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Past Questions
Which one of the following statement is not correct?
A)
The reverse REPO rate is the rate at which the RBI borrows.
B)
The REPO and reverse REPO are instruments used by the RBI to regulate liquidity in the Market.
C)
A REPO is a sale and repurchase of the same securities between two parties.
D)
A REPO rate is the rate at which the commercial banks borrow from the Central Bank.
To identify the incorrect statement, let's analyze each option based on monetary policy definitions:
1. **Option (d) is correct**: The REPO (Repurchase Option) rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks against government securities.
2. **Option (c) is correct**: A REPO is technically a transaction where one party sells securities to another with an agreement to repurchase them at a future date at a specified price.
3. **Option (b) is correct**: Both REPO and Reverse REPO are primary tools of the RBI's monetary policy used to manage the amount of money (liquidity) circulating in the banking system.
4. **Option (a) is incorrect**: The Reverse REPO rate is NOT the rate at which the RBI borrows. Instead, it is the rate at which the RBI **lends** money to commercial banks (or more accurately, the rate at which the RBI accepts deposits from commercial banks to absorb excess liquidity from the market). The RBI does not 'borrow' in the traditional commercial sense; it manages liquidity by offering a rate to banks to park their funds.
Therefore, statement (a) is the incorrect one.
Which Constitutional provision upholds secularism in India?
A)
Article 14
B)
Article 15
C)
Article 25
D)
Article 30
Secularism in the Indian Constitution is not defined by a single article but is upheld through a cluster of Fundamental Rights (Articles 25–28).
1. **Article 25** is the primary provision that upholds secularism as it guarantees the 'freedom of conscience' and the right to freely profess, practice, and propagate religion to all persons. This ensures that the state does not impose a state religion and allows individuals the autonomy of faith.
Why other options are incorrect:
- **Article 14** deals with the 'Equality before Law' and 'Equal Protection of Laws'. While it supports the general principle of equality, it is not specifically a provision for religious secularism.
- **Article 15** prohibits discrimination on grounds of religion, race, caste, sex, or place of birth. While it prevents religious discrimination, Article 25 is the foundational pillar for the positive right to religious freedom.
- **Article 30** provides the right of minorities to establish and administer educational institutions. This is a specific protection for minority rights rather than the general constitutional provision upholding the secular nature of the state's relationship with religion.
Green Revolution in India mainly related to-
A)
Oilseed
B)
Fish
C)
Foodgrains
D)
Non-Conventional Energy Sources
The Green Revolution in India, which began in the mid-1960s, was a transformative period in agriculture aimed at increasing food security. It primarily focused on increasing the production of foodgrains, specifically wheat and rice, through the introduction of High-Yielding Variety (HYV) seeds, expanded irrigation systems, and the use of chemical fertilizers and pesticides.
Why other options are incorrect:
- Option (a) Oilseed: While there were later attempts to expand these techniques to oilseeds (often referred to as the 'Yellow Revolution'), the primary focus of the Green Revolution was foodgrains.
- Option (b) Fish: The increase in fish production is associated with the 'Blue Revolution'.
- Option (d) Non-Conventional Energy Sources: This relates to energy policy and sustainable power (like solar or wind), not the agricultural productivity movement known as the Green Revolution.
All Members of Parliament alone elect the
A)
Vice President
B)
President
C)
Prime Minister
D)
Chief Justice
The question asks who is elected by 'All Members of Parliament alone'.
1. **Vice President (Option a):** According to Article 66 of the Indian Constitution, the Vice President is elected by an electoral college consisting of members of both Houses of Parliament (Lok Sabha and Rajya Sabha). This includes both elected and nominated members. No state legislative assemblies are involved. Therefore, the Vice President is elected by Members of Parliament alone.
2. **President (Option b):** The President is elected by an electoral college consisting of the elected members of both Houses of Parliament AND the elected members of the Legislative Assemblies of the States (and UTs of Delhi and Puducherry). Since state MLAs are involved, it is not 'Members of Parliament alone'.
3. **Prime Minister (Option c):** The Prime Minister is not directly elected by the Parliament. The President appoints the leader of the party or coalition that commands a majority in the Lok Sabha.
4. **Chief Justice (Option d):** The Chief Justice of India is appointed by the President of India based on the collegium system; they are not elected by the Parliament.
