APPSC Group-I Prelims 2023

304 questions from the 2023 papers, each with the official answer and an explanation.

A question repeated across years is listed once, under one of the years it appeared.

81. Q81What an economy is measured by

    Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Select your answer from the codes given below. Assertion (A) : There is a structural change in the composition of National Income in India. Reason (R) : The process of economic growth was initiated in India. Codes :

    • aBoth (A) and (R) are true and (R) is the correct explanation for (A).Answer
    • bBoth (A) and (R) are true, but (R) is not the correct explanation for (A).
    • c(A) is false, but (R) is true.
    • d(A) is true, but (R) is false.
    ›Explanation

    Option A is correct because initiating planned economic growth fundamentally alters the sectoral structure of an economy by expanding secondary and tertiary sectors relative to primary agriculture, making Reason R the direct cause and explanation of Assertion A. Option B: The initiation of economic growth directly causes the structural reallocation of national income across sectors, so Reason R is indeed the correct explanation. Option C: The assertion is true because India has experienced a well-documented shift in income composition from agriculture to services and industry. Option D: The reason is true because planned economic growth was formally initiated in India after independence.

82. Q82What an economy is measured by

    Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Select your answer from the codes given below. Assertion (A) : Per Capita Income decreases in a developing country even though National Income increases. Reason (R) : The rate of growth of population is higher than the rate of growth of National Income. Codes :

    • aBoth (A) and (R) are true, but (R) is not the correct explanation for (A).
    • bBoth (A) and (R) are true and (R) is the correct explanation for (A).Answer
    • c(A) is true, but (R) is false.
    • d(A) is false, but (R) is true.
    ›Explanation

    Option B is correct because per capita income is calculated as national income divided by total population; if population grows faster than national income, the mathematical quotient decreases, making Reason R the direct and correct explanation for Assertion A. Per Capita Income = National Income / Population Growth rate of Per Capita Income = Growth rate of National Income - Growth rate of Population Option A: The reasoning directly explains the phenomenon rather than being an unconnected true statement. Option C: The reason is factually and logically true, not false. Option D: The assertion is true because per capita income can and does fall when population growth outpaces output growth.

83. Q83What an economy is measured by

    Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Select your answer from the codes given below. Assertion (A) : National Income growth fluctuates with fluctuations in Agriculture growth in India. Reason (R) : Weather conditions, especially rains, are uncertain in India. Codes :

    • aBoth (A) and (R) are true and (R) is the correct explanation for (A)Answer
    • bBoth (A) and (R) are true, but (R) is not the correct explanation for (A)
    • c(A) is true, but (R) is false
    • d(A) is false, but (R) is true
    ›Explanation

    Option A is correct because in India, agriculture provides forward and backward linkages to industry and services, so fluctuations in agriculture propagate to overall National Income; furthermore, Indian agriculture remains significantly reliant on monsoon rainfall, making weather variability the primary driver of agricultural output swings. Option B: Incorrect because uncertain weather conditions directly explain why agricultural growth fluctuates, which in turn causes fluctuations in National Income. Option C: Incorrect because the Reason statement is an established geographical and economic fact. Option D: Incorrect because the Assertion accurately describes historical trends in Indian economic growth.

84. Q84What an economy is measured by

    Match the following: List I List II a. Trade I. Primary Sector b. Water Supply II. Service sector c. Fisheries III. Central Statistical Organisation d. GDP IV. Industrial Sector Choose the correct answer using the codes given below: a b c d a b c d

    • aII I IV III
    • bII IV I IIIAnswer
    • cII I III IV
    • dIII I IV II
    ›Explanation

    Option B is correct because trade is classified under the service sector, water supply falls within the industrial sector, fisheries belongs to the primary sector, and national GDP aggregates are compiled by the Central Statistical Organisation. Trade: Service sector (II) Water Supply: Industrial Sector (IV) Fisheries: Primary Sector (I) GDP: Central Statistical Organisation (III) Option A: Incorrectly links water supply to the primary sector and fisheries to the industrial sector. Option C: Erroneously pairs water supply with the primary sector and GDP with the industrial sector. Option D: Incorrectly matches trade with the Central Statistical Organisation.

