TSPSC - Group-2 – GRAND TEST (PAPER-II) (19-03-2023)

like the Gross Domestic Product (GDP),

Wholesale Price Index (WPI).
1) Consider the following statements about
● In India, IIP is a representative figure which
Index of Industrial Production (IIP):
measures the general level of Industrial
1. It measures the short-term changes in the
activity in the country. As IIP shows the status
volume of production of a basket of industrial
of industrial activity, one can find out if the
products during a given period.
industrial activity has increased, decreased or
2. It shows the volume of industrial activity.
remained the same. Being an abstract
3. The base year for IIP has been revised from
number, it does not show volume of activity
2004-05 to 2011-12.
and only shows the magnitude which
Which of the above statements are correct?
represents the status of production in the
(a) 1 and 2 Only
industrial sector for a given period of time as
(b) 1 and 3 Only
compared to a reference period of time.
(c) 2 and 3 Only
(d) 1, 2 and 3
Answer: B
2) What does the BIFR (Board for Industrial and
Explanation:
Financial Reconstruction) deal with?
Index of Industrial Production (IIP)
(a) Revival of sick industries.
● It measures the short-term changes in the
(b) Privatization of the public sector.
volume of production of a basket of industrial
(c) Approval to use of foreign capital in Indian
products during a given period with reference
industries.
to the chosen base year.
(d) Financing large scale private industries.
● Being an abstract number, it does not show
Answer: A
volume of activity and only shows the
Explanation:
magnitude which represents the status of
● The Board for Industrial and Financial
production in the industrial sector for a given
Reconstruction (BIFR) is a statutory authority
period of time as compared to a reference
established under The Sick Industrial
period of time.
Companies (Special Provisions) Act, 1985
● The Central Statistics Office (CSO), Ministry of
(SICA). The board was set up in January 1987
Statistics and Program Implementation has
.It works under the Department of Financial
revised the base year of the all-India Index of
Services of the Ministry of Finance.
Industrial Production (IIP) from 2004-05 to
● Its objective was to determine sickness of
2011-12 to not only reflect the changes in the
industrial companies and to assist in reviving
industrial sector but to also align it with the
those that may be viable and shutting down
base year of other macroeconomic indicators
the others.

KPIAS (1-B) CELL: 9133237733

 ● India is Infrastructure Finance Co. Ltd (IIFCL)
the main marketer of a credit enhancement
3) Disinvestment is: guarantee fund, announced in the 2016- 17
(a) Offloading of shares of private companies to budget. It will help to attract long- term
government investments particularly from global
(b) Offloading of government shares to private insurance, pension & sovereign wealth funds.
companies
(c) Increase in investment
(d) Closing down of business
Answer: B 5) The largest source of revenue for Britishers in India
Explanation: was from ______?
Disinvestment is a process in which offloading of (a) Textile and Jute Industry
government shares is done to private (b) Gems and Stone Industry
companies. A company or government (c) Temple Tax
organization will divest an asset or subsidiary (d) Land revenue
as a strategic move for the company planning Answer: D
to put the proceeds from the divestiture to Explanation:
better use that garners a higher return on The largest source of Revenue for Britishers in India
investment. was from Land revenue. Three major systems
of land revenue collection existed in India -
Zamindari, Ryotwari and Mahalwari.
4) Which of the following statements is/are correct
regarding Credit Enhancement Guarantee
Fund? 6) When was the first modern paper mill of the
1. It will enhance the credit rating of bonds issued by country set up?
infrastructure firms. (a) 1827
2. It will help to attract short-term investments (b) 1812
particularly from global insurance and (c) 1846
sovereign wealth funds. (d) 1854
3. The main promoter of the fund is India Answer: B
Infrastructure Finance Co. Ltd (IIFCL). Explanation:
Select the correct answer using the code given below: Paper and Paper Board is a forest-based industry. In
(a) 1 and 2 only 1812 the first modern paper mill of the
(b) 2 and 3 only country was set up at Serampore in West
(c) 1 and 3 only Bengal
(d) 1, 2 and 3
Answer: C
Explanation: 7) Which unit of the Hindustan Copper Ltd is the first
Credit Enhancement Guarantee Fund: copper smelting unit in India?
● It will improve the credit rating of bonds (a) Malanjkhand Copper Project (MP)
issued by infrastructure firms. (b) Khetri Copper Complex (Rajasthan)
● It is a long term initiative as large (c) Indian Copper Complex (Jharkhand)
infrastructure projects have long gestation (d) Taloja Copper Project (Maharashtra)
projects and give returns slowly. Answer: A
Explanation:

KPIAS (2-B) CELL: 9133237733

● Malanjkhand Copper Project was established
in 1982. Initial project has been set up by
Hindustan Copper Ltd to exploit the copper
ore through an open pit mine.
● Khetri Copper complex (1967): It is developed
& mainted by Hindustan copper ltd.
● Indian copper complex (1930): Process plant
to produce 19000 TPA of referred copper.
● Taloja copper project (1989): Plant to
produce 60,000 TPA of continuous cast wire
rod.
8) Kuwait’s biggest Mobile Telecommunication
Company known as Zain has been bought
by—
(a) Bharti Airtel
(b) Reliance Communication
(c) Vodafone
(d) Aircel
Answer: A
Explanation:
Bharti Airtel has acquired Zain Telecom’s African
assets in a $10.7 billion deal. The acquisition
of Zain assets will give the Indian mobile
market leader a footprint in 15 African
countries.
Answer: D
Explanation:
The correctly matched pairs are : Mundra SEZ —
Adani Group, CMC Ltd. — Tata Group
10) In the latest budget, there is a major focus on
infrastructure development. In response to
the pandemic ravaged economy, it is seen as:
(i) Demand side response
(ii) Supply side response
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
When Govt. spends on infrastructure then in the
short term it leads to employment generation
to construct the infrastructure which puts
money in the hands of people leading to
increased demand and it also increases the
demand through the materials like steel,
cement etc. In the medium to long term,
because of better infrastructure supply
constraints are removed and the economy
becomes more efficient and cost of
production reduces.

9) Which of the following pairs are correctly

matched?
Enterprise - Industrial Group 11) Consider the following statements:
1. VSNL - Bharti Group (i) Retail and wholesale trade are now classified as
2. Mundra SEZ - Adani Group MSME enterprises
3. CMC Ltd. - Tata Group (ii) Retail and wholesale trade are treated as MSME
4. IPCL - Reliance Group enterprises only for availing priority sector
Select the correct answer using the codes given lending benefits
below: (iii) Street vendors can register on Udyam
(a) 1, 2 and 3 Registration Portal and avail the benefits of
(b) 3 and 4 priority sector lending
(c) 1, 2 and 4 Select the correct answer using the code given below:
(d) 2, 3 and 4 (a) (i) only

