UPSC Prelims 2016 Question Paper
Explore the complete solved question paper for UPSC Prelims 2016 featuring 100 solved questions with bilingual (English & Hindi) explanations, official answer key, and subject weightage breakdown.
India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?
Detailed Explanation:
Answer: Option 3 — World Bank
The Ease of Doing Business Index was published by the World Bank. This index ranked countries based on the regulatory environment for business operations, measuring factors such as starting a business, getting electricity, registering property, getting credit, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The index aimed to encourage countries to implement business-friendly reforms. However, the World Bank discontinued this index in September 2021 following investigations that revealed data irregularities and ethical concerns in the 2018 and 2020 reports.
Which of the following is/are included in the capital budget of the Government of India?
- Expenditure on acquisition of assets like roads, buildings, machinery, etc.
- Loans received from foreign governments.
- Loans and advances granted to the States and Union Territories.
Select the correct answer using the code given below.
Detailed Explanation:
Answer: Option 4 — 1, 2 and 3
The Capital Budget of the Government of India includes all transactions that either create assets or liabilities. It comprises both Capital Receipts (loans received, recovery of loans, etc.) and Capital Expenditure (acquisition of assets, loans granted, etc.).
✅ Statement 1 – Correct: Expenditure on acquisition of assets like roads, buildings, and machinery is Capital Expenditure as it creates physical assets for the country and is long-term in nature, hence included in the capital budget.
✅ Statement 2 – Correct: Loans received from foreign governments constitute Capital Receipts as they create a liability (repayment obligation) for the government, forming part of the capital budget.
✅ Statement 3 – Correct: Loans and advances granted to States and Union Territories are Capital Expenditure since they create financial assets for the central government (recoverable with interest), thus included in the capital budget.
With reference to pre-packaged items in India, it is mandatory for the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labeling) Regulations, 2011?
- List of ingredients including additives
- Nutrition information
- Recommendations, if any made by the medical profession about the possibility of any allergic reactions
- Vegetarian/non-vegetarian
Select the correct answer using the code given below
Detailed Explanation:
Answer: Option 3 — 1, 2 and 4
The Food Safety and Standards (Packaging and Labelling) Regulations, 2011 mandate specific information on pre-packaged food items to ensure consumer safety and informed choice.
✅ Statement 1 – Correct: List of ingredients including additives must be declared on the label, except for single-ingredient foods. This helps consumers identify what they are consuming.
✅ Statement 2 – Correct: Nutritional information (per 100 gm/100 ml or per serving) is mandatory. This includes details about energy, protein, carbohydrates, fat, and other nutrients.
❌ Statement 3 – Incorrect: There is no provision in the regulations requiring recommendations by the medical profession about allergic reactions. While allergen information may be included voluntarily, medical recommendations are not mandatory.
✅ Statement 4 – Correct: A clear vegetarian/non-vegetarian symbol must be displayed on the package, typically as a green or brown dot inside a square, to help consumers make dietary choices.
🧐 Not Sure What to Study Next?
Get a personalised study plan based on your goals, time and revision needs.
In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?
Detailed Explanation:
Answer: Option 1 — WTO affairs
The terms 'amber box,' 'blue box,' and 'green box' are classification categories used in the World Trade Organization's Agreement on Agriculture to categorize domestic agricultural subsidies based on their trade-distorting effects. The Amber Box includes trade-distorting subsidies like price support and input subsidies that are subject to reduction commitments. The Blue Box contains subsidies tied to production-limiting programs that are exempt from reduction commitments. The Green Box covers minimally trade-distorting subsidies such as government services, food security programs, and environmental protection measures that are permitted without limits. These classifications are central to WTO negotiations on agricultural trade liberalization and subsidy disciplines.
Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?
Detailed Explanation:
Answer: Option 4 — Renminbi
The Chinese Renminbi (RMB/Yuan) was added to the IMF's Special Drawing Rights (SDR) basket in October 2016, becoming the fifth currency alongside the US Dollar, Euro, Japanese Yen, and British Pound Sterling. This inclusion recognized China's growing role in global trade and finance. The SDR basket is reviewed every five years by the IMF to reflect currencies' relative importance in international transactions. Among the given options, only the Renminbi has been recently proposed and successfully added to the SDR basket, marking a significant milestone in international monetary cooperation.
The term ‘Core Banking Solution’ is sometimes seen in the news. Which of the following statements best describes/describe this term?
- It is networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
- It is an effort to increase RBI’s control over commercial banks through computerization.
- It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 1 — 1 only
✅ Statement 1 – Correct: Core Banking Solution (CBS) is a centralized banking system that networks all branches of a bank, enabling customers to operate their accounts and perform banking transactions from any branch on the network, regardless of where the account was originally opened. This provides 'anytime, anywhere' banking within the bank's network.
