← Group B (Gazetted)
Past Questions
Which of the following states has the literacy rate lower than the national average as per 2011 Census?
A)
Karnataka
B)
Kerala
C)
Andhra Pradesh
D)
Tamil Nadu
According to the 2011 Census of India, the national average literacy rate is 74.04%. Among the given options:
1. **Andhra Pradesh** has a literacy rate of approximately 67.02%, which is significantly lower than the national average of 74.04%.
2. **Karnataka** has a literacy rate of 75.36%, which is above the national average.
3. **Kerala** has the highest literacy rate in the country at 94.00%, well above the national average.
4. **Tamil Nadu** has a literacy rate of 80.09%, which is also above the national average.
Which linguistic group has the largest number of speakers in India?
A)
The Dravidians
B)
The Indo-Aryans
C)
The Austric
D)
The Sino-Tibetan
The Indo-Aryan linguistic group (part of the Indo-European family) has the largest number of speakers in India, accounting for approximately 74% to 78% of the total population. It includes major languages such as Hindi, Bengali, Marathi, Urdu, Gujarati, and Punjabi. In contrast, the Dravidian group (option a) is the second-largest, spoken by about 20% of the population, mainly in southern India. The Austric (option c) and Sino-Tibetan (option d) groups represent much smaller minorities, spoken by approximately 1.2% and 0.6% of the population respectively.
‘Operation flood’ is related to:
A)
Flood control measures
B)
Milk production
C)
Fish production
D)
Shrimp production
‘Operation Flood’ is directly related to milk production. Launched in 1970 by India's National Dairy Development Board (NDDB), it was the world's largest dairy development program which transformed India from a milk-deficient nation into one of the world's largest milk producers, a movement also known as the 'White Revolution'.
- Option 'a' (Flood control measures) is incorrect as the term 'flood' in the operation's name metaphorically refers to a flood of milk, not water management.
- Option 'c' (Fish production) is incorrect as it is associated with the 'Blue Revolution'.
- Option 'd' (Shrimp production) is incorrect as it is associated with the 'Pink Revolution'.
The Industrial Policy Resolution (IPR) 1956 classified industries into three categories. Which of the following correctly describes ‘Schedule B’ industries?
A)
Industries exclusively owned by the state.
B)
Industries left entirely to the private sector without government interference.
C)
Industries which would be progressively state-owned, but private enterprise could supplement state effort.
D)
Industries reserved for the Small Scale Sector (SSI) only.
Under the Industrial Policy Resolution (IPR) 1956, industries were classified into three categories: Schedule A, Schedule B, and Schedule C. Schedule B consisted of 12 industries that were to be progressively state-owned, where the government would take the initiative in establishing new undertakings, but private enterprises were allowed to supplement these efforts. Option 'a' is incorrect because it describes Schedule A industries, which were exclusively owned by the state. Option 'b' is incorrect because it refers to Schedule C industries, which were left to the private sector (subject to state regulation). Option 'd' is incorrect as Schedule B did not reserve industries exclusively for the Small Scale Sector.
‘Casualisation of Workforce’ refers to a situation where:
A)
The percentage of self-employed workers increases.
B)
The percentage of casually hired workers in the total workforce increases over time.
C)
Workers move from the informal sector to the formal sector.
D)
The workforce shifts entirely from agriculture to industry.
Casualisation of the workforce refers to a process where the proportion of casually hired workers in the total workforce increases over time, while the share of self-employed and regular salaried workers declines. This reflects a shift towards less secure, temporary employment without social security benefits. Option 'a' is incorrect because an increase in self-employed workers does not define casualisation. Option 'c' is incorrect because moving from the informal to the formal sector is known as formalisation. Option 'd' is incorrect because the shift of the workforce from agriculture to industry is referred to as structural transformation or industrialisation.
With respect to the ‘Demographic Transition’ in India, the year 1921 is regarded as the ‘Year of Great Divide’ because:
A)
India’s population started declining after this year.
B)
Before this year, population growth was stagnant; after 1921, it began to rise consistently.
