Quizzup Prelims 2025 -Day 11 | UPSC Prelims-2025 | Edukemy

Get Ahead for UPSC Prelims 2025! Check out our top MCQ questions designed to boost your preparation and test your knowledge. Perfect for quick revision on the go. Watch now and ace your Prelims 2025!
Questions:
1. Which of the following is NOT a function of the Reserve Bank of India (RBI)?
a) Issuing currency
b) Banker to the government
c) Approving foreign direct investments
d) Regulating commercial banks
Answer: c) Approving foreign direct investments
2. The Gross Domestic Product (GDP) at market prices is equal to:
a) GNP at factor cost + Indirect taxes - Subsidies
b) GDP at factor cost + Indirect taxes - Subsidies
c) GNP at market prices - Net factor income from abroad
d) GDP at factor cost - Indirect taxes + Subsidies
Answer: b) GDP at factor cost + Indirect taxes - Subsidies
3. Which of the following is NOT a part of India's foreign exchange reserves?
a) Gold
b) Special Drawing Rights (SDRs)
c) Foreign Currency Assets
d) Government Securities
Answer: d) Government Securities
4. The term 'Base Effect' in economics refers to:
a) The impact of changes in money supply on inflation
b) The effect of previous year's prices on current year's inflation rate
c) The relationship between interest rates and economic growth
d) The influence of fiscal policy on monetary policy
Answer: b) The effect of previous year's prices on current year's inflation rate
5. Which of the following best describes 'Fiscal Drag'?
a) A situation where inflation pushes taxpayers into higher tax brackets
b) The negative impact of high government debt on economic growth
c) The delay between implementation of fiscal policy and its effect on the economy
d) The tendency of fiscal deficits to increase during economic downturns
Answer: a) A situation where inflation pushes taxpayers into higher tax brackets
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