Target Prelims 2023 Current Affairs Crash Course

Indian Economy-1
Q.1 the event of a country falling into recession which of the following are likely
measures to be taken
1. Increasing interest rates
2. Reducing capital expenditure
3. Increasing flow of credit
4. Increasing tax rate

Choose the correct option

a. Only 3
b. 1, 2 and 3
c. 2 and 3
d. 1, 2, 3 and 4

Q.2 The GDP of a country grows by 10% compared to last year. Which of the
following are guaranteed outcomes
1. Number of poor people has reduced
2. Everyone in the economy is earning more
3. The sum total of market price of final goods and services has increased
4. The exports have increased

Choose the correct option

a. Only 3
b. 1, 2 and 3
c. 2 and 3
d. 1, 2, 3 and 4

Q.3 ICOR of an economy has decreased. Which of the following may be factors
behind it
1. Adoption of better or efficient technology
2. Higher Skilled labour availability
3. Investments have become capital intensive

Choose the correct option

a. Only 1
b. 1 and 2
c. 1, 2 and 3
d. 2 and 3
Q.4 Let’s say milk has a Price Elasticity of Demand (PED) is around 0.5 it indicates that
milk has

a. Very high elastic demand

b. Unitary elastic demand
c. Inelastic demand
d. None of the above

Q.5 Consider the following statements about PCI

1. PCI in real terms has almost doubled in last 8 years
2. As per the latest data, the PCI in real terms is ₹ 1.72 lakh

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.6 Which of the following are attributable to black swan events

1. These keep recurring hence easy to make models for them
2. These have huge consequences
3. These can be either positive or negative

Choose the correct option

a. Only 2
b. 1, 2 and 3
c. 2 and 3
d. 1 and 3

Q.7 Consider the following statements

1. India’s is the 5th largest economy in terms of GDP, when measured in nominal terms
2. The top five largest countries in terms of GDP account for over half of the global GDP
3. India accounts for around 3.5% of global GDP

Which of the above statement/s is/are true

a. Only 1
b. Only 1 and 3
c. 1, 2 and 3
d. Only 2 and 3
Q.8 Consider the following statements regarding inflation
1. WPI has a higher weight for food commodities compared to CPI
2. Narrowing gap between WPI and CPI may indicate that the impact of spillover
effects may be nearing completion

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.9 Choose the correct option

The inflation rate in an economy is very high, what policy should the central banker
adopt in such situation which gives priority to controlling inflation
a. Neutral stance
b. Hawkish stance
c. Dovish stance
d. None of the above

Q.10 Which of the following may contribute cost push inflation

1. Higher crude prices
2. Rising temperatures
3. Rising fodder prices
4. Duty free imports of edible oils

Choose the correct option

a. 1 and 2
b. 1, 3 and 4
c. 1, 2 and 3
d. 1, 2, 3 and 4

Q.11 Which of the following are the outcomes of higher inflation

1. Export competitiveness will increase
2. Will attract very high foreign investments
3. Increased purchasing power
4. Lowering of real rate of returns

Choose the correct option

a. Only 4
b. 1, 3 and 4
c. 1, 2 and 3
d. 1, 2, 3 and 4
Q.12 Which of the following published World Food Price Index

a. World Bank
b. IMF
c. RBI
d. FAO

Q.13 Consider the following statements regarding disinflation

1. The contractionary monetary or fiscal policy may cause disinflation
2. Disinflation is always accompanied by recession

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.14 Which of the following measures have been taken by the government in recent
past to control inflation
1. Invoking the ECA
2. Increased the excise duty on fuels
3. Duty-free imports of crude soyabean and crude sunflower oil
4. Export limits on sugar
5. Increased subsidy on fertiliser and LPG under UJJWALA yojana

Choose the correct option

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

Q.15 Which of the following may cause imported inflation in India

1. War between Russia and Ukraine
2. OPEC deciding to cut oil production
3. Federal Tapering

Choose the correct option

a. Only 1
b. 1 and 2
c. 2 and 3
d. 1, 2 and 3
Q.16 Consider the following regarding the MPC (Monetary Policy Committee)
1. It needs a quorum of at least 5 members
2. It needs to meet at least once every two months
3. Recommendation of a MPC was given by FSLRC

Which of the above statement/s is/are incorrect

a. Only 1
b. 1 and 2
c. 2 and 3
d. 1, 2 and 3

Q.17 Consider the following statements

1. Section 45ZN of RBI act 1934 discussed duty of RBI in case of failure to maintain
inflation rates
2. The report/note submitted by the RBI governor in case of failure to maintain
inflation rates must be discussed and voted in the parliament

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.18 Consider the following statements regarding the Essential Commodities Act
1. Section 2(A) states that an “essential commodity” means a commodity specified in
the Schedule of the Act
2. Under the act, the power of including or excluding the commodities has been
given to the parliament

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.19 Which of the following publishes Cost Inflation Index

a. NSO
b. Labour Bureau
c. RBI
d. Income Tax Department
Q.20 Consider the following statements regarding the CPI-AL
1. Published by NSO
2. Is used to adjust the wages under NREGS
3. The base year for the index is 2011-12

Which of the above statement/s is/are true

a. 1 and 3
b. Only 2
c. 2 and 3
d. 1, 2 and 3

Q.21 Considering the the recent situation in the world economy which of the
following may cause wage price spiral
1. People choosing to quit jobs
2. Covid like pandemic
3. Trade unions demanding higher wages

Choose the correct option

a. 1 and 3
b. Only 2
c. 2 and 3
d. 1, 2 and 3

Q.22 Which of the following means sticky inflation

a. Economy is experiencing deflation

b. Economy is experiencing volatility in inflation
c. The inflation rate is taking longer than expected time to slow down
d. None of the above

Q.23 Consider the following

The economy experiences a sharp decline and then recovers slowly – Such recovery is
referred to as ________________
a. K-shaped
b. V- shaped
c. W-shaped
d. U-shaped

Q.24 Which of the following will affect the yields of G-sec

1. Monetary policy
2. Fiscal policy
3. Expectations of the slowdown/recession

Choose the correct option

a. 1 and 3
b. Only 2
c. 2 and 3
d. 1, 2 and 3
Q.25 Consider the following regarding Retail Direct Gilt Scheme
1. It is available for the retail and institutional investors
2. It will provide access to primary issuance of the G-sec
3. Under this the investors can purchase the state and central government securities

Which of the above statement/s is/are true

a. 1 and 3
b. Only 2
c. 2 and 3
d. 1, 2 and 3

Q.26 Consider the following statements regarding the One Nation One Ombudsman
1. This has been introduced to resolve the customer complaints in the stock market
2. It is based on one portal, one email and one address

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.27 Consider the following statements regarding Trickle down theory

1. It is a theory focusing on supply side economics
2. As per this theory, the benefits flow down to others in economy

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

Q.28 Consider the following statements regarding inverted yield

1. It represents a situation wherein the yield rates on short term g-securities is lower
than the long-term g-sec
2. This usually is used as an indicator of recession

Which of the above statement/s is/are true

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2