C)
The literacy rate crossed 50% for the first time.
D)
The mortality rate became higher than the birth rate permanently.
The year 1921 is known as the 'Year of Great Divide' in India's demographic history. Before 1921, India's population growth was stagnant, fluctuating, and even recorded a negative growth rate during the 1911-1921 decade due to widespread famines and epidemics (like the Spanish Flu). After 1921, improvements in sanitation and control over epidemics led to a steady decline in mortality rates while birth rates remained high, causing the population to grow consistently and rapidly.
* Why other options are incorrect:
- Option 'a' is incorrect because India's population began to rise consistently after 1921, rather than declining.
- Option 'c' is incorrect because India's literacy rate in 1921 was extremely low (under 10%) and did not cross the 50% mark until the 1991 census.
- Option 'd' is incorrect because the mortality rate declined while the birth rate remained high, which is the reason for the population increase.
SEBI regulates the:
A)
Banking system
B)
Insurance sector
C)
Cooperative banks
D)
Capital market
SEBI (Securities and Exchange Board of India) is the statutory regulatory body established in 1992 to regulate and oversee the capital market (securities market) in India, protecting the interests of investors and promoting the development of the market. The other options are incorrect because:
- The banking system (Option a) and cooperative banks (Option c) are regulated by the Reserve Bank of India (RBI).
- The insurance sector (Option b) is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
Consolidation of land holdings helps to:
A)
Increase fragmentation
B)
Reduce soil fertility
C)
Improve efficiency and reduce boundary disputes
D)
Increase tenancy
Consolidation of land holdings is a land reform measure where scattered, fragmented plots of land owned by a farmer are reorganized and merged into a single, compact block. This process improves agricultural efficiency by making it easier to use modern machinery, manage irrigation, and supervise the farm. It also reduces the number of shared borders, thereby minimizing boundary disputes among neighboring farmers. Conversely, consolidation decreases (rather than increases) fragmentation (option a), has no negative impact on soil fertility (option b), and does not aim to increase tenancy (option d).
Priority sector lending aims at providing credit to:
A)
Large industries
B)
Agriculture, MSMEs, and weaker sections
C)
Stock markets
D)
Multinational companies
Priority Sector Lending (PSL) is a mandate by the Reserve Bank of India (RBI) requiring commercial banks to allocate a specified portion of their lending to sectors that are crucial for the country's development but often struggle to get adequate timely credit. These sectors primarily include Agriculture, Micro, Small and Medium Enterprises (MSMEs), Education, Housing, Export Credit, Renewable Energy, and Weaker Sections. Large industries (Option a) and Multinational companies (Option d) are excluded because they already have robust access to domestic and international capital markets. Stock markets (Option c) represent speculative and financial trading activities, which do not qualify for priority development-oriented credit.
Capital account balance of payment records:
A)
Export earnings
B)
Foreign investment and loans
C)
Insurance receipts
D)
Remittances
The Balance of Payments (BoP) is categorized into the Current Account and the Capital Account. The Capital Account records transactions that cause a change in the assets or liabilities of a country or its government, which includes foreign investments (FDI, FPI) and external loans/borrowings. Therefore, option 'b' is correct. In contrast, options 'a' (Export earnings), 'c' (Insurance receipts), and 'd' (Remittances) are recorded in the Current Account as they represent trade in goods, services, and unilateral transfers respectively, which do not affect the asset-liability status of the country.
Which institution was established in 1982 as the apex body to coordinate the activities of all institutions involved in the rural financing system?
A)
SBI (State Bank of India)
B)
RRB (Regional Rural Bank)
C)
NABARD (National Bank for Agriculture and Rural Development)
D)
RBI (Reserve Bank of India)
NABARD (National Bank for Agriculture and Rural Development) was established on July 12, 1982, on the recommendations of the B. Sivaraman Committee. It serves as the apex development bank in India to coordinate, facilitate, and provide credit for agriculture and other economic activities in rural areas.
- SBI (State Bank of India) was established in 1955 as a public sector commercial bank, not as a specialized apex body for rural finance.
