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T.B.C. : FIAS-PTS23-B1-L1T4 Test Booklet Series

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A
TEST BOOKLET
GENERAL STUDIES
Paper – 1

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Q.1) Consider the following statements with 1. The World Trade Organization (WTO)
reference to the Impacts of green revolution in provides for the general elimination of
India: quantitative restrictions.
1. The use of technology and better inputs 2. Quantitative restrictions are imposed to
have created significant employment protect domestic industries.
opportunities in the non-agricultural Which of the statements given above is/are
sectors. correct?
2. It increased cropping intensity in India. a) 1 only
Which of the statements given above is/are b) 2 only
correct? c) Both 1 and 2
a) 1 only d) Neither 1 nor 2
b) 2 only
c) Both 1 and 2 Q.5) With reference to the provisions made
d) Neither 1 nor 2 under the National Food Security Act, 2013
consider the following statements:
Q.2) Assertion (A): Public sector were given 1. The families coming under the category of
leading role in industrial development during ‘below poverty line (BPL)’ only are eligible to
planning period. receive subsidized grains.
Reason(R): Many Indian industrialists did not 2. The eldest woman in a household, of age 18
have the capital to undertake investment in years or above, shall be the head of the
industrial ventures required for the household for the purpose of issuance of a
development of Indian economy. ration card.
a) Both A and R are true and R is the correct 3. Pregnant women and lactating mothers are
explanation of A entitled to a take-home ration of 1600
b) Both A and R are true, but R is not a correct calories per day during pregnancy and for
explanation of A six months thereafter.
c) A is true, but R is false Which of the statements given above is/are
d) A is false, but R is true correct?
a) 1 and 2 only
Q.3) Consider the following with reference to b) 2 only
the reasons for balance of payment crisis of c) 1 and 3 only
1991: d) 3 only
1. The continued spending on development
programmes of the government did not Q.6) Consider the following statements with
generate additional revenue for the reference to the evolution of concept of
government. poverty line in India:
2. Foreign exchange borrowed from other 1. R.C. Dutt was the first to discuss the concept
countries and international financial of a Poverty Line In pre-independent India.
institutions was spent on meeting 2. Task Force constituted by planning
consumption needs. commission under YK Alagh (1979)
3. India’s Imports grew at a very high rate constructed a poverty line for rural and
without adequate growth of exports. urban areas on the basis of nutritional
Which of the statements given above is/are requirements.
correct? 3. Rangarajan committee (2014) reverted to the
a) 1 and 2 only practice of having separate all-India rural
b) 2 and 3 only and urban poverty line baskets
c) 1 and 3 only Which of the statements given above is/are
d) 1, 2 and 3 correct?
a) 1 and 2 only
Q.4) Consider the following statements with b) 2 and 3 only
reference to the Quantitative restrictions: c) 1 and 3 only
d) 1, 2 and 3
Q.7) Consider the following statements with Q.10) With reference to India’s Five -Year Plans,
reference to the Pradhan Mantri Garib Kalyan which of the following statements is/are
Anna Yojana: correct?
1. It aims to allocate free-of-cost food grains at 1. From the Second Five -Year Plan, there was
5 Kg per person under National Food a determined thrust towards substitution of
Security Act, 2013. basic and capital good industries.
2. This is over and above the distribution of 2. The Fourth Five -Year Plan adopted the
food grains of 5 kg per person given via objective of correcting the earlier trend of
ration shops. increased concentration of wealth and
3. No new ration card or registration is economic power.
required to avail the benefits under this 3. In the Fifth Five -Year Plan, for the first time,
scheme. the financial sector was included as an
Which of the statements given above is/are integral part of the Plan.
correct? Select the correct answer using the code given
a) 1 and 2 only below.
