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Question 1 of 10
1. Question
2 points
Consider the following statements with reference to Pradhan Mantri Jan Dhan Yojana (PMJDY).
1. The PMJDY envisions universal banking access, with each household having at least one basic banking
account.
2. Under the scheme each beneficiary will receive a RuPay credit card with a built-in 1 lakh accident
insurance cover.
3. The Scheme also intends to use mobile transactions through telecom operators and their established
centres as Cash Out Points for Financial Inclusion.
Which of the given statement(s) is/are correct?
Correct
Statement 1 and 3 are correct. Statement 2 is incorrect.
PMJDY is a National Mission on Financial Inclusion that takes an integrated strategy to ensure that all
households in the country have access to financial services.
The PMJDY envisions universal banking access, with each household having at least one basic banking
account. Statement 1 is correct Besides it also ensures financial literacy, insurance, access to credit, and
a pension plan. In addition, each beneficiary will receive a RuPay Debit card with a built-in 1 lakh
accident insurance cover. Statement 2 is incorrect
Incorrect
Question 2 of 10
2. Question
2 points
Regarding Prompt Corrective Action (PCA) Framework of the RBI, consider the following
statements:
1. The framework does not apply to foreign banks.
2. The framework includes return on assets as a parameter that may trigger action under the
framework.
3. Under the revised PCA, RBI may impose restrictions on capital expenditure, other than for
technological upgradation.
Which of the statements given above is/are correct?
Correct
Explanation
• Statements 1 and 2 are incorrect. Statement 3 is correct.
• The Prompt Corrective Action is a framework under which banks with weak financial metrics
are put under watch by the RBI.
• The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for
banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability.
• The objective of the PCA framework is to enable supervisory intervention at an appropriate time and
require the supervised entity to initiate and implement remedial measures in a timely manner, so as to
restore its financial health.
Incorrect
Question 3 of 10
3. Question
2 points
Which of the following statements is/are correct with respect to the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002?
1. It permits banks and other financial institutions to recover loans by auctioning off the defaulter’s
residential or commercial assets.
2. This law permitted the formation of asset reconstruction companies (ARCs) and the sale of nonperforming assets by banks to ARCs.
3. The SARFAESI Act of 2002 does not apply to multi-state co-operative banks.
4. Unsecured loans, loans under ₹100,000, and debts that are less than 20% of the initial principle are
exempt from the statute.
Select correct code given below:
Correct
Explanation
Statement 1, 2 and 4 are correct. Statement 3 is incorrect.
SARFAESI Act of 2002 is an act to regulate securitization and reconstruction of financial assets and
enforcement of security interests, and to provide for a central database of security interests created on
property rights, and for matters associated with or incidental thereto,”. It permits banks and other
financial institutions to recover loans by auctioning off the defaulter’s residential or commercial assets.
Hence statement 1 is correct. The SARFAESI Act of 2002 will now apply to all state and multi-state cooperative banks, according to the Supreme Court of India. Hence statement 3 is incorrect. Unsecured
loans, loans under ₹100,000, and debts that are less than 20% of the initial principle are exempt from
the statute. Hence statement 4 is correct. This law permitted the formation of asset reconstruction
companies (ARCs) and the sale of nonperforming assets by banks to ARCs (which are regulated by the
RBI). Hence statement 2 is correct. Without the consent of a court, banks are authorised to take
ownership of collateral property and sell it.
Incorrect
Question 4 of 10
4. Question
2 points
Consider the following:
1. Foreign institutional investment
2. Dividends on foreign assets which are abroad
3. Gifts from abroad
Which of the above forms/form the Capital account under the Balance of Payments?
Correct
• Option 1 is correct. Options 2 and 3 are incorrect.
• There are two main accounts in the Balance of Payments. They are the current account and the capital
account
• Current Account: The current account records exports and imports in goods, trade in services and
transfer payments. Trade in services denoted as invisible trade (because they are not seen to cross
national borders) includes both factor income (payment for inputs-investment income, that is, the
interest, profits and dividends on our assets abroad minus the income foreigners earn on assets they
own in India) and non-factor income (shipping, banking, insurance, tourism, software services, etc.).
Incorrect
Question 5 of 10
5. Question
2 points
Consider the following statements with reference to the National Asset Reconstruction Company
Ltd. (NARCL).
1. Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was
announced in the Budget for 2021-22.
2. It is created in collaboration with both public and private sector banks.
3. NARCL handle the debt resolution process sell the stressed assets in the market.
Which of the given statement(s) is/are correct?
Correct
Explanation
Statement 1 and 2 are correct. Statement 3 is incorrect.
Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was announced
in the Budget for 2021-22. Hence Statement 1 is correct. The plan is to create a bad bank to house bad
loans of ₹500 crore and above, in a structure that will contain an asset reconstruction company (ARC)
and an asset management company (AMC) tomanage and recover dud assets. It is being created in
collaboration with both public and private sector banks. Hence Statement 2 is correct. Majority-owned
by state-owned banks, the NARCL will be assisted by the India Debt Resolution Company Ltd (IDRCL), in
turn majority-owned by private banks, in resolution process in the form of a Principal-Agent basis.
Another entity — India Debt Resolution Company Ltd (IDRCL), which has also been set up — will then try
to sell the stressed assets in the market. The broad features of the arrangement are that NARCL will
acquire and aggregate the identified NPA accounts from the banks, while IDRCL, under the exclusive
arrangement, will handle the debt resolution process. Hence Statement 3 is incorrect.