85. Q85Economic thought: the thinkers, the schools and the Nobel prize

    Consider the investments in the following assets : a. Brand recognition b. Inventory c. Intellectual property d. Mailing list of clients How many of the above are considered intangible investments ?

    • aOnly a
    • bOnly b
    • cOnly cAnswer
    • dAll of the above

    Explanation coming soon.

86. Q86Economic thought: the thinkers, the schools and the Nobel prize

    The economist who said that the “Net Social Product and the Social Income are one and the same thing” is

    • aAdam Smith
    • bAlfred Marshall
    • cP.A. Samuelson
    • dJ.R. HicksAnswer
    ›Explanation

    Option D is correct because British economist J. R. Hicks, in his book The Social Framework, demonstrated that Net Social Product and Social Income are one and the same thing, viewing national output from the production side and income generated from that production as an exact identity. Option A: Adam Smith focused on the division of labour and productive versus unproductive labour rather than the modern identity of Net Social Product and Social Income. Option B: Alfred Marshall defined national dividend primarily from the perspective of material production and services, but did not frame this explicit terminology. Option C: P. A. Samuelson is renowned for his contributions to revealed preference theory and modern neoclassical synthesis, not this foundational social accounting formulation.

87. Q87Planning, reform and the shape of policy

    During which Five Year Plan was the rate of growth of Gross Domestic Product the highest ?

    • a9th Five Year Plan
    • b10th Five Year Plan
    • c11th Five Year PlanAnswer
    • d12th Five Year Plan
    ›Explanation

    Option C is correct because the Eleventh Five-Year Plan achieved an average annual GDP growth rate of approximately 8.0 percent, which is the highest achieved across all completed Five-Year Plans. Ninth Plan actual GDP growth: 5.4 percent Tenth Plan actual GDP growth: 7.6 percent Eleventh Plan actual GDP growth: 8.0 percent Twelfth Plan actual GDP growth: 6.7 percent Option A: The 9th Five-Year Plan achieved a growth rate of only 5.4 percent due to the East Asian financial crisis and domestic shocks. Option B: The 10th Five-Year Plan recorded 7.6 percent growth, which was surpassed by the Eleventh Plan. Option D: The 12th Five-Year Plan was discontinued early and achieved an estimated growth rate below 7 percent.

88. Q88Planning, reform and the shape of policy

    Which of the following is NOT the function of the Economic Development Board?

    • aEconomic and policy research.
    • bMobilization of resources required for supplementing public and private investment.
    • cStrategic investment planning and promotion.
    • dFacilitating inter - departmental coordination.Answer

    Official answer shown. The explanation is under review.

89. Q89Population, poverty and work

    What is the age-group of higher proportion of working population required for Demographic Dividend ?

    • a15-64 yearsAnswer
    • b18-65 years
    • c18-60 years
    • d15-60 years
    ›Explanation

    Option A is correct because the United Nations defines the working-age population as persons aged 15 to 64 years. A demographic dividend occurs when this working-age segment forms a larger share of the total population compared to the dependent age groups (0-14 and 65+). Option B: 18-65 years is not the standard statistical interval used for demographic dividend analysis. Option C: 18-60 years uses employment retirement criteria rather than standard demographic parameters. Option D: 15-60 years is used in certain national labour definitions, but international demographic convention designates 15-64 years.

90. Q90Population, poverty and work

    Consider the following statement and answer the question. Statement : It took more than a million years for the world human population to attain the one billion mark. But it took only 12 years for it to rise from 5 billion to 6 billion. Which of the following time period can be represented from the statement ?