KPIAS (3-B) CELL: 9133237733

(b) (ii) & (iii) only
(c) (ii) only
(d) (i) & (iii) only
Answer: B
Explanation:
● MSMEs can register themselves on the
Udyam Registration Portal and are allocated a
unique “Udyam Registration Number” which
enables MSMEs to seek information and
apply online about various services being
offered by all Ministries and Departments.
● Recently, the retail and wholesale trade was
included as MSMEs and they are allowed to
be registered on the Udyam Registration
Portal. However, the benefits to retail and
wholesale trade MSMEs are to be restricted
to Priority Sector Lending only.
● In this regard, now, street vendors can also
register as retail traders on Udyam
Registration portal and avail the benefit of
priority sector lending.
12) Which of the following statements are true
regarding the ‘National Monetization
Pipeline’?
(i) Plans for monetization of core assets of central
government and central PSUs
(ii) The pipeline has been developed by Dept. of
Investment and Public Asset Management in
consultation with Infrastructure ministries
(iii) Focuses on privatization of brownfield projects
Select the correct answer using the code given below:
(a) (i) only
(b) (i) & (ii) only
(c) (ii) & (iii) only
(d) (i) & (iii) only
Answer: A
Explanation:
● NMP estimates aggregate monetization
potential of Rs 6.0 lakh crores through core
assets of the Central Government and Central
Public Sector Enterprises, over a four-year
period, from FY 2021-22 to FY 2024-25.
KPIAS (4-B)
● The pipeline has been developed by NITI
Aayog, in consultation with infrastructure line
ministries.
● Modality of such unlocking is envisaged to be
by way of structured contractual agreements
(PPP agreements/concessions) as against
complete privatization and through
Infrastructure Investment Trusts (InvIT).
Assets would be handed back to the Govt. at
the end of the contract/transaction period.
13) Consider the following statements:
(i) Private Label products are sold under the name of
specific retailers
(ii) White Label products are sold by multiple sellers
under their brand
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
● A private Label/brand is a good that is
manufactured for and sold under the name of
a specific retailer. A private label product is
developed for a specific seller and sold
exclusively under that seller's brand.
● A white label product is developed by a
manufacturer and distributed to multiple
sellers. Each seller can then apply its name
and packaging and resell the product under
the seller's brand.
14) Consider the following statements regarding
“National Pharmaceuticals Pricing Authority”
(NPPA):
(i) It is under ministry of health and family welfare
(ii) It fixes/revises the prices of controlled drugs
(iii) It implements the provisions of Drug Price Control
Order (DPCO)
Select the correct answer using the code given below:
(a) (i) only
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(b) (i) & (iii) only
(c) (ii) & (iii) only
(d) (i) & (iii) only
Answer: C
Explanation:
● Drug Price Control Orders (DPCOs) are issued
by the Government, in exercise of the powers
conferred under section 3 of the Essential
Commodities Act 1955 to ensure that the
medicines listed under National List of
Essential Medicines (NELM) are available at a
reasonable price to the general public.
● The National List of Essential Medicines
(NELM), prepared by the Ministry of Health
and Family Welfare, is a list of medicines
considered essential and high priority for
India’s health needs. It is based on aspects
like prevalence of disease in the population,
safety and efficacy of the medicine, and
current affordability.
● NPPA is responsible for fixing and revising the
prices of pharmaceutical products and
availability of the medicines in the country as
well as the enforcement of DPCO.
15) Consider the following statements regarding
"Invest India":
(i) It is a non-profit agency
(ii) It is an agency under Dept. of Economic Affairs
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: A
Explanation:
● "Invest India" is the National Investment
Promotion and Facilitation Agency of India
and acts as the first point of reference for
investors in India. Invest India is set up as a
nonprofit venture under the Department for
Promotion of Industry and Internal Trade
KPIAS (5-B)
(DPIIT), Ministry of Commerce and Industries,
Government of India.
● Invest India is transforming the country’s
investment climate by simplifying the
business environment for investors. Its
experts, specializing across different
countries, Indian states and sectors,
handhold investors through their investment
lifecycle from pre-investment to after-care.
Invest India’s specialists provide multiple
forms of support such as market entry
strategies, deep dive industry analysis,
partner search and location assessment, and
policy advocacy with decision makers.
16) The term “Open access” in electricity means
which of the following:
(a) Consumers have access to the transmission and
distribution network to obtain electricity
from the suppliers of their choice
(b) Consumers can choose the distribution company
of their choice
(c) Any consumer of electricity can also generate
electricity from their own resource and can
feed on to the distribution network.
(d) Distribution companies can choose from which of
the power producers they want to purchase
power without government interference
Answer: A
Explanation:
Open access is the non-discriminatory use of
transmission and distribution infrastructure
of the licensees by consumers for procuring
electricity from the source of their choice.
17) Which of the following statements are true
regarding “Swiss challenge”?
(a) It is a game
(b) It is a method of awarding projects by the
government
(c) It is related to lottery business
(d) None of the above
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Answer: B
Explanation:
A Swiss challenge is a form of public procurement
operated in some jurisdictions, which
requires a public authority which has
received an unsolicited bid for a public
project, or for services to be provided to the
government, to publish the bid and invite
third parties to match or better it.
18) Arrange the following in the correct chronological
order i.e. the one which was established as a
statutory body should come first in the order.
(i) Pension Fund Regulatory Development Authority
(PFRDA)
(ii) Insurance Regulatory and Development Authority
of India (IRDAI)
(iii) Securities and Exchange Board of India (SEBI)
Select the correct answer using the code given below:
(a) (ii) - (i)- (iii)
(b) (iii) – (ii) – (i)
(c) (i) – (ii) – (iii)
(d) (ii) – (iii) – (i)
Answer: B
Explanation:
● The Securities and Exchange Board of India
was established on April 12, 1992 in
accordance with the provisions of the
Securities and Exchange Board of India Act,
1992.
● As per the section 4 of IRDAI Act 1999,
Insurance Regulatory and Development
Authority of India (IRDAI) was constituted (in
2000) by an act of parliament, Insurance
Regulatory and Development Authority Act
1999.
● The Pension Fund Regulatory Development
Authority (PFRDA) Act was passed in
September, 2013 and the same was notified
on 1st February, 2014. PFRDA regulates the
National Pension System, subscribed by
employees of Govt. of India, State
KPIAS (6-B)
Governments and by employees of private
institutions, self-employed professionals and
unorganized sectors.
19) What do you understand about the term “Circular
Economy” often seen in the news?
(a) It refers to an industrial system that is restorative
or regenerative in nature
(b) It refers to the cyclical booms and recession in an
economy
(c) It refers to a “Closed Economy” that primarily
relies on internal trade
(d) It refers to a system in which there is Cyclical
correlation between savings and investment
Answer: A
Explanation:
A circular economy is an industrial system that is
restorative or regenerative by intention and
design. It replaces the end-of-life concept
with restoration, shifts towards the use of
renewable energy, eliminates the use of toxic
chemicals, which impair reuse and return to
the biosphere, and aims for the elimination of
waste through the superior design of
materials, products, systems and business
models.
20) Consider the following statements:
(i) Nuclear energy generation capacity share is less
than 10%
(ii) Renewable energy generation capacity share is
more than 25%
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
Generation Capacity from various sources:
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● Coal - 55%
● Gas - 6.5%
● Nuclear - 1.8%
● Renewable (Hydro, Solar, Wind) - 36.7%
21) Consider the following statements:
(i) Renewable Energy Certificates (REC) are traded on
Indian Energy Exchange and Power Exchange
of India
(ii) Ministry of Power in consultation with ministry of
New and Renewable Energy sets target every
year for Renewable Purchase Obligation
(RPO) for all States/UTs
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
Once a Renewable Power Generator/provider has fed
the energy generated into the electricity grid,
he receives REC (which can then be sold on
the open market as an energy commodity).
RECs are a market-based instrument which
certifies that the bearer (holder of REC) owns
one megawatt-hour (MWh) of electricity
generated from a renewable energy
resource. RECs are proof that energy has
been generated from renewable sources such
as solar or wind power etc. When someone
purchases RECs, renewable energy is
generated on his/her behalf. RECs can go by
many names, including Green tag, Tradable
Renewable Certificates (TRCs), Renewable
Electricity Certificates, or Renewable Energy
Credits.
22) Consider the following statements:
KPIAS (7-B)
(i) Indian Gas Exchange is a wholly owned subsidiary
of Indian Energy Exchange
(ii) Indian Gas Exchange is an online delivery-based
gas trading platform
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
● Indian Gas Exchange (IGX) is the first
nationwide online delivery-based gas trading
platform launched on 15th June 2020.
● IGX is a non-govt, unlisted company and is a
wholly owned subsidiary of Indian Energy
Exchange (IEX).
● IGX platform for natural gas has opened a
new chapter in the energy history of India
and will help the nation move towards free
market pricing of natural gas.
23) Consider the following statements regarding
‘National Investment and Infrastructure Fund’
(NIIF):
(i) It is meant for both greenfield and brownfield
project
(ii) It will invest into infrastructure projects and
infrastructure financing companies
(iii) It will raise funds from both domestic and
international sources
Select the correct answer using the code given below:
(a) (ii) only
(b) (ii)& (iii) only
(c) (iii) only
(d) All of the above
Answer: D
Explanation:
Government established NIIF in 2015 with the aim to
attract investment from both domestic and
international sources for funding
commercially viable Greenfield, Brownfield
and stalled projects in the infrastructure
sector. NIIF has been formed as a trust and is
registered with SEBI under Category II of
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 Alternative Investment Fund (for tax benefit).
It is basically a quasi-sovereign wealth fund as
the government holds only 49% ownership.
NIIF will get funds from:
● Overseas sovereign/quasi-sovereign/
multilateral/bilateral investors through
equity. Cash rich central PSU, provident
funds, insurance funds can also invest in NIIF
over and above Govt. of India share.
● Market borrowings (debt).
NIIF will invest in:
● Infrastructure projects through equity and
debt both; and
● Non-Banking Financial Companies (NBFCs)
and Financial Institutions (FIs) involved in
infrastructure financing through equity
24) Which of the following statements are true
regarding Universal Service Obligation Fund
(USOF)?
(i) This fund is under Dept. of Telecommunication
(ii) This fund is used to provide ICT services in rural
and remote areas
(iii) This fund is created out of the budgetary
resources of Govt. of India
Select the correct answer using the code given below:
(a) (i) only
(b) (i) & (ii) only
(c) (iii) only
(d) (ii) & (iii) only
Answer: B
Explanation:
● Universal Service Obligation Fund (USOF) is
the pool of funds generated by 5% Universal
Service Levy that is charged upon all the
telecom fund operators on their Adjusted
Gross Revenue (AGR). This fund is deposited
in the Consolidated Fund of India and is
dispatched on the approval of the Indian
Parliament.
● The USOF comes under the Indian Telegraph
Act 1885. The act was amended in 2003 to
give statutory status to the fund. The
Department of Telecommunications, Ministry
KPIAS (8-B)
of Communications governs the fund and
related provisions.
● The aim of USOF is to provide a balance
between the provision of Universal Service to
all uncovered areas, including the rural areas.
25) Consider the following statements regarding the
SFURTI scheme:
(i) It is implemented by ministry of MSME
(ii) It promotes cluster-based development
Select the correct answer using the code given below:
(a) (i) only
(b) (ii) only
(c) Both (i) & (ii)
(d) Neither (i) nor (ii)
Answer: C
Explanation:
The Ministry of MSME is implementing a ‘Scheme of
Fund for Regeneration of Traditional
Industries’ (SFURTI) Scheme under which
financial support is being provided for setting
up of traditional industries clusters viz. Khadi,
Coir & Village industries clusters.
26) Which of the following statements are true with
reference to Special Economic Zones (SEZ)?
(i) SEZ units may import/procure goods and services
from Domestic Tariff Area (DTA) without
payment of customs/import duty
(ii) Customs duty is imposed on sale from SEZ to DTA
(iii) SEZ units should be net foreign exchange earners
Select the correct answer using the code given below:
(a) (i) only
(b) (i) & (iii) only
(c) (iii) only
(d) All of the above
Answer: D
Explanation:
● “Domestic Tariff Area” (DTA) means the
whole of India (including the territorial
waters and continental shelf) but does not
include the areas of the Special Economic
Zones (SEZs).
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● “Special Economic Zone” (SEZ) is a specifically
delineated duty-free enclave and shall be
deemed to be foreign territory for the
purposes of trade operations and duties and
tariffs.SEZ units may be set up for
manufacture of goods and rendering of
services. Goods and services going into the
SEZ area from DTA shall be treated as exports
and goods coming from the SEZ area into DTA
shall be treated as if these are being
imported.
27) Which of the following agencies / ministry
regulates tariffs for aeronautical services at
major airports?
(a) Airport Authority of India (AAI)
(b) Airport Economic Regulatory Authority (AERA)
(c) Directorate General of Civil Aviation (DGCA)
(d) Ministry of Civil Aviation
Answer: B
Explanation:
The Airports Economic Regulatory Authority (AERA) is
a statutory body constituted under the
Airports Economic Regulatory Authority of
India Act, 2008 with its head office at Delhi.
28) Consider the following statements regarding the
‘Emergency Credit Line Guarantee Scheme’
launched under the Atma Nirbhar Bharat
package:
(i) Its focus is on MSMEs
(ii) Government agencies will provide credit
guarantee
(iii) It is a pre approved loan scheme
Select the correct answer using the code given below:
(a) (i) & (ii) only
(b) (ii) & (iii) only
(c) (i) & (iii) only
(d) All of the above
Answer: D
Explanation:
KPIAS (9-B)
● Emergency Credit Line Guarantee (ECLG)
scheme is a loan facility for which 100%
guarantee would be provided by National
Credit Guarantee Trustee Company (NCGTC)
to Banks/NBFCs/Financial Institutions for
lending to MSMEs.
● It is extended in the form of additional
working capital/term loan facility to
MSMEs/Pradhan Mantri Mudra Yojana
borrowers/Self employed/ Professions who
have taken loans for business purposes.
● This facility is available to those who have
already borrowed but have not been able to
repay their outstanding (yet to be paid) loan.
● It is a pre-approved loan (you will be asked to
take loan and if you do not want you can opt
out) and hence no processing charges and no
collateral will be required from the
borrowers.
● This scheme is being widened to include
various other businesses and no need to mug
up all the facts and figures. Just understand
basic things
29) Consider the following statements regarding the
philosophy of Atma Nirbhar Bharat:
(i) It promotes self sufficiency through import
substitution
(ii) Producing goods where we have comparative
advantage and importing goods where we do
not have that advantage
(iii) Liberalizing the economy and giving more space
to the private sector
(iv) Restricting foreign capital
Select the correct answer using the code given below:
(a) (i) & (iii) only
(b) (ii) & (iii) only
(c) (ii), (iii) & (iv) only
(d) (i) & (iv) only
Answer: B
Explanation:
Atmanirbhar Bharat should not merely be a classical
import substitution policy that focusses just
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 on increasing domestic production; the d. 1, 2 and 3
emphasis should be on producing globally Ans: B
competitive products domestically and it • It is conducted every 10 years since 1872.
wont restrict foreign capital. • Census 2011 was the 15th census of India &
7th census after Independence.
• The motto of census 2011 was “Our Census,
Our future”.

30) In Aatma Nirbhar Bharat, the economy has to

move from ‘command and control’ to ‘plug 32. Consider the following statements about the
and play’. In this statement, ‘plug and play’ phases in the 15th Indian census:
refers to: 1. The 15th Indian Census was conducted in two
(a) Government will be playing a leading role in the phases, house listing and population
economic growth process enumeration.
(b) Government will provide policy and other support 2. Information for National Population Register
to pull-in private sector (c) Government will (NPR) was also collected in the first phase
provide red carpet for foreign investors 3. 2011 marks the first time biometric
(d) Government will provide digital infrastructure for information was collected
the economy Select the correct codes:
Answer: B a. 1 and 2 only
Explanation: b. 2 and 3only
Addressing the 95th annual plenary session of the c. 1 and 3 only
Indian Chamber of Commerce in Kolkata on d. 1, 2 and 3
11th June 2020, our Prime Minister said that Ans: D
the time has come to take the Indian • The 15th Indian Census was conducted in two
Economy from "Command and Control to phases, house listing and population
Plug and Play". enumeration.
• House listing phase began on 1 April 2010
and involved collection of information about
----------------------------------------------------------------------- all buildings. Information for National
---------------------------- Population Register (NPR) was also collected
----------------------------------------------------------------------- in the first phase, which will be used to issue
------------------------------- a 12-digit unique identification number to all
registered Indian residents by Unique
31. Consider the following statements about the Identification Authority of India (UIDAI).
Census of India: • The second population enumeration phase
1. It is conducted every 10 years since 1882. was conducted between 9 and 28 February
2. Census 2011 was the 15th census of India & 2011. Census has been conducted in India
7th census after Independence. since 1872 and 2011 marks the first time
3. The motto of census 2011 was “Our Census, biometric information was collected.
Our future”.
Select the correct codes: 33. Consider the following information with respect
a. 1 and 2 only to the statistics in the 15th Indian census:
b. 2 and 3only 1. No of states and UTs: 28 states and 9 union
c. 1 and 3 only territories

KPIAS (10-B) CELL: 9133237733

2. No of districts: 640 9. Any one above age 10 who can read and
3. No. of Sub-Districts: 5924 write in any language with an ability to
4. No of towns: 7,935 understand was considered a literate.
5. No of villages: 6,40,930 10. In censuses before 1991, children below the
Select the correct codes: age 7 were treated as illiterates.
a. 1,2,3 and 4 only 11. The literacy rate taking the entire population
b. 2,3,4 and 5only into account is termed as crude literacy rate
c. 1,2,3 and 5 only and taking the population from age 10 and
d. 1, 2,3,4 and 5 above into account is termed as effective
literacy rate
Ans: D Select the correct codes:
a. 1,2 only
1. No of states and UTs 28 states and 9 union b. 2,3 only
territories c. 1, 2 and 3
2. No of districts 640 d. Neither 1 nor 2 nor 3
3. No. of Sub-Districts 5924 Ans: D
4. No of towns 7,935 • Any one above age 7 who can read and write
5. No of villages 6,40,930 in any language with an ability to understand
was considered a literate.
34. List the following states in decreasing order of the • In censuses before 1991, children below the
total speakers of a particular language as a age 5 were treated as illiterates.
percentage of total population • The literacy rate taking the entire population
4. Hindi into account is termed as crude literacy rate
5. Bengali and taking the population from age 7 and
6. English above into account is termed as effective
7. Telugu literacy rate
8. Marathi
Select the correct codes: 36. List the following religious groups in decreasing
a. 12354 order of its population as a percentage of
b. 14523 total population
c. 15432 12. Christianity
d. 13254 13. Buddhism
Ans: D 14. Sikhism
Language Total speakers as a percentage of total 15. Jainism
population Select the correct codes:
• Hindi 57.10 a. 1234
• English 10.60 b. 1423
• Bengali 8.90 c. 1432
• Marathi 8.20 d. 1324
• Telugu 7.80 Ans: D
• Christianity 2.30%
• Sikhism 1.72%
35. Which of the following statements about the • Buddhism 0.70%
definition of literacy rate is correct: • Jainism 0.37%