Incorrect
Question 6 of 10
6. Question
2 points
Which of the following statements is/are correct with respect to National Family Health Survey
(NFHS)-5.
1. NFHS-5 data shows that there were more that 1000 women for 1000 men in the country in 2019-
2021.
2. The TFR has also come down below the threshold at which the population is expected to replace itself
from one generation to next.
3. The incidence of anaemia in under-5 children, women and men has minimised in all States of India.
4. Institutional births have decreased substantially at all-India Level.
Select the correct answer using the code given below:
Correct
Explanation
Statement 1 and 2 are correct. Statement 3 and 4 are incorrect. Key Findings of NFHS-5
Sex Ratio: NFHS-5 data shows that there were 1,020 women for 1000 men in the country in 2019-2021.
Hence statement 1 is correct. Sex Ratio at Birth: For the first time in India, between 2019-21, there were
1,020 adult women per 1,000 men. Total Fertility Rate (TFR): The TFR has also come down below the
threshold at which the population is expected to replace itself from one generation to next. Hence
statement 2 is correct.
Incorrect
Question 7 of 10
7. Question
2 points
Consider the following statements with reference to the Census 2021:
1. It is for the first time the data is collected digitally via mobile applications with a provision of working
in offline mode.
2. It is for the first time that information of households headed by a person from the Transgender
Community and members living in the family will be collected.
3. The Socio-Economic Caste Census (SECC) will be conducted alongside Census 2021.
Which of the given statement(s) is/are correct?
Correct
Explanation
Statement 1 and 2 are correct. Statement 3 is incorrect. Census of India is one of the Many legacies of
the colonial raj continued after 1947. The term census is derived from the latin term from censere,
which means to assess. In the Census, data is collected on demographic and various socio-economic
parameters like education, SC/ST (Scheduled Caste/Scheduled Tribe), religion, language, marriage,
fertility, Disability, occupation and Migration of the individuals.
Incorrect
Question 8 of 10
8. Question
2 points
In the context of sectors of economy, consider the following activities:
1. Extraction of Iron from Iron ore.
2. Food processing.
3. Transforming cotton into yarn.
4. Mining of Iron ore.
Which of the activities given above are considered secondary activities?
Correct
Explanation
Statements 1, 2, and 3 are correct. Statement 4 is incorrect. The Indian economy can be classified into
various sectors on the basis of ownership, working conditions and the nature of the activities. In
Primary sector of economy, activities are undertaken by directly using natural resources. Agriculture,
Mining, Fishing, Forestry, Dairy etc. are some examples of this sector. Secondary activities are those
activities that involve the manufacturing of finished goods by processing the raw materials that are
found in nature. Secondary activities add value to natural resources by transforming raw materials into
valuable products. Secondary activities are concerned with manufacturing, processing, and construction
(infrastructure) industries. Hence statement 2 is correct. Cotton in the boll has limited use but after it is
transformed into yarn, becomes more valuable and can be used for making clothes. The cotton textile
industry involves spinning, weaving, and finishing fabrics. Hence statement 3 is correct. Tertiary sector’s
activities help in the development of the primary and secondary sectors. By itself, economic activities in
tertiary sector do not produce a goods but they are an aid or a support for the production. This sector
jobs are called white collar jobs. The mining of Iron ore is a primary activity and Extraction of Iron from
Iron ore is a secondary activity. Hence statement 1 is correct and statement 4 is incorrect.
Incorrect
Question 9 of 10
9. Question
2 points
Which of the following statement/s is/are correct with respect to sectors of economy?
1. The quaternary sector is the intellectual aspect of the economy and the process which enables
entrepreneurs to innovate and improve the quality of services offered in the economy.
2. Unlike the tertiary activities, quaternary activities cannot be outsourced.
3. The government which passes legislation can be included in the quinary sector of a country.
Select the correct answer using the code given below:
Correct
Explanation
Statement 1 and 3 are correct. Statement 2 is incorrect. There are specialized tertiary activities in the
‘Knowledge Sector’ which demands a separate classification called quaternary sector. The quaternary
sector is the intellectual aspect of the economy. It is the process which enables entrepreneurs to
innovate and improve the quality of services offered in the economy. Hence Statement 1 is correct.
Personnel working in office buildings, elementary schools and university classrooms, hospitals and
doctors’ offices, theatres, accounting and brokerage firms all belong to this category of services. Like
other tertiary functions, quaternary activities can also be outsourced. Hence statement 2 is incorrect.
The quinary sector is the part of the economy where the top-level decisions are made. This includes the
government which passes legislation. It also comprises the top decision-makers in industry, commerce
and also the education sector. Statement 3 is correct. Profession under this category often referred as
‘gold collar’ professions, they represent another subdivision of the tertiary sector representing special
and highly paid skills of senior business executives, government officials, research scientists, financial
and legal consultants, etc.
Incorrect
Question 10 of 10
10. Question
2 points
The GDP of a country X is less than its GNP. Which is the most appropriate deduction from the
given statement?
Correct
Explanation
Gross national product (GNP) is an estimate of total value of all the final products and services turned
out in a given period by the means of production owned by a country’s Citizens. GNP is commonly
calculated by taking the sum of personal consumption expenditures, private domestic investment,
government expenditure, net exports and any income earned by residents from overseas investments,
minus income earned within the domestic economy by foreign residents.