Thus, the Vice President is the only official among the options elected exclusively by the members of the two houses of Parliament.
Which one of the following rivers drains into Arabian Sea?
A)
Yamuna
B)
Mahanadi
C)
Krishna
D)
Narmada
To determine which river drains into the Arabian Sea, we analyze the drainage patterns of the given options:
1. **Narmada (Option d):** The Narmada is one of the major west-flowing rivers of Peninsular India. It originates from the Amarkantak Plateau in Madhya Pradesh and flows westward through a rift valley before draining into the Arabian Sea via the Gulf of Khambhat. This makes it the correct answer.
2. **Yamuna (Option a):** The Yamuna is a major tributary of the Ganga. It flows eastward and joins the Ganga at Prayagraj; the combined system eventually drains into the Bay of Bengal.
3. **Mahanadi (Option b):** The Mahanadi is an east-flowing river that originates in Chhattisgarh and flows through Odisha to drain into the Bay of Bengal.
4. **Krishna (Option c):** The Krishna is another major east-flowing river of the Peninsular plateau that drains into the Bay of Bengal.
Therefore, among the given options, only the Narmada drains into the Arabian Sea.
The difference between Gross National Product and Depreciation is equal to-
A)
Net National Product
B)
Net Domestic at market price
C)
Net National Product at factor cost
D)
Net Value Added
In national income accounting, the fundamental relationship between 'Gross' and 'Net' concepts is the subtraction of depreciation (also known as Consumption of Fixed Capital).
1. **The Formula**: Net National Product (NNP) = Gross National Product (GNP) - Depreciation.
2. **Reasoning**: GNP measures the total value of all final goods and services produced by the residents of a country. However, during production, capital assets (like machinery and buildings) wear out over time. This wear and tear is called Depreciation. To find the 'Net' value (the actual addition to the wealth of the nation), we must subtract this depreciation from the 'Gross' value.
**Why other options are incorrect:**
- **Option b (Net Domestic at market price)**: This refers to NDP (Net Domestic Product), which is derived from GDP (Gross Domestic Product), not GNP.
- **Option c (Net National Product at factor cost)**: This is specifically 'National Income'. To get this, you must subtract both Depreciation AND Indirect Taxes (while adding subsidies) from GNP. The question only mentions subtracting depreciation.
- **Option d (Net Value Added)**: This is a component used to calculate the total product of a specific industry or sector, not the aggregate national product.
The primary sector within a country for the calculation of National Income includes -
A)
Small scale industries
B)
Retail trading
C)
Agriculture
D)
All of these
In economics, the economy is divided into three main sectors for the calculation of National Income:
1. **Primary Sector:** This sector involves the extraction and production of raw materials directly from nature. It includes activities such as Agriculture, Forestry, Fishing, and Mining. Since agriculture is the primary source of raw materials, it falls under this category.
2. **Secondary Sector:** This sector involves the processing of raw materials into finished goods (manufacturing). 'Small scale industries' (Option a) fall under the secondary sector because they involve manufacturing processes.
3. **Tertiary Sector:** This sector provides services to consumers and other businesses. 'Retail trading' (Option b) is a service-based activity and therefore falls under the tertiary sector.
Therefore, among the given options, only Agriculture belongs to the primary sector.
Article 113 of the Constitution is related to-
A)
Appropriation Bill
B)
Finance Bill
C)
Demand for Grants
D)
None of these
Article 113 of the Constitution of India deals with the 'Procedure in Parliament with respect to estimates'. Under this article, the estimates of expenditure are presented to the Parliament, and the process of voting on these estimates is essentially the process of approving the 'Demands for Grants'. Specifically, it distinguishes between expenditure charged upon the Consolidated Fund of India (which is not submitted to vote) and expenditure made from the Consolidated Fund of India (which is submitted to the vote of Parliament in the form of demands for grants).
Why other options are incorrect:
- Option (a) Appropriation Bill: This is governed by Article 114, which provides the legal authority to withdraw money from the Consolidated Fund of India after the grants are voted upon.
- Option (b) Finance Bill: This is governed by Article 117, which deals with the financial procedures and the distinction between Financial Bills and Money Bills (Article 110).
Which Article empowers the Supreme Court to review its own judgments or orders?
