[Answerkey] UPSC CSAT GS Prelim 2016: Economy MCQs solved for all SETS (A,B,C,D) with explanations

[Answerkey] UPSC CSAT GS Prelim 2016: Economy MCQs solved for all SETS (A,B,C,D) with explanations

  1. Economy: Compared to last year’s Prelim
  2. Road Ahead Economy for Prelims GS
  3. Pillar#1: Banking-Finance
  4. Pillar#2: Budget, Fiscal Policy
  5. Pillar#3: Balance of Payment (BoP), International Economics
  6. Pillar#4: Sectors of Economy
  7. Pillar#5: Infrastructure
  8. Pillar#6: HRD/ Assorted Yearbook

Economy: Compared to last year’s Prelim

2015 2016
Meaning of BASEL norms. Meaning/purpose of Core banking, BEPS, MCLR
Nothing from Microeconomics. Same
Nothing from rail budget. Same.
UPSC gave three terms- AoA, Peace Clause, SPS- and asked aspirants to identify the associated org (Ans. WTO). MCQ with Same theme and same answer- asked this year as well- Amber box, blue box, green box associated with (Ans. Again WTO)
Question on PM Jan Dhhan Yojana
  • PM-Prem continues and intensifies. This year PM Mudra, PM fasal bima, Startup standup, Atal pension and so..
48. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Expanding industries
Select the correct answer using the code given below.
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1,2,3 and 4
Similar MCQ:
78. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, 3 and 4Only code changed otherwise here also “ONLY 1 and 3”.
Economy related Org: Too easy question on NITI Ayog origin (that it was setup to replace planning commission). This time obscure or relatively low-profile organizations asked such as IMFC, FSDC.
Economy focused on first three pillars- banking, budget, BoP.
  • Less focus on Budget, more on BoP (11 MCQ); and atleast one MCQ from each of the six pillars.
  • Within fourth pillar (sectors)- emphasis on startup (2 MCQs)
An MCQ on GI There was sudden craze among aspirants to prepare GI-indicators, but nothing from here.
Vs. CAPF-2016
  • While WTO, Paris summit prem continues but thankfully, nothing hardcore Yearbook like KVIC, Silk production ranking.
  • CAPF they asked India’s first defense industrial park, in prelims, they asked India’s first NIMZ.
Vs. EPFO/APFC-2016 IMF- Free trade agreement prem continues. But thankfully nothing from microeconomics, or hardcore Macroeconomics/obscure GDP related terms.

Road Ahead Economy for Prelims GS

UPSC CSAT Prelim Answerkey Economy

  • With nearly 30 MCQs- the Economy segment has reached / will soon reach its peak. Then, its fall should commence- just like environment- it may fall back to 20-ish region.
  • May be 3-4 years down the line, economy may end up like science tech- below 10 MCQ range. Who knows!? The only way to fight uncertainty, is to prepare all subjects diligently.
  • Since good number of questions, can be directly solved from the BES16 series, ipso facto good number of questions came from ‘economic survey’ and allied topics. Therefore, you should keep habit of following the survey and doing backend self-study on allied topics/terms mentioned in the survey.
  • For economy, no secret/expensive coaching material required. While my videos and PowerPoints are good as base material for economy. But after they’re published, you’ve to keep updating them with Hindu/Indianexpress. (Atleast for Economy, Indian express also works just fine).
  • In Banking-Finance, international economy- new developments keep happening. Similarly, in Modi Government – they announce scheme with catchy abbreviation first, and later on design its salient features, cost sharing and jurisdiction. So, you’ve to update the PowerPoints/notes- to keep the same material relevant for mains, interview and next prelims.
  • To an extent, some of the MCQs- may seem “pro-senior player” e.g. BEPS, RCEP, New development banks, net metering, Gadgil-Kasturirangan, Ganga authority, OPCW, Belt-road initiative, Bitcoin etc. terms that have been making rounds since last 1.5-2 years esp. in the mains exam.
  • But all in all, such MCQs were either too tough for everyone, (or too easy through elimination/guestimation)- thereby, not creating heavy favour to any group of serious aspirants. Besides, we can’t expect UPSC to give 100% soft-glove treatment to anyone. It is meant to be a cruel, competitive, unpredictable exam.

Anyways, here comes the stupid Answerkey:

Pillar#1: Banking-Finance Answerkey

18. What is/are the purpose/purposes of the `Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

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