- RRBs (Regional Rural Banks) were established starting in 1975 to provide credit to rural areas, but they operate at the regional level and are not the apex coordinating body.
- RBI (Reserve Bank of India) is the central bank of India (established in 1935). It transferred its major agricultural credit functions to NABARD upon the latter's creation in 1982.
Match the economic terms in Column I with their correct definitions in Column II: Column I (Economic Terms): A. Structural Reform, B. Stabilisation Measures, C. Disinvestment, D. Devaluation Column II (Definitions): 1. Short-term measures to control inflation and correct the balance of payments, 2. Selling off part of the equity of Public Sector Enterprises to the public, 3. Long-term measures to improve the efficiency of the economy and international competitiveness, 4. Reduction in the value of domestic currency vis-à-vis foreign currency by the government.
A)
A-1, B-3, C-4, D-2
B)
A-3, B-1, C-2, D-4
C)
A-3, B-2, C-1, D-4
D)
A-4, B-1, C-2, D-3
The correct matching of the economic terms with their definitions is as follows:
1. **Structural Reform (A - 3):** These are long-term policy measures aimed at improving the efficiency of the economy and increasing its international competitiveness by removing rigidity in various sectors.
2. **Stabilisation Measures (B - 1):** These are short-term macroeconomic measures intended to correct weaknesses in the balance of payments and to keep inflation under control.
3. **Disinvestment (C - 2):** This refers to the privatization process where the government sells off a part of its equity in Public Sector Enterprises (PSEs) to the public or private sector.
4. **Devaluation (D - 4):** This is the deliberate downward adjustment of the value of a country's currency relative to another currency, group of currencies, or currency standard by the government.
This correct sequence (A-3, B-1, C-2, D-4) is represented in option **b**.
* **Option a** is incorrect because it mismatches Structural Reform with short-term measures and Disinvestment with devaluation.
* **Option c** is incorrect because it mismatches Stabilisation Measures with disinvestment and Disinvestment with short-term measures.
* **Option d** is incorrect because it mismatches Structural Reform with devaluation and Devaluation with long-term measures.
‘Deficit Financing’ in the context of the Indian budget implies:
A)
The government borrowing from the World Bank to build infrastructure.
B)
The government borrowing from the Reserve Bank of India to meet the excess of expenditure over revenue.
C)
The government selling public sector shares to private entities.
D)
The government reducing taxes to increase consumption.
In the context of the Indian budget, 'Deficit Financing' refers to the methods used by the government to finance the budgetary gap when its total expenditure exceeds its total revenue. This is primarily achieved by borrowing from the Reserve Bank of India (RBI) and drawing down its cash balances, which leads to the creation of new money. Therefore, option (b) is correct. Option (a) refers to external borrowing for specific projects rather than general deficit financing. Option (c) describes 'disinvestment' or privatization, and option (d) is a fiscal policy measure to stimulate demand, not a method of financing a deficit.
Minimum Support Price (MSP) is announced to:
A)
Promote exports
B)
Protect farmers from price fluctuations
C)
Control inflation
D)
Increase tax revenue
Minimum Support Price (MSP) is a market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. 1. Why Option B is correct: MSP is announced at the beginning of the sowing season to guarantee a floor price for crops, thereby protecting farmers from price fluctuations, market uncertainties, and distress sales during bumper harvests. 2. Why other options are incorrect: Option A is incorrect because MSP is an internal price support mechanism, not an export promotion scheme. Option C is incorrect because MSP sets a minimum price floor which can sometimes put upward pressure on food prices, rather than controlling inflation. Option D is incorrect because MSP is a government expenditure/subsidy program to support farmers, not a tool to generate tax revenue.
Disinvestment refers to:
A)
Increase in subsidies
B)
Closure of private firms
C)
Nationalization of industries
D)
Sale of government equity in public enterprises
Disinvestment refers to the process of the government selling or liquidating its shareholding/equity in public sector enterprises to private buyers or the general public. This is done to raise revenue, reduce fiscal burden, and improve efficiency. Option 'a' (increase in subsidies) is a form of government expenditure. Option 'b' (closure of private firms) is unrelated to public asset management. Option 'c' (nationalization of industries) is the exact opposite of disinvestment, where private assets are taken over by the government.