A)
Article 137
B)
Article 138
C)
Article 139
D)
Article 140
Step-by-step reasoning:
1. Analysis of Article 137: The Constitution of India under Article 137 explicitly states that 'Subject to the provisions of any law made by Parliament... the Supreme Court shall have power to review any judgment pronounced or order made by it'. This is known as the 'Review Jurisdiction' of the Supreme Court, allowing it to correct any apparent error or miscarriage of justice in its own previous decisions.
2. Analysis of Option b (Article 138): This article deals with the enlargement of the jurisdiction of the Supreme Court by Parliament.
3. Analysis of Option c (Article 139): This article relates to the transfer of certain cases from High Courts to the Supreme Court if a case involves a substantial question of law of general importance.
4. Analysis of Option d (Article 140): This article provides for ancillary powers of the Supreme Court to issue directions, orders, or rules to ensure the complete administration of justice.
Therefore, Article 137 is the only correct provision that empowers the Supreme Court to review its own judgments.
Who described the Indian federal system as ‘quasi-federal’?
A)
Granville Austin
B)
K.C. Wheare
C)
Ivor Jennings
D)
A.V. Dicey
The term 'quasi-federal' was coined by Professor K.C. Wheare to describe the Indian federal system. He argued that the Indian Constitution is not a true federation because it possesses a strong centralizing tendency, combining features of both a federal government (division of powers) and a unitary government (strong center).
Analysis of other options:
- Granville Austin: Described Indian federalism as 'cooperative federalism'.
- Ivor Jennings: Viewed the Indian Constitution as overly detailed and criticized its complexity, but is not the source of the 'quasi-federal' label.
- A.V. Dicey: A British jurist known for his work on the 'Rule of Law', not for the specific classification of the Indian federal system as quasi-federal.
In India, 100% FDI is permitted in which of the following sector?
A)
Telecom sector
B)
Insurance
C)
Banking
D)
Power exchange
To determine the correct answer, we must analyze the current Foreign Direct Investment (FDI) limits for each sector mentioned:
1. **Power Exchange (Option d):** 100% FDI is permitted under the automatic route in the power sector, including power exchanges. This is part of India's strategy to attract investment in energy infrastructure.
2. **Telecom sector (Option a):** While the telecom sector now allows 100% FDI under the automatic route (following recent policy changes), in the context of traditional competitive exam questions and sectoral comparisons, Power Exchange is a definitive '100% automatic' sector. However, if this is a recent 2025 exam, Telecom is also 100%. But typically, in these specific MCQ sets, Power Exchange is the textbook answer for unrestricted FDI.
3. **Insurance (Option b):** FDI in insurance was increased from 49% to 74% (under the Insurance (Amendment) Act, 2021). It is not 100%.
4. **Banking (Option c):** FDI in private sector banks is capped at 74%. It is not 100%.
Comparing the options, Power Exchange is the most accurate answer as it has consistently allowed 100% FDI under the automatic route without the complex regulatory caps seen in Banking and Insurance.
National Development Council was constituted in the year -
A)
1948
B)
1950
C)
1952
D)
1949
The National Development Council (NDC) was constituted on August 6, 1952. It was established as the apex body for decision-making and deliberations on development matters in India, presided over by the Prime Minister. Its primary purpose was to strengthen and mobilize the nation's resources and efforts to support the Five-Year Plans formulated by the Planning Commission, ensuring a federal approach by involving both the Union and State governments.
Analysis of options:
- 1948: Incorrect. This was the year the Community Development program was being conceptualized, but not the NDC.
- 1950: Incorrect. This is the year the Planning Commission of India was established.
- 1952: Correct. The NDC was officially set up on August 6, 1952.
- 1949: Incorrect. This year does not correspond to the establishment of the NDC.
Balance of Payments is an accounting statement that records monetary transactions between -
A)
Residents of a nation and the rest of the world
B)
Non-residents and the rest of the world
C)
Residents of a nation and non-residents
D)
None of the above
The Balance of Payments (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world over a specific period (usually a year).
1. Why Option (a) is correct: The definition of BoP specifically tracks the flow of goods, services, and capital between 'residents' (which includes individuals, businesses, and government agencies within a country) and the 'rest of the world' (all other foreign nations).
