BPSC CCE Prelims
Indian Economy Previous Year Questions (PYQs)
Solved Previous Year Questions (PYQs) for Indian Economy in BPSC CCE Prelims in English & Hindi Medium.
Chapter Breakdown: Scroll →
The ratio of total deposits that a Commercial Banks must keep with Reserve Bank of India is called
Detailed Explanation:
Cash Reserve Ratio (CRR) is the percentage of total deposits that commercial banks must maintain as reserves with the Reserve Bank of India (RBI).
Statutory Liquidity Ratio (SLR) requires banks to maintain reserves in liquid assets (gold, government securities) with themselves, not with RBI, while Legal Reserve Ratio is a broader term encompassing both CRR and SLR.
Who is the Chairperson of GST Council?
Detailed Explanation:
The GST Council is a constitutional body established under Article 279A of the Indian Constitution.
The Union Finance Minister serves as the Chairperson of the GST Council, with members including the Union Minister of State for Finance and Finance Ministers of all states and UTs with legislatures.
Which among the following is a tool of Fiscal Policy ?
Detailed Explanation:
Fiscal Policy uses government revenue (taxes) and public expenditure to influence the economy, directly controlled by the government.
Taxes are a core fiscal tool—government adjusts direct taxes (income tax) and indirect taxes (GST) to manage demand, inflation, and revenue collection.
Cash Reserve Ratio (CRR), Credit Ceiling, and Bank Rate are monetary policy tools used by the Reserve Bank of India (RBI) to regulate money supply and credit availability in the banking system.
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Grey revolution is related to
Detailed Explanation:
The Grey Revolution refers to the massive increase in the production and use of chemical fertilizers in Indian agriculture during the 1960s-70s.
It complemented the Green Revolution by improving soil fertility through fertilizers like urea and superphosphate, leading to higher crop yields and food self-sufficiency.
Which Sector in India has benefitted the most from Globalization ?
Detailed Explanation:
Services sector emerged as the largest beneficiary of globalization in India, contributing over 50% to GDP.
IT exports surged with companies like TCS, Infosys, Wipro becoming global leaders; India became the world's top BPO destination due to English-speaking talent and cost advantages; FDI inflows concentrated in telecom, banking, insurance, and e-commerce; sectors like tourism, healthcare, and financial services expanded rapidly post-1991 reforms.
In contrast, manufacturing grew modestly while agriculture faced challenges from import competition and saw limited export growth despite globalization.
Choose the correct pair from the following options.
Detailed Explanation:
❌ Option 1 – Incorrect: The Fourth Five-Year Plan (1969–74) focused on growth with stability and strengthening agriculture (Green Revolution), not the service sector.
❌ Option 2 – Incorrect: The Fifth Five-Year Plan (1974–79) emphasized poverty alleviation (Garibi Hatao) and self-reliance, not solely industry.
❌ Option 3 – Incorrect: The Third Five-Year Plan (1961–66) prioritized self-reliance and heavy industry; globalisation came only after 1991 economic reforms.
✅ Option 4 – Correct: The First Five-Year Plan (1951–56) concentrated on agriculture and irrigation to address food shortages, with projects like Bhakra Nangal Dam.
Which of the following is a function of Central Bank?
Detailed Explanation:
The Central Bank (RBI in India) performs three core functions: it manages the repo rate to control inflation and liquidity in the economy, lends to commercial banks through repo, Marginal Standing Facility (MSF), and acts as lender of last resort, and provides banking facilities to the government including managing public debt, holding government accounts, issuing currency, and managing foreign exchange reserves.
All three options are correct functions of a central bank.
NNP at factor cost is equal to
Detailed Explanation:
NNP at Factor Cost is calculated by removing depreciation and net indirect taxes from GNP at Market Price.
NNPFC = GNPMP - Depreciation - Net Indirect Taxes, which represents the actual income earned by factors of production (land, labour, capital, entrepreneurship) and is called National Income.
✅ Option 4 – Correct: NNP at Factor Cost = National Income by definition in national income accounting.
Legally stipulated maximum size beyond which no individual farmer can hold any land is
Detailed Explanation:
Land ceiling refers to the legally stipulated maximum size of land that an individual farmer or family can hold.
Introduced through state land reform acts in the 1960s–70s, it aimed to prevent concentration of land ownership and redistribute surplus land to landless and marginal farmers.
The expanded form of UPI is
Detailed Explanation:
UPI stands for Unified Payment Interface.
It is a real-time payment system developed by the National Payments Corporation of India (NPCI) that enables instant fund transfers between bank accounts through mobile platforms using a Virtual Payment Address (VPA) or UPI ID.
Who headed the Royal Commission on Indian currency appointed in 1913?
Detailed Explanation:
Royal Commission on Indian Currency (1913) was appointed to examine India's currency system and the feasibility of adopting the gold standard.
Sir Austin Chamberlain, a British statesman and former Chancellor of the Exchequer, was appointed as the Chairman of this commission. J. M. Keynes served as a prominent member but did not head it.
Who among the following Indian capitalists was not the architect of the "Bombay Plan"?
Detailed Explanation:
Dhirubhai Ambani founded Reliance Industries in the 1960s, decades after the Bombay Plan (1944) was drafted.
The Bombay Plan was authored by eight prominent industrialists: J.R.D. Tata, G.D. Birla, Lala Shri Ram, Purshottamdas Thakurdas, Kasturbhai Lalbhai, A.D. Shroff, John Mathai, and Ardeshir Dalal. It proposed a 15-year blueprint for state-led industrialization and mixed economy development in post-independence India.
Which component of fertilizer is used for stimulating early growth purpose?
Detailed Explanation:
Phosphorus stimulates early growth by promoting root development and seedling establishment.
It is a key component of ATP (adenosine triphosphate), enabling energy transfer for metabolic processes, and is found in fertilizers like DAP and SSP.
According to the Reserve Bank of India, what is one of the eligibility criteria for a Small Finance Bank (SFB) to transition into a Universal Bank?
Detailed Explanation:
The Reserve Bank of India (RBI) permits Small Finance Banks (SFBs) to transition into Universal Banks if they meet specific eligibility criteria.
Key requirement: a minimum net worth of ₹1,000 crore as paid-up voting equity capital, completion of at least five years of operations, and adherence to regulatory compliance and sound governance norms.
Which of the following are the objectives of the SEZ Act, 2005?
1. Generation of additional economic activity
2. Promotion of exports of goods and services
3. Creation of employment
Detailed Explanation:
✅ Statement 1 – Correct: The SEZ Act, 2005 explicitly aims at generation of additional economic activity in Special Economic Zones through infrastructure development and business incentives.
✅ Statement 2 – Correct: Promotion of exports of goods and services is a primary objective, with SEZs designated as foreign territory for trade operations to boost international trade.
✅ Statement 3 – Correct: Creation of employment opportunities is a key objective, with SEZs expected to generate both direct and indirect employment through industrial activities.
All three statements correctly reflect the objectives under the SEZ Act, 2005.
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