

Answer: (a) Conducting 'Open Market Operations'

Sterilization refers to the RBI neutralizing the domestic liquidity impact of its foreign-exchange operations, chiefly through Open Market Operations (buying/selling government securities). Oversight of payment systems, government debt management and NBFC regulation are separate central-bank functions, not sterilization.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All four

Answer: (b) Only two

Capital markets deal in long-term instruments, so the Government Bond Market and the Stock Market qualify. The Call Money Market and Treasury Bill Market are short-term money-market segments, so only two of the four belong to the capital market.

1. (a) Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
2. (b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
3. (c) Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
4. (d) A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production

Answer: (b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations

'Small Farmer Large Field' is a model in which many marginal farmers in an area organize into groups and synchronize and harmonize selected operations (like sowing and harvesting) to gain economies of scale without giving up ownership of their land. It is distinct from contract farming, where farmers surrender land or produce to a corporate body.

1. (a) Only one
2. (b) Only two
3. (c) All three
4. (d) None

Answer: (c) All three

All three statements about niger (Guizotia abyssinica) are correct: the government fixes a Minimum Support Price for its seeds, it is grown as a kharif crop, and some tribal communities use niger seed oil for cooking. It is a minor oilseed important to tribal economies.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All four

Answer: (c) Only three

Brand recognition, intellectual property and a client mailing list are intangible assets, since they have value without physical form. Inventory is a tangible, physical asset, so only three of the four are intangible investments.

1. (a) Only two
2. (b) Only three
3. (c) Only four
4. (d) All five

Answer: (b) Only three

Beyond population, area and income distance, the Fifteenth Finance Commission used demographic performance, forest and ecology, and tax and fiscal efforts as devolution criteria, giving three of the listed items. 'Governance reforms' and 'stable government' were not among its criteria.

1. (a) Only one
2. (b) Only two
3. (c) Only three
4. (d) All four

Answer: (c) Only three

UNOPS's S3i (Sustainable Investments in Infrastructure and Innovation) initiative focuses on affordable housing, renewable energy and health infrastructure, which is three of the four listed sectors. Mass rapid transport is not one of its focus areas.

1. (a) Only one
2. (b) Only two
3. (c) All three
4. (d) None

Answer: (d) None

All three statements are false: some Indian coal-based thermal plants do use seawater for cooling, several are located in water-stressed districts, and many are privately owned. Hence none of the sweeping 'none of them' claims holds.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (b) 2 only

The first statement gives an outdated/incorrect investment slab for medium enterprises, so it is wrong. The second is correct, since all bank loans to Micro, Small and Medium Enterprises qualify as priority sector lending under RBI norms.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Both statements are correct: a Central Bank Digital Currency can enable payments without relying on the US dollar or the SWIFT messaging system, and a CBDC can be 'programmable', for instance carrying a condition like a time-frame within which it must be spent. These features distinguish it from ordinary bank money.

1. (a) the process of simultaneous buying and selling of an asset from different platforms
2. (b) an investment strategy of a portfolio manager to balance risk versus reward
3. (c) a type of systemic risk that arises where perfect hedging is not possible
4. (d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

Answer: (d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

In finance, 'beta' is a numeric value that measures how much a stock's price fluctuates relative to movements in the overall market, capturing its systematic (market) risk. It is not arbitrage, a balancing strategy, or a hedging-related risk measure.

1. (a) Only one
2. (b) Only two
3. (c) All three
4. (d) None

Answer: (b) Only two

In a Self-Help Group all members are jointly responsible for a loan taken by any individual member, and RRBs and scheduled commercial banks support SHGs, so those two statements are correct. The programme was pioneered in India by NABARD, not the State Bank of India, so the first statement is wrong.

1. (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. (c) Statement-I is correct but Statement-II is incorrect
4. (d) Statement-I is incorrect but Statement-II is correct

Answer: (c) Statement-I is correct but Statement-II is incorrect

Switzerland is indeed one of the world's leading gold exporters by value, owing to its major gold-refining industry, so the first statement is correct. The second is wrong, as Switzerland does not hold the second-largest gold reserves; the United States has the largest and Germany the second-largest.

1. (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
2. (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
3. (c) Statement-I is correct but Statement-II is incorrect
4. (d) Statement-I is incorrect but Statement-II is correct

Answer: (d) Statement-I is incorrect but Statement-II is correct

The first statement overstates India's share of global goods exports (which is well below 3.2%), so it is incorrect. The second is correct, as many domestic and some foreign firms have availed India's Production-Linked Incentive scheme to boost manufacturing.

1. (a) Only one
2. (b) Only two
3. (c) All three
4. (d) None

Answer: (a) Only one

The EU's Stability and Growth Pact limits member states' budgetary (fiscal) deficits, keeping them within agreed thresholds, so only the first statement is correct. It is a fiscal-discipline framework, not a pact for sharing infrastructure or technology.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Both statements are correct: the G-20 was originally set up as a forum for Finance Ministers and Central Bank Governors to discuss international economic and financial issues, and digital public infrastructure was among India's priorities during its G-20 presidency. It was elevated to leaders' level after the 2008 financial crisis.

1. (a) Asian Development Bank
2. (b) International Monetary Fund
3. (c) United Nations Environment Programme Finance Initiative
4. (d) World Bank

Answer: (b) International Monetary Fund

The Rapid Financing Instrument (RFI) and Rapid Credit Facility (RCF) are emergency lending windows of the International Monetary Fund, used to provide quick financial assistance to member countries facing urgent balance-of-payments needs, such as during the COVID-19 shock. The RCF is concessional and reserved for low-income countries, while the RFI is available to all members. These are IMF facilities, not instruments of the ADB or World Bank.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

A rise in the Nominal Effective Exchange Rate (NEER) reflects an appreciation of the rupee against a basket of currencies, so statement 1 is correct. A rise in the Real Effective Exchange Rate (REER) signals a LOSS of trade competitiveness, not an improvement, so statement 2 is wrong. When domestic inflation runs higher than abroad, the REER rises faster than the NEER, widening the gap between the two, making statement 3 correct.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

To fight high inflation the RBI drains liquidity by SELLING government securities, not buying them, so statement 1 is wrong. To defend a rapidly depreciating rupee it sells dollars from reserves (statement 2 correct), and when US or EU rates fall, capital flows into India and the RBI buys dollars to curb excessive rupee appreciation (statement 3 correct).

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The G20 Common Framework for Debt Treatments was endorsed by the G20 jointly with the Paris Club of creditors, making statement 1 correct. Its purpose is to help low-income countries with unsustainable debt restructure their obligations in a coordinated way, so statement 2 is also correct.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

Inflation-Indexed Bonds protect investors because their principal is adjusted for inflation, removing uncertainty (statement 2 correct), and this inflation protection lets the government offer a lower real coupon (statement 1 correct). Statement 3 is wrong because the interest and capital gains on IIBs are taxable like other securities.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Under India's FDI rules for the marketplace model, foreign-owned e-commerce firms may only provide a platform connecting buyers and sellers and cannot sell their own inventory directly, so statement 1 is wrong. They are also barred from owning or controlling seller inventory, so the framing in statement 2 (that ownership is merely 'limited') is incorrect; foreign platforms in the inventory model cannot operate this way at all.