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37. Consider the following statements about the 39. consider the following important parameters in
populated districts in India: the 15th Indian census:
1. Thane district of Maharashtra is the most 16. Population Density- 482
populated district of India. 17. Sex ratio- 950
2. Dibang Valley has the least density of 1 18. Literacy Rate Overall - 74%
person per sq. km Select the correct codes:
Select the correct codes: a. 1 only
a. 1 only b. 2 only
b. 2 only c. 3 only
c. Both 1 and 2 d. 1, 2 and 3
d. Neither 1 nor 2 Ans: C
Ans: C • Population Density -382
1. Thane district of Maharashtra is the most • Population-1210.19 million
populated district of India. • Sex ratio- 940
2. Dibang Valley has the least density of 1 • Literacy Rate Overall - 74%
person per sq. km

38) In which year the government of India announced 40) Which of the following statements are correct
its first population policy? with reference to the National Population
A. 1976 Policy of 2000?
B. 1990 A. The medium-term objective of the NPP 2000
C. 2000 was to reduce the Total Fertility Rate (TFR) to
D. 2012 replacement levels by 2010. The TFR was to
Answer: A have 2.1 children per woman.
Explanation: B. The long-term objective is “ to achieve a
In 1976, GOI announced the first National Population stable population by 2045, at a level
Policy. Some of the measures to check the consistent with the requirements of
population growth as part of this policy sustainable economic growth, social
include: development, and environmental
● Increased the minimum legal marriageable protection.”
age for boys and girls to 21 and 18 C. Both A and B
respectively. D. Neither A nor B
● Providing monetary incentives for employing Answer: C
birth control. Explanation:
● Improving women’s literacy levels through The National Population Policy (NPP), 2000 is the
formal and informal channels. central government’s second population
● Population was made a criteria in deciding policy. The NPP states its immediate
the quantum of central assistance to states. objective as addressing the unmet needs for
● Using the different forms of media to contraception, healthcare infrastructure, and
popularise family welfare programmes. health personnel, and providing integrated
● Introducing population education into the service delivery for basic reproductive and
formal education system. child healthcare.
● The medium-term objective of the NPP 2000
was to reduce the Total Fertility Rate (TFR) to

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 replacement levels by 2010. The TFR was to 43. Consider the following statements about the
have 2.1 children per woman. tribal population in India as per the 15th
● The long-term objective is “ to achieve a Indian census:
stable population by 2045, at a level a. There are nearly 550 tribes i.e. 8.2% of the
consistent with the requirements of total Population of India i.e. 10 million
sustainable economic growth, social population
development, and environmental b. Jharkhand has highest tribal population in
protection.” India.
c. Haryana has zero tribal population
Select the correct codes:
41) The National Population Policy of India has set the a. 1 and 2 only
following goals except : b. 2 and 3 only
A. To bring down Total Fertility Rate (TFR) to c. 1 and 3 only
replacement levels by 2015 d. 1, 2 and 3
B. To reduce the Infant Mortality Rate to 30 per Ans: C
l000 live births Tribe
C. To reduce the Maternal Mortality Rate to 100 • 550 tribes i.e. 8.2% of the total Population of
per 100000 live births India i.e. 10 million population
D. 100 percent registration of births, deaths, Population -
marriages and pregnancies • MP (1.5 million)
Answer : A. Density -
Explanation: • Mizoram
The goal of The National Population Policy of India is Population -
to bring down Total Fertility Rate (TFR) to • Punjab (zero)
replacement levels by 2010. • Haryana (zero)
Density -
• Punjab (zero)
42. Consider the following important statistics about • Haryana (zero)
literacy rate in the 15th Indian census:
1. The difference between male and Female
literacy rate is only 10% 44. Consider the following statements about the
2. Kerala has highest literacy rate while Bihar settlement development in India as per the
has the least 15th Indian census:
Select the correct codes: d. Rajasthan is the largest state by area
a. 1 only e. West Bengal has the highest slum population
b. 2 only in India
c. Both 1 and 2 f. Goa is the highest urbanized state in India.
d. Neither 1 nor 2
Ans: b Select the correct codes:
• Male - 82.14% Female - 65.46 a. 1 and 2 only
• Kerala (93.9%) Bihar (63.80%) b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3
Ans: C

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• State (Area) Rajasthan has highest area and Bihar has the highest percentage of population below
Goa has the least area. poverty line and Goa has the lowest
• Slums: Maharashtra has the highest slum population below poverty line.
population and Arunachal Pradesh has the
least. 47) A regressive population age structure is likely to
• Urbanisation: Goa has the highest be encountered in a country:
urbanization and Himachal Pradesh has the 1. which has completed the demographic
least transition
2. where the young and old population are
balanced
45. Consider the following statements about the Child 3. which has young population
sex ratio in India as per the 15th Indian 4. which is in the early expanding stage of
census: demographic transition
g. Child sex ratio is the number of girl child per Answer: A
10000 boys in the age group of 0-6 Explanation:
h. As per the 2011 census the CSR is 914 A regressive population age structure is characterized
Select the correct codes: by a relatively high proportion of elderly
a. 1 only people and a low proportion of young
b. 2 only people. This can be caused by low birth rates,
c. Both 1 and 2 high death rates, and increased life
d. Neither 1 nor 2 expectancy.
Ans: B
• Child sex ratio (female per 1000 male in the
age group of 0-6) 48) Which of the following statements are correct?
• The CSR is 914. It is highest in Mizoram and 1. In 1956, a Central Family Planning Board was
lowest in Haryana set up in India to focus on sterilization
2. China became one of the first developing
countries to come up with a state-sponsored
46. Consider the following statements about the family planning programme in the 1950s.
poverty lines in India as per the 15th census: Options:
i. Percentage of Population Below Poverty Line A. Only 1
(Tendulkar Methodology) was 21% B. Only 2
j. Bihar has the highest percentage of C. Both 1 and 2
population below poverty line and Goa has D. Neither 1 nor 2
the lowest population below poverty line. Answer: A
Select the correct codes: Explanation:
a. 1 only ● India became one of the first developing
b. 2 only countries to come up with a state-sponsored
c. Both 1 and 2 family planning programme in the 1950s.
d. Neither 1 nor 2 ● A population policy committee was
Ans: B established in 1952. However, the policies
Percentage of Population Below Poverty Line framed in the early fifties were largely
(Tendulkar Methodology) was 29.8% arbitrary and so not successful.
● In 1956, a Central Family Planning Board was
set up and its focus was on sterilisation.

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 50) Which of the following index summarizes the
population dynamics all together?
49) Which of the following committees are related to A. Fertility rate
the framing of Population policies in India? B. Gini coefficient
1. Radha Kamal Mukherjee Committee C. Demographic Index
2. Bhore Committee D. Mortality rate
3. Dr. MS Swaminathan Committee Answer: C
Options: Explanation:
A. Only 1 Demographic Index can summarize population
B. Only 1, 2 dynamics and characteristics in one number.
C. Only 1, 3
D. All of the above
Answer: D
Explanation: 51) Which of the following factors are responsible for
● Radha Kamal Mukherjee Committee (1940): sprase population?
In 1940, the Indian National Congress (A) Flat plains and abundant rainfall
appointed a Committee headed by a social (B) Rugged terrain and unfavorable climate
scientist Radha Kamal Mukherjee to suggest (C) Fertile soil and abundant rainfall
solutions to arrest the population which has (D) Rugged terrain and favorable climate
started increasing rapidly after 1921. The Answer: B
committee recommended self-control, Explanation:
generating awareness of cheap and safe birth Uneven terrain and unfavorable climatic conditions
control measures, discouraging polygamy, are prime reasons for the sparse population.
among others, as measures to bring down the Many states are situated in hilly, arid, or
rate of population growth. semi-arid regions. Such terrains are difficult
● Bhore Committee: The Health Survey and to access or occupy.
Development committee under Sir Joseph
Bhore recommended ‘deliberate limitation of
family’ as a measure to control the 52) What year is considered a great demographic
population growth. This committee was set divide in India?
up in 1943 and submitted its report in 1946. (A) 1911
● A Committee on Population was appointed in (B) 1921
1991 which submitted its report in 1993 in (C) 1931
which it recommended the formu-lation of a (D) 1751
National Population Policy to take a ‘a long- Answer: B
term holistic view of development, Explanation:
population growth, and environ-mental The year 1921 is regarded as the defining year for
protection’ and to ‘suggest policies and Indian demography. It is also known as the
guidelines [for] formulation of programmes’ year of the Great Divide, as population
and ‘a monitoring mechanism with short- growth was scarce before that time. After
medium- and long-term perspectives and 1921, India's population growth remained
goals’. Accordingly, an Expert Group headed consistent.
by Dr. MS Swaminathan was set up to create
the draft national population policy.

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53) Which of the following initiatives have been taken ● Scheme for provision of Pregnancy Testing
under the National Family Planning Kits in the drug kits of ASHA for use in
Programme? communities.
1. Mission Parivar Vikas ● Family Planning Logistics Management
2. Expanded Contraceptive Choices Information System (FP-LMIS): dedicated
3. Post-partum Intrauterine contraceptive software has been launched to ensure
device smooth forecasting, procurement and
Options: distribution of family planning commodities
A. Only 1 across all the levels of health facilities.
B. Only 1, 2
C. Only 1, 3
D. All of the above 54. Match the following?
Answer: D 1. Auguste Tano Kouame a. Executive
Explanation: secretary of climate change
Various initiatives have been taken under the 2. Subramaniam b. world Bank
National Family Planning Programme country director
providing broad range of services mentioned 3. Simon stiell c.
as given below: Executive director at IMF
● Mission Parivar Vikas has been introduced for A. 1-b, 2-c, 3-a
substantially increasing access to B. 1-b, 2-a, 3-c
contraceptives and family planning services in C. 1-a, 2-b. 3-c
146 high fertility districts in 7 high focus D. 1-c, 2-b, 3-a
states. Answer: A
● Expanded Contraceptive Choices: The current Explanation: UN Secretary-General Antonio Guterres
contraceptive basket comprising of condoms, has appointed Simon Stiell as the new
Combined oral contraceptive pills, Emergency Executive Secretary of the United Nations
contraceptive pills, Intrauterine contraceptive Climate Change Secretariat based in Bonn,
uterine device (IUCD) and Sterilization has Germany. The World Bank has appointed
been expanded with inclusion of new Cote d’Ivoire national, Auguste Tano Kouame,
contraceptives namely Injectable as the Country Director for India. The term of
contraceptive (Antara programme) and Auguste is effective from August 01, 2022, for
Centchroman (Chhaya). a period of five-years. Former Chief Economic
● Compensation scheme for sterilization Adviser of India K. Subramaniam was recently
acceptors which provides compensation for appointed as the Executive Director of India
loss of wages to the beneficiary and also to at the International Monetary Fund (IMF). He
the service provider team for conducting replaced Surjit S Bhalla
sterilisation.
● Post-partum Intrauterine contraceptive
device (PPIUCD) services are provided post- 55. Royal Enfield has tied up with UNESCO, reason is?
delivery. A. For advertising
● Scheme for Home Delivery of contraceptives B. Promoting awareness about diseases
by ASHAs at the doorstep of beneficiaries has C. Safeguard intangible cultural heritage
been taken up. D. None
Answer: C

KPIAS (16-B) CELL: 9133237733

Explanation: Royal Enfield has partnered with 3. As of 2022, India and Israel have completed
UNESCO (the United Nations Educational, 30 years of diplomatic relations
Scientific and Cultural Organisation) to A. Only 2 and 3
promote and safeguard the ‘Intangible B. Only 1 and 3
Cultural Heritage of India, beginning with the C. Only 3
Himalayas. The programme is curated as an D. Only 1
experiential and creative showcase of the Answer: B
Intangible Cultural Heritage (ICH) practices in Explanation: Recently Egypt released a Postage Stamp
the Western Himalayas and the North celebrating the 75th Anniversary of
Eastern region diplomatic ties with India. Diplomatic
relations between Egypt and India were
established with Egypt’s recognition of the
56. Choose the correct answer? independence of India on 18 August 1947,
1. India and Nepal have entered an agreement just three days after India’s independence.
on water sharing of Kushiyara river The Diplomatic relations between India and
2. India and Bangladesh have entered an Israel were established in 1992
agreement on water sharing of Kushiyara
river 58. Mexican President Obrador proposed Commission
3. Hindustan Aeronautics Limited has opened its of global Notables, who among the following
first international marketing office in is not part of it?
Indonesia A. Narendra Modi
4. Hindustan Aeronautics Limited has opened its B. Antonio Guterres
first international marketing office in C. Joe Biden
Malaysia D. Pope Francis
A. Only 1 and 3 are true
B. Only 2 and 3 are true Answer: C
C. Only 1 and 4 are true Explanation: Mexican President Obrador has
D. Only 2 and 4 are true proposed the setting up of a commission
Answer: D called ‘Commission of Global Notables’
Explanation: The Hindustan Aeronautics Limited comprising Prime Minister Narendra Modi.
(HAL) inked a Memorandum of Apart from Mr. Modi, the proposed
Understanding (MoU) to establish its first “commission of global notables” includes
international marketing and sales office in Pope Francis and the UN Secretary-General
Kuala Lumpu. Recently, India and Bangladesh Antonio Guterres.
have finalised the text of Memorandum of
Understanding (MoU) on interim water 59. Choose the correct answer?
sharing of Kushiyara river 1. The statue of freedom fighter and agricultural
scientist Panduranga Khankoje was unveiled
in Mexico
57. Choose the correct answer? 2. The statue of freedom fighter and agricultural
1. India and Egypt have established diplomatic scientist Panduranga Khankoje was unveiled
relations in 1947 in Canada
2. India and Egypt have established diplomatic 3. The Bust of Mahatma Gandhi was unveiled in
relations in 1950 Ecuador