    • a1950-1963
    • b2008-2021
    • c1987-1999Answer
    • d1990-2012
    ›Explanation

    Option C is correct because the global population reached 5 billion in July 1987 and crossed the 6 billion threshold in October 1999, spanning an exact interval of 12 years. World population reached 5 billion in 1987 World population reached 6 billion in 1999 Interval between 5 billion and 6 billion was 12 years Option A: 1950-1963 was the period when global population grew from about 2.5 billion to 3.2 billion. Option B: 2008-2021 witnessed the population growing from approximately 6.7 billion to nearly 7.9 billion. Option D: 1990-2012 represents a 22-year period rather than the 12-year window described.

91. Q91Population, poverty and work

    Disguised unemployment is the common feature of

    • aAgricultureAnswer
    • bIndustry
    • cServices
    • dTrade
    ›Explanation

    Option A is correct because the agricultural sector in India absorbs family labour far beyond actual operational requirements due to lack of alternative livelihood avenues, leading to widespread disguised unemployment. Option B: It is incorrect because manufacturing industries generally recruit contractual or wage labour based on strict operational and productivity requirements. Option C: It is incorrect because the services sector mostly employs formal or market-driven skilled and semi-skilled personnel where marginal productivity is positive. Option D: It is incorrect because trade and commercial establishments typically optimize staff to control operating costs.

92. Q92Agriculture in the Indian economy

    Consider the following statements : a. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived. b. In an SHG, all members of a group take responsibility for a loan that an individual member takes. c. The Regional Rural Banks and Scheduled Commercial Banks support SHGs. How many of the above statements are correct?

    • aOnly a
    • bOnly b
    • cAll of theseAnswer
    • dNone

    Explanation coming soon.

93. Q93Money, banking and financial markets

    Demonetization was implemented in India on ......

    • aNovember 8th, 2016Answer
    • bNovember 9th, 2016
    • cNovember 10th, 2016
    • dNovember 11th, 2016
    ›Explanation

    Option A is correct because the Government of India announced the demonetization of all 500 and 1000 rupee banknotes of the Mahatma Gandhi Series on the evening of 8 November 2016, effective from midnight. Announcement date: 8 November 2016 Specified banknotes ceased to be legal tender: Midnight of 8 November 2016 Option B: It marks the first day the public reacted to the invalidation, not the date of implementation. Option C: It designates two days after the announcement when banking channels began accepting deposits of demonetized notes. Option D: It is simply a later calendar date during the note exchange window.

94. Q94Money, banking and financial markets

    Consider the following statements : Statement-I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements ?

    • aBoth Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-IAnswer
    • bBoth Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
    • cStatement-I is correct but Statement-II is incorrect
    • dStatement-I is incorrect but Statement-II is correct
    ›Explanation

    Option A is correct because central banks worldwide raised policy interest rates after the pandemic to tame escalating inflation, operating on the established economic principle that tighter monetary policy suppresses aggregate demand and thereby reins in consumer prices. Option B: It asserts that Statement II is not the explanation for Statement I, ignoring the direct causal connection between inflation-control rationale and interest rate hikes. Option C: It marks Statement II as incorrect, denying the fundamental theoretical premise on which central banks operate interest rate tools. Option D: It claims Statement I is incorrect, contradicting the synchronized rate-hiking cycles executed globally by major central banks.

95. Q95Money, banking and financial markets

    Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization' ?

    • aConducting 'Open Market Operations'Answer
    • bOversight of settlement and payment systems
    • cDebt and cash management for the Central and State Governments
    • dRegulating the functions of Non-banking Financial Institutions
    ›Explanation

    Option A is correct because sterilization refers to monetary measures used to neutralize the impact of foreign capital inflows or outflows on the domestic money supply, which is done primarily by selling or buying government securities through Open Market Operations. Option B: Oversight of settlement and payment systems is incorrect because it is a regulatory duty to ensure safe transactions, not a liquidity absorption tool. Option C: Debt and cash management for the Central and State Governments is incorrect because public debt management serves government financing needs rather than sterilizing foreign exchange shocks. Option D: Regulating the functions of Non-banking Financial Institutions is incorrect because it is a supervisory function aimed at institutional solvency and consumer protection.

