Question 1

The Minimum Support Price (MSP) for agricultural commodities in India is recommended by which body?

Accepted Answer

The Commission for Agricultural Costs and Prices (CACP), which is an advisory body under the Ministry of Agriculture and Farmers' Welfare, recommends MSP for various agricultural commodities. The final decision on MSP is taken by the Cabinet Committee on Economic Affairs (CCEA). CACP was established in 1965.

Question 2

Which of the following is NOT a function of the Reserve Bank of India as per the RBI Act, 1934?

Accepted Answer

The RBI Act, 1934 establishes RBI as the central bank with functions including monetary policy regulation, currency management, banking regulation, and lender of last resort. However, direct implementation of welfare schemes like PM-KISAN is not an RBI function—it falls under the Ministry of Agriculture. RBI's core functions are defined in sections 45-49 of the RBI Act and do not include direct scheme administration.

Question 3

Which of the following international organisations has India as a permanent member of its Security Council?

Accepted Answer

India is a permanent member of the United Nations Security Council since 1950. The five permanent members are China, France, Russia, the United Kingdom, and the United States. India is a non-permanent member elected for 2-year terms, not a permanent member. The correct answer is that India is NOT a permanent member - this is a factual clarification question testing knowledge of UN structure.

Question 4

Which of the following best describes the relationship between Gross Domestic Product (GDP) and Gross National Product (GNP)?

Accepted Answer

GDP measures the total value of goods and services produced within a country's borders, regardless of who produces them. GNP measures the total value of goods and services produced by a country's residents, regardless of location. The key difference is that GNP includes Net Factor Income from Abroad (NFIA), which accounts for income earned by residents from abroad minus income earned by foreigners within the country. GNP = GDP + NFIA.

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