1. (a) 1 and 2 only
2. (b) 2, 3 and 4 only
3. (c) 1, 3 and 4 only
4. (d) 1, 2, 3 and 4

Answer: (a) 1 and 2 only

The real sector covers the actual production of goods and services, so farmers harvesting crops and mills converting cotton into fabric belong to it. Bank lending and issuing Rupee Denominated Bonds are financial-sector activities dealing in money and claims, not physical output, so they are excluded.

1. (a) An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment
2. (b) A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment
3. (c) An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India
4. (d) A foreign company transfers shares and such shares derive their substantial value from assets located in India

Answer: (d) A foreign company transfers shares and such shares derive their substantial value from assets located in India

'Indirect transfer' refers to a situation where a foreign company transfers shares whose value is derived substantially from assets located in India, thereby making the gains taxable in India. This is the principle behind the Vodafone case and the retrospective tax amendment. The other scenarios describe ordinary direct investment or asset sales, not indirect transfer of Indian-situated value.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

Acquiring new technology creates a long-term asset and is therefore capital expenditure, making statement 1 correct. Statement 2 is wrong because debt and equity are ways of raising finance, not categories of expenditure; whether a spend is capital or revenue depends on the nature of the outlay, not on how it was funded.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Household financial savings are channelled into instruments like government securities and small savings, so a share does flow toward government borrowing, making statement 1 correct. Dated securities auctioned at market-related rates are indeed the largest component of the Centre's internal debt, so statement 2 is also correct.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

ICRA is a public limited company (statement 2) and Brickwork Ratings is indeed an Indian credit-rating agency (statement 3), so both are correct. Statement 1 is wrong because credit-rating agencies in India are regulated by SEBI, not the Reserve Bank of India.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

The Banks Board Bureau recommends the selection of heads of Public Sector Banks (statement 2) and helps them develop business strategies and capital-raising plans (statement 3). Statement 1 is wrong because the BBB was chaired by a nominated chairperson, not the Governor of the RBI.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Because a convertible bond carries the valuable option to convert into equity, investors accept a lower coupon than on a plain bond (statement 1 correct). That equity option also gives the holder a hedge against rising consumer prices, since equity values tend to move with inflation, providing a degree of indexation (statement 2 correct).

1. (a) Department of Consumer Affairs
2. (b) Expenditure Management Commission
3. (c) Financial Stability and Development Council
4. (d) Reserve Bank of India

Answer: (d) Reserve Bank of India

Under the amended RBI Act, the Reserve Bank of India is charged with maintaining price stability through an inflation-targeting framework and monetary policy. The Department of Consumer Affairs, Expenditure Management Commission and the Financial Stability and Development Council do not carry this mandate.

1. (a) Central Statistics Office
2. (b) Department for Promotion of Industry and Internal Trade
3. (c) Labour Bureau
4. (d) National Technical Manpower Information System

Answer: (c) Labour Bureau

The Labour Bureau, an attached office of the Ministry of Labour and Employment, compiles data on industrial disputes, closures, retrenchments and lay-offs in factories. The Central Statistics Office handles national statistics broadly, DPIIT deals with industrial policy, and NTMIS tracks technical manpower, so none of them performs this specific labour-dispute compilation.

1. (a) 1, 2 and 3
2. (b) 3 and 4 only
3. (c) 1 and 2 only
4. (d) 1, 2 and 4

Answer: (a) 1, 2 and 3

The Coal Controller's Organization is the principal source of coal statistics for the government (statement 1), monitors the development of captive coal and lignite blocks (statement 2), and hears objections to notifications on acquisition of coal-bearing areas (statement 3). Statement 4 is wrong because ensuring timely delivery of coal to end users is not the CCO's role.

1. (a) 1 and 3
2. (b) 2 and 4
3. (c) 3 and 4
4. (d) 1 and 4

Answer: (d) 1 and 4

The Tea Board is a statutory body (statement 1) and it maintains overseas offices in Dubai and Moscow (statement 4), so both are correct. Statement 2 is wrong because it functions under the Ministry of Commerce and Industry, not Agriculture, and statement 3 is wrong because its head office is in Kolkata, not Bengaluru.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

The RBI Governor is appointed by the Central Government and the RBI is a statutory body whose powers flow from the Reserve Bank of India Act, 1934, so those two statements are sound. The government's power to issue directions to the RBI in public interest comes from Section 7 of the RBI Act, not from the Constitution, so the statement invoking constitutional provisions is wrong.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Under the Payment of Wages Act the government can notify that an establishment must pay wages only through bank accounts, and casual/daily-rated workers are covered by norms on working hours and overtime under labour laws. Provident Fund coverage, however, is not automatic for all casual workers as it depends on the nature and continuity of employment, so the blanket EPF claim is incorrect.

1. (a) Cut in tax rates accompanied by increase in interest rate
2. (b) Increase in expenditure on public projects
3. (c) Increase in tax rates accompanied by reduction of interest rate
4. (d) Reduction of expenditure on public projects

Answer: (b) Increase in expenditure on public projects

During a recession aggregate demand is weak, so the government uses expansionary fiscal policy such as increasing spending on public projects to create jobs and pump money into the economy. Raising tax rates or cutting public expenditure would depress demand further, which is the opposite of what recession management requires.

1. (a) 1 and 4 only
2. (b) 2, 3 and 4
3. (c) 1, 3 and 4
4. (d) 1, 2 and 3

Answer: (a) 1 and 4 only

Demand for a good rises when its own price falls (law of demand) and when the price of a substitute rises, since consumers switch to the relatively cheaper good. A rise in the price of a complement reduces demand, and for an inferior good demand falls as income rises, so those two statements do not hold.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Urban Cooperative Banks can raise capital by issuing equity and preference shares, and they were brought under the Banking Regulation Act, 1949 through a 1966 amendment (which gave the RBI regulatory powers over them). They are not supervised by boards set up by State Governments; they were under dual control of the RBI and the Registrar of Cooperative Societies, so the first statement is wrong.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (d) 1, 2 and 3

Government bond yields respond to domestic monetary policy (RBI actions), to global capital flows driven by the US Federal Reserve's rate decisions, and to inflation and short-term interest rate expectations. All three factors influence the yields, since higher inflation or Fed tightening pushes yields up as investors demand higher returns.

1. (a) 1, 2 and 3
2. (b) 3 only
3. (c) 2 and 4
4. (d) 1 and 4

Answer: (a) 1, 2 and 3

Foreign Direct Investment routes include Foreign Currency Convertible Bonds, Global Depository Receipts, and FII investment subject to conditions, all of which channel foreign equity into Indian companies. Non-Resident External deposits are bank deposits of NRIs and are treated as external liabilities, not FDI, so that item is excluded.

1. (a) 1 only
2. (b) 1 and 2
3. (c) 3 only
4. (d) 2 and 3

Answer: (a) 1 only

Devaluation lowers a currency's value, making a country's exports cheaper and thus more competitive in foreign markets, which necessarily follows. It does not raise the foreign value of the domestic currency (it lowers it), and the trade balance improves only if demand is sufficiently elastic (the Marshall-Lerner/J-curve condition), so improvement is not guaranteed.