Which one of the following rivers originates from the Himalayas?
A)
Chambal
B)
Damodar
C)
Gandak
D)
Kaveri
The Gandak River is a major river that originates in the high Himalayas of Nepal (specifically from the Nhubine Himal glacier near the Tibet border) before flowing into India, where it joins the Ganges.
Why other options are incorrect:
- **Chambal (a):** It originates in the Vindhya Range near Mhow in Madhya Pradesh, which is a peninsular river system.
- **Damodar (b):** It originates in the Chota Nagpur Plateau in Jharkhand, which is also a peninsular river.
- **Kaveri (d):** It originates in the Brahmagiri hills of the Western Ghats in Karnataka, making it a major peninsular river of southern India.
Identify the correct chronological order of the following events in the Indian Economy: 1. Establishment of the Planning Commission. 2. Nationalisation of Commercial Banks. 3. Introduction of New Economic Policy (LPG). 4. Setting up of NITI Aayog.
A)
1, 3, 2, 4
B)
1, 2, 3, 4
C)
2, 1, 3, 4
D)
1, 2, 4, 3
To find the correct chronological order, we look at the years these events occurred in the Indian Economy:
1. **Establishment of the Planning Commission**: March 15, 1950.
2. **Nationalisation of Commercial Banks**: July 19, 1969 (when 14 major commercial banks were nationalised).
3. **Introduction of New Economic Policy (LPG)**: July 1991 (marking Liberalisation, Privatisation, and Globalisation reforms).
4. **Setting up of NITI Aayog**: January 1, 2015 (replacing the Planning Commission).
This gives us the chronological sequence of 1, 2, 3, 4, which corresponds to option **b**. Other options are incorrect because they do not follow this correct timeline (for instance, option 'a' places LPG before bank nationalisation, option 'c' places bank nationalisation before the Planning Commission, and option 'd' places NITI Aayog before LPG).
Which region in India is a major hub for the Iron and Steel Industry, benefiting from raw material proximity?
A)
Northern Gangetic Plain
B)
Konkan Plain
C)
Kerala Plain
D)
Chotanagpur Plateau
The Chotanagpur Plateau is the correct answer because it is highly rich in mineral resources, particularly iron ore, coking coal, manganese, and limestone, which are the essential raw materials for the iron and steel industry. Major steel plants like Jamshedpur (TISCO), Bokaro, Durgapur, and Rourkela are located in or near this region due to this proximity. In contrast, the Northern Gangetic Plain (a) is an alluvial region primarily suited for agriculture, while the Konkan Plain (b) and Kerala Plain (c) are coastal regions that lack the heavy mineral deposits required to sustain a major iron and steel hub.
The incidence of poverty refers to:
A)
Causes of poverty
B)
Depth of poverty
C)
Intensity of unemployment
D)
Proportion of population living below the poverty line
The 'incidence of poverty' (often measured by the headcount ratio) refers to the proportion of the population living below the poverty line. It indicates how widespread poverty is within a given population. In contrast, 'causes of poverty' (option a) refers to the underlying factors that lead to poverty; 'depth of poverty' (option b) measures how far below the poverty line the poor actually fall (typically measured by the poverty gap index); and 'intensity of unemployment' (option c) is an entirely different economic metric relating to the labor market.
Repo rate refers to the rate at which?
A)
Banks lend to RBI
B)
RBI lends short-term funds to banks
C)
Government borrows
D)
Public borrows from banks
Repo rate (Repurchase Option rate) is the benchmark interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks against government securities to manage liquidity in the banking system.
- Option 'a' is incorrect because the rate at which banks lend/deposit their excess funds with the RBI is called the Reverse Repo Rate.
- Option 'c' is incorrect because the rate at which the government borrows is determined by the yields on Government Securities (G-Secs) and Treasury Bills.
