Question 1

Which of the following is not the method to calculate the Gross Domestic Product (GDP)?

Accepted Answer

There are three recognized methods to estimate GDP:
1. Product or Value Added Method
2. Income Method
3. Expenditure Method
Each method should yield the same GDP value. The more production in the economy, the higher the factor incomes, and consequently, the higher the final expenditure. The Diminishing Cost Method is not used to calculate national income or GDP. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 2

Which of the following offices or institutes releases data of the national income in India?

Accepted Answer

The Central Statistics Office (CSO), under the Ministry of Statistics and Programme Implementation, is responsible for releasing national income data in India. CSO compiles, coordinates, and releases statistics related to national income and other economic indicators. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 3

Which one is not true about the Ayushman Sahakar Scheme?

Accepted Answer

Ayushman Sahakar is a scheme formulated by the National Cooperative Development Corporation (NCDC) to assist cooperatives in building healthcare infrastructure. NCDC is an apex statutory autonomous body established in 1963 under an Act of Parliament and functions under the Ministry of Agriculture and Farmers Welfare. The scheme supports establishment, modernization, expansion, repairs, and renovation of hospitals, healthcare, and education infrastructure. Therefore, it is incorrect that the Finance Ministry launched this scheme. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 4

In which Budget was the Commodity Transaction Tax (CTT) introduced in India?

Accepted Answer

The Commodity Transaction Tax (CTT) was introduced in the Union Budget 2013-14. The government used CTT as a tool to shift trading from commodity futures to equity futures. It was criticized for its potential to hinder commodity market growth. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 5

When was Gender Budgeting initiated in India?

Accepted Answer

Gender budgeting was introduced in India in the Union Budget 2005-06. The objective is to ensure allocation of resources to bring women into the mainstream by promoting gender equality. This initiative tracks government expenditures on programs and schemes specifically targeting women's welfare and empowerment. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 6

Which one is not a true statement about the PM Cares Fund?

Accepted Answer

The PM Cares Fund is chaired ex-officio by the Prime Minister, with the Defense, Home, and Finance Ministers as ex-officio trustees. Trustees are appointed based on eminence in research, health, science, social work, law, public administration, and philanthropy, and they act free of charge. The fund comprises entirely voluntary contributions and does not receive budgetary support. All statements provided are true; hence the correct answer is 'None of the above'. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 7

According to the Reserve Bank of India, what was the total value of the Foreign Exchange Reserves of India in 2018-19?

Accepted Answer

As per the Reserve Bank of India, India's total foreign exchange reserves in 2018-19 were USD 412,871 million. This includes foreign currency assets, gold, SDRs, and reserve position in the IMF. For context, as of November 18, 2022, India's reserves stood at USD 547,252 million. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 8

Lowering the Cash Reserve Ratio (CRR) will have the following impacts on the economy:
1. Banks will have higher liquidity.
2. The economy may see increased investment.
3. Supply of currency in the economy may broaden.
4. Real investment rate may decline.
Select the correct code.

Accepted Answer

CRR is the proportion of a commercial bank's total deposits that must be kept with the Reserve Bank of India. Lowering the CRR increases bank liquidity, enabling more lending and investment. It also increases money supply in the economy and may lead to a decline in real investment rate due to higher liquidity potentially reducing interest rates. Therefore, all four effects occur. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 9

Which one is correct in the ascending order of HDI 2019 ranking of the following countries?

Accepted Answer

The ascending order of HDI 2019 rankings was Brazil, China, South Africa, India. According to the Human Development Report 2022 by UNDP, India ranks 132nd in HDI. For context, the ascending HDI ranking in 2022 is Russia, Brazil, China, South Africa, India. [66TH BPSC PRELIMS RE-EXAM, 2021]

Question 10

Choose the correct sequence of the states of India according to ascending order of rice production in 2018-19.

Accepted Answer

According to the Economic Review 2021-22, the highest rice-producing states in India are West Bengal, Uttar Pradesh, and Punjab. The other states do not follow the ascending order provided in the options, hence 'None of the above' is the correct answer. Total rice production in 2020-21 was 122.3 million tonnes. [66TH BPSC PRELIMS RE-EXAM, 2021]

66th Prelims Re 2021