DO NOT OPEN THIS BOOKLET UNTIL YOU ARE ASKED TO DO SO

Test Booklet Series

PRELIMS FITNESS – 2024
T.B.C : P-SIA-F-UPGI
ECONOMICS
Serial : PFB1-232432
TEST – 32 F
Time Allowed : One Hour Maximum Marks : 100

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DO NOT OPEN THIS BOOKLET UNTIL YOU ARE ASKED TO DO SO

(1-F)
SIA-F-GS I
 (2-F)
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1. With reference to the Money market, Consider 4. Consider the following statements
the following statements Statement I:
1. Money market deals in securities whose Investment in the Capital market securities
period of maturity is more than a year. is expensive than investment in money
2. Money market activities are primarily
market instruments
conducted from a physical location
Statement II:
3. Reserve Bank of India is one of the major
Capital market instruments are riskier both
participants in money market
with respect to returns and principal
How many of the statements given above is/are
correct? repayment than money market instrument
(a) Only one Which one of the following is correct with
(b) Only two respect to the above statements?
(c) All three (a) Both Statement-I and Statement-II are
(d) None correct and Statement-II is the correct
explanation for Statement-I
2. With reference to Treasury bills, Consider the
(b) Both Statement-I and Statement-II are
following statements
correct and Statement-II is not the correct
1. Treasury bills are Zero Coupon Bonds
explanation for Statement-I
issued in the form of Promissory notes
2. Treasury bills are highly liquid, high- (c) Statement-I is correct but Statement-II is
market risk instrument incorrect
3. Reserve Bank of India issues Treasury bills (d) Statement-I is incorrect but Statement-II is
on behalf of both central government and correct
state government
How many of the statements given above is/are
5. With reference to Reserve Bank of India(RBI),
correct?
Consider the following statements
(a) Only one
1. RBI was setup on the basis of the
(b) Only two
recommendation of Simon Commission of
(c) All three
(d) None 1930
2. RBI which was the originally setup as
3. With reference to Indian Economy, Consider Private Bank was nationalised in 1949
the following: 3. The constitution of India empowers the
1. Certificate of Deposit Central government to oversee the
2. Commercial Papers
functioning of the RBI
3. Offer for Sale
How many of the statements given above is/are
How many of the given above is/are money
correct?
market instruments?
(a) Only one
(a) Only one
(b) Only two (b) Only two
(c) All three (c) All three
(d) None (d) None

(3-F)
SIA-F-GS I
6. Consider the following: 8. Which among the following is not the Assets of
1. Custodian of the Cash reserves of the Reserve Bank of India?
(a) Loans given to the government
Commercial Banks
(b) Investment in government securities
2. Granting loans to the Commerical banks
(c) Loans given to the banks
during liquidity crisis
(d) Commercial bank's reserve
3. Central clearing house for the commercial
banks
9. How many of the following is the major
How many of the above functions are part of
objective of Economic Capital Framework of
RBI function of "Banker to Banks"?
RBI?
(a) Only one
1. Management of Foreign currency inflow
(b) Only two 2. Determining the level of risk provisioning
(c) Only three 3. Distribution of profit to the government
(d) None Select the correct answer using the code given
below
7. Consider the following statements (a) Only one
Statement I: (b) Only two
The Central Bank is constitutionally (c) All three
obligated to undertake the receipts and (d) None

payments of both central government and

state governments 10. Consider the following

Statement II: 1. Universal access to financial services

2. Financial literacy and education
RBI appoints Commercial banks as the
3. Access to livelihood and skill development
agents for undertaking the banking
How many of the above is/are identified as the
business on behalf of the government
strategic objectives under national strategy for
Which one of the following is correct with
financial inclusion?
respect to the above statements?
(a) Only one
(a) Both Statement-I and Statement-II are
(b) Only two
correct and Statement-II is the correct
(c) All three
explanation for Statement-I
(d) None
(b) Both Statement-I and Statement-II ate
correct and Statement-II is not the correct 11. Financial inclusion index (FI-Index) is released
explanation for Statement-I by
(c) Statement-I is correct but Statement-II is (a) NITI Aayog
incorrect (b) National Statistical Organisation
(d) Statement-I is incorrect but Statement-II is (c) Ministry of Finance
correct (d) Reserve Bank of India