b) 2 and 3 only a) 1 and 2 only
c) 1 and 3 only b) 2 only
d) 1, 2 and 3 c) 3 only
d) 1, 2 and 3
Q.8) Consider the following statements:
1. The Debt to Asset Ratio of the poorer Q.11) Consider the following statements with
households in rural India is higher than the reference to eNAM:
richer households. 1. It allows farmers to directly trade their
2. The share of short-term agricultural loans stored produce from registered warehouses
have increased as compared to long term based on negotiable warehouse receipts in
loans since 1990. electronic form.
3. Currently more than half of the agricultural 2. Farmer Producer Organizations (FPO) can
households' avail credit from formal trade their produce from their collection
institutions. center without bringing the produce to
Which of the statements given above is/are APMC.
correct? 3. E- National Agricultural market (eNAM) is
a) 1 and 2 only implemented by Small Farmers Agribusiness
b) 2 and 3 only Consortium under the Ministry of
c) 1 and 3 only Commerce and Industry.
d) 1, 2 and 3 Which of the statements given above is/are
correct?
Q.9) Which of the following is/are challenges a) 1 and 2 only
faced by the Indian agro-processing industries? b) 2 and 3 only
1. Fluctuation in the supply of agricultural raw c) 1 and 3 only
materials. d) 1, 2 and 3
2. The Foreign Direct Investment limit for
retail trading in processed food products is
restricted to 74%.
3. High preference for fresh food by Indian
consumers.
4. Lack of product development.
Select the correct answer from the options
given below:
a) 1 and 4 only
b) 1, 2 and 3 only
c) 1, 3 and 4 only
d) 1, 2, 3 and 4
Q.12) Consider the following statements: 2. Certain Provisions in the Constitution of
1. The female unemployment rate in rural India give the Central Government the right
areas has declined in 2019-2020 as to Issue directions to the RBI in public
compared to 2009-10. interest. 
2. The labour force participation rate in rural 3. The Governor of the RBI draws his power
areas is more than urban areas in 2019-2020. from the RBI Act. 
3. The unemployment rate in rural areas has Which of the above statements are correct? 
increased in 2019-2020 as compared to a) 1 and 2 only 
2009-2010. b) 2 and 3 only 
Which of the statements given above is/are c) 1 and 3 only 
correct? d) 1, 2 and 3
a) 1 only
b) 3 only Q.16) With reference to the relation between
c) 1 and 2 only human capital and economic growth, consider
d) 2 and 3 only the following statements:
1. Human capital growth in developing
Q.13) Mr. A has the ability to work and is willing countries has led to proportional growth in
to work at the prevailing wage rate. He per capita real income in these countries.
migrated from rural to an urban area in search 2. Higher income growth can result in higher
of work but he remains unemployed full time. level of human capital and vice-versa.
He depends on other members of the family to Which of the statements given above is/are
fulfill his economic needs. correct?
Which among the following types of a) 1 only
unemployment is described in the above b) 2 only
passage? c) Both 1 and 2
a) Open unemployment d) Neither 1 nor 2
b) Disguised unemployment
c) Under employment Q.17) Which of the following measures are taken
d) Frictional unemployment by the government to increase human capital?
1. Providing internship opportunities to fresh
Q.14) With reference to the types of poverty, graduates.
consider the following statements: 2. Ensuring Universal Access at all levels of
1. Absolute poverty is the condition where school education
household income is below the basic living 3. Increasing expenditure on Health care
standard. system
2. Relative poverty is a condition where 4. Improve physical infrastructural facilities in
household income is below the income of towns cities.
the surrounding population. 5. Enhancing human relations between people
3. Unlike relative poverty, absolute poverty is and institutions.
the measure of income inequality. Select the correct answer using the code given
Which of the statements given above is/are below.
correct? a) 1, 2 and 3 only
a) 1 and 2 only b) 2, 3, 4 and 5 only
b) 3 only c) 1, 4 and 5 only
c) 2 and 3 only d) 2, 3 and 5 only
d) 1, 2 and 3