96. Q96Money, banking and financial markets

    When the Central Bank increases the Cash Reserve Ratio, it leads to I. Fall in money circulation. II. Low demand for goods and services. III. Rise in purchasing power of the people. IV. Rise in bank's lending capacity. Choose the correct answer using the codes given below :

    • aI, III and IV
    • bI and II onlyAnswer
    • cI, II and III
    • dI, II and IV
    ›Explanation

    Option B is correct because raising the Cash Reserve Ratio forces commercial banks to lock up a larger share of their deposits with the central bank, which curtails loanable funds, contracts the broad money supply, and dampens aggregate demand. Option A: It incorrectly claims that purchasing power and lending capacity rise, both of which actually fall when liquidity is squeezed. Option C: It mistakenly includes a rise in purchasing power, whereas tighter liquidity and higher borrowing costs suppress spending power. Option D: It improperly includes a rise in bank lending capacity, whereas higher statutory reserves directly reduce available lending capital.

97. Q97Money, banking and financial markets

    Statutory Liquidity Ratio is to be maintained by banks in the form of I. Cash. II. Gold. III. Unencumbered investments in specified instruments. IV. Priority sector loans. Choose the correct answer using the codes given below :

    • aII, III and IV
    • bI, III and IV
    • cI, II and IV
    • dI, II and IIIAnswer
    ›Explanation

    Option D is correct because Statutory Liquidity Ratio is the proportion of net demand and time liabilities that commercial banks must maintain in liquid forms, specifically cash, gold, and unencumbered approved securities. Option A: excludes cash, which is an eligible liquid asset, and wrongly includes priority sector loans. Option B: excludes gold, which is an eligible asset for SLR, and wrongly includes priority sector loans. Option C: excludes unencumbered investments in approved securities, which forms the bulk of SLR, and wrongly includes priority sector loans.

98. Q98Money, banking and financial markets

    Which committee recommended allowing entry of private companies into the insurance sector in India?

    • aMalhotra CommitteeAnswer
    • bNarasimham Committee
    • cRaja Chellaiah Committee
    • dRangarajan Committee
    ›Explanation

    Option A is correct because the Committee on Reforms in the Insurance Sector, headed by former RBI Governor R. N. Malhotra, submitted its report in 1994 recommending that private domestic companies and foreign joint ventures be permitted to enter the Indian insurance market. Option B: Narasimham Committee focused entirely on commercial banking and financial sector structural reforms, not the insurance sector. Option C: Raja Chellaiah Committee was tasked with comprehensive direct and indirect tax reforms in India. Option D: Rangarajan Committee headed several panels dealing with disinvestment of public sector enterprises and poverty estimation, not insurance sector deregulation.

99. Q99Money, banking and financial markets

    Non-Performing Asset as per the current banking norms is

    • aA loan which is due during the last 90 days.
    • bA loan whose instalment of principal and interest amount has remained overdue for a period of 90 days.Answer
    • cA loan whose instalment of principal amount is overdue for a period of 90 days.
    • dA loan whose instalment of interest amount is overdue for a period of 90 days.
    ›Explanation

    Option B is correct because under RBI prudential norms, an advance is categorized as a non-performing asset when both or either the instalment of principal and interest remains overdue for a period exceeding 90 days. Option A: A loan due during the last 90 days is a standard asset undergoing its normal repayment window, not a non-performing asset. Option C: Overdue principal amount alone presents an incomplete definition by omitting the overdue interest criterion. Option D: Overdue interest amount alone presents an incomplete definition by omitting the overdue principal criterion.

100. Q100Money, banking and financial markets

     Name of the committee on Indian banking and financial sector reforms constituted by the Government of India in 1991 is

     • aSuresh Tendulkar Committee
     • bCommittee on Financial Stability
     • cCommittee on Financial SystemAnswer
     • dRaja J. Chelliah Committee
     ›Explanation

     Option C is correct because the committee constituted under M. Narasimham in August 1991 to recommend structural reforms in the banking and financial sector was officially designated as the Committee on the Financial System. Option A: Suresh Tendulkar Committee was appointed in 2005 to review the methodology for estimating poverty in India. Option B: Committee on Financial Stability is not an official name of any high-level reform committee constituted by the government in 1991. Option D: Raja J. Chelliah Committee was constituted in 1991 to recommend reforms in India's direct and indirect tax structure rather than the financial system.

