Question 1

What is the primary focus of the MUDRA scheme launched by the Government of India?

Accepted Answer

The Pradhan Mantri Mudra Yojana (PMMY) was launched in April 2015 to provide collateral-free loans to micro and small enterprises. MUDRA stands for Micro Units Development and Refinance Agency.

Question 2

Which of the following best describes 'Fiscal Deficit' in the context of government budgeting?

Accepted Answer

Fiscal Deficit is the difference between government's total expenditure and its total revenue. It indicates the amount the government needs to borrow to meet its spending.

Question 3

Which of the following is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?

Accepted Answer

PMJDY was launched in 2014 to provide universal access to banking services, with emphasis on savings accounts, remittance, credit, insurance, and pension.

Question 4

Which of the following schemes was launched by the Government of India to provide direct income support to eligible farmer families?

Accepted Answer

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) was launched in February 2019 by the Ministry of Agriculture & Farmers Welfare. It provides ₹6,000 per year in three equal instalments to eligible small and marginal farmer families holding cultivable land up to 2 hectares.

Question 5

What is the primary purpose of the Reverse Repo Rate in the RBI's monetary policy framework?

Accepted Answer

The Reverse Repo Rate is the rate at which the RBI borrows money from commercial banks. It is used to absorb excess liquidity from the banking system.

Question 6

In which year was the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched?

Accepted Answer

PMJDY was launched on August 28, 2014, by Prime Minister Narendra Modi. It is a national mission for financial inclusion aimed at ensuring access to financial services, particularly banking, for all citizens.

Question 7

In the context of Indian monetary policy, what does CRR (Cash Reserve Ratio) represent?

Accepted Answer

CRR is the percentage of deposits that commercial banks must maintain as cash reserves with the RBI. It is a tool used to control money supply in the economy.

Question 8

Which of the following is the primary objective of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme?

Accepted Answer

PM-KISAN was launched in February 2019 by the Ministry of Agriculture & Farmers Welfare to provide direct income support to small and marginal farmers. Each eligible farmer receives ₹6,000 per annum in three equal installments of ₹2,000 each.

Question 9

Which ministry is responsible for implementing the PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) scheme?

Accepted Answer

PM-KISAN was launched in 2019 to provide direct income support to eligible farmer families. It is administered by the Ministry of Agriculture & Farmers Welfare.

Question 10

Which sector is considered the backbone of the Indian economy, employing the largest share of the workforce?

Accepted Answer

Agriculture (primary sector) employs approximately 45-50% of India's workforce, making it the largest employer in the country. Although its share in GDP has declined over decades, it remains the backbone due to its employment contribution and role in food security.

Question 11

Which ministry is responsible for implementing the Startup India initiative?

Accepted Answer

Startup India was launched on January 16, 2016, by the Ministry of Commerce and Industry. It is a flagship initiative to build a strong ecosystem for nurturing innovation and startups in India.

Question 12

In the context of India's fiscal budget, what does 'Fiscal Deficit' refer to?

Accepted Answer

Fiscal Deficit is the difference between total government expenditure and total government revenue (excluding borrowing). It represents the amount the government needs to borrow to meet its spending obligations.

Question 13

Which of the following statements about India's rank in the global economy is correct as per 2023-2024 data?

Accepted Answer

As per 2023-2024 data, India is the 5th largest economy in the world by nominal GDP, after the USA, China, Germany, and Japan. India is also the fastest-growing major economy with a growth rate of approximately 7-8% annually.

Question 14

According to the latest available data (2023-24), India's rank in terms of nominal GDP globally is approximately:

Accepted Answer

As of 2023-24, India is the 5th largest economy in the world by nominal GDP, after the USA, China, Germany, and Japan. India's nominal GDP is approximately $3.7 trillion USD. India is also projected to become the 3rd largest economy by 2027-28.

Question 15

Which of the following best describes 'Fiscal Deficit' in the context of the Indian Union Budget?

Accepted Answer

Fiscal Deficit is the difference between the government's total expenditure and its total receipts excluding borrowings. It indicates the total borrowing requirement of the government. Revenue deficit, on the other hand, is the excess of revenue expenditure over revenue receipts. Primary deficit is fiscal deficit minus interest payments.

Question 16

The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in which year, and what is its primary focus?

Accepted Answer

PMJDY was launched on 28 August 2014 by the Ministry of Finance. Its primary objective is financial inclusion—providing universal access to banking services, particularly to the unbanked and underbanked population, through zero-balance savings accounts.

Question 17

As per the Union Budget 2024-25, what is the primary distinction between Revenue Deficit and Fiscal Deficit?

Accepted Answer

Revenue Deficit = Revenue Receipts minus Revenue Expenditure (non-capital spending). Fiscal Deficit = Total Receipts minus Total Expenditure (includes capital spending). Fiscal Deficit is always larger than or equal to Revenue Deficit because it accounts for capital expenditure.

Question 18

As per the Reserve Bank of India's monetary policy framework, which of the following is the rate at which the RBI lends to commercial banks against government securities?

Accepted Answer

The Repo Rate is the rate at which the RBI lends short-term funds to commercial banks against the pledge of government securities. It is the primary tool of monetary policy used to control inflation and liquidity in the economy.

Question 19

Which of the following best describes the primary objective of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme launched in 2019?

Accepted Answer

PM-KISAN was launched in February 2019 by the Ministry of Agriculture & Farmers Welfare to provide direct income support to small and marginal farmers. Each eligible farmer receives ₹6,000 per annum in three equal installments of ₹2,000 each.

Question 20

The Pradhan Mantri Mudra Yojana (PMMY) was launched to provide collateral-free loans to micro and small enterprises. Under which ministry does this scheme operate, and what is the maximum loan amount under the 'Tarun' category?

Accepted Answer

PMMY operates under the Ministry of Micro, Small and Medium Enterprises (MSME). The scheme has three categories: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). The scheme was launched in April 2015.

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