❌ Statement 2 – Incorrect: CBS is not designed to increase RBI's control over commercial banks. It is an internal banking software platform adopted by individual banks to enhance operational efficiency, streamline processes, and improve customer service delivery.
❌ Statement 3 – Incorrect: CBS refers to the centralized software infrastructure for managing daily banking operations such as deposits, withdrawals, and account management. It has no connection with procedures for bank takeovers or resolution of Non-Performing Assets (NPAs).
With reference to ‘Financial Stability and Development Council’, consider the following statements:
- It is an organ of NITI Aayog.
- It is headed by the Union Finance Minister.
- It monitors macro-prudential supervision of the economy.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 3 — 2 and 3 only
❌ Statement 1 – Incorrect: The Financial Stability and Development Council (FSDC) is not an organ of NITI Aayog. It is an apex-level independent body constituted under the Ministry of Finance to strengthen and institutionalize the mechanism for maintaining financial stability.
✅ Statement 2 – Correct: The FSDC is chaired by the Union Finance Minister. The Council includes heads of financial sector regulators (RBI, SEBI, IRDA, PFRDA), Finance Secretary, and other senior officials.
✅ Statement 3 – Correct: The FSDC monitors macro-prudential supervision of the economy, including the functioning of large financial conglomerates. It assesses and addresses systemic risks to financial stability and coordinates among various financial sector regulators.
The establishment of “Payment Banks’ is being allowed in India to promote Financial Inclusion. Which of the following statements is/are correct in this context?
- Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
- Payment Banks can issue both credit cards and debit cards.
- Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 2 — 1 and 3 only
✅ Statement 1 – Correct: Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks under RBI guidelines. This provision enables entities with extensive reach and distribution networks to promote financial inclusion among unbanked populations.
❌ Statement 2 – Incorrect: Payment Banks are permitted to issue only debit cards and ATM cards linked to their deposit accounts. They cannot issue credit cards as they are not authorized to undertake any lending activities, which is a prerequisite for credit card issuance.
✅ Statement 3 – Correct: Payment Banks are explicitly prohibited from undertaking lending activities under RBI regulations. They can only accept deposits (up to ₹2 lakh per customer) and provide payment/remittance services, thereby focusing solely on facilitating transactions and savings rather than credit creation.
What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?
- These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances
- These guidelines help ensure availability of bank credit & interest rates which are fair to the borrowers as well as the banks
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 3 — Both 1 and 2
✅ Statement 1 – Correct: MCLR framework mandates banks to adopt a standardized, transparent methodology for determining lending rates. Banks must disclose their MCLR calculation components (marginal cost of funds, operating costs, tenor premium, and negative carry) publicly, improving transparency compared to the earlier Base Rate system.
✅ Statement 2 – Correct: MCLR ensures fairness by linking lending rates to actual marginal cost of funds, enabling faster transmission of policy rate changes to borrowers. This balances borrower interests (lower rates when RBI cuts rates) with bank viability (covering costs and maintaining reasonable margins), thereby ensuring both availability of credit and fair pricing.
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?
- Reducing revenue expenditure
- Introducing new welfare schemes
- Rationalizing subsidies
- Reducing import duty
Select the correct answer using the code given below.
Detailed Explanation:
Answer: Option 3 — 1 and 3 only
✅ Statement 1 – Correct: Reducing revenue expenditure (salaries, interest payments, administrative costs) directly lowers total government spending without affecting asset creation, thereby reducing the budget deficit.
❌ Statement 2 – Incorrect: Introducing new welfare schemes increases government expenditure, which widens the budget deficit rather than reducing it.
✅ Statement 3 – Correct: Rationalizing subsidies through better targeting (DBT, eliminating leakages) reduces wasteful expenditure while maintaining benefits for intended beneficiaries, thus helping to narrow the deficit.
❌ Statement 4 – Incorrect: Reducing import duty decreases tax revenue for the government, which increases the deficit when expenditure remains constant.
Which of the following best describes the term “import cover”, sometimes seen in the news?
Detailed Explanation:
Answer: Option 4 — It is the number of months of imports that could be paid for by a country's international reserves
Import cover is a key indicator of external sector stability that measures how many months of imports a nation can finance using its current foreign exchange reserves. It is calculated by dividing total foreign exchange reserves by average monthly imports. For example, if a country has $300 billion in reserves and monthly imports of $25 billion, its import cover is 12 months. A higher import cover indicates stronger ability to withstand balance of payments crises or sudden capital outflows. The Reserve Bank of India typically aims to maintain adequate import cover (generally 9-12 months) to ensure economic security. Option 1 describes import intensity relative to GDP, Option 2 refers to absolute import value, and Option 3 describes the export-import ratio, none of which capture the reserves-to-imports relationship that defines import cover.
