Mastering the Economics PYQ UPSC Prelims Question Bank📔

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Economics PYQ UPSC Prelims

There are lakhs of students who prepare each year for this Union Public Service Commission (UPSC) examination. While preparing for any exam, practising questions is a key to success. Therefore, in this article, we have curated the UPSC prelims economy question bank, which contains different questions from previous years. Practise Economics PYQ UPSC Prelims thoroughly to ace the examination.

Economics PYQ UPSC Prelims

We have provided all Economics PYQ UPSC Prelims here. We have covered the years 2022 to 2020. Students can use these questions to determine the difficulty level as well as the types of questions they can expect in economics.We have also included a list of Important Topics for Economics for UPSC Prelims

2022 Economics PYQ UPSC Prelims ⬇️

1.“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following:

  1. Asian Development Bank
  2. International Monetary Fund
  3. United Nations Environment Programme Finance Initiative
  4. World Bank

2. With reference to the Indian economy, consider the following statements:

  1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
  2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
  3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

3. With reference to the Indian economy, consider the following statements:

  1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
  2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
  3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

2021 Economics PYQ UPSC Prelims👨‍🎓

1. The money multiplier in an economy increases with which one of the following?

a) Increase in the Cash Reserve Ratio in the banks.
b) Increase in the Statutory Liquidity Ratio in the banks
c) Increase in the banking habit of the people
d) Increase in the population of the country

2. With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following?

1. Expansionary policies
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates

Select the correct answer using the code given below.
a) 1, 2 and 4 only
b) 3, 4 and 5 only
c) 1, 2, 3 and 5 only
d) 1, 2, 3, 4 and 5

3. With reference to India, consider the following statements:
1. Retail investors through Demat account can invest in Treasury Bills and Government of India Debt Bonds in the primary market
2. The “Negotiated Dealing System-Ordering Matching” is a government securities trading platform of the Reserve Bank of India.
3. The “Central Depository Services Ltd” is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
a) 1 only
b) 1 and 2
c) 3 only
d) 2 and 3

Also Read: How Many Questions in UPSC Prelims?

2020 Economics PYQ UPSC Prelims 📝

1. What is the importance of the term “Interest Coverage Ratio” of a firm in India?

(1)It helps in understanding the present risk of a firm that a bank is going to give a loan to.

(2) It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.

(3) The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

2.Which of the following factors/policies were affecting the price of rice in India in the recent past?

(1) Minimum Support Price

(2) Government’s trading

(3) Government’s stockpiling

(4) Consumer subsidies

Select the correct answer using the code given below:

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4

3. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

(1) Working capital for maintenance of farm assets harvesters,

(2) Purchase of combine tractors and mini trucks requirements of farm

(3) Consumption households

(4) Post-harvest expenses

(5) Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2,3,4 and 5 only

(d) 1, 2, 3, 4 and 5

Click here to download the full question bank for UPSC Prelims Economy.

Also Read: How to Prepare for UPSC 2024 at Home?

How To Prepare Economics For UPSC?

The UPSC exam places a great deal of importance on the Economics subject. Confusion about ideas, theories, and queries always acts as a constant barrier to the preparation of economics-related issues. The economics of any nation forms the basis for its expansion and advancement. As a prospective bureaucrat, you should be well-versed in the workings of the Indian economy. When preparing for the UPSC exams in Economics, keep the following principles in mind:

How To Prepare Economics For UPSC?PrelimsMains
Recognize SyllabusFamiliarize yourself with the UPSC Economics Prelims syllabus.Understand the UPSC Economics Mains syllabus thoroughly.
Select Important TopicsStudy the Union Budget, Economic Survey, and relevant reports to stay updated with current developments.Focus on subjects like economic development, inclusive growth, budgeting, agriculture, infrastructure, etc.
Limit ResourcesStart with NCERT textbooks for the theoretical foundation. Then move on to Ramesh Singh’s Indian Economy.Read essential texts like Shankar Ganesh’s Indian Economy Key Concepts and Ramesh Singh’s Indian Economy.
Emphasize Value AdditionStudy Union Budget, Economic Survey, and relevant reports to stay updated with current developments.Understand the application of economic concepts in real-world scenarios.
Follow Current EventsKeep up with government initiatives, economic activities, and current issues related to economics.Stay updated with economic developments through newspapers, magazines, and online resources.
Practice Previous Year QuestionsSolve UPSC Prelims questions from previous years to understand exam patterns and types of questions.Practice answer writing for Mains with a focus on the application of economic concepts.
Review FundamentalsRegularly review basic concepts to ensure retention and understanding.Prioritize revision of the entire UPSC Economics syllabus to stay updated and reinforce learning.

Study Material To Prepare UPSC Economics Subject

The following lists the materials and reading list for the economics course. You don’t need to read all of these books, though. Select the ones with which you are most at ease. View the following list of essential books for UPSC Economics Preparation:

TitleAuthor(s)Direct Link to Buy
Indian EconomyRamesh SinghBuy Now
The Indian EconomySanjiv VermaBuy Now
Indian EconomyMishra and PuriBuy Now
Indian EconomyR. Dutt and KPM SundaramBuy Now
BankingS.B. GuptaBuy Now
Dictionary of EconomicsGraham Bannock; T.E. Baxter, Ray ReesBuy Now
Economic Growth and DevelopmentMayer and BaldwinBuy Now
Economic Survey: Twelve Five Year Plan: New Industrial PolicyGovernment of IndiaBuy Now

List of Important Topics for Economics for UPSC Prelims 📔

  • Inflation
  • Economic development
  • Food processing and related industries
  • Monetary policy
  • National income
  • Poverty
  • Banking and Finance
  • Banking structure in India
  • Cashless economy in India
  • Development
  • Fiscal policy
  • National Investment and Infrastructure Fund
  • Infrastructure
  • Monetary policy in India
  • Planning
  • World economy
  • Basic economic indicators
  • Budget

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How many questions come from economy in UPSC mains?

The number of questions is not decided, each year it varies. Sometimes, there can be 5-8 questions, or even more/less.

Is economics tough in UPSC?

No, it is not a tough subject if you have a strong interest in economics subject. If you enjoy studying the economic stuff then it will be easier for you to cover the syllabus.

How to prepare for UPSC main economy?

Follow a rigid timetable to prepare well for the UPSC main Economy subject. You can either take help from the educational institutions or can prepare by yourself at home.

This was all about the “UPSC Prelims Economy Questions Bank”.  For more such informative blogs, check out our UPSC Exams Section, or you can learn more about us by visiting our  Indian exams page.

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