1. (a) Diversion of resources to the purchase of real estate and investment in luxury housing
2. (b) Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.
3. (c) Large donations to political parties and growth of regionalism
4. (d) Loss of revenue to the State Exchequer due to tax evasion

Answer: (d) Loss of revenue to the State Exchequer due to tax evasion

For the government the gravest consequence of black money is the loss of tax revenue to the exchequer, which cripples the state's capacity to fund development and public services. The other effects like real-estate speculation or unproductive investment are damaging socially and economically but are not the primary fiscal worry of the Government of India.

1. (a) Repayment of public debt
2. (b) Borrowing from the public to finance a budget deficit
3. (c) Borrowing from the banks to finance a budget deficit
4. (d) Creation of new money to finance a budget deficit

Answer: (d) Creation of new money to finance a budget deficit

Financing a budget deficit by creating new money (deficit financing/monetisation) directly expands the money supply without a matching rise in output, making it the most inflationary option. Borrowing from the public or repaying debt does not create fresh money in the same way, so their inflationary impact is far smaller.

1. (a) Increase in the Cash Reserve Ratio in the banks
2. (b) Increase in the Statutory Liquidity Ratio in the banks
3. (c) Increase in the banking habit of the people
4. (d) Increase in the population of the country

Answer: (c) Increase in the banking habit of the people

The money multiplier rises when the currency-deposit ratio falls, which happens as people develop a stronger banking habit and hold more of their money in bank deposits rather than cash. Increases in the CRR or SLR reduce the multiplier by locking up bank funds, so they work in the opposite direction.

1. (a) 1, 2 and 4 only
2. (b) 3, 4 and 5 only
3. (c) 1, 2, 3 and 5 only
4. (d) 1, 2, 3, 4 and 5

Answer: (a) 1, 2 and 4 only

Demand-pull inflation occurs when aggregate demand outstrips supply, which is driven by expansionary policies, fiscal stimulus, and higher purchasing power in people's hands. Inflation-indexed wages feed a cost/wage-price spiral rather than pure demand-pull, and rising interest rates dampen demand, so those two are excluded.

1. (a) 1 only
2. (b) 1 and 2
3. (c) 3 only
4. (d) 2 and 3

Answer: (b) 1 and 2

Retail investors can use their demat accounts to buy Treasury Bills and Government of India bonds in the primary market (through the RBI Retail Direct/NDS route), and the Negotiated Dealing System-Order Matching (NDS-OM) is indeed the RBI's electronic platform for trading government securities. The Central Depository Services Ltd is promoted by the BSE and banks, not jointly by the RBI, so the third statement is wrong.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

WaterCredit applies microfinance tools to the water and sanitation sector so that poor households can access affordable loans to meet water needs without relying on subsidies. It was launched by the NGO Water.org (co-founded by Matt Damon and Gary White), not under the WHO and World Bank, so the statement naming those bodies is incorrect.

1. (a) 1 and 2
2. (b) 2 only
3. (c) 2 and 3
4. (d) 3 only

Answer: (b) 2 only

As lender of last resort the central bank provides emergency liquidity to solvent banks facing a temporary crisis, preventing a liquidity shortage from becoming a systemic collapse. It is not a facility for lending to trade bodies or for financing government budget deficits, so only the provision of liquidity to banks fits the definition.

1. (a) Long standing parliamentary convention
2. (b) Article 112 and Article 110(1) of the Constitution of India
3. (c) Article 113 of the Constitution of India
4. (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer: (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003

The Macro-Economic Framework Statement, along with the Medium-Term Fiscal Policy and Fiscal Policy Strategy statements, is mandated by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, not by the Constitution. The Annual Financial Statement (Article 112) and Demands for Grants (Article 113) are the constitutionally required budget documents.

1. (a) a loan system of the World Bank
2. (b) one of the operations of a Central Bank
3. (c) a credit system granted by WTO to its members
4. (d) a credit system granted by IMF to its members

Answer: (d) a credit system granted by IMF to its members

The Reserve (Gold) Tranche is the portion of a member country's quota, roughly 25%, that it can draw from the International Monetary Fund automatically and without conditions. It is an IMF facility, not a World Bank loan or a WTO/central-bank operation.

1. (a) 1 only
2. (b) 1 and 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

Avoiding dependence on short-term foreign borrowings insulates India from sudden capital flight during a global crisis, so statement 1 gives immunity. Opening up to more foreign banks and maintaining full capital account convertibility actually increase vulnerability, so statements 2 and 3 do not provide protection.

1. (a) to reduce it by ₹ 1,00,000
2. (b) to increase it by ₹ 1,00,000
3. (c) to increase it by more than ₹ 1,00,000
4. (d) to leave it unchanged

Answer: (d) to leave it unchanged

Cash with the public and demand deposits are both components of narrow money (M1), so withdrawing cash from a demand deposit merely shifts money from one component to another. The aggregate money supply therefore remains unchanged.

1. (a) It is the investment through capital instruments essentially in a listed company.
2. (b) It is a largely non-debt creating capital flow.
3. (c) It is the investment which involves debt-servicing.
4. (d) It is the investment made by foreign institutional investors in the Government securities.

Answer: (b) It is a largely non-debt creating capital flow.

The defining characteristic of Foreign Direct Investment is that it is a largely non-debt-creating capital flow, since it comes as equity and lasting management interest rather than as a loan requiring debt servicing. This distinguishes it from portfolio (FII) investment in securities.

1. (a) Crude oil
2. (b) Bullion
3. (c) Rare earth elements
4. (d) Uranium

Answer: (a) Crude oil

'West Texas Intermediate' is a grade of light, sweet crude oil that serves as a major benchmark for pricing oil, especially in the United States. It has nothing to do with bullion, rare-earth elements or uranium.

1. (a) 1 only
2. (b) 1 and 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (d) 1, 2 and 3

In the Indian economy non-financial debt covers borrowing by households and government, including housing loans, amounts outstanding on credit cards and Treasury bills issued by the government. All three items therefore qualify.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

Under TRIMS, quantitative restrictions on imports imposed on foreign investors are prohibited (statement 1 correct), and TRIMS is not concerned with regulating foreign investment as such (statement 3 correct). TRIMS applies to trade in goods only, not services, so statement 2 is wrong.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 only

The question asks what the RBI would NOT do under an expansionist policy. In an expansionist stance it would cut the SLR and cut the Bank Rate and Repo Rate, but it would not increase the Marginal Standing Facility rate, so raising the MSF rate (statement 2) is the action it would not take.

1. (a) 1 and 2 only
2. (b) 3 and 4 only
3. (c) 3 only
4. (d) 1, 2 and 4 only

Answer: (b) 3 and 4 only

After the 1991 reforms, the rural non-farm economy grew and the growth rate of rural employment declined, so statements 3 and 4 are correct. Statements 1 and 2 about worker-productivity trends and a steadily rising rural share of the workforce are not correct.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (b) 2 only

A key function of District Central Cooperative Banks is to provide funds to the Primary Agricultural Credit Societies, so statement 2 is correct. Statement 1 is wrong because Scheduled Commercial Banks deliver far more short-term agricultural credit than the DCCBs.