- Option 'd' is incorrect because the rate at which the public borrows from banks is known as the retail lending rate (such as MCLR, Base Rate, or external benchmark-linked rates).
Which of the following is a ‘Non-Tariff Barrier’?
A)
Import Duty
B)
Customs Tax
C)
Quantitative Restrictions (Quotas)
D)
Export Subsidy
A 'Non-Tariff Barrier' (NTB) refers to any measure other than a tariff (tax) that restricts international trade. Quantitative Restrictions (Quotas) limit the physical quantity of a good that can be imported into a country, making it a classic example of a non-tariff barrier. In contrast, Import Duty (a) and Customs Tax (b) are direct taxes levied on imports, which are classified as Tariff Barriers. Export Subsidies (d) are financial incentives provided to domestic producers to encourage exports, rather than a direct barrier to imports.
What is the primary function of the ‘Reserve Bank of India (RBI)’?
A)
To provide loans directly to farmers and industrialists.
B)
To issue currency and control money supply.
C)
To collect taxes on behalf of the government.
D)
To manage the stock market operations.
The Reserve Bank of India (RBI) is the central bank of India, and its primary function is to issue currency notes and control the money supply and credit in the economy to maintain price stability. Option 'a' is incorrect because the RBI does not provide direct loans to individuals; this is done by commercial and cooperative banks. Option 'c' is incorrect because tax collection is managed by the Ministry of Finance (Department of Revenue). Option 'd' is incorrect because stock market operations are regulated by the Securities and Exchange Board of India (SEBI).
With reference to the 1991 Economic Reforms, ‘Stabilisation Measures’ refer to:
A)
Long-term measures to improve the efficiency of the economy.
B)
Short-term measures to correct Balance of Payments and control inflation.
C)
Privatisation of all Public Sector Units.
D)
Removal of all trade barriers immediately.
In the context of the 1991 Economic Reforms in India, the policy measures were broadly classified into two categories: Stabilisation Measures and Structural Reform Measures.
1. **Why Option 'b' is correct:** Stabilisation measures are short-term measures intended to correct the balance of payments (BoP) crisis and bring inflation under control. They aimed to maintain sufficient foreign exchange reserves and stabilize prices.
2. **Why other options are incorrect:**
- **Option 'a'** describes 'Structural Reform Measures', which are long-term policies aimed at improving the efficiency of the economy and increasing international competitiveness.
- **Option 'c'** is incorrect because the privatisation of Public Sector Units (PSUs) was a gradual process under structural reforms, not a stabilisation measure.
- **Option 'd'** is incorrect because trade barriers were reduced gradually over time under liberalisation (structural reforms), rather than being removed immediately.
Which one of the following is the largest container port in India?
A)
Kochi
B)
Vishakhapatnam
C)
Mangalore
D)
Nhava Sheva, Mumbai
Nhava Sheva (also known as Jawaharlal Nehru Port, JNPT), located in Navi Mumbai, Maharashtra, is the largest container port in India, handling more than half of the container cargo across all major ports in the country. Kochi (a) is known for its International Container Transshipment Terminal at Vallarpadam but handles far less volume than JNPT. Vishakhapatnam (b) is a major port on the east coast primarily known for bulk cargo like iron ore and coal. Mangalore (c) is a major port in Karnataka that mainly handles bulk and liquid cargo rather than large-scale container traffic.
Which of the following best defines ‘Worker-Population Ratio’?
A)
The number of people unemployed divided by total population.
B)
The number of persons employed per 100 persons in the population.
C)
The ratio of male workers to female workers.
D)
The ratio of workers in the industrial sector to those in agriculture.
The Worker-Population Ratio (WPR) is a key indicator used to analyze the employment situation in a country. It is defined as the percentage of the total population that is actively employed, calculated as: (Number of Employed Persons / Total Population) * 100. Therefore, it represents the number of persons employed per 100 persons in the population. Option 'a' is incorrect because it refers to unemployment rather than employment. Options 'c' and 'd' are incorrect as they describe the gender ratio of workers and the sectoral distribution of workers, respectively, rather than the overall worker-to-population ratio.