Q.15) Consider the following statements: 

1. The Governor of the Reserve Bank of India
(RBI) is appointed by the Central
Government. 
Q.18) With reference to Rural Development in b) 2 only
India, consider the following statements: c) Both 1 and 2
1. The Minimum Alternative tax on cooperative d) Neither 1 nor 2
societies is reduced recently to enhance
income of rural communities. Q.21) Which of the following are the reasons for
2. Saksham Anganwadis are a newly launched the recent power crisis in India?
anganwadis having audio-visual aids and 1. Shortage in supply of coal
powered by clean energy. 2. Heatwaves in North India
3. The Vibrant Villages Programme will 3. Reduced demand for coal.
enhance infrastructure development only in 4. Russia-Ukraine conflict
villages along India's border with China. Select the correct answer using the code given
Which of the statements given above is/are below.
correct? a) 1 and 2 only
a) 1 and 2 only b) 2 and 3 only
b) 2 only c) 1, 2 and 4 only
c) 2 and 3 only d) 1, 2, 3 and 4
d) 1, 2 and 3
Q.22) With reference to Infrastructure Status
Q.19) With reference to the newly framed granted by the government, consider the
Labour Codes and their provisions, consider following statements:
the following pairs: 1. Businesses which are granted Infrastructure
Labour Code Provisions Status will become eligible for tax breaks.
1. Code on A uniform minimum wage 2. It is conferred by the Department of
Wages available only to organised Economic Affairs.
sector workers Which of the statements given above is/ are
2. Code on Establishment with up to 300 correct?
Industrial employees can fire/ retrench a) 1 only
Relations without government b) 2 only
permission c) Both 1 and 2
3. Code on Gig workers allowed to join d) Neither 1 nor 2
Social ESIC to avail social security
Security benefits for first time Q.23) With reference to the recent India State
Which of the pairs given above is/ are correctly of Forest Report, consider the following
matched? statements:
a) 1 and 2 only 1. The Tiger reserve with the highest
b) 2 and 3 only percentage area as forest cover is Pakke
c) 1 and 3 only Tiger Reserve.
d) 1, 2 and 3 2. Majority of Mangroves in India are in the
least dense category.
Q.20) Consider the following statements: 3. India has achieved the Forest Cover area
1. In terms of short-term credit delivery to the targeted by the National Forest Policy.
agriculture sector, District Central Which of the statements given above is/ are
Cooperative Banks (DCCBs) deliver more correct?
credit in comparison to Scheduled a) 1 and 2 only
Commercial Banks and Regional Rural b) 2 and 3 only
Banks. c) 1 and 3 only
2. One of the most important functions of d) 1, 2 and 3
DCCBs is to provide funds to the Primary
Agricultural Credit Societies.
Which of the statements given above is/are
correct?
a) 1 only
Q.24) With respect to the SDG India Index, Q.27) With reference to the land degradation,
consider the following statements: consider the following statements:
1. It is released annually by United Nations 1. Indiscriminate use of agro-chemicals such
Department of Economic and Social Affairs. as fertilisers and pesticides is one of the
2. It covers performance on 16 out of the total reasons behind land degradation.
17 SDG Goals. 2. Land degradation can lead to greenhouse
3. No Indian state is in the ‘Achiever’ category gas emissions.
yet 3. United Nations Framework Convention on
Which of the statements given above is/ are Climate Change has adopted land
correct? degradation neutrality (LDN) concept to
a) 1 and 2 only combat climate change.
b) 2 and 3 only Which of the statements given above are
c) 1 and 3 only correct?
d) 1, 2 and 3 a) 1 and 2 only
b) 1 and 3 only
Q.25) If another global financial crisis happens c) 2 and 3 only
in the near future, which of the following d) 1, 2 and 3
action/policies are most likely to give some
immunity to India? Q.28) Which of the following statements is/are
1. Not depending on short-term foreign correct regarding the Planning Commission
borrowings and NITI Aayog?
2. Opening up to more foreign banks a) Unlike Planning Commission, NITI Aayog
3. Maintaining full capital account has the power to allocate funds to the State
convertibility Governments.
Select the correct answer using the code given b) Both are set up by a Resolution of the
below: Government of India.
a) 1 only c) Both bodies do not have any provisions for
b) 1 and 2 only the appointment of part-time members.
c) 3 only d) Both Planning Commission and NITI Aayog
d) 1, 2 and 3 had power to impose policies on states,
approved by it.
Q.26) Which of the following statement is
correct with reference to the energy sector in Q.29) Which one of the following is the reason
India? for the phenomenon of jobless growth
1. The share of household sector in energy witnessed in India?
consumption has doubled over the last three 1. Jump from primary to tertiary sector in
decades. sectoral reallocation of economic activity.
2. Biomass energy has the largest share of non- 2. Growth in capital intensive sectors rather
commercial energy source in India. than labour intensive sectors.
3. Thermal sources accounts for around 60 per 3. Lack of focus on higher education.
cent of the total Installed Capacity. 4. Medium-type industries which produce
Select the correct answer using the code given high output are missing
below: Select the correct answer using the code given
a) 1 only below:
b) 2 and 3 only a) 1 and 2 only
c) 1 and 3 only b) 2 and 4 only
d) 1, 2 and 3 c) 1, 2 and 4 only
d) 1, 2 and 3 only
Q.30) Which one of the following statements Q.33) Which of the following statements is
appropriately describes the “fiscal stimulus”? correct regarding the Real Effective Exchange
a) It is a massive investment by the Rate (REER)?
Government in manufacturing sector to 1. REER is the weighted average of a country's
ensure the supply of goods to meet the currency in relation to a basket of other
demand surge caused by rapid economic major currencies.
growth 2. REER is an inflation adjusted exchange rate.
b) It is an intense affirmative action of the 3. REER signifies the quantity of domestic
Government to boost economic activity in goods required to purchase one unit of a
the country given basket of foreign goods.
c) It is Government’s intensive action on 4. An increase in a country’s REER indicates
financial institutions to ensure that its exports are becoming cheaper.
disbursement of loans to agriculture and Select the correct answer using the code given
allied sectors to promote greater food below.
production and contain food inflation a) 1 and 2 only
d) It is an extreme affirmative action by the b) 2, 3 and 4 only
Government to pursue its policy of financial c) 1, 3 and 4 only
inclusion d) 1, 2 and 3 only