(4-F)
SIA-F-GS I
12. With reference to Monetary Policy Which of the statements given above is/are
Committee(MPC), Consider the following correct?
statements
(a) 1 only
1. It is the eight-member body headed by the
(b) 2 only
Governor of RBI
(c) Both 1 and 2
2. RBI Act, 1934 mandates that the committee
(d) Neither 1 nor 2
should meet at least six times in a year
3. The decisions of Monetary Policy committee
15. With reference to Indian Economy, consider the
are binding on RBI
How many of the statements given above is/are following statements

correct? 1. Standing deposit facility Rate refers to the

(a) Only one Interest rate on Bank's uncollateralised

(b) Only two deposit with RBI

(c) All three 2. Bank Rate is the minimum interest rate on
(d) None loans from commercial banks
3. Base Rate is the interest rate imposed on
13. With reference to Indian Economy, consider the rediscounting bills of exchange
following statements How many of the statements given above is/are
1. Increasing the repo rate correct?
2. Decreasing the reverse repo rate (a) Only one
3. Purchase of Government Securities
(b) Only two
4. Decreasing cash reserve ratio
(c) All three
How many of the above possible measures are
(d) None
taken by the Reserve Bank of India to control
the higher inflation in the economy?
16. Which among the following is the aim of
(a) Only one
introduction of external benchmark-linked
(b) Only two
lending rates by RBI?
(c) Only three
(a) Extending the loan at cheaper cost to the
(d) All four
marginalised people

14. With reference to Marginal Stading facility (b) Improving the competitive lending rate at

(MSF) rate, consider the following statements. par with foreign financial institution to the

1. It is the interest rate at which banks borrow Indian companies

funds overnight from the RBI against (c) Ensuring the effective transmission of
approved government securities. monetary policy decisions into the real
2. MSF provides a safety valve against economy
unanticipated liquidity shocks to the (d) Expanding the scope of risk-free lending
banking system. activity of the Commercial bank

(5-F)
SIA-F-GS I
17. With reference to Financial institutions, 19. With reference to Indian Economy, Consider

consider the following statements: the following statements

1. National Payment corporation of India
1. Export-Import Bank of India
(NPCI) is an initiative of Reserve Bank of
2. National Bank for Agriculture and Rural
India (RBI) and Bank Board Bureau
Development 2. NPCI provide the adequate infrastructure
3. National Housing Bank for both physical and electronic payment
and settlement systems.
4. Small Industries Development Bank of
3. NEFT and RTGS payment methods were
India
developed by NPCI
For how many of the above financial How many of the statements given above is/are
Institutions Basel III Capital framework is correct?

applicable? (a) Only one

(b) Only two
(a) Only one
(c) All three
(b) Only two
(d) None
(c) Only three

(d) All four 20. National Financial Switch (NFS) which was
seen recently in news is aims
(a) to ensure inter-connectivity of shared ATMs
18. With reference to the Statutory Liquidity Ratio
(b) to facilitate one stop bill payment solution
(SLR), consider the following statements.
(c) to convert the bonds to equity shares
1. It refers to the ratio of liquid assets to net (d) to enable conversion of urban cooperative
demand and time liabilities (NDTL) bank into small finance bank

2. SLR is the traditional tool of RBI to control

21. Which among the following is/are the key areas
regulate inflation and liquidity
monitored under RBI's Prompt Corrective
management
Action (PCA) Framework?
3. SLR also plays the key role in government's 1. Capital Adequacy

debt management programme 2. Asset Quality

3. Profitability
How many of the statements given above is/are
Select the correct answer using the code given
correct?
below
(a) Only one (a) 1 and 2 only
(b) Only two (b) 2 only

(c) All three (c) 1 and 3 only

(d) 1, 2 and 3
(d) None
(6-F)
SIA-F-GS I
22. With reference to Indian Currency, consider the 24. Consider the following statements
following statements 1. Reserve Bank of India has the statutory
1. Only coins with a denomination equal to or power to regulate the foreign exchange
higher than one rupee are recognized as payments outside India
legal tender. 2. Liberalized Exchange Rate Management
2. The Government of India is responsible for System (LERMS) was adopted immediately
the designing and minting of coins in after Independence in India
various denominations. Which of the statements given above is/are
3. The coins are issued for circulation only correct?
through the Ministry of Finance (a) 1 only
How many of the statements given above is/are (b) 2 only
correct? (c) Both 1 and 2
(a) Only one (d) Neither 1 nor 2
(b) Only two
(c) All three 25. With reference to Indian Economy, Consider
(d) None the following statements :
1. When rupee is rapidly depreciating, RBI is
23. Consider the following statements: likely to buy dollars in the market
Statement I: 2. In free float exchange rate the currency
Devaluation of a currency facilitates in price is totally left to the market forces
increasing the export of Goods and Which of the statements given above is/are
decreasing the import of Goods correct?
Statement II: (a) 1 only
Devaluation of a currency is a vital method (b) 2 only
of correcting the adverse balance of (c) Both 1 and 2
payment situation (d) Neither 1 nor 2
Which one of the following is correct with
respect to the above statements? 26. How many of the following are considered as
(a) Both Statement-I and Statement-II are part of “Stressed Assets.”
correct and Statement-II is the correct 1. Non-Performing Assets
explanation for Statement-I 2. Restructured loans
(b) Both Statement-I and Statement-II ate 3. Write-off assets
correct and Statement-II is not the correct Select the correct answer using the code given
explanation for Statement-I below :
(c) Statement-I is correct but Statement-II is (a) Only one
incorrect (b) Only two
(d) Statement-I is incorrect but Statement-II is (c) All three
correct (d) None

