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UPSC CSE Prelims Discriminating Confusable Entities — Economics Flashcards

Master 79 discriminating confusable entities — economics concepts for the UPSC CSE Prelims.

Question

Select the correct relationships for the RBI's policy rates.


Under the Liquidity Adjustment Facility, the is the rate at which the RBI lends short-term money to commercial banks, whereas the is the rate at which the RBI borrows money from them.

Question

Differentiate between Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).


Banks must maintain a portion of their Net Demand and Time Liabilities (NDTL). is kept exclusively as cash with the , while is maintained with the bank itself in specified liquid assets like gold or government securities.

Question

Classify the following examples of government receipts:


Income tax and GST are examples of revenue, while dividends from PSUs, fees, and fines are revenue. Both fall under the broader category of Receipts.

Question

Which of the following is considered a Capital Receipt in the Union Budget?


Question

Consider the following taxes:

  1. Corporate Tax
  2. Capital Gains Tax
  3. Customs Duty

Which of the above is/are examples of a Direct Tax (where the burden cannot be shifted)?


Question

Which of the following best describes the fundamental characteristic of an Indirect Tax (such as GST or Customs Duty)?


Question

Complete the statement regarding the apex rural financial institution:


is the apex regulatory body for overall regulation of regional rural banks and cooperative banks in India. Its primary function is providing to these partner institutions for rural development.

Question

Consider the following statements regarding SIDBI:

  1. It is the principal financial institution for the promotion, financing, and development of the MSME sector.
  2. It routinely accepts demand deposits directly from retail customers.

Which of the statements given above is/are correct?


Question

Consider the following entities/activities:

  1. Foreign Portfolio Investors (FPIs)
  2. Mutual Funds
  3. Foreign Exchange Reserves

Which of the above are regulated by the Securities and Exchange Board of India (SEBI)?


Question

Which central institution is primarily responsible for regulating India's money supply, forex reserves, and payment systems?


Question

Fill in the correct base year and publishing agency for the Wholesale Price Index (WPI):


WPI has a base year of and is published by the .

Question

Consider the following statements regarding the Consumer Price Index (CPI-Combined):

  1. Its base year is 2012.
  2. It is published by the Labour Bureau.
  3. It is used by the Monetary Policy Committee (MPC) for inflation targeting.

Which of the statements given above are correct?


Question

Identify the primary components of the Balance of Payments (BoP) Current Account:


The Current Account records trade in , trade in , primary income (e.g., investment income), and (e.g., remittances).

Question

Which of the following are classified under the Capital Account of the Balance of Payments?

  1. Foreign Direct Investment (FDI)
  2. Remittances from abroad
  3. External Commercial Borrowings (ECBs)
  4. Trade in software services

Question

Identify the key regulatory characteristics of the Foreign Exchange Regulation Act (FERA), 1973.


Under the restrictive FERA regime, foreign exchange dealings were unless specifically permitted, and any violation of the act was treated as a offence.

Question

Consider the following statements regarding the Foreign Exchange Management Act (FEMA), 1999:

  1. It treats foreign exchange offenses as civil offenses with monetary penalties.
  2. Under FEMA, forex dealings are permitted unless specifically prohibited. Which of the statements given above is/are correct?

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