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4. The bust of Mahatma Gandhi was unveiled in
Paraguay
A. Only 1 and 4 are true
B. Only 2 and 3 are true
C. Only 1 and 3 are true
D. Only 2 and 4 are true
Answer: A
Explanation: External affairs minister S Jaishankar
unveiled a bust of Mahatma Gandhi in
Paraguay and visited the historic Casa de la
Independencia, from where the South
American country’s independence movement
started more than two centuries ago. The
statue of freedom fighter and agricultural
scientist Pandurang Khankhoje will soon be
unveiled in Mexico
60 .Choose the correct answer?
1. World’s highest Railway Bridge was
constructed on Chenab River
2. India’s longest train is Super Vasuki
A. Only 1 is true
B. Only 2 is true
C. None is true
D. Both are true
Answer: D
Explanation: The golden joint of the world’s highest
railway bridge over River Chenab was
inaugurated. For the first time ever since
independence, Srinagar will be linked to the
rest of India after the overarch deck on the
world’s highest single-arch railway bridge
over River Chenab. The bridge will be 35
meters higher than the Eiffel Tower. The
Railways conducted a test run of its longest
freight train, Super Vasuki, with 295 loaded
wagons carrying over 27,000 tonnes of coal.
The 3.5-km-long freight train covered the
distance of about 267 km between Korba in
Chhattisgarh and Rajnandgaon in Nagpur
61) Consider the following statements with reference
to Payment Bank:
1. Its objective is to accelerate financial inclusion.
KPIAS (18-B)
2. It deals in lending and remittance services only.
3. Its funds are mainly invested in government papers
and bank deposits.
4. It cannot accept demand deposits and credit cards.
Which of the above statements are correct?
(a) 2, 3 and 4 only
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: C
Explanation:
● A payments bank is like any other bank, but
operating on a smaller scale without involving
any credit risk. It can carry out most banking
operations but can’t advance loans or credits.
● A Payment Bank will need to invest 75% of its
funds in government securities or treasury
bills.
● The main objective of Payment Banks is to
accelerate financial inclusion.
● Payments banks will mainly deal in transfer
and remittance services and accept deposits
of up to Rs 1 lakh. Payment Banks will not
lend to customers.
● Payment Banks will have to deploy their
funds in government papers and bank
deposits.
● They can accept demand deposits, issue
ATM/debit cards but not credit cards.
62) Which of the following sectors represent the
categories of Priority Sector Lending?
1. Mining
2. Social Infrastructure
3. Export Credit
4. Education
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Answer: C
Explanation:
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As per the RBI circular, there are eight broad
categories of the Priority Sector Lending
which are:- Agriculture, Micro, Small and
Medium Enterprises, Export Credit,
Education, Housing, Social Infrastructure,
Renewable Energy and Others.
63) Consider the following statements regarding
Financial Inclusion?
1. It aims at better access to useful and affordable
financial products for individuals and
businesses
2. Opening of transaction account is the first step
towards financial inclusion
3. Financial inclusion helps in achieving sustainable
development goals.
Which of the above statements is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
Answer: D
Explanation:
● Financial inclusion means that individuals and
businesses have access to useful and
affordable financial products and services
that meet their needs – transactions,
payments, savings, credit and insurance –
delivered in a responsible and sustainable
way.
● Being able to have access to a transaction
account is a first step toward broader
financial inclusion since a transaction account
allows people to store money, and send and
receive payments. A transaction account
serves as a gateway to other financial
services
● Moving from access to account to account
usage is the next step
Government Initiatives for financial inclusion are:
● Setting up of Business Correspondents
model.
● Setting of Basic Saving Bank Deposit (BSBD)
accounts.
KPIAS (19-B)
● Simplified Branch Authorization Policy.
● Compulsory Requirement of Opening
Branches in Unbanked Villages.
● Setting of Financial Literacy Centers.
Financial inclusion is the means to achieve
sustainable development goals.
64) Promoting Digital Payments has been mandated
to which of the following?
(a) Ministry of Electronics and Information
Technology (MeitY)
(b) NITI Aayog
(c) PMO
(d) Ministry of Finance
Answer: A
Explanation:
● The responsibility to promote digital
transactions in India has been shifted from
NITI Aayog to the Ministry of Electronics and
Information Technology (MeitY). By shifting
the responsibility to promote digital
transactions to MEITY, the government is
trying to utilize the core competence of
specific ministries.
● NITI Aayog would have a role to monitor and
recommend ways to improve government
schemes and growth of IT- enabled services.
65) Which of the following is/are the objective(s) of
financial literacy camps?
1. It aims at imparting knowledge to enable financial
planning.
2. It aims at inculcating saving habits.
3. It aims at improving the understanding of financial
products leading to effective use of financial
services by the common man.
Select the correct answer using the code given below:
(a) 3 Only
(b) 1 and 3 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
Answer: D
Explanation:
Financial Literacy camps:
CELL: 9133237733
● It aims at imparting knowledge to enable
financial planning, inculcate saving habits and
improve the understanding of financial
products leading to effective use of financial
services by the common man
● The objective of conducting financial literacy
camps is to facilitate financial inclusion
through provision of two essentials i.e.
literacy and easy access.
● It aims at imparting knowledge to enable
financial planning, inculcate saving habits and
improve the understanding of financial
products leading to effective use of financial
services by the common man.
● Financial literacy should help them plan
ahead of time for their life cycle needs and
deal with unexpected emergencies without
resorting to debt. They should be able to
proactively manage money and avoid debt
traps. In order to ensure that the knowledge
provided through awareness results in
inculcating banking habits, literacy inputs
need to be synchronized with access to
financial services so as to enable the common
man to use the information effectively to gain
control over financial matters. It should also
result in enhancement of their economic
security aided by use of banking services.
66) Which of the following statements is/are correct
related to Fiscal Deficit?
1. It shows the excess of Total Expenditure over Total
Receipts excluding Borrowings.
2. High Fiscal Deficit crowds out private investment in
normal times.
3. The Fiscal Deficit is financed through borrowing
from the Central Bank.
Select the correct answer using the code given below:
(a) 1 and 2 Only
(b) 2 Only
(c) 2 and 3 Only
(d) 1, 2 and 3
Answer: A
Explanation:
KPIAS (20-B)
● Fiscal deficit is defined as excess of total
budget expenditure over total budget
receipts excluding borrowings during a fiscal
year. In simple words, it is the amount of
borrowing the government has to resort to
meet its expenses. A large deficit means a
large amount of borrowing. Fiscal deficit is a
measure of how much the government needs
to borrow from the market to meet its
expenditure when its resources are
inadequate.
● Fiscal deficit = Total expenditure – Total
receipts excluding borrowings
● If we add borrowing in total receipts, the
fiscal deficit is zero. Clearly, the fiscal deficit
gives the borrowing requirements of the
government.
● High fiscal deficit results in high government
borrowing which leads to lowering the
amount of available money to be borrowed
by private investors, increasing the interest
rates and lowering the private investments.
● The Central bank no longer finances the
deficits of the Government. It is a facilitator
of borrowings from the market.
67) Consider the following statements regarding the
Public Financial Management System (PFMS):
1. It is a web-based online software application
developed and implemented by the Office of
Controller General of Accounts.
2. The biggest strength of PFMS is its integration with
the Core banking system in the Country.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
The Public Financial Management System (PFMS):
● The Public Financial Management System
(PFMS), earlier known as Central Plan
Schemes Monitoring System (CPSMS), is a
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 web- based online software application
developed and implemented by the Office of 69) According to the Union Budget 2023-24, consider
Controller General of Accounts (CGA). the following statements. The Budget adopts
● The biggest strength of PFMS is its integration the following seven priorities:
with the Core banking system in the Country. 1. Inclusive Development
As a result, PFMS has the unique capability to 2. Reaching the Last Mile
push online payments to almost every 3. Infrastructure and Investment
beneficiary/vendor. At present, PFMS 4. Unleashing the Potential
interface is having interface in addition to the Which among the following is/are not one among
Core Banking System (CBS) of all Public Sector them?
Banks, Regional Rural Banks, major private (a) 1 and 2
sector banks, Reserve Bank of India, India (b) 2 and 3
post and Cooperative Banks. (c) 1 and 4
(d) None of the above
Answer: d
68) Consider the following statements regarding the Explanation:
Public Debt Management Agency (PDMA) The Budget adopts the following seven priorities.
1. It manages only internal liabilities of the Central They complement each other and act as the
and state governments. ‘Saptarishi’ guiding us through the Amrit Kaal.
2. It is the Investment Banker or Merchant Banker to 1. Inclusive Development
the Government. 2. Reaching the Last Mile
Which of the above statements is/are incorrect? 3. Infrastructure and Investment
(a) 1 only 4. Unleashing the Potential
(b) 2 only 5. Green Growth
(c) Both 1 & 2 6. Youth Power
(d) Neither 1 nor 2 7. Financial Sector
Answer: A 70) According to the Union Budget 2023-24, consider
Explanation: the following statements.
● Public Debt Management Agency (PDMA) is a 1. Agriculture Accelerator Fund will be set-up to
specialised independent agency that encourage agri startups by young
manages the internal and external liabilities entrepreneurs in urban areas.
of the Central Government in a holistic 2. The Fund will aim at bringing innovative and
manner and advises on such matters in affordable solutions for challenges faced by
return for a fee. farmers.
● In other words, PDMA is the Investment Which of the above statements is/are correct?
Banker or Merchant Banker to the (a) 1 only
Government. PDMA manages the issue, (b) 2 only
reissue and trading of Government securities, (c) Both 1 and 2
manages and advises the Central (d) Neither 1 nor 2
Government on its contingent liabilities and Answer: (b)
undertakes cash management for the central Explanation:
government including issuing and redeeming An Agriculture Accelerator Fund will be set-up to
of short term securities and advising on its encourage agristartups by young
cash management. entrepreneurs in rural areas. The Fund will

