UPSC Prelims 2020 Previous Year Questions

Browse all 100 questions from the UPSC Prelims 2020 paper. Every question includes the correct answer, a detailed explanation, the source it was drawn from, and a breakdown of what UPSC intended to test.

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Economic and Social Development questions from UPSC Prelims 2020

Q1UPSC Prelims 2020Economic and Social Development

If another global financial crisis happens in the near future , which of the following actions/policies are most likely to give some immunity to India?

Not depending on the short term foreign borrowing.
Opening up to more foreign banks
Maintaining full capital account convertibility
Select the correct answer using the given code below-

  • (a)1 only
  • (b)1 and 2 only
  • (c)3 only
  • (d)1, 2 and 3
View Answer & Explanation
Q2UPSC Prelims 2020Economic and Social Development

If you withdraw 1,00,000 from your in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

  • (a)To reduce it by 1,00,000
  • (b)To increase it by 1,00,000
  • (c)To increase it by more than 1,00,000
  • (d)To leave it unchanged
View Answer & Explanation
Q3UPSC Prelims 2020Economic and Social Development

In India, which of the following can be considered as public investment in agriculture?

1. Fixing Minimum Support Price for agricultural produce of all crops.

2. Computerization of Primary Agricultural Credit Societies.

3. Social Capital Development.

4. Free Electricity supply to farmers.

5. Waiver of agricultural loans by the banking system.

6. Setting up of cold storage facilities by the government.

Select the correct answer using the code given below:

  • (a)1,2 and 5 only
  • (b)1,3,4 and 5 only
  • (c)2,3 and 6 only
  • (d)1,2,3,4,5 and 6
View Answer & Explanation
Q4UPSC Prelims 2020Economic and Social Development

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 loan to.

2. It helps in evaluating the emerging risk of a firm that a bank is going to give 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
View Answer & Explanation
Q5UPSC Prelims 2020Economic and Social Development

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
View Answer & Explanation
Q6UPSC Prelims 2020Economic and Social Development

Consider the following statements:

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.

2. "Textile and Textile articles" constitute an important item of trade between India and Bangladesh.

3. In the last five years, Nepal has been the largest trading partner of India in South Asia.

Which of the statements given above is/are correct ?

  • (a)1 and 2 only
  • (b)2 only
  • (c)3 only
  • (d)1,2 and 3
View Answer & Explanation
Q7UPSC Prelims 2020Economic and Social Development

With reference to the international trade of India at present, which of the following statements is/are correct ?

1. India's merchandise exports are less than its merchandise imports.

2. India's imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India's exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Which of the statements given above is/are correct ?

  • (a)1 and 2 only
  • (b)2 and 4 only
  • (c)3 only
  • (d)1,3 and 4
View Answer & Explanation
Q8UPSC Prelims 2020Economic and Social Development

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic ?

  • (a)It is the investment through capital instruments essentially in a listed company.
  • (b)It is largely non-debt creating capital flow.
  • (c)It is the investment which involves debt-servicing.
  • (d)It is the instrument made by foreign institutional investors in the Government securities.
View Answer & Explanation
Q9UPSC Prelims 2020Economic and Social Development

The term ‘West Texas Intermediate', sometimes found in news, refers to a grade of

  • (a)Crude oil
  • (b)Bullion
  • (c)Rare earth elements
  • (d)Uranium
View Answer & Explanation
Q10UPSC Prelims 2020Economic and Social Development

Consider the following statements:

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Prices(MSP) is unlimited in any State/UT of India.

2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct ?

  • (a)1 only
  • (b)2 only
  • (c)Both 1 and 2
  • (d)Neither 1 nor 2
View Answer & Explanation
Q11UPSC Prelims 2020Economic and Social Development

In the context of the Indian economy, non-financial debt includes which of the following?