The term ‘Base Erosion and profit shifting’ is sometimes seen in the news in the context of
Detailed Explanation:
Answer: Option 2 — curbing of the tax evasion by multinational companies
Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies used by multinational companies to artificially shift profits from higher-tax jurisdictions to lower-tax jurisdictions, thereby eroding the tax base of countries where actual economic activity occurs. The OECD/G20 BEPS Project aims to curb such tax avoidance practices through international cooperation and common standards. Governments worldwide have adopted BEPS measures to prevent multinationals from exploiting gaps and mismatches in tax rules across different countries, ensuring fair taxation where value is created.
With reference to the cultural history of India, the memorizing of chronicles, dynastic histories and Epictales was the profession of which of the following?
Detailed Explanation:
Answer: Option 4 — Maagadha
Maagadha (or Magadha) was a professional class of bards and chroniclers in ancient India who specialized in memorizing and reciting dynastic histories, genealogies, chronicles, and epic tales. They were attached to royal courts and performed the crucial function of preserving oral traditions before written records became widespread. The other options refer to different professions: Shramana were ascetic monks in Jainism and Buddhism who renounced worldly life; Parivraaj (Parivrajaka) were wandering mendicants seeking spiritual wisdom; and Agrahaarika were administrators of land grants (agraharas) given to Brahmins, unrelated to historical preservation.
Consider the following pairs:
| Famous place | Region |
|---|---|
| 1. Bodhgaya | Baghelkhand |
| 2. Khajuraho | Bundelkhand |
| 3. Shirdi | Vidarbha |
| 4. Nasik (Nashik) | Malwa |
| 5. Tirupati | Rayalaseema |
Which of the pairs given above are correctly matched?
Detailed Explanation:
Answer: Option 3 — 2 and 5 only
✅ Pair 2 – Correct: Khajuraho is located in the Bundelkhand region of Madhya Pradesh, famous for its medieval Hindu and Jain temples with intricate sculptures.
❌ Pair 1 – Incorrect: Bodhgaya is situated in the Magadh region of Bihar, not Baghelkhand. Baghelkhand is a region in eastern Madhya Pradesh.
❌ Pair 3 – Incorrect: Shirdi is located in Ahilyanagar (formerly Ahmednagar) district in western Maharashtra, not in the Vidarbha region which is in eastern Maharashtra.
❌ Pair 4 – Incorrect: Nashik is located in the northwestern region of Maharashtra, not in Malwa. Malwa is a plateau region in western Madhya Pradesh.
✅ Pair 5 – Correct: Tirupati is situated in the Rayalaseema region of Andhra Pradesh, known for the famous Venkateswara Temple.
With reference to the cultural history of medieval India, consider the following statements:
- Siddhas (Sittars) of Tamil region were monotheistic and condemned idolatry.
- Lingayats of Kannada region questioned the theory of rebirth and rejected the caste hierarchy.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 3 — Both 1 and 2
✅ Statement 1 – Correct: The Siddhas (Sittars) of Tamil Nadu were part of a monotheistic devotional movement that emerged during medieval India. They believed in a formless supreme reality and strongly opposed idol worship, ritualism, and temple-centric practices. Their philosophy emphasized direct spiritual experience over external religious symbols.
✅ Statement 2 – Correct: The Lingayat movement, founded by Basavanna in 12th-century Karnataka, was a radical social-religious reform movement. Lingayats rejected the theory of rebirth and the associated karmic cycle that perpetuated caste hierarchy. They advocated social equality, opposed Brahmanical dominance, and rejected caste-based discrimination. They believed in liberation (aikya) immediately upon death rather than through cycles of rebirth.
Which one of the following books of ancient India has the love story of the son of the founder of Sunga dynasty?
Detailed Explanation:
Answer: Option 2 — Malavikagnimitra
Malavikagnimitra is a classical Sanskrit play written by the renowned poet Kalidasa. It narrates the romantic love story of King Agnimitra, who was the son of Pushyamitra Shunga, the founder of the Sunga dynasty (circa 185 BCE). The play revolves around Agnimitra's love for Malavika, a beautiful maiden in the royal household. Swapnavasavadatta by Bhasa tells the story of King Udayana and Queen Vasavadatta, unrelated to the Sunga dynasty. Meghadoota is Kalidasa's lyrical poem about a Yaksha sending messages through a cloud to his beloved wife. Ratnavali by Harsha is a romantic comedy about King Udayana and Princess Ratnavali, with no connection to the Sungas.
With reference to the religious history of India, consider the following statements :
- The concept of Bodhisattva is central to the Hinayana sect of Buddhism.
- Bodhisattva is a compassionate one on his way to enlightenment.
- Bodhisattva delays achieving his own salvation to help all sentient beings on their path to it.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 2 — 2 and 3 only
❌ Statement 1 – Incorrect: The concept of Bodhisattva is central to Mahayana Buddhism, not Hinayana (Theravada). Hinayana emphasizes the Arhat ideal—one who achieves personal liberation (Nirvana). Mahayana, in contrast, celebrates the Bodhisattva path of compassionate service to all beings.