101. Q101Money, banking and financial markets

     Para Banking Services include the following : I. Credit card business II. Insurance business III. Credit to para military personnel IV. Factoring services Choose the correct answer using the codes given below :

     • aI, II and IVAnswer
     • bII, III and IV
     • cI, II and III
     • dI, III and IV
     ›Explanation

     Option A is correct because para-banking refers to non-traditional financial services provided by banks alongside core deposit-taking and lending, which include credit card operations, insurance business, and factoring services. Option B: Incorrectly includes regular credit extended to paramilitary personnel, which is standard retail lending, and omits the credit card business. Option C: Incorrectly includes retail lending to paramilitary personnel and excludes factoring services, which is a recognized para-banking activity. Option D: Incorrectly treats normal paramilitary personal loans as para-banking while omitting insurance services.

102. Q102Money, banking and financial markets

     Consider the following statements : Statement-I : Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable. Statement-II : InvITs are recognized as borrowers under the 'Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002'. Which one of the following is correct in respect of the above statements ?

     • aBoth Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
     • bBoth Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
     • cStatement-I is correct but Statement-II is incorrect
     • dStatement-I is incorrect but Statement-II is correctAnswer
     ›Explanation

     Option D is correct because interest income received by investors from an Infrastructure Investment Trust is taxable under the Income Tax Act, making Statement-I incorrect, while the SARFAESI Act was amended to formally recognize InvITs and REITs as borrowers, making Statement-II correct. Option A: Statement-I is incorrect because distributed interest income from InvITs is not exempt in the hands of the unit holders. Option B: Statement-I is incorrect since both interest and specified dividend streams have defined tax liabilities under section 115UA. Option C: Statement-I is incorrect while Statement-II is fully correct under the amended SARFAESI provisions.

103. Q103Money, banking and financial markets

     Consider the following markets : a. Government Bond Market b. Call Money Market c. Treasury Bill Market d. Stock Market How many of the above are included in capital markets ?

     • aOnly a
     • bOnly b
     • cOnly cAnswer
     • dAll of the above

     Explanation coming soon.

104. Q104Money, banking and financial markets

     Gilt edged market comprises

     • aTreasury Bills and Government Bond MarketAnswer
     • bMutual Fund Market
     • cDerivatives Market
     • dCapital Market
     ›Explanation

     Option A is correct because the gilt-edged market refers to the market for trading high-grade, risk-free government securities, including treasury bills and long-term government bonds. Option B: Mutual funds deal with pooled investment vehicles rather than sovereign debt securities directly. Option C: Derivatives markets trade financial contracts derived from underlying assets, not specifically risk-free sovereign debt. Option D: Capital market is a broad category encompassing both equity and corporate debt markets, not specifically the government securities market.

105. Q105The named institutions: public sector undertakings, banks and their brands

     National Bank for Agriculture and Rural Development (NABARD) was established on the recommendation of which of the following Committee ?

     • aSivaraman CommitteeAnswer
     • bSanthanam Committee
     • cSarkaria Committee
     • dRajamannar Committee
     ›Explanation

     Option A is correct because the National Bank for Agriculture and Rural Development (NABARD) was established in 1982 based on the recommendations of the B. Sivaraman Committee (CRAFICARD). Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development: Formed in 1979 NABARD Act: Passed in 1981 Establishment of NABARD: 12 July 1982 Option B: Santhanam Committee focused on the prevention of corruption, leading to the establishment of the Central Vigilance Commission. Option C: Sarkaria Committee examined Centre-State relations. Option D: Rajamannar Committee was formed by the Tamil Nadu government to look into Centre-State relations.

106. Q106The named institutions: public sector undertakings, banks and their brands

     Consider the following statements regarding the Indian Renewable Energy Development Agency Limited (IREDA): I. It is a Navratna Enterprise of Government of India. II. It aims to give financial support to schemes for generating electricity. through new and renewable sources and conserving energy through energy efficiency. III. It works directly under the administrative control of the Ministry of New and Renewable Energy (MNRE). Which of the statements given above is/are. corr ect?