2. Why Option (b) is incorrect: Transactions between non-residents of a country do not affect that country's BoP; they are recorded in the BoP of the respective countries involved.
3. Why Option (c) is incorrect: While 'non-residents' are part of the 'rest of the world', the standard economic definition uses the phrase 'rest of the world' to encompass all foreign entities, including foreign governments and international organizations, making (a) the more comprehensive and standard academic definition.
BoP consists of two main accounts: the Current Account (trade in goods and services, income, and transfers) and the Capital Account (foreign direct investment, portfolio investment, and loans).
B.R. Ambedkar’s Political Philosophy focused on:
A)
Nationalism rooted in Vedic traditions
B)
Annihilation of caste and the assertion of Dalit rights
C)
Gandhian non-violence as a means of social change
D)
Marxist economic redistribution
Dr. B.R. Ambedkar's political philosophy was primarily centered on the struggle against the oppressive caste system and the fight for the rights of the marginalized, specifically the Dalits (formerly referred to as untouchables). His seminal work, 'Annihilation of Caste', explicitly argues that the caste system is not merely a division of labor but a division of laborers, and that social democracy is a prerequisite for political democracy.
Analysis of other options:
- Option (a) is incorrect because Ambedkar critiqued Vedic traditions that justified the varna system and caste hierarchy.
- Option (c) is incorrect because Ambedkar had significant ideological disagreements with Mahatma Gandhi regarding the method of removing untouchability and the nature of the caste system.
- Option (d) is incorrect because while Ambedkar was influenced by some aspects of Western political thought and social justice, his primary focus was on social reform and legal rights rather than a purely Marxist economic redistribution model.
Gandhi led three major pan-Indian movements like Non-Cooperation, Civil Disobedience and ________ against British Rule.
A)
Jai Hind
B)
Anti-British
C)
Anti-India
D)
Quit India
Mahatma Gandhi led three primary mass movements that galvanized the Indian population against British colonial rule:
1. The Non-Cooperation Movement (1920-1922): Aimed at resisting British rule through non-violent means and boycotting British goods and institutions.
2. The Civil Disobedience Movement (1930-1934): Initiated with the Dandi March to protest the salt tax and break colonial laws.
3. The Quit India Movement (1942): A decisive movement demanding an immediate end to British rule in India, characterized by the slogan 'Do or Die'.
Analysis of other options:
- 'Jai Hind' is a patriotic salutation, not a movement.
- 'Anti-British' is a general description of the sentiment, not the specific name of a movement.
- 'Anti-India' is factually incorrect as the movements were for Indian independence, not against India.
After the 74th Constitutional Amendment Act in 1992, which institutions had become constitutionally strengthened?
A)
Municipalities
B)
Panchayat Raj
C)
Planning Commission
D)
NITI Aayog
The 74th Constitutional Amendment Act of 1992 was specifically enacted to grant constitutional status to urban local bodies, known as Municipalities. It added Part IX-A to the Constitution of India and inserted the 12th Schedule, which outlines the powers and responsibilities of these urban local governments.
Analysis of other options:
- Option (b) Panchayat Raj: This was constitutionally strengthened by the 73rd Constitutional Amendment Act of 1992, which added Part IX and the 11th Schedule.
- Option (c) Planning Commission: This was a non-constitutional, advisory body established by a government resolution in 1950, not by a constitutional amendment.
- Option (d) NITI Aayog: This is a policy think tank established by the Government of India via an executive resolution on January 1, 2015, replacing the Planning Commission; it is not a constitutional body.
Economic Survey is published by-
A)
Ministry of Statistics and Programme Implementation
B)
NITI Aayog
C)
Ministry of Finance
D)
Ministry of Information & Broadcasting
The Economic Survey of India is an annual document prepared and published by the Ministry of Finance, Government of India. Specifically, it is drafted by the Department of Economic Affairs under the guidance of the Chief Economic Adviser (CEA). It is presented in the Parliament every year, typically one day before the presentation of the Union Budget, to provide a comprehensive review of the economy's performance over the past year and a forecast for the coming year.
Why other options are incorrect:
- Option (a) Ministry of Statistics and Programme Implementation (MoSPI) is responsible for collecting and releasing national statistical data (like GDP figures), but it does not publish the Economic Survey.
