Indian Economy Mixed Practice — MCQs with Answers (Set 14)

The policy aims to cut import dependence from about 85% to about 65% by 2030-31. It plans to do so by raising domestic availability of washed coking coal.

The Ministry of Coal said in January 2026 that around 95% of the steel sector’s coking coal is imported. The 2017 policy baseline was about 85%, so keep the two figures apart.

The correct answer is (c) Both 1 and 2. QCI was registered as an autonomous, non-profit society in 1996, set up jointly by the Government of India and Indian industry (CII, FICCI, ASSOCHAM). Its Chairman is appointed by the Prime Minister, on the recommendation of industry to the government.

The answer is 1 June 2015 to 31 March 2016. The Government paid 50 percent of the contribution, or ₹1,000 a year, whichever was lower. It paid for five years, from 2015-16 to 2019-20. Early documents named accounts opened before 31 December 2015. The Finance Ministry FAQ gives the longer window.

The answer is PFRDA. The Pension Fund Regulatory and Development Authority administers APY under the set-up of the National Pension System. The PFRDA Act, 2013 backs the authority.

The answer is 18 to 40 years. An Indian citizen in this age band can join. Age is not the only test. From 1 October 2022, a person who is or has been an income-tax payer cannot open a new account.

The answer is ₹1,000 to ₹5,000. A subscriber picks one of five slabs: ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 a month. The pension starts at age 60 and lasts until death. The Government of India guarantees it.

The answer is 1 and 3 only. UPSC’s Series A key gives this answer for Q76. Statement 1 is true. APY gives a guaranteed minimum pension, and it is aimed at unorganised-sector workers. Statement 2 is false. Each person can hold only one account, but every eligible family member can open one. Statement 3 is true. After the subscriber dies, the spouse gets the same pension amount for life.

The correct answer is (c). Each State notifies its own date for moving its employees to NPS. Option (d) is wrong because NPS started on 1 January 2004 and the Armed Forces are left out. Option (a) is wrong because non-resident and overseas citizens can join. Option (b) is wrong because PFRDA now says any citizen aged 18 to 85 can subscribe.

The answer is (a). PMMY aims at collateral-free credit for micro enterprises, which brings small entrepreneurs into the formal financial system. MUDRA refinances lenders. PMMY does not give crop loans, pay pensions, or fund voluntary organisations.

Education spending fell from 2.9% of GDP in FY20 to 2.7% in FY26 (budget estimates). It has stayed at 2.7% since FY22. Health spending rose from 1.4% to 1.8% of GDP. These are Centre and States combined. The Survey’s education figure also covers sports, arts and culture.

Human capital is intangible and sits in the body and mind of its owner. Physical capital is tangible, like a bus or a machine. Physical capital can be separated from its owner. Human capital cannot. A country needs both to grow.

Under the 6% levy, the payer collected it. The payer was a resident business or a non-resident with a PE in India. The payer deducted 6% and deposited it with the government. The later 2% levy worked the other way. The non-resident operator paid it.

The 2% e-commerce levy stopped applying on 1 August 2024. The Finance Bill memo gave scope doubts and compliance burden as reasons. The 6% advertisement levy stopped applying from 1 April 2025. After that, no Equalisation Levy remained.

The Finance Act, 2020 added a 2% levy. It applied to non-resident e-commerce operators. It covered their online sale of goods and services. It started on 1 April 2020. It was separate from the 6% advertisement levy.

The levy came through the Finance Act, 2016. It is in Chapter VIII of that Act. It is a separate levy, not a part of the Income Tax Act. The other options name laws that did not create it.

The answer is (c), 1, 3 and 4 only. Policies cover restoring a system after malware, consultant costs during extortion and legal defence costs. The sample IRDAI-filed policy wording lists no cover for a new computer. So statement 2 fails.

The answer is scheduled commercial banks, excluding small finance banks, payment banks and regional rural banks. The Directions take effect on 1 April 2027. They are not for all banks, only foreign banks or only D-SIBs. Memory hook: the 2026 Directions are for commercial banks.

The answer is 2010. The Committee published the first Basel III text in December 2010. Basel II came in 2004. The RBI began Basel III in India in 2013. Memory hook: crisis 2008, text 2010, India 2013.

The answer is the Liquidity Coverage Ratio, then the Net Stable Funding Ratio. The LCR covers a 30-day stress. The NSFR looks at funding over a longer horizon. The leverage ratio and the buffers are not liquidity ratios. Memory hook: LCR is a month, NSFR is longer.

The answer is 11.5%. The base minimum total capital is 9% of risk-weighted assets. The 2.5% Capital Conservation Buffer takes it to 11.5%. The buffer was fully in place on 1 October 2021. The 10.5% option is the global figure. Memory hook: 9 plus 2.5.

The answer is improving the banking sector’s ability to handle financial and economic stress. Basel III also improves risk management at banks. It is not about biodiversity, greenhouse gases or replacing CFCs. Memory hook: Basel is about banks.

The correct answer is a three-month moving average, with migration by 1 April 2029. RBI’s draft of 12 August 2026 proposes this. It proposes borrower consent and no extra fee for the move. The date of 11 September 2026 was only the comment deadline. The draft is not final.

The correct answer is that MCLR is an internal benchmark and EBLR tracks an external one. Each bank works out its own MCLR from its own marginal cost of funds. An EBLR loan is pegged to the repo rate, a Treasury Bill yield or another FBIL benchmark. The three-month reset rule belongs to EBLR. An MCLR loan can reset up to a year later.

The correct answer is 1 October 2019, for new retail and MSME floating-rate loans. Read the word MSME as shorthand. RBI’s circular names new retail loans and loans to Micro and Small Enterprises from that date. Medium Enterprises followed on 1 April 2020.