1. (a) 1, 2 and 4 only
2. (b) 1, 3 and 4 only
3. (c) 2 and 3 only
4. (d) 1, 2, 3 and 4

Answer: (b) 1, 3 and 4 only

Cyber insurance for individuals generally covers restoration of the computer system after a malware attack, hiring a specialist consultant during cyber extortion, and legal defence costs if a third party sues, so statements 1, 3 and 4 are correct. It does not cover the cost of a new computer for wilful physical damage, so statement 2 is wrong.

1. (a) 1, 2 and 5 only
2. (b) 1, 3, 4 and 5 only
3. (c) 2, 3 and 6 only
4. (d) 1, 2, 3, 4, 5 and 6

Answer: (c) 2, 3 and 6 only

Public investment in agriculture means asset-building expenditure such as computerisation of Primary Agricultural Credit Societies, social capital development and cold-storage facilities set up by governments, giving statements 2, 3 and 6. Fixing MSP, free electricity and loan waivers are subsidies or revenue outgo, not public investment.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

The Interest Coverage Ratio helps a lender gauge both the present and the emerging risk of a firm before extending a loan, so statements 1 and 2 are correct. A higher ratio means a better, not worse, ability to service debt, so statement 3 is wrong.

1. (a) 1, 2 and 4 only
2. (b) 1, 3 and 4 only
3. (c) 2 and 3 only
4. (d) 1, 2, 3 and 4

Answer: (d) 1, 2, 3 and 4

The price of rice in India has recently been influenced by the Minimum Support Price, government trading, government stockpiling and consumer subsidies. All four factors operate together, so the fully inclusive option is correct.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 only

'Textiles and textile articles' is an important item of trade between India and Bangladesh, so statement 2 is correct. Indo-Sri Lanka trade has not increased consistently every year of the decade, and Bangladesh, not Nepal, is India's largest trading partner in South Asia, so statements 1 and 3 are wrong.

1. (a) 1, 2 and 5 only
2. (b) 1, 3 and 4 only
3. (c) 2, 3, 4 and 5 only
4. (d) 1, 2, 3, 4 and 5

Answer: (b) 1, 3 and 4 only

Kisan Credit Card short-term credit covers working capital for maintaining farm assets, consumption requirements of farm households and post-harvest expenses, giving statements 1, 3 and 4. Buying harvesters or tractors and constructing houses or cold storage are investment or term loans, not short-term credit.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

Food carries a higher weight in the Consumer Price Index than in the Wholesale Price Index, and the WPI, unlike the CPI, does not capture changes in the prices of services, so statements 1 and 2 are correct. The RBI adopted the CPI, not the WPI, as its key inflation measure, so statement 3 is wrong.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

MSP procurement is not unlimited for all cereals, pulses and oilseeds in every State, so statement 1 is wrong. The MSP is a support floor, not a ceiling that market prices never exceed, so statement 2 is also wrong, making neither statement correct.

1. (a) 1 and 2 only
2. (b) 4 only
3. (c) 1 and 3 only
4. (d) 2, 3 and 4 only

Answer: (c) 1 and 3 only

Commercial Paper is a short-term unsecured promissory note and Call Money is short-term finance for interbank transactions, so statements 1 and 3 are correct. A Certificate of Deposit is issued by banks (not by the RBI to a corporation) and Zero-Coupon Bonds carry no interest, so statements 2 and 4 are wrong.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 2 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Ammonia, the input for urea, is produced from natural gas, and sulphur, used to make phosphoric acid, is a by-product of oil refineries, so statements 2 and 3 are correct. The retail price of urea is still administered and subsidised by the government, so statement 1 is wrong.

1. (a) The ceiling laws were aimed at family holdings and not individual holdings.
2. (b) The major aim of land reforms was providing agricultural land to all the landless.
3. (c) It resulted in cultivation of cash crops as a predominant form of cultivation.
4. (d) Land reforms permitted no exemptions to the ceiling limits.

Answer: (b) The major aim of land reforms was providing agricultural land to all the landless.

The central goal of post-independence land reforms was redistributive: to provide land to the landless tiller and abolish intermediaries like zamindars. Ceiling laws actually applied to family holdings and allowed several exemptions, so the other statements are wrong. Note the reforms did not principally aim at promoting cash crops.

1. (a) International Monetary Fund
2. (b) United Nations Conference on Trade and Development
3. (c) World Economic Forum
4. (d) World Bank

Answer: (c) World Economic Forum

The Global Competitiveness Report, which ranks countries on productivity and competitiveness, is published annually by the World Economic Forum (WEF), the body behind the Davos summit. Do not confuse it with the World Bank's Ease of Doing Business report or IMF publications.

1. (a) poverty rates vary from State to State
2. (b) price levels vary from State to State
3. (c) Gross State Product varies from State to State
4. (d) quality of public distribution varies from State to State

Answer: (b) price levels vary from State to State

State-specific poverty lines differ mainly because price levels for the basket of essential goods vary from state to state, so the money value of the same real consumption differs. The poverty line reflects the cost of a minimum consumption basket, not the poverty rate or Gross State Product itself.

1. (a) China
2. (b) India
3. (c) Myanmar
4. (d) Vietnam

Answer: (b) India

India has been the world's largest exporter of rice over the past several years, driven by both basmati and non-basmati shipments. It surpasses traditional exporters like Thailand and Vietnam, so among the given options India is the answer.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

Only statement 1 is correct: the coal sector was nationalised under Indira Gandhi in the 1970s. Coal blocks are now allocated through auction (not lottery), and India continues to import coal, so it is not self-sufficient, making statements 2 and 3 wrong.

1. (a) 1 and 3 only
2. (b) 2 and 3 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (c) 3 only

Only statement 3 is correct: plant varieties are protected under a separate sui generis law and are not patentable in India. A biological process to create a seed cannot be patented (statement 1 wrong), and India does have an Intellectual Property Appellate Board (statement 2 wrong).

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Both statements are correct under the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018: introducing fixed-term employment makes it easier for firms to hire and let go workers at contract-end, and no notice of termination is required for a temporary workman. The reform aimed to give employers flexibility in hiring.

1. (a) Integrated Rural Development Programme
2. (b) Lead Bank Scheme
3. (c) Mahatma Gandhi National Rural Employment Guarantee Scheme
4. (d) National Skill Development Mission

Answer: (b) Lead Bank Scheme

The Service Area Approach, which assigned each rural bank branch a set of villages for planned credit deployment, was implemented under the Lead Bank Scheme. It was a mechanism for orderly rural credit planning, not part of IRDP or MGNREGS.

1. (a) 1 and 3 only
2. (b) 2 and 3 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 3 only

Statements 1 and 3 are correct: sand is legally a minor mineral, and State Governments can frame rules to prevent illegal mining of minor minerals. Statement 2 is wrong because States have the power both to grant leases and to make rules for minor minerals; that power was not reserved to the Centre.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Both statements are wrong. Most of India's external debt is owed by private and commercial (non-government) borrowers rather than governmental entities, and India's external debt is denominated in several currencies (US dollar, yen, euro, SDR, rupee), not entirely in US dollars.