     • aI only
     • bII and III onlyAnswer
     • cIII only
     • dI, II and III

     Official answer shown. The explanation is under review.

107. Q107Public finance and the budget

     As per India's Economic Survey 2021-22, as a percent of GDP, what was the gross tax revenue of the Central Government in 2019-20?

     • a6.7
     • b8.3
     • c9.9Answer
     • d13.2
     ›Explanation

     Option C is correct because according to the Economic Survey 2021-22, the Central Government's gross tax revenue stood at 9.9 percent of GDP in the fiscal year 2019-20. Option A: 6.7 significantly underestimates the central gross tax revenue for that year. Option B: 8.3 reflects an incorrect value below the actual ratio reported in the survey. Option D: 13.2 overstates the central government tax-to-GDP ratio for 2019-20.

108. Q108Public finance and the budget

     Consider the following statements regarding GST : I. GST will bring more transparency to direct tax laws. II. GST was the 122nd Constitutional Amendment Bill introduced in the Parliament. III. GST is a destination-based tax. Which of the statements given above is/are correct ?

     • aI and II only
     • bII only
     • cII and III onlyAnswer
     • dI, II and III
     ›Explanation

     Option C is correct because statements II and III accurately state that GST was introduced as the 122nd Constitutional Amendment Bill and operates as a destination-based tax, while statement I is false. 122nd Constitutional Amendment Bill was introduced in Parliament for GST. 101st Constitutional Amendment Act, 2016 enacted GST into law. GST is an indirect tax levied at the point of consumption. Option A: It includes statement I, which wrongly links GST to direct tax laws instead of indirect taxation, and omits correct statement III. Option B: It omits statement III, which is an established feature of the GST regime. Option D: It incorrectly includes statement I, which erroneously treats GST as a direct tax reform.

109. Q109Public finance and the budget

     Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Select your answer from the codes given below. Assertion (A) : Goods and Services Tax (GST) introduced in 2017 is non-inflationary. Reason (R) : GST system avoids tax-on-tax. Codes :

     • aBoth (A) and (R) are true and (R) is the correct explanation for (A).Answer
     • bBoth (A) and (R) are true, but (R) is not the correct explanation for (A).
     • cBoth (A) and (R) are false.
     • d(A) is false, but (R) is true.
     ›Explanation

     Option A is correct because GST operates on an uninterrupted chain of input tax credit that removes the cascading effect of taxes (tax-on-tax), which directly prevents artificial cost inflation and makes the system non-inflationary. Option B: Fails to recognize that the elimination of cascading taxes in Reason (R) directly explains why the tax reform is non-inflationary in Assertion (A). Option C: Incorrectly claims that both statements are false, whereas both are well-established economic principles of GST. Option D: Falsely states that Assertion (A) is false, ignoring the design objective of GST to curb tax cascading and price increases.

110. Q110Public finance and the budget

     Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Select your answer from the codes given below. Assertion (A) : Budget Deficit financed by printing currency will lead to price rise. Reason (R) : More goods will be produced in the economy. Codes : (A) is true, but (R) is not the correct explanation of (A).

     • aBoth (A) and (R) are false.
     • b(A) is true, but (R) is not the correc explanation of (A).Answer
     • cBoth (A) and (R) are true.
     • dBoth (A) and (R) are true and (R) is the correct explanation of (A).
     ›Explanation

     Option B is correct because deficit financing through the creation of new currency expands the money supply rapidly, causing aggregate demand to outstrip aggregate supply and driving up the price level, while increased output alone does not explain why inflation occurs. Option A: Both statements are not false, as money printing creates real inflationary pressures. Option C: The assertion and reason are not both simple independent truths that leave the causal link intact. Option D: The reason does not correctly explain the assertion because an increase in the production of goods would tend to moderate prices rather than cause them to rise.