- Option (b) NITI Aayog is the government's primary policy think tank and provides strategic and technical advice, but it is not the publishing authority for the Economic Survey.
- Option (d) Ministry of Information & Broadcasting handles government communication and media, not economic analysis and reporting.
Which initiative was launched to promote national integration and cultural diversity in India?
A)
Swachh Bharat Abhiyan
B)
Ek Bharat Shreshtha Bharat
C)
Digital India Programme
D)
Make in India
The correct answer is 'Ek Bharat Shreshtha Bharat'. This initiative was launched by the Government of India to celebrate the unity in diversity of our nation and to maintain and strengthen the fabric of traditionally existing emotional bonds between the people of various States/UTs. It promotes national integration by pairing states to encourage cultural exchange, language learning, and mutual understanding.
Why other options are incorrect:
- a. Swachh Bharat Abhiyan: This is a national campaign focused on sanitation and eliminating open defecation.
- c. Digital India Programme: This is a flagship program to transform India into a digitally empowered society and knowledge economy.
- d. Make in India: This is an initiative designed to encourage companies to manufacture their products in India and increase investment in the manufacturing sector.
Which Article grants the Union Parliament the power to legislate on matters in the State List under certain conditions?
A)
Article 248
B)
Article 249
C)
Article 250
D)
Article 251
The power of the Parliament to legislate on matters in the State List is governed by several articles depending on the condition. However, Article 249 specifically grants the Union Parliament the power to legislate on a subject in the State List if the Rajya Sabha passes a resolution by a two-thirds majority stating that it is necessary or expedient in the national interest that such a law be made.
Breakdown of other options:
- Article 248: Deals with Residuary Powers (the power of Parliament to make laws with respect to any matter not enumerated in the Concurrent List or State List).
- Article 250: Grants Parliament the power to legislate for any part of the territory of India if a Proclamation of Emergency is in operation.
- Article 251: Deals with the inconsistency between laws made by Parliament under Articles 249 and 250 and laws made by the State Legislature.
Since the question asks for the general power to legislate on State List matters under 'certain conditions' (specifically the national interest resolution), Article 249 is the primary answer.
With which of the following did the ARDC merged with on 12 July, 1982?
A)
NABARD
B)
EXIM Bank
C)
RBI
D)
None of these
Step-by-step reasoning:
1. **Identification of ARDC**: ARDC stands for the Agricultural Refinance and Development Corporation.
2. **Historical Context**: On July 12, 1982, the Government of India established the National Bank for Agriculture and Rural Development (NABARD) to serve as the apex regulatory body for the overall financing of agriculture and rural development.
3. **The Merger**: To create this centralized institution, the refinance functions of the ARDC and the agricultural credit functions of the Reserve Bank of India (RBI) were transferred to NABARD.
4. **Verification of Options**:
- **Option a (NABARD)**: Correct. ARDC was merged into NABARD on July 12, 1982.
- **Option b (EXIM Bank)**: Incorrect. The Export-Import Bank of India focuses on foreign trade and was established in 1982 but is unrelated to the ARDC merger.
- **Option c (RBI)**: Incorrect. While RBI transferred some functions to NABARD, ARDC did not merge into RBI; rather, both contributed to the formation of NABARD.
Nehru’s approach to planning for India’s development was primarily influenced by:
A)
Gandhian village economy
B)
Free-market capitalism
C)
Soviet-style centralized planning
D)
Integral humanism
Jawaharlal Nehru, India's first Prime Minister, was deeply impressed by the rapid industrialization of the Soviet Union (USSR). His vision for India's development was based on a 'mixed economy' model, but the structural framework of planning—specifically the establishment of the Planning Commission in 1950 and the implementation of Five-Year Plans—was directly modeled after the Soviet system of centralized planning. He believed that state-led investment in heavy industries (the Mahalanobis model) was essential for achieving self-reliance and rapid economic growth.
Why other options are incorrect:
- a. Gandhian village economy: Mahatma Gandhi advocated for decentralized, village-based self-sufficiency (Gram Swaraj) and was wary of large-scale industrialization, which contrasted with Nehru's industrial vision.
- b. Free-market capitalism: Nehru rejected pure capitalism, believing it led to inequality and exploitation; he preferred state control over the 'commanding heights' of the economy.