1. (a) Advances
2. (b) Deposits
3. (c) Investments
4. (d) Money at call and short notice

Answer: (b) Deposits

Deposits are liabilities of a commercial bank (money it owes to depositors), not assets. Advances (loans), investments, and money at call and short notice are all assets the bank holds, so deposits are the item that does not belong.

1. (a) 1 only
2. (b) 1 and 3 only
3. (c) 2 only
4. (d) 1, 2 and 3

Answer: (b) 1 and 3 only

Statements 1 and 3 are correct: foreign-currency earnings of the IT sector and remittances from Indians abroad boost foreign-exchange reserves and reduce the risk of a currency crisis. Increasing government expenditure does not directly reduce that risk and can worsen the deficit, so statement 2 is wrong.

1. (a) Certificate of Deposit
2. (b) Commercial Paper
3. (c) Promissory Note
4. (d) Participatory Note

Answer: (d) Participatory Note

Participatory Notes (P-Notes) are instruments issued by registered foreign portfolio investors to overseas investors who wish to invest in Indian stocks without directly registering with SEBI. Certificates of Deposit, Commercial Paper and Promissory Notes serve different money-market purposes.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

Statements 1 and 2 are correct: the Second Plan (Mahalanobis model) pushed basic and capital-goods industries, and the Fourth Plan aimed at reducing concentration of wealth and economic power. The financial sector was not first integrated into planning in the Fifth Plan, so statement 3 is wrong.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

Only statement 1 is correct: the AIIB has more than 80 member nations. China (not India) is the largest shareholder, and the AIIB does include non-Asian (regional and non-regional) members, so statements 2 and 3 are wrong.

1. (a) To lessen the Government of India's perennial burden of fiscal deficit and current account deficit
2. (b) To support the infrastructure projects of Central and State Governments
3. (c) To act as independent regulator in case of applications for loans of ₹ 50 crore or more
4. (d) To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

Answer: (d) To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

The Inter-Creditor Agreement signed by Indian banks and financial institutions was aimed at faster resolution of stressed assets of Rs 50 crore or more that are under consortium or multiple-banking arrangements. It set up a framework for lead-lender-driven resolution outside insolvency courts.

1. (a) Banks Board Bureau
2. (b) Reserve Bank of India
3. (c) Union Ministry of Finance
4. (d) Management of concerned bank

Answer: (a) Banks Board Bureau

The Banks Board Bureau (BBB) was set up to recommend and select the chairpersons and whole-time directors of public sector banks and financial institutions. It replaced the earlier appointments board, aiming to professionalise senior banking appointments.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Statements 2 and 3 are correct: the PNGRB works to ensure competitive gas markets, and appeals against its decisions lie before the Appellate Tribunal for Electricity (APTEL). It was not the first regulatory body set up by the government, so statement 1 is wrong.

1. (a) Maintenance of law and order
2. (b) Paying taxes
3. (c) Registering property
4. (d) Dealing with construction permits

Answer: (a) Maintenance of law and order

'Maintenance of law and order' is not one of the sub-indices (indicators) of the World Bank's Ease of Doing Business Index. Paying taxes, registering property and dealing with construction permits are all genuine parameters used in the ranking.

1. (a) transportation cost only
2. (b) interest cost only
3. (c) procurement incidentals and distribution cost
4. (d) procurement incidentals and charges for godowns

Answer: (c) procurement incidentals and distribution cost

The economic cost of foodgrains to the FCI equals the Minimum Support Price plus bonus paid to farmers, plus procurement incidentals (mandi charges, transport, storage, handling) and the distribution cost. It therefore captures the full cost from procurement to distribution, not just one component.

1. (a) The proportion of literates in the population
2. (b) The stock of its buildings, other infrastructure and machines
3. (c) The size of population in the working age group
4. (d) The level of mutual trust and harmony in the society

Answer: (d) The level of mutual trust and harmony in the society

Social capital refers to the networks, mutual trust, cooperation and harmony within a society that enable collective action. The proportion of literates is human capital, buildings and machines are physical capital, and working-age population is a demographic measure.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

Only statement 1 is correct: PPP exchange rates are computed by comparing the cost of an identical basket of goods and services across countries. In PPP terms India is the third-largest economy in the world, not the sixth, so statement 2 is wrong.

1. (a) 1 and 3 only
2. (b) 2, 3 and 4 only
3. (c) 2 and 4 only
4. (d) 1, 2, 3 and 4

Answer: (a) 1 and 3 only

Statements 1 and 3 are correct: among kharif crops rice occupies the largest cultivated area, and cotton's area exceeds that of sugarcane. Jowar's area is not greater than that of oilseeds, and sugarcane area has not steadily declined, so statements 2 and 4 are wrong.

1. (a) Spices
2. (b) Fresh fruits
3. (c) Pulses
4. (d) Vegetable oils

Answer: (d) Vegetable oils

Among agricultural commodities imported by India, vegetable (edible) oils account for the highest value of imports, as India depends heavily on imported palm, soybean and sunflower oil. This large edible-oil import bill outweighs spices, fruits and pulses.

1. (a) Curbing imports of non-essential goods and promoting exports
2. (b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds
3. (c) Easing conditions relating to external commercial borrowing
4. (d) Following an expansionary monetary policy

Answer: (d) Following an expansionary monetary policy

Following an expansionary monetary policy (cutting rates, injecting liquidity) tends to weaken rather than support the rupee, so it is not a measure to stop a slide in the currency. Curbing non-essential imports, encouraging Masala Bonds and easing external commercial borrowing all help attract or conserve foreign exchange.

1. (a) 1 only
2. (b) 1 and 2 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

Only statement 1 is correct: the RBI's data-localisation directive requires that the entire data relating to payment systems be stored only in India. It does not require the systems to be publicly owned, nor does it mandate audit reports to the CAG, so statements 2 and 3 are wrong.

1. (a) Increase in the cash reserve ratio
2. (b) Increase in the banking habit of the population
3. (c) Increase in the statutory liquidity ratio
4. (d) Increase in the population of the country

Answer: (b) Increase in the banking habit of the population

The money multiplier rises when the public keeps a smaller share of money as cash and deposits more in banks, i.e. with an increase in the banking habit of the population. A higher CRR or SLR reduces the multiplier, and mere population growth does not raise it.

1. (a) 2 and 3 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

Per the NSSO 70th Round, Rajasthan had the highest share of agricultural households among rural households, and in Kerala a little over 60% of agricultural households drew maximum income from sources other than agriculture. The statement that just over 60% of India's agricultural households belong to OBCs is incorrect—the OBC share was around 45%.

1. (a) The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
2. (b) The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
3. (c) The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.
4. (d) The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

Answer: (c) The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.