KPIAS (21-B) CELL: 9133237733

 aim at bringing innovative and affordable
solutions for challenges faced by farmers.
71) According to the Union Budget 2023-24, consider
the following statements.
1. One hundred and fifty-seven new nursing colleges
will be established in co-location with the
existing 157 medical colleges established
since 2014
2. A Mission to eliminate Sickle Cell Anaemia by 2047
will be launched.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)
Explanation:
● Nursing Colleges: One hundred and fifty-
seven new nursing colleges will be
established in co-location with the existing
157 medical colleges established since 2014.
● Sickle Cell Anaemia Elimination Mission: A
Mission to eliminate Sickle Cell Anaemia by
2047 will be launched. It will entail awareness
creation, universal screening of 7 crore
people in the age group of 0-40 years in
affected tribal areas, and counselling through
collaborative efforts of central ministries and
state governments.
72) Consider the following statements about the
Annual Financial Statement of 2023-24.
1. This is provided in the Constitution under article
112.
2. It shows the actuals for the fiscal year 2022-23.
3. Government accounts are kept under the
Consolidated Fund of India and the
Contingency Fund of India.
Which of the above statements are not correct?
(a) 1 and 3
(b) 1 and 2
(c) 2 and 3
KPIAS (22-B)
(d) 1, 2 and 3
Answer: c
Explanation:
● According to Article 112 of the Indian
Constitution, the Union Budget of a year is
referred to as the Annual Financial Statement
(AFS).
● It is a statement of the estimated receipts
and expenditure of the Government in a
Financial Year (which begins on 1st April of
the current year and ends on 31st March of
the following year).
73) Consider following statements regarding
Contingency Fund of India
1. Currently, the Parliament has authorized a corpus
of ₹30000 crore.
2. It is to look for unforeseen expenditures.
3. It is placed at the disposal of Cabinet ministers.
Which of the above statements are correct
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Answer: (a)
Explanation:
Contingency Fund of India:
● Provision for this fund is made in Article
267(1) of the Constitution of India.
● Its corpus is ₹30000 crore. It is in the nature
of an imprest (money maintained for a
specific purpose).
● The Secretary of, Finance Ministry holds this
fund on behalf of the President of India.
● This fund is used to meet unexpected or
unforeseen expenditure.
● Each state can have its own contingency fund
established under Article 267(2)
74) Which of the following statements about the
Indian budget is incorrect?
(a) Non-tax receipts of the government mainly consist
of interest and dividends on investment in
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 addition to fees and other receipts for
services rendered by the government.
(b) Interest payments on debt is part of the revenue
expenditure.
(c) All grants to the state governments and union
territories except for use of creation of
capital assets.
(d) None of the above
Answer: (c)
Explanation:
All grants to the states or union territories are treated
as revenue expenditure even though a
portion of these may be used for creation of
capital assets.
75) Which of the following statements is incorrect
about the capital receipts?
(a) Loans from foreign governments and bodies
constitute capital receipts.
(b) Disinvestment proceeds and dividend distribution
are part of capital receipts.
(c) Recoveries of loans from state governments are
constituents of capital receipts.
(d) Market borrowings from the public and
borrowings through the sale of Treasury Bills
(short- term borrowings) are part of capital
receipts.
Answer: (b)
Explanation:
Dividend distribution is part of revenue receipts
76) Consider the following statements:
1. The first to advocate the idea of planning for India
was Visvesaraya.
2. Visvesaraya proposed a 20 years plan with the aim
of doubling the income of the country.
3. ‘The Planned Economy For India’ was written by RC
Dutt.
Which of the above statement is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer: A
Explanation:
KPIAS (23-B)
● The engineer- Statesman, Shri Visvesaraya,
was the first to advocate the idea of planning
for India.
● In his famous book, “The Planned Economy
for India”, published in 1934, he proposed a
ten-year’ plan with the aim of doubling the
income of the country.
● His main emphasis was on industrialisation so
as to reduce the population dependent on
agriculture and to increase the population
employed in industry.
77) With reference to Hindu Growth rate, consider
the following statements:
1. It refers to the low annual growth rate of the
planned economy of India before the
liberalisations of 1991.
2. The term was coined by Indian economist Raj
Krishna.
Which of the above statement is / are incorrect?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: D
Explanation:
● The Hindu rate of growth is a term referring
to the low annual growth rate of the planned
economy of India before the liberalisations of
1991, which stagnated around 3.5% from
1950s to 1980s, while per capita income
growth averaged 1.3%. The term contrasts
with South Korea’s Miracle on the Han River
and the Taiwan Miracle. While these Asian
Tigers had similar income level as India in the
1950s, exponential economic growth since
then has transformed them into developed
countries today.
● The term was coined by Indian economist Raj
Krishna. It suggests that the low growth rate
of India, a country with a mostly Hindu
population, was in sharp contrast to high
growth rates in other Asian countries,
especially the East Asian Tigers, which were
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 also newly independent. This meaning of the
term, popularized by Robert McNamara, was
used disparagingly and has connotations that
refer to the supposed Hindu outlook of
fatalism and contentedness.
78) Fiscal Responsibility and Budget management Act
(FRBMA) was passed to keep check on
(a) Fiscal deficit only
(b) Revenue deficit only
(c) Both fiscal deficit and revenue deficit
(d) Neither fiscal deficit nor revenue deficit
Answer: C
Explanation:
The Central Government should specify four fiscal
indicators- Fiscal deficit as a percentage of
GDP; Revenue deficit as a percentage of GDP;
Tax revenue as a percentage of GDP; Total
outstanding liabilities as percentage of GDP.
79) Which of the following are included in the capital
budget of the Government of India?
1. Expenditure on acquisition of fighter aircraft
2. Financial assistance received from the World Bank
3. Loan made to states and union territories every
year
4. Salaries of the government employees.
Select the correct answer using the codes given
below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 3 and 4 only
(d) 1, 2 and 3 only
Answer: D
Explanation:
The Capital Budget consists of capital receipts and
capital payments.
● The capital receipts are loans raised by the
Government from the public, called market
loans, borrowings by the Government from
the Reserve Bank and other parties through
sale of Treasury Bills, loans received from
foreign Governments and bodies,
disinvestment receipts and recoveries of
KPIAS (24-B)
loans from State and Union Territory
Governments and other parties.
● Capital payments consist of capital
expenditure on acquisition of assets like land,
buildings, machinery, equipment, as also
investments in shares, etc., and loans and
advances granted by the Central Government
to State and Union Territory Governments,
Government companies, Corporations and
other parties.
● Salaries of govt. employees are included in
the revenue budget of the govt. of India.
80) Consider the following statements regarding plan
and non-plan expenditure:
1. Plan expenditure includes the assistance given by
the Central Government for the plans of
States and Union Territories
2. The distinction between plan and non- plan
expenditures has been eliminated on the
recommendation of C. Rangarajan
Committee.
Which of the above statement is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
● Expenditure on electricity generation,
irrigation and rural developments,
construction of roads, bridges, canals and
science, technology, environment, etc. It
includes both revenue expenditure and
capital expenditure. Again, the assistance
given by the Central Government for the
plans of States and Union Territories (UTs) is
also a part of plan expenditure. Plan
expenditure is further sub-classified into
Revenue Expenditure and Capital
Expenditure.
● In 2011, an experts’ committee headed by C
Rangarajan had proposed that the distinction
between Plan and non-Plan expenditure be
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 abolished for both the Centre and the states.
Hence, the distinction between plan and non-
plan expenditures has been eliminated from
budget 2017-18 onwards.
81) Which of the following statements are correct
about the Kisan Urja Suraksha evam Utthaan
Mahaabhiyan (KUSUM) scheme?
1. It was launched in the 11th Five Year Plan.
2. It aims to incentivise farmers to run solar farm
water pumps.
3. It provides for solarisation of tube-wells and lift
irrigation projects of the Government sector.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: B
Explanation:
● KisanUrja Suraksha evam Utthaan
Mahaabhiyan (KUSUM) scheme was
announced in Budget 2018-19. It aims to
incentivise farmers to run solar farm water
pumps and use barren land for generating
solar power to have extra income.
● Solarisation of tube-wells and lift irrigation
projects of the Government sector.
82) Consider the following statements about
Outcome Budgeting:
1. Outcome budget is a performance measurement
tool that helps in fixing accountability.
2. In Outcome budgeting, the outcomes of
programmes are measured only in terms of
Rupees and not in terms of physical units.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: A
Explanation:
● Outcome based budgeting is a practice of
suggesting and listing of estimated outcomes
of each programmes or schemes designed.
● An interesting feature of outcome based
budgeting is that the outcomes of
programmes are measured not just in terms
of Rupees but also in terms of physical units
like Kilowatt of energy produced or tonnes of
steel produced. Also outcomes are expressed
in terms of qualitative targets and
achievements to make the technique more
comprehensive.
● Under outcome budgeting, each Ministry
presents a preliminary Outcome Budget to
the Finance Ministry, which is responsible for
compiling them.
Outcome budget is a performance measurement tool
that helps in:
● Better service delivery
● Decision-making
● Evaluating programme performance and
results
● Communicating programme goals
● Improving programme effectiveness
● Make budgets cost effective
● Fix accountability
83) Which of the following is/are the functions of the
National Development Council of India?
(1) To prescribe guidelines for preparation of the
national economic plan
(2) To review the working of the national economic
plan from time to time
(3) To consider important questions of social and
economic policy affecting national
development
Select the correct answer using the codes given
below?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: D
Explanation:

KPIAS (25-B) CELL: 9133237733

The National Development Council (NDC) or the
Rashtriya Vikas Parishad
is the apex body for decision making and
deliberations on development
matters in India, presided over by the Prime Minister.
The functions of the
Council are to prescribe guidelines for the
formulation of the National
Plan; to consider the National Plan as formulated by
the NITI Aayog; to
consider important questions of social and economic
policy affecting
national development; and to review the working of
the Plan from time to
time and to recommend such measures as are
necessary for achieving the
aims and targets set out in the National Plan.
84) Consider the following statements:
(1) The Indo-china war had hampered the proper
progress and implementation of the Fourth
Five Year Plan in India.
(2) In the Indian Economy, the plan Holiday took
place during 1966 to 1969
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: B
Explanation:
Despite big investments during the first three Plans
the living standards of the poor could not be
raised and poverty and inequity in
distribution of state resources remained
stark. Consequently, the period between
1966 and 1969 marked the shift from a
‘growth approach’ to a ‘distribution from
growth approach’. Looking at the failures and
pitfalls, the planners suspended the
impending Fourth Plan, which was due in
1966, until 1969 for a revision of objectives
and targets. This was called the ‘Plan Holiday’
KPIAS (26-B)
extending from 1 April 1966 to 31 March
1969.
85) Which one of the following is not a
recommendation of the Fourteenth Finance
Commission?
(a) Share of States in Central Divisible Pool is
increased from 32 percent to 42 percent
(b) Area under forest cover is an important variable in
distribution of States’ share among States
(c) Fiscal discipline is dropped as a variable in
distribution of States share among States
(d) Sector specific grant is recommended as in the
previous Finance Commissions
Answer: C
Explanation:
The Fourteenth Finance Commission wants the states
to share a larger fiscal responsibility for the
implementation of the scheme.
86) Which of the following institutions was/were
asked by the Government of India to provide
official estimates of black (unaccounted)
money held by Indians, both in India and
abroad?
1. National Institute of Public Finance and Policy.
2. National Council of Applied Economic Research.
3. National Institute of Financial Management.
Select the correct answer using the codes given
below
(a) Only 1
(b) 1 and 2
(c) 2 and 3
(d) All of these
Answer: D
Explanation:
The government had selected three think tanks in
March 2011 in order to estimate the
quantum of black money. These three think
tanks are - National Institute of Financial
Management (NIFM), National Council for
Applied Economic Research (NCEAR) and
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 National Institute of Public Finance and Policy
(NIPFP).
87) Consider the following statements
1. Railways budget is presented together with the
Union budget from financial year 2017-18.
2. The total receipts and expenditure of the railways
are incorporated in the Annual Financial
Statement of the government of India.
3. In the budget 2023-24, ₹2.4 lakh crore capital
outlay has been sanctioned for railways.
Which of the above statements are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Answer: (d)
Explanation:
● Railways budget is presented together with
the Union budget from financial year 2017-
18.
● The total receipts and expenditure of the
railways are incorporated in the Annual
Financial Statement of the government of
India.
● A capital outlay of Rs 2.40 lakh crore has
been provided for the Railways - the highest
ever outlay and about 9 times the outlay
made in 2013- 14.
88) What is the full form of UIDF which is to be
established as per Union Budget 2023-24?
(a) Urban Infrastructure Development Fund
(b) Unique Identification Development Fund
(c) Unique Identification Infrastructure Development
Fund
(d) Unique Industrial Development Fund
Answer: (a)
Explanation:
2023-24 budget has sought to create urban
infrastructure in tier 2 and 3 cities via
establishment of UIDF.
KPIAS (27-B)
89) According to the Union Budget 2023-24, consider
the following statements.
1. During the Covid-19 pandemic with the PMGKY
scheme, the government supplied free food
grains to over 80 crore persons for 28
months.
2. The theme of G20 is ‘Vasudhaiva Kutumbakam”.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
Para 5 and 6 of the Budget
● During the Covid-19 pandemic, we ensured
that no one goes to bed hungry, with a
scheme to supply free food grains to over 80
crore persons for 28 months. Continuing our
commitment to ensure food and nutritional
security, we are implementing, from 1st
January 2023, a scheme to supply free food
grain to all Antyodaya and priority
households for the next one year, under PM
Garib Kalyan Anna Yojana (PMGKAY). The
entire expenditure of about ` 2 lakh crore will
be borne by the Central Government. G20
Presidency: Steering the global agenda
through challenges
● In these times of global challenges, the G20
Presidency gives us a unique opportunity to
strengthen India’s role in the world economic
order. With the theme of ‘Vasudhaiva
Kutumbakam’, we are steering an ambitious,
people-centric agenda to address global
challenges, and to facilitate sustainable
economic development.
90) According to the Union Budget 2023-24, consider
the following statements.
1. The Vision for the Amrit Kaal includes a
technology-driven and knowledge-based
economy, with strong public finances, and a
robust financial sector.
2. Deendayal Antyodaya Yojana National Rural
Livelihood Mission has achieved remarkable
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 success by mobilizing rural women into 81
lakh Self Help Groups.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
Para 5 and 6 of the Budget
● During the Covid-19 pandemic, we ensured
that no one goes to bed hungry, with a
scheme to supply free food grains to over 80
crore persons for 28 months. Continuing our
commitment to ensure food and nutritional
security, we are implementing, from 1st
January 2023, a scheme to supply free food
grain to all Antyodaya and priority
households for the next one year, under PM
Garib Kalyan Anna Yojana (PMGKAY). The
entire expenditure of about ` 2 lakh crore will
be borne by the Central Government. G20
Presidency: Steering the global agenda
through challenges
● In these times of global challenges, the G20
Presidency gives us a unique opportunity to
strengthen India’s role in the world economic
order. With the theme of ‘Vasudhaiva
Kutumbakam’, we are steering an ambitious,
people-centric agenda to address global
challenges, and to facilitate sustainable
economic development.
-------------------------------------------
----------------------------------------------
91) With reference to ‘Net National Product (NNP) ‘,
consider the following statements:
1. NNP is always lower than Net Domestic Product
(NDP).
KPIAS (28-B)
2. The relationship between a nation’s GNP and NNP
is similar to the relationship between its GDP
and NDP.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: B
Explanation:
● Net national product (NNP) is the market
value of a nation’s goods and services (GNP)
minus depreciation (often referred to as
capital consumption).
● It can be found out by adding the NFIA
(National Factor Income from Abroad) to the
NDP. If the NFIA is positive, that is, the inflow
of factor income from abroad is more than
the outflow; NNP will be more than NDP.
Conversely, if NFIA is negative, NNP will be
less than NDP and it would be equal to NDP
in case the NFIA is zero.
● The relationship between a nation’s GNP and
NNP is similar to the relationship between its
gross domestic product (GDP) and net
domestic product (NDP).
92) Consider the following with respect to the new
methodology for calculation of Gross
Domestic Product (GDP):
1. The base year for GDP calculation has been
changed to 2004-05.
2. There is a shift from factor-cost-based method to
market-cost-based method in calculation.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: B
Explanation:
India has shifted to a new methodology for GDP
calculation:
● CSO (Central Statistical Organization) adopted
a new base year 2011-12 instead of the
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 previous base year 2004-05 for estimating
GDP.
● India’s GDP is now measured by using gross
value added (GVA) at market price, rather
than factor cost.
93) Gross Domestic Product (GDP) is the:
1. Monetary value of all the finished goods and
services produced within a country’s borders.
2. Measure of welfare or happiness.
3. Measure of Disposable Personal Income.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: A
Explanation:
● Gross domestic product (GDP) is the
monetary value of all the finished goods and
services produced within a country’s borders
in a specific time period.
● GDP includes all private and public
consumption, government outlays,
investments, private inventories, paid-in
construction costs and the foreign balance of
trade (exports are added, imports are
subtracted). Put simply, GDP is a broad
measurement of a nation’s overall economic
activity.
● GDP is commonly used as an indicator of the
economic health of a country, as well as a
gauge of a country’s standard of living. Since
the mode of measuring GDP is uniform from
country to country, GDP can be used to
compare the productivity of various countries
with a high degree of accuracy.
● But the rise in GDP doesn’t guarantee the
welfare of the masses. Gross National
Happiness (also known by the acronym: GNH)
is a developing philosophy as well as an
“index” which is used to measure the
collective happiness in any specific nation.
KPIAS (29-B)
● This is because the rise in GDP may be
concentrated in the hands of very few
individuals or firms. For the rest, the income
may in fact have fallen. In such a case the
welfare of the entire country cannot be said
to have increased.
● Disposable income, also known as disposable
personal income (DPI), is the amount of
money that households have available for
spending and saving after deduction of
income taxes.
94) Which of the following National Income
Accounting terminologies is/are correctly
matched?
1. Per capita GDP can be used to measure the
productivity of a country’s workforce.
2. Personal Income serves as a measurement of the
stability and wealth within an economy.
3. Gross Value Added gives a picture of the state of
economic activity specific to a particular
sector.
Which of the above statements is/are correct?
(a) 1 Only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: D
Explanation:
● Per capita GDP is a measure of the total
output of a country that takes gross domestic
product (GDP) and divides it by the number
of people in the country.
● The per capita GDP is especially useful when
comparing one country to another, because it
shows the relative performance of the
countries. A rise in per capita GDP signals
growth in the economy and tends to reflect
an increase in productivity
● Per capita GDP can also be used to measure
the productivity of a country’s workforce, as
it measures the total output of goods and
services per each member of the workforce in
a given nation.
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● Personal Income serves as a measurement of
the stability and wealth within an economy.
● Gross value added (GVA) is the measure of
the value of goods and services produced in
an area, industry or sector of an economy.
GVA gives a picture of the state of economic
activity from the producers’ side or supply
side, the GDP gives the picture from the
consumers’ side or demand perspective.
95) Which of the following statements about the
Product Approach of National Income
Accounting is/are correct?
1. It computes the contribution of each producing
unit of the economy during a given
accounting year.
2. It is a value added method of GDP estimates in
which final & intermediate goods are
calculated.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: A
Explanation:
● In the Product Approach of National Income
Accounting we add up the specific value of
the flows of output arising from each sector
of the economy.
● It does not include intermediate goods
● National income measures the income
generated by a country through the
production activities that are carried out
within a country during a specific period of
time.
● A circular flow of income and expenditure
exists within an economy, where factor
income is earned from the production of
goods and services, and the income is spent
on the purchase of produced goods. Thus,
there are three alternative methods of
computing national income. This includes:
Product/ Value Added Method,
KPIAS (30-B)
Income/Factor income Method and
Expenditure Method.
96) Which of the following items are to be excluded
from GNP measurement?
1. Buying and selling of security
2. Government transfer payments
3. Transfer of second hand goods
Select the correct answer using the code given below:
(a) 3 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: D
Explanation:
● Gross National Product is the value of all
goods and services produced by a country’s
residents.
● GNP = GDP + Net Income from Abroad
● The items that are to be excluded from GNP
measurement are:
● Buying and selling of security: - Because it is
merely transfer of paper from one person to
another and it does not rather add to any
production services.
● Government transfer payments: - Because it
is one sided payment made by the
government to the household & firm without
rendering any production services. E.g.
Scholarship, old age Pension etc.
● Transfer of used (Second hand) goods:
Because it is already counted at the time of
production and hence it will lead to double
counting.
● Private transfer payments: Because it is one
sided payment made by the parents to their
children without rendering any productive
services. E.g. Pocket money given by the
parents to their children.
97) Which of the following statements regarding the
estimation of National Income is/are correct?
1. Dadabhai Naoroji had prepared the first estimates
of National Income.
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2. Dr. VKRV Rao used scientific procedure in
estimating the National Income.
Select the correct answer using the code given below:
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
● Dadabhai Naoroji, fondly called the Grand
Old Man of India, was the pioneer in this
field. He prepared the first estimates of
National income in 1876. He estimated the
national income by first estimating the value
of agricultural production and then adding a
certain percentage as non-agricultural
production. However, such method can only
been called as a non-scientific method.
● The first person to adopt a scientific
procedure in estimating the national income
was Dr. VKRV Rao in 1931. He divided the
Indian Economy into two parts: Agricultural
Sector which included agriculture, forests,
fishing and hunting and Corporate Sector
which included industries, construction,
business, transport and public services.
98) Consider the following statements with respect to
National Income:
1. National income measures the flow of goods and
services in an economy.
2. National income measures the productive power of
an economy to convert
commodities for final consumption in a given period.
3. National income measures the stock of
commodities held by the nationals of a
country at a given point of time.
Which of the above statements is/are correct?
(a) 1 Only
(b) 1 and 2 Only
(c) 1 and 3 Only
(d) 1, 2 and 3
Answer: B
Explanation:
KPIAS (31-B)
● National Income is the total value of all final
goods and services produced by the country
in a certain year.A total of national income
measures the flow of goods and services in an
economy. The growth of National Income
helps to know the progress of the country. It
includes payments made to all resources in
the form of wages, interest, rent and profits.
National income is also defined as “the net
output of commodities and services flowing
during the year from the country’s productive
system in the hands of the ultimate
consumers.
● National Wealth not National Income
measures the stock of commodities held by
the nationals of a country at a point of time.
● As contrasted with national wealth which
measures the stock of commodities held by
the nationals of a country at a point of time,
national income measures the productive
power of an economy in a given period to
turn out goods and services for final
consumption.
99) Which of the following entities are included while
calculating Gross National Income?
1. Profit
2. Wages
3. Interest
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: D
Explanation:
Gross National Income
● The ‘income method’ calculation of Gross
National Income is ‘Profit +Wage +Interest
+Rent’.
● It is the sum of a nation’s gross domestic
product and the net income it receives from
overseas.
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● Gross National Income (GNI) is a measure of a
country’s income. While GDP only counts
income received from domestic sources, GNI
includes Net Income Received from abroad.
100) Which of the following is/are major indicators of
the State of an Economy?
1. Rate of GDP growth
2. Rate of inflation
3. Change in Net demand and time liabilities
Select the correct answer using the code given below:
(a) 1 Only
(b) 2 Only
(c) 1 and 2 only
(d) 1, 2 and 3
Answer: C
Explanation:
● Rate of GDP growth is a major indication of
the state of the economy of a country.
Economic growth is the increase in the
market value of the goods and services
produced by an economy over time. It is
conventionally measured as the percent rate
of increase in gross domestic product. Gross
domestic product (GDP) is the market value
of all officially recognized final goods and
services produced within a country in a year,
or other given period of time.
● The Macroeconomic Vulnerability Index, as
mentioned in the Mid-Year Economic Analysis
2014-2015, released by the Ministry of
Finance recently, adds together the rate of
inflation, current account deficit and fiscal
deficit of a country. The Index value can be
compared across countries for different time
periods to gauge their relative vulnerability
and state of the economy.
101) Consider the following statements:
1. India’s GDP at Purchasing Power Parity is higher
than its GDP at Market Exchange Rate.
KPIAS (32-B)
2. Per Capita Income of any nation is National Income
divided by its workforce.
Which of the above statements is/are correct?
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: A
Explanation:
● India’s GDP at PPP is more than 3 times that
GDP at market.
● Per Capita Income is National Income divided
by the entire population of the nation.
102) Which of the following transactions is/are not
included in calculating the GDP of a nation?
1. Money received from selling old car
2. Social Security benefit transfer
Select the correct answer using the code given below.
(a) 1 Only
(b) 2 Only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
● Gross Domestic Product is simply the value of
all final goods and services that a nation
produces during a given period-usually a
year, minus imports.
● It also excludes Financial Transactions,
Secondhand Goods and Transfer Payments.
Many transactions occur that have nothing to
do with final goods and services
produced/GNP.
Financial Transactions excluded:
● Buying and Selling Securities: The value of
broker’s services is included in GDP because
they perform a service.
● Government Transfer Payments: Transfer
payments are payments for which no
productive services are concurrently provided
in exchange. Social Security Transfers etc.
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● Private Transfer Payments: This is a private (d) Neither 1 nor 2
transfer of funds from one person to another Answer: C
and these are not included in GDP. Explanation:
● In economics, the Lorenz curve is a graphical
representation of the distribution of income
or of wealth.
103) Which of the following measures can reduce the ● It was developed by Max O. Lorenz in 1905
Debt-GDP ratio of an economy? for representing inequality of the wealth
1. Increase in Economic growth. distribution.
2. Decrease in Government Spending. ● A straight line on it represents complete
3. Increase in Tax Income Revenue. equality of income.
Select the correct answer using the code given below: ● With greater curvature in it, the inequality of
(a) 1 only income rises proportionally, this inequality is
(b) 1 and 2 only measured by the ‘Gini Coefficient’
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: D 105) Which of the following statements is correct?
Explanation: (a) GDP at factor cost = Net Value Addition +
The debt- to-GDP ratio itself is an equation with a Depreciation
country’s gross debt in the numerator and its (b) GDP at factor cost = Net Value Addition -
gross domestic product (GDP) in the Depreciation
denominator. (c) GDP at factor cost = Net price increase + indirect
In general, the debt-to-GDP ratio is used to tax
determine the health of an economy. The (d) GDP at factor cost = Net price increase + direct tax
debt-to-GDP ratio is designed to help Ans: a
investors determine if a country has too Explanation: GDP at factor cost = Net Value Addition
much debt. + Depreciation is correct. GDP at a factor cost
● Debt/GDP ratios can be reduced by applying is the sum of net value addition by all
the following measures: producers within the country.
● Increase in Economic growth
● Decrease in Government Spending. 106) Which statement is correct for nominal GDP?
● Increase in Tax Income. 1. Nominal GDP is calculated based on current
prices.
2. Nominal GDP is calculated based on the base
104) Consider the following statements about the prices.
‘Lorenz Curve’: 3. Data on Nominal GDP shows an accurate
1. A straight line on it represents complete equality of picture of the economy as compared to real
income. GDP.
2. With greater curvature in it, the inequality of Options:
income rises proportionally, this inequality is (a) Only ii, iii
measured by the ‘Gini Coefficient’. (b) only ii
Which of the above statements is/are correct? (c) only i
(a) 1 only (d) i, iii
(b) 2 only Ans: c
(c) Both 1 and 2

