Important Concepts in Economy: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Important Concepts in Economy (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
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UPSC 2009Indian Economy · Important Concepts in Economy
Q1. In the context of independent India’s economy, which one of the following was the earliest event to take place?
Explanation
The Banking Regulation Act was enacted in 1949, and was a cornerstone in India’s economic history. It aimed to regulate and stabilize the banking sector, empowering the Re-serve Bank of India (RBI) to supervise banks. Key provisions included setting minimum capital requirements, licensing banks, regulating branch expansion, and ensuring proper management and audit. The act also protected depositors’ interests, prevented fraud, and maintained banking integrity. It laid the foundation for a robust banking system, crucial for India’s post-independence economic development. Options (a), (b) and (d) are incorrect:
The First Five-Year Plan (1951-1956) focused on agricultural development and irrigation projects to address food shortages and stabilize the economy after independence. It laid the foundation for planned economic growth. The State Bank of India (SBI) was nationalized in 1955 when the Imperial Bank of India was transformed into SBI. This move aimed to expand banking services and support economic development. The nationalization of insurance companies occurred in 1956, with the formation of the Life Insurance Corporation of India (LIC). This was done to ensure that insurance services reached all sections of society, particularly in rural areas.
Answer key for these questions
Q
UPSC year
Correct answer
1
2009
(c) Enactment of Banking Regulation Act
Frequently asked questions
How many previous year UPSC questions are there on Important Concepts in Economy?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Important Concepts in Economy (Indian Economy), asked from 1996 to 2022. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Important Concepts in Economy?
Questions on Important Concepts in Economy (Indian Economy) are available for 11 years, from 1996 to 2022. Use the Year filter to practise a single paper.