The Merchant Discount Rate (MDR) is the fee a merchant pays to the bank for processing card payments received from customers; it is shared among the acquiring bank, issuing bank and payment network. The tempting options describe incentives or cashbacks, but MDR is a cost borne by the merchant, not a reward.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Both statements are wrong. The equalization levy was introduced through the Finance Act, 2016 as a separate charge, not as part of the Income Tax Act, and because it is not an income tax, foreign firms cannot claim credit for it under Double Taxation Avoidance Agreements.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

The FRBM Review Committee (N.K. Singh) recommended a combined debt-to-GDP ceiling of 60% by 2023 (40% Centre, 20% States), so statement 1 is correct, and Article 293 requires a State to obtain the Centre's consent to borrow if it is already indebted to the Centre, making statement 3 correct. Statement 2 reverses the figures—the Centre's liabilities are far higher than the States', not the other way round.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

India imports more edible oil than it produces domestically (import dependence is over half of consumption), so statement 1 is correct. Statement 2 is wrong because customs duty is very much levied on imported edible oils—it is a key policy lever used to protect domestic oilseed farmers.

1. (a) Indian Banks' Association
2. (b) National Securities Depository Limited
3. (c) National Payments Corporation of India
4. (d) Reserve Bank of India

Answer: (c) National Payments Corporation of India

All ATMs in India are interlinked through the National Financial Switch operated by the National Payments Corporation of India (NPCI). The RBI is the regulator and NPCI is its umbrella organisation for retail payments, but it is NPCI—not the RBI directly—that runs the switching network.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

Statement 1 correctly describes the Capital Adequacy Ratio as the cushion of a bank's own capital held against risk-weighted assets to absorb losses from defaults. Statement 2 is wrong because CAR is not set by individual banks—it is prescribed by the RBI in line with Basel norms.

1. (a) ILO
2. (b) IMF
3. (c) UNCTAD
4. (d) WTO

Answer: (d) WTO

India passed the Geographical Indications of Goods Act, 1999 to meet its obligations under the WTO's TRIPS Agreement on intellectual property. The ILO, IMF and UNCTAD deal with labour, monetary and trade-development matters respectively, not GI protection.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

Only statement 1 is correct: the BHIM app, built on the Unified Payments Interface, lets a user send money to anyone holding a UPI-enabled bank account. Statement 2 is wrong—its comparison of 'four factors' for chip-and-PIN cards versus 'two factors' for BHIM is factually incorrect.

1. (a) The money which is tendered in courts of law to defray the fee of legal cases
2. (b) The money which a creditor is under compulsion to accept in settlement of his claims
3. (c) The bank money in the form of cheques, drafts, bills of exchange, etc.
4. (d) The metallic money in circulation in a country

Answer: (b) The money which a creditor is under compulsion to accept in settlement of his claims

Legal tender money is money that a creditor is legally bound to accept in discharge of a debt—refusal is not permitted in settlement of claims. Cheques and drafts are not legal tender (acceptance is optional), which is why the option describing bank instruments is incorrect.

1. (a) the opportunity cost is zero.
2. (b) the opportunity cost is ignored.
3. (c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.
4. (d) the opportunity cost is transferred from the consumers of the product to the Government.

Answer: (c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.

When the government provides a good 'free', it is not truly costless—the resources still have an opportunity cost, which is simply shifted from the direct consumers onto the general body of taxpayers who fund it. So the opportunity cost is neither zero nor ignored; it is merely borne by someone else.

1. (a) industrial output fails to keep pace with agricultural output.
2. (b) agricultural output fails to keep pace with industrial output.
3. (c) poverty and unemployment increase.
4. (d) imports grow faster than exports.

Answer: (c) poverty and unemployment increase.

A rise in absolute and per-capita real GNP does not signal higher economic development if poverty and unemployment simultaneously increase, because development is about broad-based welfare, not just aggregate output. Growth that leaves large sections poor and jobless reflects skewed distribution rather than genuine development.

1. (a) 1 and 2
2. (b) 2 only
3. (c) 2 and 4
4. (d) 1, 3 and 4

Answer: (c) 2 and 4

Human capital formation is the process of raising the knowledge, skill levels and capacities of people (statement 2) and thereby building the nation's stock of intangible wealth (statement 4). It is not about accumulating physical/tangible capital or wealth, which is why the options citing tangible capital are wrong.

1. (a) weak administrative machinery
2. (b) illiteracy
3. (c) high population density
4. (d) high capital-output ratio

Answer: (d) high capital-output ratio

Even a high-saving economy may see little extra output if it has a high capital-output ratio, meaning a large amount of capital is needed to produce each unit of output, so investment yields limited returns. Illiteracy or weak administration hurt productivity indirectly, but the direct technical reason output lags investment is a high capital-output ratio.

1. (a) 1 and 2 only
2. (b) 3 only
3. (c) 2 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 2 and 3 only

Statements 2 and 3 are correct: only the Government of India issues Treasury bills (States do not), and T-bills are zero-coupon instruments sold at a discount to face value. Statement 1 is wrong because the RBI manages and services both Central and State government securities.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

Both statements are wrong. India is not the third-largest manufacturer of the silicon wafers used in photovoltaic cells (it depends heavily on imports), and solar power tariffs are set through competitive bidding and approved by regulatory commissions (CERC/SERC), not determined by the Solar Energy Corporation of India.

1. (a) 1, 2, 3 and 7 only
2. (b) 2, 4, 5 and 6 only
3. (c) 1, 3, 4, 5 and 6 only
4. (d) 1, 2, 3, 4, 5, 6 and 7

Answer: (b) 2, 4, 5 and 6 only

Among the listed items the Cabinet Committee on Economic Affairs announces Minimum Support Price for barley, finger millet (ragi), groundnut and sesamum—so 2, 4, 5 and 6. Areca nut, coffee and turmeric are not covered under the MSP regime, which is confined to notified crops (mainly cereals, pulses, oilseeds and a few commercial crops).

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (b) 2 only

Only statement 2 is correct: the associate banks of SBI were merged into the parent State Bank of India (in 2017) to strengthen public sector banking. Statement 1 is wrong because government capital infusion into public sector banks has not risen steadily over the decade—it has fluctuated with recapitalisation needs.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1, 2 and 4 only
4. (d) 1, 2, 3 and 4

Answer: (c) 1, 2 and 4 only

Items 1, 2 and 4 are exempt under GST—hulled cereal grains, cooked chicken eggs, and newspapers (even those carrying advertisements). Fish that is processed and canned (item 3) is a value-added product and is taxable, so it is not exempt.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Statements 2 and 3 are correct: APEDA acts as the secretariat for implementing the National Programme for Organic Production, and Sikkim was declared India's first fully organic State. Statement 1 is wrong because NPOP is run under the Ministry of Commerce and Industry, not the Ministry of Rural Development.

1. (a) 1 only
2. (b) 1 and 2 only
3. (c) 3 only
4. (d) 2 and 3 only

Answer: (a) 1 only

The Monetary Policy Committee sets the RBI's benchmark policy (repo) rate, so statement 1 is correct. It is a six-member body (not twelve) and is chaired by the RBI Governor, not the Finance Minister, so statements 2 and 3 are wrong. Three members are from the RBI and three are nominated by the government.

1. (a) 1 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 2 and 3 only

Answer: (b) 2 only

Under the amended Benami Act, properties held benami are liable to confiscation by the government, so statement 2 is correct. Lack of the owner's awareness does not exempt a transaction (statement 1 false), and the Act provides both investigating authorities and an appellate tribunal (statement 3 false).