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Explanation: Nominal GDP is calculated on the basis
of current prices. While real GDP is calculated
on the base year prices and its data are more
reliable or accurate as compared to Nominal
GDP.
107) The value of which work is added in the
calculation of GDP?
(a) Housewives' works
(b) A teacher teaching his own child
(c) The value of resale of old shares
(d) Construction of new house by an artisan
Ans: d
Explanation: The value of the construction of a new
house is added in the calculation of the GDP
because it is a new production work in the
economy.
108) Which among the following is a most suitable
example of double counting in national
income?
(a) Wages of bus and train drivers.
(b) Cotton output and cotton cloth output
(c) Electricity output and water output.
(d) Tax receipts and earnings of inland revenue
officials.
Answer: b
Explanation:
While estimating the national income, the problem of
double counting occurs when the value of
some goods and services are counted more
than once. Cotton output and cotton cloth
output both the raw material and the final
result are counted.
109) Which among the following is considered to be
the best measure of an increase in a country's
economic efficiency?
(a) Increase in annual private investment.
(b) Increase in real national income.
(c) Increase in real per capita income.
(d) Increase in net annual investment.
Answer: c
KPIAS (34-B)
Explanation:
Per capita income is a measure of the average income
earned per person in a given area (usually in
a country) in a particular year. When this
figure is adjusted for inflation, the real per
capita income is obtained, which gives the
best measure of an increase in a country’s
economic efficiency.
110) What does the term 'Green shoots' represent in
an Economy?
(a) signs of growth of the agriculture sector in a
growing economy
(b) signs of economic recovery during an economic
downturn.
(c) signs of growth of the agriculture sector in a
declining economy
(d) signs of economic decline in a developed
economy.
Answer: b
Explanation:
Green shoots is a term used colloquially and
propagandistically to indicate signs of
economic recovery during an economic
downturn. It was first used in this sense by
Norman Lamont, the then Chancellor of the
~xche~uer of the United Kingdom, during the
1991 recession.
111) GDP deflator is used to:
(a) measure the relative reduction in GDP growth rate
of a country.
(b) measure the inflation in a country.
(c) compare the GDP of a country vis a vis other
countries of the world.
(d) estimate the purchasing power of the citizens of a
country.
Answer: b
Explanation:
GDP deflator is an economic metric that accounts for
inflation by converting output measured at
current prices into constant-collar GDP. The
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 GDP deflator shows how much a change in Explanation:
the base year's GDP relies upon changes in National product at factor cost is equal to net
the price level. domestic product at factor cost + Net factor
Income from Abroad.

112) National income ignores which one of the

following? 115) Which of the following is a part of the Gross
(a) sales of a form National Product (GNP)?
(b) salary of employees A. Exports
(c) exports of the IT sector B. Money earned by a resident abroad
(d) sale of land C. Imports
Answer: d D. All of the above
Explanation: Answer: d
National Income ignores sale of land. Explanation:
In calculation, GNP adds government expenditure,
personal consumption expenditure, private
113) The value of all final goods and services domestic investments, net exports, and
produced by the normal residents of a income earned by nationals overseas, and
country and their property, whether eliminates the income of foreign residents
operating within the domestic territory of the within the domestic economy.
country or outside in a year is termed as
(a) Gross National Income 116) The net value of Gross Domestic Product after
(b) Net National Income deducting depreciation from it is _______.
(c) Gross Domestic Product A. Net Domestic Product
(d) Net Domestic Product B. Net National Product
Answer: a C. Disposable Income
Explanation: D. Gross National Product
The sum of a nation's gross domestic product (GDP) Answer: a
plus net income received from overseas. Explanation:
Gross national income (GNI) is defined as the The net value of GDP after deducting depreciation
sum of value added by all producers who are from GDP is Net domestic product.
residents in a nation, plus any product taxes
(minus subsidies) not included in output, plus
income received from abroad such as 117) Which of the following is not a part of National
employee compensation and property Income?
income. A. Undistributed profit
114) National product at factor cost is equal to B. The payments made by the household to the
(a) Domestic product + Net factor income from firm for purchasing goods and services
abroad C. Income from government expenditure
(b) National product at market prices - indirect taxes D. Interest on the unproductive national debt
+ subsidies Answer: d
(c) Gross domestic-product - depreciation Explanation:
(d) National product at market prices + Indirect taxes National income doesn't include interest on the
+ subsidies unproductive national debt. National income
Answer: a defines the value of goods and services

KPIAS (35-B) CELL: 9133237733

 produced by any country in the period of a A. Includes consumer spending on durable and
financial year. non-durable goods as well as services
B. Includes consumer spending on durable and
non-durable goods but excludes services
118) Which of the following is a limitation of the C. Includes purchases by business firms
Gross Domestic Product? D. None of the above
A. It fails to indicate the sustainability of a Answer: a
nation’s growth Explanation:
B. It doesn’t consider the impact of economic While using expenditure to calculate Gross Domestic
activities on human health and the Product, consumption includes consumer
environment spending on durable and non-durable goods
C. It does not include non-market transactions as well as services.
D. All of the above
Answer: d 121) Consider the following statements regarding
Explanation: contribution of primary sector
GDP does not include the profits of domestic i) According to census 2011 About 54.6 percent
companies operating abroad. Gross national of the population is engaged in agriculture
product (GNP) is the total value of goods and and allied activities.
services produced and income received by ii) Agriculture and allied activities contributed
the domestic residents in a financial year. It 22.8 percent to the country’s Gross Value
means that any product made by the Added for the year 2019-20.
country's residents must be included in the Which of the statements given above are correct?
national income, whether inside or outside A) Only i
the country. However, gross domestic B) Only ii
product (GDP) does not include the profits of C) Both
domestic companies operating abroad, which D) None
is one of the limitations of GDP. Ans: A
AGRICULTURE plays a vital role in India’s economy.
119) Which of the following is added in calculating About 54.6 per cent of the population is
Gross Domestic Product? engaged in agriculture and allied activities
A. A teacher teaching their child (Census 2011) and it contributed 17.8 per
B. The value of resale of old shares cent to the country’s Gross Value Added for
C. An artisan constructing a new house the year 2019-20 (at current prices). Given
D. None of the above the importance of agriculture sector,
Answer: c Government of India takes several steps for
Explanation: its sustainable development.
The value of the construction of a new house is 122. Which among the following States have
added in the calculation of the GDP because derived maximum benefits from green
it is a new production work in the economy. revolution?
A) Bihar, West Bengal and Assam
B) Rajasthan, Gujarat and Maharashtra
120) While using expenditure to calculate Gross C) Punjab, Haryana & Western U.P.
Domestic Product, consumption D) Tamil Nadu, Andhra Pradesh and
___________. Maharashtra
Ans: C

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Green revolution in India started with Kharif crop in farmers for all Kharif crops and 1.5 per cent
1966. The States like Punjab, Haryana, Uttar for all Rabi crops. In case of annual
Pradesh (Western part), etc. having good commercial and horticultural crops, the
irrigation and other infrastructure facilities maximum premium to be paid by farmers is
were able to derive the maximum benefits of up to 5 per cent.
the green revolution.
125. Under the automatic route approach, the
123. India is the world’s largest producer of? government of India permitted how much
i) Milk percent of FDI in food product marketing and
ii) Pulses food product e-commerce?
iii) Spices A) 49 percent
iv) Eggs B) 51 percent
Select the answer using the codes given below C) 75 percent
A) Only I, ii and iii D) 100 percent
B) Only I and iii Ans: D
C) Only I, iii and iv Agriculture is the primary source of livelihood for
D) All the above more than 50 percent of India’s population.
Ans: A Under the automatic route approach, the
India is the world’s largest producer of milk, pulses government of India permitted 100 percent
and spices, and has the worlds largest cattle of FDI in food product marketing and food
herd as well as the largest area under wheat, product e-commerce.
rice and cotton.
126. Which among the following is the nodal agency
124. Consider the following statements regarding the to coordinates and promotes agricultural
Pradhan Mantri Fasal Bima Yojana research and education in the country
i) A uniform maximum premium of only 2 through its autonomous bodies to achieve
percent of the sum insured is paid by farmers the ambitious goal of doubling farm income
for all Kharif crops for both rabi and kharif by 2022?
crops under this scheme. A) NITI Aayog
ii) Pradhan Mantri Fasal Bima Yojana was B) Department of Agriculture and Farmers
launched in 2014. Welfare
Which of the statements given above are correct? C) Department of Agricultural Research and
A) Only i Education
B) Only ii D) Department of organic farming
C) Both Ans: C
D) None The present government’s target is to achieve the
Ans: D ambitious goal of doubling farm income by
Pradhan Mantri Fasal Bima Yojana (PMFBY), which is 2022. Towards this target, the government
being implemented in various states/union has increased investment in agricultural
territories of the country from Kharif 2016. infrastructure such as irrigation facilities,
The scheme is being implemented through 18 warehousing and cold storage. Towards these
General Insurance Companies including all basic goals, DARE coordinates and promotes
the 5 Government Sector Companies. Under agricultural research and education in the
PMFBY, a uniform maximum premium of only country through its autonomous bodies, viz.
2 per cent of the sum insured is paid by Indian Council of Agricultural Research

KPIAS (37-B) CELL: 9133237733

 (ICAR), Central Agricultural University (CAU), output of national agricultural research
Imphal, Dr. Rajendra Prasad Central system.
Agricultural University (DRPCAU), Pusa, Bihar,
and Rani Lakshmi Bai Central Agricultural 129. Consider the following statements regarding the
University (RLBCAU), Jhansi, UP. MSP
i) The Government of India announced to fix
127. Consider the following factors the MSP for crops 50 percent above their
i) Cost of Production production cost since 2018–19.
ii) Demand and supply, ii) The new MSP is based on the formula that
iii) Price trend in the domestic and international over the Cost A2+Fl.
markets iii) Cost A2 includes imputed cost of unpaid
Which of the above were the important factors in the family labour.
determination of MSP of mandated crops? Which of the statements given above are incorrect?
A) Only I and ii A) Only iii
B) Only iii B) Only ii and iii
C) Only i C) Only I and ii
D) All the above D) All the above
Ans: D Ans: A
Cost of Production (CoP) is one of the important The Government announced to fix the MSP for crops
factors in the determination of MSP of 50 per cent above their production cost since
mandated crops. Besides cost, the 2018–19. The new MSP is fixed by the CACP
Commission considers other important over the Cost A2+Fl (where, Cost A2 includes
factors such as demand and supply, price all paid out costs borne by the farmer on
trend in the domestic and international seeds, fertilisers, pesticides, hired labour,
markets, intercrop price parity, terms of leased-in land, fuel, irrigation, etc. and the Fl
trade between agricultural and non- is imputed cost of unpaid family labour).
agricultural sectors and the likely impact of
MSP on consumers, in addition to ensuring 130. Consider the following statements regarding the
rational utilisation of natural resources like Price Stabilisation Fund
land and water. i) The Government of India launched the Price
Stabilisation Fund in March 2019.
128. National Agriculture Technology Project (NATP) ii) The main objective of the scheme is to
is funded in India by which among the support market interventions for price
following? control of perishable Agri horticultural
A) Food and Agriculture Organization commodities.
B) World Bank Which of the statements given above are correct?
C) Asian Development Bank A) Only i
D) International Monetary Fund B) Only ii
Ans: B C) Both
National Agriculture Technology Project (NATP) was D) None
launched by the Indian Council of Agricultural Ans: B
Research (ICAR) and Union Ministry of The Government of India, by late March 2015,
Agriculture in 1998, with the support of the launched the Price Stabilisation Fund (PSF) as
World Bank to strengthen and complement a Central Sector Scheme to support market
the existing resources and to augment the interventions for price control of perishable