Q.31) With reference to Emergency Credit Line Q.34) Which one of the following is the reason
Guarantee Scheme (ECLGS), consider the behind the stagnation of Indian agriculture
following statements: during the colonial period?
1. It was launched as part of the Atmanirbhar 1. Low level of agricultural productivity.
package in response to the Covid-19 crisis. 2. Very little investment in terracing, drainage
2 Non-Performing Asset (NPA) accounts and desalinization of soil.
cannot raise funds under the scheme. 3. Decline of area under cultivation during the
3. Loans cannot be given to larger firms. colonial rule.
Which of the statements given above is/are 4. Lack of interest shown by Zamindars to
correct? improve the condition of agriculture.
a) 1 and 2 only Select the correct answer using the code given
b) 2 and 3 only below.
c) 1 and 3 only a) 1 and 2 only
d) 1, 2 and 3 b) 2, 3 and 4 only
c) 1, 2 and 4 only
Q.32) Which of the following statements d) 1, 2 and 3 only
regarding microfinancing in India is/ are
correct? Q.35) Which of the following can be said to be
1. Micro Financing institutions (MFIs) in India essentially the parts of ‘Inclusive Governance’?
generally charge lower interest rates than 1. Permitting the Non-Banking Financial
commercial banks. Companies to do banking
2. The outreach of Micro Financing 2. Establishing effective District Planning
institutions (MFIs) in India is almost 50%. Committees in all the districts
3. Micro Financing Institutions (MFIs) in India 3. Increasing the government spending on
are regulated by RBI. public health
Select the correct answer using the code given 4. Strengthening the Mid-day Meal Scheme
below: Select the correct answer using the codes given
a) 1 and 2 only below:
b) 2 and 3 only a) 1 and 2 only
c) 1 and 3 only b) 3 and 4 only
d) 3 only c) 2, 3 and 4 only
d) 1, 2, 3 and 4
 Page 9