1. (a) Developing solar power production in our country
2. (b) Granting licences to foreign T.V. channels in our country
3. (c) Exporting our food products to other countries
4. (d) Permitting foreign educational institutions to set up their campuses in our country

Answer: (a) Developing solar power production in our country

'Domestic Content Requirement' refers to the condition that solar power developers use a certain share of domestically manufactured cells and modules, aimed at boosting India's solar manufacturing. This DCR provision became a subject of a WTO dispute with the USA. It is unrelated to TV channels, food exports or foreign universities.

1. (a) Resident Indian citizens only
2. (b) Persons of age from 21 to 55 only
3. (c) All State Government employees joining the services after the date of notification by the respective State Governments
4. (d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

Answer: (c) All State Government employees joining the services after the date of notification by the respective State Governments

The National Pension System was extended so that all State Government employees who joined service after the scheme's notification are covered, making that the correct entry route. NPS is not restricted to residents aged 21-55 only, and Armed Forces personnel are excluded, so the option covering them is wrong. NPS is regulated by the PFRDA.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (a) 1 only

The BIS Standard Mark (ISI) is mandatory for automotive tyres and tubes for safety reasons, so statement 1 is correct. AGMARK is a quality certification for agricultural produce issued by the Directorate of Marketing and Inspection, not by the FAO, so statement 2 is false.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The National Agriculture Market (e-NAM) is a pan-India electronic trading portal that networks existing APMC mandis, so statement 1 is correct. By giving farmers access to a nationwide market with prices reflecting quality, it also fulfils statement 2. Both are genuine advantages of the scheme.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The National IPR Policy (2016) reaffirms India's commitment to the WTO's Doha Development Agenda and the TRIPS Agreement, so statement 1 is correct. The Department of Industrial Policy and Promotion (DIPP) is the nodal agency coordinating IPR implementation, so statement 2 is also correct.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The Quality Council of India was set up in 1997 jointly by the Government of India and Indian industry associations (ASSOCHAM, CII, FICCI), so statement 1 is correct. Its Chairman is appointed by the Prime Minister on the recommendation of the industry to the government, so statement 2 is also correct.

1. (a) 1 and 2 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

Small Finance Banks were licensed by the RBI to supply credit to small business units and to small and marginal farmers, furthering financial inclusion, so statements 1 and 2 are correct. Their mandate is not specifically to fund young rural entrepreneurs (statement 3). They must direct a large share of lending to priority sectors.

1. (a) Mobile wallets will not be necessary for online payments.
2. (b) Digital currency will totally replace the physical currency in about two decades.
3. (c) FDI inflows will drastically increase.
4. (d) Direct transfer of subsidies to poor people will become very effective.

Answer: (a) Mobile wallets will not be necessary for online payments.

The Unified Payments Interface lets users transfer money directly between bank accounts through a mobile app, so pre-loaded mobile wallets are no longer necessary for online payments. It does not replace physical currency, boost FDI, or by itself route subsidies. Its key effect is seamless bank-to-bank digital transfer.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

The National Investment and Infrastructure Fund is a government-backed fund managed independently, not an organ of NITI Aayog, so statement 1 is false. Its proposed corpus was about Rs 40,000 crore, not Rs 4,00,000 crore, so statement 2 is also false. Hence neither statement is correct.

1. (a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.
2. (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.
3. (c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private investment.
4. (d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.

Answer: (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.

The Global Infrastructure Facility is a World Bank-led collaboration that helps governments prepare and structure complex infrastructure projects to attract private and institutional investment. It is not an ASEAN, OECD-bank or UNCTAD body. It focuses on project preparation for public-private partnerships in emerging economies.

1. (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
2. (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
3. (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
4. (d) It is an important provision in 'The Insolvency and Bankruptcy Code' recently implemented by the Government.

Answer: (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.

The Scheme for Sustainable Structuring of Stressed Assets (S4A) is an RBI framework that lets banks rework the debt of large stressed corporate borrowers by splitting it into sustainable and unsustainable parts. It is a tool for resolving bad loans, not an ecological cost assessment or a disinvestment plan. It differs from provisions of the Insolvency and Bankruptcy Code.

1. (a) 1 and 4 only
2. (b) 2, 3 and 4 only
3. (c) 2 and 3 only
4. (d) 1, 2, 3 and 4

Answer: (b) 2, 3 and 4 only

After the 1991 liberalisation, India's share in world exports rose, FDI inflows increased, and foreign exchange reserves grew enormously, so statements 2, 3 and 4 are correct. The share of agriculture in GDP declined (as services expanded), so statement 1 is false. This structural shift is a hallmark of the reform era.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The National Payments Corporation of India promotes financial inclusion by building retail payment infrastructure, so statement 1 is correct, and it launched the RuPay card payment scheme, so statement 2 is correct. NPCI also operates UPI, IMPS and AePS. Both statements are true.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

GST replaces multiple indirect taxes levied by the Centre and States with a single tax, helping create one common national market, so statement 1 is correct. It does not directly reduce the current account deficit or guarantee overtaking China's economy, so statements 2 and 3 are overstated and false. Hence only statement 1.

1. (a) European Union
2. (b) Gulf Cooperation Council
3. (c) Organization for Economic Cooperation and Development
4. (d) Shanghai Cooperation Organization

Answer: (a) European Union

The Broad-based Trade and Investment Agreement is the free trade agreement being negotiated between India and the European Union. It aims to liberalise trade in goods, services and investment between the two. It does not involve the Gulf Cooperation Council, OECD or SCO.

1. (a) 1 and 2 only
2. (b) 1 and 3 only
3. (c) 2 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 and 2 only

India has ratified the WTO's Trade Facilitation Agreement, which was part of the Bali Ministerial Package of 2013, so statements 1 and 2 are correct. The TFA came into force in February 2017, not January 2016, so statement 3 is false. It aims to simplify and speed up customs procedures.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

India's tax-to-GDP ratio has fluctuated rather than steadily increased over the past decade, so statement 1 is false, and the fiscal deficit as a share of GDP has broadly declined (with fiscal consolidation), not steadily increased, so statement 2 is also false. Hence neither statement is correct.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1, 2 and 3
4. (d) 1 and 3 only

Answer: (c) 1, 2 and 3

IFPRI's Global Hunger Index draws on undernourishment, child stunting, child wasting and child mortality. All three items listed here undernourishment, child stunting and child mortality are indicators used in the index.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2, 3 and 4

Answer: (c) 1 and 3 only

Reducing revenue expenditure and rationalizing subsidies both directly lower government spending and shrink the deficit. Introducing new welfare schemes raises expenditure and cutting import duty lowers revenue, so both would worsen the deficit.

1. (a) 1 and 2 only
2. (b) 1 and 3 only
3. (c) 2 only
4. (d) 1, 2 and 3

Answer: (b) 1 and 3 only

Mobile telephone companies and supermarket chains owned and controlled by residents can promote Payment Banks, and Payment Banks are barred from lending, so statements 1 and 3 are correct. They may issue debit cards but not credit cards, so statement 2 is wrong.