(7-F)
SIA-F-GS I
27. With reference to Indian Economy, consider the 29. Positive Pay system which was recently in news

following pairs : is related to

Terms Aims at (a) QR code based automatic coin vending
1. Securitisation - Counterbalancing machines
the foreign exchange (b) On-device wallet for low value transaction
interventions on (c) Subvention of interests of timely repayment
domestic inflation
of farm loans
2. Provisioning - Keeping certain
(d) Prevention of frauds in cheque payment
funds in reserves
system
against Non-

performing Assets
30. Which among the following provides for the
3. Sterilisation - Converting loans
establishment of Asset Reconstruction
into marketable
Company in India?
asset
(a) RBI Act of 1934
How many of the pairs given above is/are
(b) SARFAESI Act of 2002
correct?
(c) IBC Act of 2016
(a) Only one
(d) SEBI Act of 1992
(b) Only two

(c) All three

(d) None 31. With reference to the Indian Banking system,

consider the following statements :

28. With reference to Bank deposit, consider the 1. Capital Adequacy Ratio is the ratio of a

following : bank’s capital in relation to its risk-

1. Saving deposit in a Regional Rural Bank weighted assets and current liabilities.

2. Interbank deposits of Local Area bank 2. The Capital Adequacy Ratio for private
3. Deposits of state government in commercial banks is more than public sector banks.
bank Which of the statements given above is/are
How many of the above are covered under correct?
Deposit insurance scheme? (a) 1 only
(a) Only one
(b) 2 only
(b) Only two
(c) Both 1 and 2
(c) All three
(d) Neither 1 nor 2
(d) None

(8-F)
SIA-F-GS I
32. With reference to e-RUPI often seen in News, Which of the statements given above is/are
Consider the following statements: correct?
1. e-RUPI is a contactless voucher-based
(a) 1 only
payment system introduced by National
(b) 2 only
Payment Corporation of India
(c) Both 1 and 2
2. e-RUPI can be issued on behalf of the
central government and state government (d) Neither 1 nor 2

only
Which of the statements given above is/are 35. With reference to Bond market, consider the
correct? following statements
(a) 1 only
1. Bond can be issued either by the sovereign
(b) 2 only
governments or individual companies
(c) Both 1 and 2
(d) Neither 1 nor 2 2. Government Securities are risk-free gilt-
edged instruments with no risk of default
33. With reference to Capital Market, Consider the 3. Central Depository Services Limited acts as
following statements the registry of Government Securities
1. The Native Share and Stock Brokers
How many of the statements given above is/are
Association was India’s first stock exchange
correct?
established in Calcutta
(a) Only one
2. Bombay stock exchange was the first
exchange in India to implement electronic (b) Only two
or screen-based trading (c) All three
Which of the statements given above is/are (d) None
correct?
(a) 1 only
36. How many of the following actions can increase
(b) 2 only
the bond yield of Indian governments?
(c) Both 1 and 2
(d) Neither 1 nor 2 1. Increase in fiscal deficit of the government
2. Increase in repo rate by Reserve Bank of
34. With reference to zero coupon zero principal India
bond seen recently in News, consider the 3. Decrease in inflation level in the economy
following statements :
Select the correct answer using the code given
1. These are non-marketable and non-
below :
transferable bonds issued by Not-for profit
companies (a) 1 and 2 only

2. These bonds do not give either any interest (b) 2 and 3 only
nor investors will not get any money back (c) 1 and 3 only
on the maturity of the bond. (d) 1, 2 and 3

(9-F)
SIA-F-GS I
37. With reference to the e-Kuber platform, How many of the above statements are correct?
consider the following statements (a) Only one
1. ‘e-Kuber’ which is the Core Banking (b) Only two