✅ Statement 2 – Correct: A Bodhisattva is a being who has developed enlightenment qualities but is characterized by boundless compassion. They are on the path to full Buddhahood while actively working for the welfare of all sentient beings.
✅ Statement 3 – Correct: The defining feature of a Bodhisattva is the vow to delay entering final Nirvana until all sentient beings are liberated. This selfless commitment distinguishes the Bodhisattva ideal from the Arhat ideal, making it the cornerstone of Mahayana Buddhism.
What is/are common to the two historical places known as Ajanta and Mahabalipuram?
- Both were built in the same period.
- Both belong to the same religious denomination.
- Both have rock-cut monuments.
Select the correct answer using the code given below.
Detailed Explanation:
Answer: Option 2 — 3 only
❌ Statement 1 – Incorrect: Ajanta caves were built between 2nd century BCE to 6th century CE (primarily under Vakataka and Gupta periods), while Mahabalipuram monuments were constructed in 7th-8th centuries CE under the Pallava dynasty. They belong to different periods separated by at least a century.
❌ Statement 2 – Incorrect: Ajanta caves are Buddhist monuments serving as monasteries and prayer halls (chaityas and viharas), whereas Mahabalipuram monuments are predominantly Hindu, dedicated to Shiva and Vishnu with structures like Shore Temple and Pancha Rathas.
✅ Statement 3 – Correct: Both sites feature rock-cut architecture. Ajanta has 30 rock-cut cave temples carved into basalt cliffs, while Mahabalipuram showcases rock-cut monuments including rathas, mandapas, and relief sculptures carved from granite monoliths.
Who of the following had first deciphered the edicts of Emperor Ashoka?
Detailed Explanation:
Answer: Option 2 — James Prinsep
James Prinsep (1799-1840), an English scholar and antiquary with the British East India Company, was the first person to decipher Emperor Ashoka's edicts in 1837. He successfully decoded the Brahmi script in which most of Ashoka's inscriptions were written, enabling scholars to understand the content and historical significance of these ancient edicts. This breakthrough was pivotal in establishing Ashoka's identity and the extent of the Mauryan Empire, as prior to Prinsep's work, the inscriptions remained undeciphered and Ashoka was largely unknown in modern historical records.
In the context of the history of India, consider the following pairs:
| Term | Description |
|---|---|
| 1. Eripatti | Land revenue from which was set apart for the maintenance of the village tank |
| 2. Taniyurs | Villages donated to a single Brahmin or a group of Brahmins |
| 3. Ghatikas | Colleges generally attached to the temples |
Which of the pairs given above is/are correctly matched?
Detailed Explanation:
Answer: Option 4 — 1 and 3 only
✅ Pair 1 – Correct: Eripatti was land revenue specifically allocated for the maintenance and repair of village irrigation tanks (eri) during the Pallava and Chola periods in South India. This was a crucial component of agrarian infrastructure management.
❌ Pair 2 – Incorrect: Taniyurs were not villages donated to Brahmins. They were large, independent administrative units in the Chola empire that functioned as separate revenue entities outside the jurisdiction of regular Nadus (districts). Villages donated to Brahmins were called Brahmadeya or Agrahara.
✅ Pair 3 – Correct: Ghatikas were institutions of higher learning in ancient and medieval South India, typically attached to temples. They served as centers for Vedic studies, theology, and other branches of knowledge. The Ghatika at Kanchipuram was particularly renowned.
UPSC Prelims 2016 Questions Paper - Subject-wise Question Distribution
Environment & Ecology
23 Qs (23%)Indian Economy
19 Qs (19%)Science & Technology
12 Qs (12%)Current Affairs
10 Qs (10%)International Relations
9 Qs (9%)Modern History
6 Qs (6%)Indian Art & Culture
5 Qs (5%)Indian Geography
5 Qs (5%)Indian Polity
5 Qs (5%)Medieval History
3 Qs (3%)Ancient History
3 Qs (3%)UPSC Prelims 2016 Question Paper - FAQs & Analysis
Q1 How many total questions were asked in UPSC Prelims 2016?
Q2 What is the subject-wise question breakdown for UPSC Prelims 2016?
- Environment & Ecology: 23 questions (23%)
- Indian Economy: 19 questions (19%)
- Science & Technology: 12 questions (12%)
- Current Affairs: 10 questions (10%)
- International Relations: 9 questions (9%)
- Modern History: 6 questions (6%)
- Indian Art & Culture: 5 questions (5%)
- Indian Geography: 5 questions (5%)
- Indian Polity: 5 questions (5%)
- Medieval History: 3 questions (3%)
- Ancient History: 3 questions (3%)