1. (a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
2. (b) Providing electricity to every household in the country by 2018
3. (c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
4. (d) Providing for financial turnaround and revival of power distribution companies

Answer: (d) Providing for financial turnaround and revival of power distribution companies

UDAY (Ujwal DISCOM Assurance Yojana) is a scheme for the financial turnaround and operational revival of debt-laden state power distribution companies (DISCOMs), allowing states to take over their debt.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The International Finance Corporation is the private-sector arm of the World Bank Group, and its Masala Bonds are rupee-denominated bonds issued to raise debt financing. Both statements are therefore correct.

1. (a) WTO affairs
2. (b) SAARC affairs
3. (c) UNFCCC affairs
4. (d) India-EU negotiations on FTA

Answer: (a) WTO affairs

The colour-coded 'boxes' amber, blue and green classify agricultural subsidies by their trade-distorting effect under the WTO's Agreement on Agriculture.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (d) 1, 2 and 3

The capital budget covers capital receipts and capital expenditure. Spending on assets like roads and buildings, loans received from foreign governments, and loans and advances given to States and UTs are all part of it, so all three are included.

1. (a) Rouble
2. (b) Rand
3. (c) Indian Rupee
4. (d) Renminbi

Answer: (d) Renminbi

The Chinese Renminbi (yuan) was approved for inclusion in the IMF's Special Drawing Rights basket, joining the US dollar, euro, pound and yen, effective October 2016.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The IMFC advises the IMF's Board of Governors on the functioning of the international monetary and financial system, and the World Bank attends its meetings as an observer. Both statements are correct.

1. (a) It is the ratio of value of imports to the Gross Domestic Product of a country
2. (b) It is the total value of imports of a country in a year
3. (c) It is the ratio between the value of exports and that of imports between two countries
4. (d) It is the number of months of imports that could be paid for by a country's international reserves

Answer: (d) It is the number of months of imports that could be paid for by a country's international reserves

Import cover measures how many months of imports a country could finance with its foreign exchange reserves, indicating the adequacy of those reserves.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (b) 2 only

PMFBY covers post-harvest losses from cyclones and unseasonal rains, so statement 2 is correct. Premiums are not uniform they are 2% for kharif, 1.5% for rabi and 5% for commercial and horticultural crops making statement 1 wrong.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Stand Up India facilitates bank loans to SC/ST and women entrepreneurs to promote enterprise, and it provides for refinance through SIDBI. Both statements are correct.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (a) 1 only

Core Banking Solutions network a bank's branches so that customers can operate their accounts from any branch regardless of where the account was opened, so only statement 1 correctly describes the term.

1. (a) Organization for Economic Cooperation and Development (OECD)
2. (b) World Economic Forum
3. (c) World Bank
4. (d) World Trade Organization (WTO)

Answer: (c) World Bank

The Ease of Doing Business Index and its country rankings were compiled and published by the World Bank.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (d) Neither 1 nor 2

The Trans-Pacific Partnership involved only 12 Pacific Rim countries, not all of them, and it was a comprehensive trade and economic agreement, not a maritime-security alliance. Both statements are therefore wrong.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

The MCLR framework improves transparency in how banks set lending rates and ensures credit is available at rates that are fair to both borrowers and banks. Both purposes are correct.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 2 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 2 only

INSIMP demonstrates improved production, post-harvest and value-addition technologies through a cluster approach, and poor, small, marginal and tribal farmers have a large stake in it, so statements 1 and 2 are correct. It does not offer free input kits to lure commercial-crop farmers, so statement 3 is wrong.

1. (a) 1 and 2 only
2. (b) 3 only
3. (c) 2 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 2 and 3 only

The Financial Stability and Development Council is chaired by the Union Finance Minister and oversees macro-prudential supervision of the economy, so statements 2 and 3 are correct. It is not an organ of NITI Aayog, making statement 1 wrong.

1. (a) mining operation by multinational companies in resource-rich but backward areas
2. (b) curbing of the tax evasion by multinational companies
3. (c) exploitation of genetic resources of a country by multinational companies
4. (d) lack of consideration of environmental costs in the planning and implementation of developmental projects

Answer: (b) curbing of the tax evasion by multinational companies

Base Erosion and Profit Shifting refers to tax-avoidance strategies by which multinational companies shift profits to low-tax jurisdictions; the term is used in the context of curbing such tax evasion.

1. (a) Andhra Pradesh
2. (b) Gujarat
3. (c) Maharashtra
4. (d) Uttar Pradesh

Answer: (a) Andhra Pradesh

India's first National Investment and Manufacturing Zone was proposed at Prakasam district in Andhra Pradesh.

1. (a) 1 and 2 only
2. (b) 2 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (b) 2 only

District Mineral Foundations are meant to protect the interests and well-being of persons and areas affected by mining operations, so only statement 2 is correct. They do not promote mineral exploration or grant exploration licences.

1. (a) 1 only
2. (b) 2 only
3. (c) Both 1 and 2
4. (d) Neither 1 nor 2

Answer: (b) 2 only

The New Development Bank's headquarters is in Shanghai, so statement 2 is correct. It was established by the BRICS nations, not APEC, so statement 1 is wrong.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

The Sovereign Gold Bond and Gold Monetization schemes aim to bring idle household gold into the economy and reduce India's reliance on gold imports, so statements 1 and 3 are correct. Promoting FDI in gold and jewellery is not their purpose, so statement 2 is wrong.

1. (a) bringing the small entrepreneurs into formal financial system
2. (b) providing loans to poor farmers for cultivating particular crops
3. (c) providing pensions to old and destitute persons
4. (d) funding the voluntary organizations involved in the promotion of skill development and employment generation

Answer: (a) bringing the small entrepreneurs into formal financial system

The Pradhan Mantri MUDRA Yojana provides institutional finance to micro and small enterprises, bringing small, informal entrepreneurs into the formal financial system.

1. (a) European Central Bank
2. (b) International Monetary Fund
3. (c) International Bank for Reconstruction and Development
4. (d) Organization for Economic Cooperation and Development

Answer: (b) International Monetary Fund

The Global Financial Stability Report, which assesses risks to the global financial system, is prepared and published by the International Monetary Fund.

1. (a) 1 only
2. (b) 2 and 3 only
3. (c) 1 and 3 only
4. (d) 1, 2 and 3

Answer: (c) 1 and 3 only

The Atal Pension Yojana is a minimum guaranteed pension scheme aimed mainly at unorganized sector workers, and the same pension is guaranteed to the spouse after the subscriber's death, so statements 1 and 3 are correct. More than one family member can join, so statement 2 is wrong.

1. (a) G20
2. (b) ASEAN
3. (c) SCO
4. (d) SAARC

Answer: (b) ASEAN

The Regional Comprehensive Economic Partnership is a trade agreement built around the ASEAN grouping and its free-trade partners.

1. (a) agency created by EU to deal with the impact of millions of refugees arriving from Middle East
2. (b) agency of EU that provides financial assistance to eurozone countries
3. (c) agency of EU to deal with all the bilateral and multilateral agreements on trade
4. (d) agency of EU to deal with the conflicts arising among the member countries

Answer: (b) agency of EU that provides financial assistance to eurozone countries

The European Stability Mechanism is an EU agency that provides financial assistance and bailouts to eurozone countries facing severe financing difficulties.