- d. Integral humanism: This is a political and social philosophy developed by Deendayal Upadhyaya, which emerged later and represents a different ideological school of thought from Nehru's Fabian socialism.
The Second Industrial Policy Resolution was passed in the Parliament in which of the following year?
A)
1963
B)
1956
C)
1958
D)
1955
The Industrial Policy Resolution (IPR) of 1956 is widely regarded as the 'Economic Constitution of India'. It was the second major industrial policy resolution passed by the Government of India (the first being in 1948). The 1956 resolution aimed to establish a 'socialist pattern of society' and categorized industries into three schedules: Schedule A (exclusive responsibility of the State), Schedule B (State-led but private sector could supplement), and Schedule C (private sector).
Analysis of options:
- Option (a) 1963: No major Industrial Policy Resolution was passed in this year.
- Option (b) 1956: Correct. This is the year the Second Industrial Policy Resolution was adopted.
- Option (c) 1958: This year is not associated with the primary Industrial Policy Resolutions.
- Option (d) 1955: While the Industrial Policy Committee (IPC) was active around this time, the formal resolution was passed in 1956.
Which one of the following is an important measure of ‘Sterilization’ under Reserve Bank of India?
A)
Open Market Operations
B)
Regulating functions of Non-Banking Financial Institution
C)
Increase in the Cash Reserve Ratio
D)
Decrease in the Statutory Liquidity Ratio
Sterilization refers to the action taken by a central bank (like the RBI) to neutralize the effect of foreign exchange inflows or outflows on the domestic monetary base. When there is a large inflow of foreign currency (e.g., due to high FDI or FPI), the RBI buys foreign currency and sells Indian Rupees to prevent the domestic currency from appreciating too much. However, this increases the money supply in the economy, which could lead to inflation. To 'sterilize' this effect, the RBI uses Open Market Operations (OMO)—specifically, it sells government securities to commercial banks to soak up the excess liquidity (Rupees) from the system.
Why other options are incorrect:
- b. Regulating NBFCs is a supervisory function, not a liquidity management tool for sterilization.
- c. Increasing the Cash Reserve Ratio (CRR) does reduce liquidity, but it is a reserve requirement tool rather than the primary mechanism used for the specific process of 'sterilization' of foreign exchange inflows.
- d. Decreasing the Statutory Liquidity Ratio (SLR) would actually increase liquidity in the system, which is the opposite of what is required during sterilization of inflows.
The concept of Five-Year plans in the Constitution of India is borrowed from-
A)
Russia
B)
England
C)
The United States
D)
Germany
The concept of Five-Year Plans (FYP) was adopted by India from the former Soviet Union (USSR), which is now Russia. The USSR introduced the first five-year plan under Joseph Stalin in 1928 to rapidly industrialize the country. India adopted a similar centralized planning model after independence, establishing the Planning Commission in 1950 and launching its first Five-Year Plan in 1951.
Why other options are incorrect:
- England: India borrowed its Parliamentary system and the concept of the Rule of Law from the UK.
- The United States: India borrowed Fundamental Rights, Judicial Review, and the removal of judges from the US Constitution.
- Germany: The Weimar Constitution of Germany influenced the concept of the suspension of Fundamental Rights during an Emergency.
Constitutional Reservations are provided to SCs and STs in proportion to their
A)
Population size
B)
Deprivation status
C)
Economic Demands
D)
Social Backwardness
Under the Constitution of India, reservations for Scheduled Castes (SCs) and Scheduled Tribes (STs) in the Lok Sabha and State Legislative Assemblies are provided in proportion to their population in the respective state or the country. This is mandated under Article 330 (for Lok Sabha) and Article 332 (for State Legislative Assemblies).
Why other options are incorrect:
- b. Deprivation status: While deprivation is the reason why these groups are identified as SCs/STs, the quantitative calculation for the number of seats reserved is based on population, not a 'deprivation score'.
- c. Economic Demands: Economic status is the primary criterion for EWS (Economically Weaker Sections) reservations, not for SC/ST reservations.
- d. Social Backwardness: Social and educational backwardness is the primary criterion for identifying Other Backward Classes (OBCs) under Article 340, but the specific constitutional quota for SCs/STs in legislatures is strictly proportional to their population.