Solution platform of the Reserve Bank of (c) All three

(d) None
India
2. The E-Kuber platform facilitates both
40. Consider the following:
primary and secondary market
S.No. Temples Dynasty
transactions of the government 1. Naganthaswamy - Cheras
Which of the statements given above is/are temple
correct? 2. Chennakesava - Vijayanagara
(a) 1 only temple
(b) 2 only 3. Kailasa temple - Rashtrakuta
(c) Both 1 and 2 Ellora
(d) Neither 1 nor 2 4. Puri jagannath - Eastern
Temple Ganga
How many of the above pairs are correct?
38. With reference to Prachand attack Helicopters,
(a) Only one
consider the following:
(b) Only two
1. The helicopters are developed by Hindustan
(c) only three
Aeronautics limited, which are already (d) All four
inducted in Indian Army and Indian
Airforce. 41. The “Global Innovation Index” recently seen in
2. It is the only attack helicopter in the world the news is related to which of the following?
that can land and take off at an altitude of (a) World economic forum
5000 meters. (b) United nation conference on Trade and
development
Which of the above given staatement is/are not
(c) World intellectual property organisation
correct?
(d) World association of industrial and
(a) 1 only
technological organisation.
(b) 2 only
(c) Both 1 and 2 42. Which of the following are the members of Five
(d) Neither 1 nor 2 Eyes Alliance?
1. Australia
39. Consider the following: 2. USA
1. Session cookies stay on your after browsing 3. New Zealand
session, as it stores your login information. 4. Japan
5. Israel
2. Secure cookies can only be sent over
Select the correct answer code:
encrypted connections such like HTTPs,
(a) Only two
making them safer for prying eyes.
(b) Only three
3. Persistent cookies are stored in computer
(c) Only four
only till your browsing session. (d) All five

(10-F)
SIA-F-GS I
43. With reference to Remission of Duties or taxes 45. Luzon strait recently seen in the news is located
on Export products (RoDTEP) scheme, consider between :
the following: (a) North and South Island of New Zealand
1. It is a duty remission scheme on exports (b) Tasmania and Australian mainland
challenged by the USA on non-compliance (c) Philippines and Taiwan
to WTO rules. (d) Indonesia and Malay peninsula
2. This scheme is administered by the
Ministry of Commerce and Industry for 46. With reference to Overseas citizen of India
healthy promotion of Indian exports. (OCI), consider the following:
Select the correct answer code: 1. He/she cannot normally hold employment
(a) 1 only in the government.
(b) 2 only 2. He/ She cannot undertake any missionary
(c) Both 1 and 2 work and journalism work without prior
(d) Neither 1 nor 2 permission of the government.
3. OCI shall require a protected area permit or
44. With reference to Foreign Contribution restricted area permit to visit any place
Regulation Act (FCRA), 1976, consider the which falls under Protected area/ reserved
following: area permit.
1. It is law under the purview of Ministry of 4. When a He/ she ceases to be overseas
finance, mandated to regulate foreign citizen of India, every minor child of his/
contributions to NGOs and others within her registered as OCI will there upon cease
India. to be an OCI.
2. Even the contributions of Indians living in How many of the above statements are correct?
foreign countries from his/her personal (a) Only one
savings through normal banking channels (b) Only two
is also considered as foreign contribution. (c) Only three
3. All the NGOs should mandatorily register (d) All four
themselves under FCRA.
4. The registration is initially valid for 20 years 47. Diwan-i-Aam at Fatehpur sikri was,
and it can be renewed subsequently if they (a) The hall in which the Mughal emperor held
comply with all norms. religious discussions with various scholar.
How many of the above statements are correct? (b) The hall in which Mughal emperor will meet
(a) Only one the private audience.
(b) Only two (c) Mughal emperor's private prayer chamber
(c) Only three (d) The hall in which the Mughal emperor will
(d) All four meet the public audience

(11-F)
SIA-F-GS I
48. Consider the following statements: 50. The shore temple of Mamallapuraam Tamil

Volcanoes Location Nadu has become the India’s first green energy

1. Mt- Sumeru - Phillipines archeological site, consider the following

2. Mt- Merapi - Indonesia statements related to shore temple:

3. Kilauea - Hawaii 1. The shore temple was believed to be built by

4. Mt- Mayon - Papua New Guniea Narasimhavarman-I of Pallava dynasty.

How many of the above pairs are correctly 2. The temple is dedicated to both deities

matched? Shiva and Vishnu.

(a) Only one 3. The temples were built of cut stones and

(b) Only two block of granite, it represents the true

(c) Only three essence of Dravidian Architeture.

(d) All four How many of the above statements are correct?

(a) Only one

49. With reference to International Solar alliance, (b) Only two

consider the following: (c) All three

1. It is an action-oriented member driven (d) None

platform for increased deployment of solar

technologies as a means for energy

transition within its members

2. India is the founding member of this

organisation.

3. The international solar alliance aims to

mobilize USD 1000 billion of investments in

solar energy solutions by 2030.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) All three

(d) None
(12-F)
SIA-F-GS I