1. Housing loans owned by household
2. Amounts outstanding on credit cards
3. Treasury Bills

Select the correct answer using the code given below:

  • (a)1 only
  • (b)1 and 2 only
  • (c)3 only
  • (d)1,2 and 3
View Answer & Explanation
Q12UPSC Prelims 2020Economic and Social Development

With reference to the Indian Economy, consider the following statements:

1.'Commercial Paper' is a short term unsecured promissory note.

2. ‘Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation.

3. ‘Call Money' is a short term finance used for interbank transactions.

4. ‘Zero-Coupon Bonds' are the interest bearing short term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct ?

  • (a)1 and 2 only
  • (b)4 only
  • (c)1 and 3 only
  • (d)2,3 and 4 only
View Answer & Explanation
Q13UPSC Prelims 2020Economic and Social Development

Consider the following statements:

1. In terms of short term credit delivery to the agriculture sector, District Central Cooperative Banks(DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.

2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements is/are correct ?

  • (a)1 only
  • (b)2 only
  • (c)Both 1 and 2
  • (d)Neither 1 nor 2
View Answer & Explanation
Q14UPSC Prelims 2020Economic and Social Development

With reference to the Indian Economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity ( rupees per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.

2. The percentage share of rural areas in the workforce steadily increased.

3. In rural areas, the growth in the non-farm economy increased.

4. The growth rate in rural employment decreased.

Select the correct answer using the code given below:

  • (a)1and 2 only
  • (b)3 and 4 only
  • (c)3 only
  • (d)1, 2 and 4
View Answer & Explanation
Q15UPSC Prelims 2020Economic and Social Development

In India, under cyber insurances for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ?

1. Cost of restoration of the computer system in case of malware disrupting access to one's computer.
2. Cost of a new computer if some miscreant wilfully damages it, if proved so.
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.
4. Cost of defence in the court of law if any third party files a suit.

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
View Answer & Explanation
Q16UPSC Prelims 2020Economic and Social Development

If the RBI decides to adopt an expansionist monetary policy, which of the following it would NOT do?

Cut and optimize the statutory liquidity ratio
Increase the Marginal Standing Facility Rate
Cut the Bank Rate and Repo Rate
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
View Answer & Explanation
Q17UPSC Prelims 2020Economic and Social Development

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct ?

1. Quantitative restrictions on imports by foreign investors are prohibited.

2. They apply to investment measures related to trade in both goods and services.

3. They are not concerned with the regulation of foreign investment.

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
View Answer & Explanation
Q18UPSC Prelims 2020Economic and Social Development

Along with the budget, the Finance Minister also places other documents before the parliament which include "The Macro Economic Framework Statement" The aforesaid document is presented because this mandated by

  • (a)Long standing parliamentary convention
  • (b)Article 112 and article 110(1) of the constitution of India
  • (c)Article 114 of the Constitution of India
  • (d)Provisions of the Fiscal Responsibility and Budget Management act, 2003
View Answer & Explanation
Q19UPSC Prelims 2020Economic and Social Development

With reference to chemical fertilizers in India, consider the following statements:

At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
Ammonia, which is an input of urea, is produced from natural gas.
Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of all oil refineries.
Which of the statements given above is/are correct?

  • (a)1 only
  • (b)2 and 3 only
  • (c)2 only
  • (d)1,2 and 3
View Answer & Explanation
Q20UPSC Prelims 2020Economic and Social Development

Consider the following statements:

1. The weightage of food in Consumer Price Index(CPI) is higher than that in Wholesale Price Index(WPI).

2. The WPI does not capture changes in the prices of services, which CPI does.

3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct ?

  • (a)1 and 2 only
  • (b)2 only
  • (c)3 only
  • (d)1,2 and 3
View Answer & Explanation
Q21UPSC Prelims 2020Economic and Social Development

Gold tranche(Reserve tranche) refers to

  • (a)A loan system of World bank
  • (b)One of the operations of a central bank
  • (c)A credit system of WTO granted to its members
  • (d)A credit system granted by IMF to its members
View Answer & Explanation
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