111. Q111Public finance and the budget

     What amount was allocated for child protection and welfare services under Mission VATSALYA in the 2021-22 Union Budget of India?

     • a₹ 700 crore
     • b₹ 900 crore
     • c₹ 600 croreAnswer
     • d₹ 300 crore

     Official answer shown. The explanation is under review.

112. Q112Public finance and the budget

     What amount was allocated for the Social Justice and Empowerment Ministry, the ministry that caters to the welfare of the backward classes and those with disabilities, in the Union Budget 2022-23 ?

     • a₹ 10,134 crore
     • b₹ 1,134 crore
     • c₹ 12,134 crore
     • d₹ 13,134 croreAnswer
     ›Explanation

     Option D is correct because the Union Budget 2022-23 provided an outlay of 13,134 crore rupees to the Ministry of Social Justice and Empowerment for the welfare of scheduled castes, other backward classes, senior citizens, and persons with disabilities. Department of Social Justice and Empowerment allocation: approximately 11,922 crore rupees Department of Empowerment of Persons with Disabilities allocation: approximately 1,212 crore rupees Total Ministry allocation: approximately 13,134 crore rupees Option A: 10,134 crore is an understatement of the combined departmental budget. Option B: 1,134 crore is vastly insufficient and approximates only a single sub-departmental segment. Option C: 12,134 crore is incorrect as it falls short of the full 2022-23 budgetary estimates.

113. Q113Public finance and the budget

     Which of the following funds has NOT been mandated to administer by the resource mobilization division?

     • aInvestment facilitation fundAnswer
     • bInnovation fund
     • cProject development fund
     • dCapacity investment project fund

     Official answer shown. The explanation is under review.

114. Q114Public finance and the budget

     In the year 2019-20, the Centre and States combined, spent how much as a percentage of GDP on the health sector?

     • a1.3Answer
     • b2.5
     • c2.8
     • d6.7
     ›Explanation

     Option A is correct because as per the Economic Survey and budget figures, the combined expenditure of the Centre and the States on the health sector in 2019-20 was approximately 1.3 percent of India's Gross Domestic Product. Option B: 2.5 percent is the long-term target envisaged by the National Health Policy 2017 to be attained by 2025, not the actual spend in 2019-20. Option C: 2.8 percent exceeds the combined health spending ratio of that period. Option D: 6.7 percent is far higher than India's public expenditure on health and resembles the global average of high-income economies.

115. Q115Public finance and the budget

     Consider the following : a. Demographic performance b. Forest and ecology c. Governance reforms d. Stable government e. Tax and fiscal efforts For the horizontal tax devolution, the Fifteenth Finance Commission used how many of the above as criteria other than population area and income distance ?

     • aOnly b
     • bOnly cAnswer
     • cOnly d
     • dAll of the above

     Explanation coming soon.

116. Q116External sector and the world economy

     Which of the following statements is correct with reference to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) I. SWIFT is a global member-owned cooperative that is headquartered in Switzerland. II. SWIFT was founded in 1991. III. SWIFT is a payment network. IV. SWIFT has the authority to impose sanctions on the banks. Which of the statements given above are correct? 1. I, II and III only 2. II, III and IV only 3. I, III and IV only 4. None of the above

     • aI, II and III only
     • bII, III and IV only
     • cI, III and IV only
     • dNone of the aboveAnswer
     ›Explanation

     Option D is correct because every given statement is factually wrong, making None of the above the correct answer. SWIFT headquarters: La Hulpe, Belgium SWIFT founding year: 1973 SWIFT nature: Messaging network for financial instructions, not a payment or clearing system Sanctions authority: Holds no independent legal authority to impose sanctions Option A: It wrongly includes statements I, II, and III, all of which contain factual errors regarding location, founding year, and network type. Option B: It wrongly includes statements II, III, and IV, all of which are inaccurate. Option C: It wrongly includes statements I, III, and IV, none of which are true.

117. Q117STATE ECONOMY: structure and public finance

     The net borrowing of the States for the year 2021-22 was fixed at what percentage of the Gross State Domestic Product (GSDP) of the States?