Q.36) Which of the following was one of the Q. 39) With reference to the urban forests
reasons for the government to implement land developed under the ‘Nagar Van Scheme’,
reforms after independence? consider the following statements:
1. To provide incentives to tillers so as to 1. Once the forest area is notified under
increase output. scheme it will be maintained by
2. To promote equity in the agricultural sector. Municipalities.
3. To establish Government as a link between 2. Existing Forest land will not be used to
zamindars and tillers to avoid exploitation of develop urban Forests under the scheme.
tillers. 3. It will be on public private partnership ( PPP)
4. To end the exploitative land tenure systems mode.
prevalent in agrarian society. Which of the statements given above is / are
Select the correct answer using the code given correct?
below. a) 1 only
a) 1 and 2 only b) 2 and 3 only
b) 2, 3 and 4 only c) 1 and 2 only
c) 1, 2 and 4 only d ) 3 only
d) 1, 2 and 3 only
Q.40) Consider the following statements:
Q.37) In the context of international trade, 1. Coal sector was nationalized by the
which of the following items are categorized as Government of India under Indira Gandhi.
Non -tariff barriers? 2. Now, coal blocks are allocated on lottery
1. Local content requirement basis.
2. Custom Duty 3. Till recently, India imported coal to meet the
3. Import Quotas shortages of domestic supply, but now India
4. Sanitary and phytosanitary regulations is self -sufficient in coal production.
5. Ad Valorem duty Which of the statements given above is / are
Select the correct answer using the code given correct?
below: a) 1 only
a) 1, 3 and 4 only b) 2 and 3 only
b) 2, 3 and 4 only c) 3 only
c) 1, 3, 4 and 5 only d) 1, 2 and 3
d) 2, 3, 4, and 5 only
Q.41) The World Trade Organization (WTO)
Q.38 ) Which of the following are major factors deals with the global rules of trade between
for high growth of services sector in India after nations. Which of the following statements
liberalization? is/ are correct with reference to WTO?
1, Availability of cheap labour. 1. It was established by Marrakesh agreement.
2 Low tariff and non-tariff barriers on imports 2. It has a trade and environment committee to
3. Devaluation of rupee against foreign make trade agreements more environment
currencies. friendly.
Select the correct answer using the code given 3. The Dispute settlement body of the WTO is
below: a political institution.
a) 1 only Select the correct answer using the code given
b) 2 and 3 only below:
c) 1,2 and 3 a) 1 and 2 only
d) 2 only b) 2 and 3 only
c) 1 and 3 only
d ) 1, 2 and 3
Q.42) Consider the following pairs Q.45) With reference to casual workers
Type Feature employed in India, consider the following
1. Chronic A person who regularly move statements: 
poor below and above the poverty 1. All casual workers are entitled for
line. Employees Provident Fund Coverage. 
2. Usually poor A person who is poor but may 2. All casual workers are entitled for regular
sometimes move above the working hours and overtime payment. 
poverty line. 3. The government can by a notification
3. Occasionally A person who is rich but may specify that an establishment or industry
poor sometimes move below shall pay wages only through its bank
poverty line. account. 
4. Churning A person who is poor for most Which of the above statements are correct? 
poor part of his life. a) 1 and 2 only 
Which of the above pairs is/are correctly b) 2 and 3 only 
matched? c) 1 and 3 only 
a) 1, 2 and 3 only d) 1, 2 and 3
b) 2 and 3 only
c) 1 and 4 only Q.46) In the context of Indian economy,
d) 1, 2, 3 and 4 consider the following statements:
1. The gross fixed capital formation, as percent
Q.43) Which of the following statements are a of GDP, has decreased during the last
source for human capital formation? decade.
1. Expenditure incurred by firms on the 2. India’s Net Foreign Direct Investments has
training of employees. consistently increased during the last
2. Costs incurred for migration to places of decade.
greater economic opportunity. Which of the statements given above is/are
3. Expenditure incurred for acquiring correct?
Information relating to the labour market. a) 1 only
Which of the statements given above is/are b) 2 only
correct? c) Both 1 and 2
a) 1 and 3 only d) Neither 1 nor 2
b) 2 and 3 only
c) 1 and 2 only Q.47) Which of the following are the possible
d) 1, 2 and 3 impact on Indian economy if US federal reserve
increases their interest rates?
Q.44) Which of the following changes occurred 1. Foreign Portfolio investments in equity will
in agriculture sector after the economic be significantly increased.
reforms of 1991? 2. It could lead to depreciation of Indian
1. The share of Government investment in currency.
agriculture infrastructure has increased. 3. Global funds could pull out money from
2. Government subsidies to the agriculture Indian government securities.
sector has increased. 4. India’s current Special Drawing Rights quota
3. Farmers are facing increased competition in the IMF will significantly decrease.
from international market. Select the correct answer using the codes given
Select the correct answer using the code given below:
below. a) 1, 2 and 4 only
a) 1 and 3 only b) 2 and 3 only
b) 2 and 3 only c) 2, 3 and 4 only
c) 1 and 2 only d) 1, 2, 3 and 4
d) 1, 2 and 3
Q.48) With reference to Indian Economy, what
will be the impact of rising interest rates on the
price of the Bond?
a) Price of the bond may decrease with
increasing interest rates
b) Interest rate will have no impact on the price
of the bond
c) Price of the bond will increase with
increasing interest rates
d) Price of the bond will first increase and then
decrease after a threshold

Q.49) What are the risks/challenges associated

with borrowing in foreign currency?
1. Exposure to currency mismatch risk
2. Higher borrowing cost
3. Depletion in foreign exchange reserve
4. Reduced ability to tackle financial crises
Select the correct answer using the code given
below:
a) 1 and 4 only
b) 2 and 3 only
c) 1, 2 and 3 only
d) 1, 2 and 4 only

Q.50) With reference to the Indian economy

after the 1991 economic liberalization, consider
the following statements:
1. Worker productivity 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.
Which of the statements given above is/are
correct?
a) 1 and 2 only
b) 3 and 4 only
c) 3 only
d) 1, 2 and 4 only