KPIAS (38-B) CELL: 9133237733

 Agri horticultural commodities. The cost to be
borne between the centre and the states in
equal ratio (in case of the North Eastern-
states, the respective share will be 75:25).
The scheme will commence with only two
crops, viz., onion and potato.
131. Consider the following characteristics
i) high yielding variety (HYV) seeds,
ii) chemical fertilisers,
iii) insecticides and pesticides
Which of the above are the main characteristics of
commercial farming?
A) Only I and ii
B) Only i
C) Only ii and iii
D) All the above
Ans: D
Commercial Farming: The main characteristic of this
type of farming is the use of higher doses of
modern inputs, e.g., high yielding variety
(HYV) seeds, chemical fertilisers, insecticides
and pesticides in order to obtain higher
productivity. The degree of
commercialisation of agriculture varies from
one region to another. For example, rice is a
commercial crop in Haryana and Punjab, but
in Odisha, it is a subsistence crop.
132. Sub-Mission on Feed and Fodder Development
sub-mission aimed towards strengthening the
fodder seed chain to improve availability of
certified fodder seed required for fodder
production is a sub-mission of?
A) Rastriya Gokul Mission
B) National Livestock Mission
C) Bharat Jaivik Yojana
D) Atal Nakul Yojana (AKY)
Ans: B
National Livestock Mission (NLM) scheme has been
restructured from 2021-22 to 2025-26, The
focus of the scheme is on entrepreneurship
development and breed improvement in
poultry, sheep, goat and piggery including
KPIAS (39-B)
feed and fodder development. The scheme is
implemented with the following three sub-
missions. Sub-Mission on Feed and Fodder
Development: This sub-mission aims towards
strengthening the fodder seed chain to
improve availability of certified fodder seed
required for fodder production and
encouraging entrepreneurs for establishment
of fodder block/hay, bailing /silage making
units through incentivisation.
133. Consider the following challenges
i) fragmented landholdings,
ii) sub-optimal farm mechanisation,
iii) low productivity,
iv) institutional unemployment,
v) lowering input costs
Which of the above were certain challenges
specifically associated with the Indian
agriculture?
A) Only I, iii, iv and v
B) Only I, ii and iii
C) Only iv and v
D) All the above
Ans: B
While Indian agriculture has performed well, the
sector needs re-orientation in the backdrop
of certain challenges like adverse impacts of
climate change, fragmented landholdings,
sub-optimal farm mechanisation, low
productivity, disguised unemployment, rising
input costs, etc.
134. Assertion (A): The year 2022 experienced a
decline in the sown area for paddy cultivation
too in the Kharif season due to delayed
monsoons and deficient rainfall.
Reason (R): As per First Advance Estimates 2022-23,
the paddy area was about 3.8 lakh hectares
more than the sown area during 2021-22.
Select the answer using the codes given below
A) Both A and R are true, and R is proper
explanation of A
B) Both A and R are true, and R is not proper
explanation of A
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C) Only A is true D) None
D) Only R is true Ans: C
Ans: C Farm mechanisation helps increase productivity
The year 2022 witnessed an early heat wave during through timely and efficient use of other
the wheat-harvesting season, adversely inputs and natural resources while at the
affecting its production. The year same time reducing the cost of cultivation
experienced a decline in the sown area for and the drudgery associated with various
paddy cultivation too in the Kharif season due farm operations. Under the Sub Mission on
to delayed monsoons and deficient rainfall. Agricultural Mechanisation (SMAM), State
As per First Advance Estimates 2022-23 Governments are being assisted in training
(kharif only) the paddy area was about 3.8 and demonstrating agricultural machinery
lakh hectares less than the sown area of and helping farmers procure various farm
411.2 lakh hectare during 2021-22. machinery and equipment besides setting up
Custom Hiring Centres (CHC).
135. The Government of India extending the Kisan
Credit Card Scheme facility to fisheries and 137. Consider the following statements regarding the
animal husbandry farmers in? organic farming
A) 2016-17 i) India has the highest number of organic
B) 2020-21 farmers in the world.
C) 2021-22 ii) About 59.1 lakh ha of area was brought under
D) 2018-19 organic farming in India by 2021-22.
Ans: D Which of the statements given above are incorrect?
Accordingly, the Kisan Credit Card Scheme (KCC) was A) Only i
introduced in 1998 for farmers to empower B) Only ii
them to purchase agricultural products and C) Both
services on credit at any time. As of 30 D) None
December, 2022, banks issued Kisan Credit Ans: D
Cards (KCC) to 3.89 crore eligible farmers Organic and natural farming provides chemical
with a KCC limit of ₹4,51,672 crore. With the fertiliser and pesticide-free food grains and
Government of India extending the KCC other crops, improves soil health and reduces
facility to fisheries and animal husbandry environmental pollution. India has 44.3 lakh
farmers in 2018-19. organic farmers, the highest in the world, and
about 59.1 lakh ha area was brought under
136. Consider the following statements regarding the organic farming by 2021-22. Sikkim
Farm mechanisation voluntarily adopted going organic state.
i) Farm mechanisation helps increase
productivity through timely and efficient use
of other inputs and natural resources. 138. PKVY Scheme is being implemented in a cluster
ii) Farm mechanisation helps in reducing the mode. Financial assistance of how much per
cost of cultivation and the drudgery ha is provided to the farmer under the
associated with various farm operations. scheme?
Which of the statements given above are correct? A) ₹50,000
A) Only i B) ₹1,00,000
B) Only ii C) ₹75,000
C) Both D) ₹30,000

KPIAS (40-B) CELL: 9133237733

Ans: A
Paramparagat Krishi Vikas Yojana (PKVY) and Mission
Organic Value Chain Development for North
Eastern Region (MOVCDNER) since 2015
through cluster/ Farmer Producer
Organisations (FPOs) formation. PKVY
Scheme is being implemented in a cluster
mode (with min. 20 ha size). Financial
assistance of ₹50,000 per ha for three years is
provided to the farmer, out of which ₹31,000
is given as incentives for organic inputs
provided directly through Direct Benefit
Transfer (DBT).
139. Consider the following statements regarding the
agriculture marketing
i) The scope of the Essential Commodities Act,
1955 is much broader than the APMC Act.
ii) Essential Commodities Act, 1955 empowers
only central government to control
production, supply and distribution of certain
commodities.
Which of the statements given above are correct?
A) Only i
B) Only ii
C) Both
D) None
Ans: A
The scope of the Essential Commodities Act, 1955 (EC
Act) is much broader than the APMC Act. It
empowers the central and state governments
concurrently to control production, supply
and distribution of certain commodities,
including pricing, stock-holding and the
period for which the stocks can be kept and
to impose duties. The APMC Act on the other
hand, controls only the first sale of the
agricultural produce. Apart from food-stuffs
which are covered under the APMC Act, the
commodities covered under the EC Act
generally are: drugs, fertilisers, textiles and
coal.
KPIAS (41-B)
140. Assertion (A): Promotion of natural farming in
India began in 2021-22.
Reason (R): Bhartiya Prakratik Krishi Paddhati (BPKP)
is a sub-scheme of Paramparagat Krishi Vikas
Yojana was launched to assist farmers in
adopting traditional indigenous practices for
encouraging all forms of ecological farming.
Select the answer using the codes given below
A) Both A and R are true, and R is proper
explanation of A
B) Both A and R are true, and R is not proper
explanation of A
C) Only A is true
D) Only R is true
Ans: D
Promotion of natural farming began in 2019-20, when
Bhartiya Prakratik Krishi Paddhati (BPKP), a
sub-scheme of PKVY, was launched to assist
farmers in adopting traditional indigenous
practices for encouraging all forms of
ecological farming, including Zero-Budget
Natural Farming (ZBNF).
141. Consider the following statements regarding the
i) Agriculture Infrastructure Fund is a financing
facility operational from the year 2020-21 to
2030-40.
ii) The main objective of the Agriculture
Infrastructure Fund is to create post-harvest
management infrastructure and community
farm assets.
Which of the statements given above are incorrect?
A) Only i
B) Only ii
C) Both
D) None
Ans: A
Agriculture Infrastructure Fund (AIF): AIF is a
financing facility operational from the year
2020-21 to 2032-33 for the creation of post-
harvest management infrastructure and
community farm assets, with benefits
including 3 per cent interest subvention and
credit guarantee support. Under this, a
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 provision of ₹1 lakh crore for 2020-21 to which fall into the blue and green boxes.
2025-26 has been made, and interest These include government policies of
subvention and credit guarantee assistance minimum support prices (as MSP in India) for
will be given until 2032-33. AIF scheme has agricultural products or any help directly
the facility of convergence with any other related to production quantities (as power,
scheme of the State or Central Government fertilizers, pesticides, irrigation, etc).
and can prove to be a milestone in
investment in the agriculture sector. 144. Consider the following crops
i) fruits,
142. Consider the following statements regarding the ii) root
Pradhan Mantri Fasal Bima Yojana iii) tuber crops,
i) Compulsory participation for all farmers. iv) spices,
ii) Selection of Insurance Companies by the v) plantation
States for 3 years in a go. Mission for Integrated Development of Horticulture
iii) Two-step process of crop yield estimation. aimed to promote horticulture covering crops
iv) Use of smart sampling technique through of which among the above?
satellite data for crop cutting experiments. A) Only I, ii, iii and iv
The revamped Pradhan Mantri Fasal Bima Yojana has B) Only I, iii, iv and v
many features which include? C) Only I, iii and v
A) Only I, ii and iii D) All the above
B) Only ii, iii and iv Ans: D
C) Only iii and iv Mission for Integrated Development of Horticulture
D) All the above (MIDH): Several expert groups have identified
Ans: B horticulture as a high-growth area and a
The revamped Pradhan Mantri Fasal Bima Yojana source of buoyant income and improved
w.e.f Kharif 2020 has many features, which resilience for farmers. The scheme to
include voluntary participation for all promote horticulture covering fruits,
farmers, selection of Insurance Companies by vegetables, root and tuber crops, spices,
the States for 3 years in a go, a two-step flowers, plantation crops etc., was introduced
process of crop yield estimation, use of smart in 2014-15.
sampling technique through satellite data for
crop cutting experiments, etc 145. Consider the following statements regarding
New Urea Policy
143. Minimum Support Prices policies of the i) The New Urea Policy was notified in 2014.
Government of India for agricultural products ii) The main objective of the policy is to
fall into which among the following maximising production of food grains and
categories of WTO subsidies? pulses.
A) Blue Box Which of the statements given above are incorrect?
B) Amber Box A) Only i
C) Green Box B) Only ii
D) Social and Development Box C) Both
Ans: B D) None
All subsidies which are supposed to distort Ans: C
production and trade fall into the amber box, The New Urea Policy-2015 was notified with the
i.e., all agricultural subsidies except those objectives of maximising indigenous urea

KPIAS (42-B) CELL: 9133237733

 production; promoting energy efficiency in A) Only i
urea production; and rationalising subsidy B) Only ii
burden on the government. It is expected C) Both
that the domestic urea sector would become D) None
globally competitive in terms of energy Ans: B
efficiency over a period of three years. Climate-Smart Farming Practices: This is slowly
gaining acceptance with farmers using clean
146. Consider the following statements regarding the energy sources like solar for irrigation. The
e-NAM scheme farmers have been incentivised to transfer
i) The Government of India launched the electricity generated through solar to the
National Agriculture Market (e-NAM) Scheme local grid. Crop yield prediction models using
in March 2019. artificial intelligence and drones for
ii) The main aim of the e-NAM scheme is to monitoring soil and crop health have been
create an online transparent, competitive initiated. Smart farming also enables crop
bidding system to ensure farmers get diversification, which will help farmers
remunerative prices for their produce. reduce their dependence on monsoons for
Which of the statements given above are incorrect? water. There are over 1,000 aggrotech start-
A) Only i ups in India. These assist farmers in
B) Only ii improving farming techniques.
C) Both
D) None 148. Consider the following statements regarding the
Ans: A primary sector
National Agriculture Market (e-NAM) Scheme: The i) Animal Husbandry infrastructure
Government of India launched the National Development Fund was launched as part of
Agriculture Market (e-NAM) Scheme in 2016 Atma Nirbhar Bharat Abhiyan stimulus
to create an online transparent, competitive package.
bidding system to ensure farmers get ii) Animal Husbandry infrastructure
remunerative prices for their produce. Under Development Fund facilitates for
the e-NAM Scheme, the Government incentivisation of investments in
provides free software and assistance of ₹75 establishment of infrastructure for dairy and
lakh per APMC mandi for related hardware, meat processing and value addition
including quality assaying equipment and the infrastructure.
creation of infrastructure like cleaning, Which of the statements given above are correct?
grading, sorting, packaging, compost unit, A) Only i
etc. B) Only ii
C) Both
147. Consider the following statements regarding the D) None
Climate-Smart Farming Practices Ans: C
i) The farmers have been incentivised to Climate-Smart Farming Practices: This is slowly
transfer electricity generated through solar to gaining acceptance with farmers using clean
the local grid under the Climate-Smart energy sources like solar for irrigation. The
Farming Practices. farmers have been incentivised to transfer
ii) Climate Smart farming disables crop electricity generated through solar to the
diversification. local grid. Crop yield prediction models using
Which of the statements given above are incorrect? artificial intelligence and drones for

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 monitoring soil and crop health have been
initiated. Smart farming also enables crop
diversification, which will help farmers
reduce their dependence on monsoons for
water. There are over 1,000 Agri-tech start-
ups in India. These assist farmers in
improving farming techniques.

149. Green Revolution in India started from which of

the following region?
A) Pantnagar
B) Amritsar
C) Varanasi
D) Chennai
Ans. A
The beginning of green revolution in India is
considered from the year 1966. University of
Agriculture, Pantnagar has been an important
contributor in bringing green revolution in
India. This university is also called as the birth
place of green revolution in India.

150. FSSAI is promoting food fortification by notifying

standards for fortification of which of the
following key staple foods?
i) Milk,
ii) Oil
iii) wheat,
iv) rice
v) salt
Select the answer using the codes given below
A) Only I, iii and iv
B) Only iii, iv and v
C) Only I, ii, iv and v
D) All the above
Ans: D
To address malnutrition, FSSAI is promoting food
fortification by notifying standards for
fortification of five key staples viz., Milk, Oil
(with Vit A & D), wheat, rice (with iron, folic
acid and Vit B12 with 6 other nutrients as
voluntary addition) and salt (double fortified
with iron and iodine). +F logo has been
introduced for identification of fortified food.

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