     • a2%
     • b3%
     • c4%Answer
     • d5%
     ›Explanation

     Option C is correct because the Union Government, acting on the recommendations of the 15th Finance Commission, fixed the normal net borrowing limit for all states at 4% of their Gross State Domestic Product for the financial year 2021-22. Option A: 2% is far below the fiscal accommodation granted to states in the aftermath of the pandemic. Option B: 3% is the standard baseline ceiling under FRBM rules, which was relaxed to provide fiscal room in 2021-22. Option D: 5% was the maximum enhanced ceiling permitted during the peak COVID-19 year of 2020-21, not 2021-22.

118. Q118STATE ECONOMY: structure and public finance

     Pick out the correct matches from the following statements regarding externally-aided projects in Andhra Pradesh : I. Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project is aided by the World Bank. II. Andhra Pradesh Community Managed Natural Farming (APCNF) is aided by Japan International Co-operation Agency (JICA). III. Andhra Pradesh Irrigation and Livelihood Improvement Project Phase-3 is aided by KfW – German Bank.

     • aOnly I is correctAnswer
     • bOnly II and III are correct
     • cOnly I and III are correct
     • dOnly III is correct
     ›Explanation

     Option A is correct because statement I is the only accurate pairing, as the Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project is supported by the World Bank. Option B: It incorrectly treats statements II and III as correct, whereas APCNF is supported by KfW and other donors rather than JICA, and APILIP Phase 2 is supported by JICA rather than KfW. Option C: It wrongly accepts statement III, which misidentifies KfW as the aiding institution for APILIP. Option D: It falsely designates statement III as the only correct match despite statement I being accurate.

119. Q119STATE ECONOMY: agriculture, industry and services

     Government of Andhra Pradesh is implementing YSR Rythu Bharosa – PM Kisan Scheme for the benefit of farmers of Andhra Pradesh. Which of the following statements are correct about the above scheme ? < 13,500 is given to a farmer's family in three instalments every year.

     • aRs.13,500 is given to a farmer's family in three instalments every year.Answer
     • bRs.7,000 is given by Government of Andhra Pradesh and 6,000 is given by the Government of India.
     • cRs.6,000 is given by Government of Andhra Pradesh and ?7,000 is given by the Government of India.
     • dRs.13,000 is given to a farmer's family in four instalments every year.
     ›Explanation

     Option A is correct because the YSR Rythu Bharosa - PM Kisan scheme provides a total financial benefit of Rs. 13,500 per farmer family every year distributed across three installments. First instalment: Rs. 7,500 in May Second instalment: Rs. 4,000 in October Third instalment: Rs. 2,000 in January State contribution: Rs. 7,500 Central contribution: Rs. 6,000 Option B: The Andhra Pradesh government contributes Rs. 7,500 rather than Rs. 7,000. Option C: The central government contributes Rs. 6,000 under PM-KISAN and the state contributes Rs. 7,500. Option D: The annual assistance is Rs. 13,500 given in three instalments, not Rs. 13,000 in four instalments.

120. Q120STATE ECONOMY: agriculture, industry and services

     The CCRC introduced by Government of Andhra Pradesh stands for

     • aCrop Certification Residue Control to certify organic farming.
     • bCrop Cultivation Registration on Certificate for pledging lands for bank loan.
     • cCrop Cultivator Rights Card for providing assistance to lease-holders.Answer
     • dNone of the above
     ›Explanation

     Option C is correct because CCRC stands for Crop Cultivator Rights Card, introduced under the Andhra Pradesh Crop Cultivator Rights Act, 2019 to provide tenant farmers with access to institutional credit, input subsidies, crop insurance, and disaster compensation without affecting landowners ownership rights. Option A: Incorrect because CCRC does not refer to pesticide residue certification or organic farming compliance. Option B: Incorrect because the card is meant for lease-holding tenant cultivators and does not involve pledging title deeds or proprietary land rights. Option D: Incorrect because option C is the accurate expansion and functional description of CCRC.