Union Public Service Commission(UPSC) Previous Years Questions and Answers

1 .

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

A)

To lessen the Government of India's perennial burden of fiscal deficit and current account deficit

B)

To support the infrastructure projects of Central and State Governments

C)

To act as independent regulator in case of applications for loans of Rs. 50 crore or more

D)

To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

Correct Answer : Option (D) - To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

Note :

The agreement, known as Inter-Creditor Agreement (ICA) was framed under the aegis of the Indian Banks' Association and follows the recommendations of the Sunil Mehta Committee on stressed asset resolution. ICA is an agreement among banks that have dues from a borrower in the stress.

Source : The Hindu

Year : 2019

Category : Economy

2 .

The Chairmen of public sector banks are selected by the

A)

Banks Board Bureau

B)

Reserve Bank of India

C)

Union Ministry of Finance

D)

Management of concerned bank

Correct Answer : Option (A) - Banks Board Bureau

Note : The Chairmen of public sector banks are selected by the BBB(Banks Board Bureau) and appointed by the Finance Ministry. On the recommendation of the BBB, the Appointment Committee of Cabinet takes the final decision.

Source : Economic Times

Year : 2019

Category : Economy

3 .

Consider the following statements :

1. Petroleum and Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.

2. One of the tasks of PNGRB is to ensure competitive markets for gas.

3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.

Which of the statements given above are correct?

A)

1 and 2 only

B)

2 and 3 only

C)

1 and 3 only

D)

1, 2 and 3

Correct Answer : Option (B) - 2 and 3 only

Note :

TRAI is the first independent regulatory body set up by the government of India. Source : OECD

Vision of PNGNRB : "To create a vibrant energy market with rapid and orderly growth through facilitation of flow of investments into the basic infrastructure for efficient transportation and distribution of petroleum, petroleum products and natural gas at minimum cost and high level of protection of consumer interests through fair trade practices and competition amongst the entities so as to ensure the enhanced competitiveness of Indian economy and customer satisfaction."So Statement 2 is correct.

Section 30 (1) of the PGNRB Act : Subject to the provisions of this Act, the Appellate Tribunal established under section 110 of the Electricity Act, 2003 (36 of 2003) shall be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act. So statement 3 is correct.

Year : 2019

Category : Economy

4 .

Which one of the following is not a sub-index of the World Bank's 'Ease of Doing Business Index'?

A)

Maintenance of law and order

B)

Paying taxes

C)

Registering property

D)

Dealing with construction permits

Correct Answer : Option (A) - Maintenance of law and order

Note :

A nation's ranking on the index is based on the average of 10 subindices :

• Starting a business – Procedures, time, cost and minimum capital to open a new business

• Dealing with construction permits – Procedures, time and cost to build a warehouse

• Getting electricity – procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse

• Registering property – Procedures, time and cost to register commercial real estate

• Getting credit – Strength of legal rights index, depth of credit information index

• Protecting investors – Indices on the extent of disclosure, extent of director liability and ease of shareholder suits

• Paying taxes – Number of taxes paid, hours per year spent preparing tax returns and total tax payable as share of gross profit

• Trading across borders – Number of documents, cost and time necessary to export and import

• Enforcing contracts – Procedures, time and cost to enforce a debt contract

• Resolving insolvency – The time, cost and recovery rate (%) under bankruptcy proceeding

Source : World Bank Website

Year : 2019

Category : Economy

5 .

Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

A)

Spices

B)

Fresh fruits

C)

Pulses

D)

Vegetable oils

Correct Answer : Option (D) - Vegetable oils

Note : India is known to export spices to the world. Some fruits we import while some we export but horticultural trade is not a huge portion of the import bill. India has started importing pulses with long term contractual obligations in past few years but India also produces quite a large amount of pulses itself. Moreover, pulses are not very costly compared to other high end agricultural products.

Thus, logically, it should be vegetable oils. India imports huge amount of and various types of vegetable oil from many countries. India relies on imports for almost 70% of its vegetable oil consumption. India‘s import bill of vegetable oil has been surging for past many years.

Year : 2019

Category : Economy

6 .

The Global Competitiveness Report is published by the

A)

International Monetary Fund

B)

United Nations Conference on Trade and Development

C)

World Economic Forum

D)

World Bank

Correct Answer : Option (C) - World Economic Forum

Note : The Global Competitiveness Report is a yearly report published by the World Economic Forum. Since 2004. Itranks countries based on the Global Competitiveness Index.

Year : 2019

Category : Economy

7 .

In a given year in India, official poverty lines are higher in some States than in others because

A)

poverty rates vary from State to State

B)

price levels vary from State to State

C)

Gross State Product varies from State to State

D)

Quality of public distribution varies from State to State

Correct Answer : Option (B) - price levels vary from State to State

Note : Poverty line depends upon income profile of the population vis-à-vis cost of standard basket of consumption. Thus, it is a function of cost of consumption basket which varies from state to state. It is not related to GSDP or quality of public distribution services.

Year : 2019

Category : Economy

8 .

Consider the following statements :

1. Coal sector was nationalized by the Government of India under Indira Gandhi.

2. Now, coal blocks arc allocated on lottery basis.

3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is selfsufficient in coal production.

Which of the statements given above is/are correct?

A)

1 only

B)

2 and 3 only

C)

3 only

D)

1, 2 and 3

Correct Answer : Option (A) - 1 only

Note : Indira Gandhi nationalised all coal mining blocks in early 1970s. Right to extract coal from demarcated blocks is offered on the basis of auction, not lottery. Despite having large reserves of coal, Indian coal quality is not very good. Also, the supply lines are not very efficient and thus many power plants in India import coal. Eg Indonesia supplies thermal coal to power plants run by Tatas and Adanis. Thus, India is not self-reliant in coal production.

Year : 2019

Category : Economy

9 .

The money multiplier in an economy increases with which one of the following?

A)

Increase in the cash reserve ratio

B)

increase in the banking habit of the population

C)

Increase in the statutory liquidity ratio

D)

Increase in the population of the country

Correct Answer : Option (B) - increase in the banking habit of the population

Note : In fractional banking system, money multiplier is a key element. As more people start banking and depositing money into banks, banks can lend even more. It thus creates more money in the system.

Year : 2019

Category : Economy

10 .

In India, 'extended producer responsibility' was introduced as an important feature in which of the following?

A)

The Bio-medical Waste (Management and Handling) Rules, 1998

B)

The Recycled Plastic (Manufacturing and Usage) Rules, 1999

C)

The e-Waste (Management and Handling) Rules, 2011

D)

The Food Safety and Standard Regulations, 2011

Correct Answer : Option (C) - The e-Waste (Management and Handling) Rules, 2011

Note :

The e-Waste (Management and Handling) Rules, 2011 recognises producers‘ liability for recycling and reducing e-waste in the country. It introduced 'extended producer responsibility', that is, the responsibility of producers of electronic equipment for effective channelisation of E-waste to the registered recyclers.

Year : 2019

Category : Economy