Q431. In order to achieve the objectives of the Yellow Revolution, the Government of India launched the Technology Mission on Oilseeds (TMO) in which year?
Indian Economy: RAS Prelims MCQs
848 RAS Prelims practice MCQs on the Indian economy are on this page, in 10 chapters. They cover economic growth and development, the Human Development Index, monetary and fiscal policy and the Union Budget, fiscal federalism, agricultural development, industrial reforms and LPG, the service sector, energy and transport, skill development and employment, and social justice. Each question has an answer and an explanation.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 431–440 of 848 questions
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Q432. Which of the following statements regarding the current status of oilseed production and consumption in India is incorrect?
Explanation
While India has made progress in oilseed production, it is not yet self-sufficient in edible oils. Rajasthan remains a leading producer of mustard, but the country still imports a significant portion of its edible oil requirements to meet domestic demand. Palm oil, in particular, accounts for a major share of these imports, highlighting the ongoing challenge of achieving total self-reliance.
Q433. Consider the following major crops targeted for enhanced production under the initial phase of the Yellow Revolution:
I. Mustard
II. Groundnut
III. Soybean
Which of the above statement(s) is/are correct?
I. Mustard
II. Groundnut
III. Soybean
Which of the above statement(s) is/are correct?
Explanation
The initial phase of the Yellow Revolution focused on several key oilseed crops to boost domestic production. These included mustard, groundnut, and soybean. By introducing high-yielding varieties and better cultivation techniques for these specific crops, the government aimed to increase the overall availability of edible oils and improve the economic condition of farmers in rainfed agricultural regions.
Q434. The National Bank for Agriculture and Rural Development (NABARD) was established on the recommendation of which committee?
Explanation
The National Bank for Agriculture and Rural Development was established based on the recommendations of the Shivaraman Committee, also known as the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development. Founded in 1982, NABARD was created to serve as an apex institution for providing and regulating credit and other facilities for the promotion of rural development.
Q435. Read the following institutional developments in agricultural credit in India and select the correct chronological order from the options given below:
I. Establishment of NABARD.
II. Establishment of the Agricultural Refinance and Development Corporation (ARDC).
III. Passage of the Cooperative Credit Societies Act.
IV. Nationalization of 14 major commercial banks.
I. Establishment of NABARD.
II. Establishment of the Agricultural Refinance and Development Corporation (ARDC).
III. Passage of the Cooperative Credit Societies Act.
IV. Nationalization of 14 major commercial banks.
Explanation
The evolution of agricultural credit in India followed a clear path. It began with the Cooperative Credit Societies Act in 1904. Later, the Agricultural Refinance and Development Corporation was established in 1963. This was followed by the nationalization of fourteen major commercial banks in 1969. Finally, NABARD was established in 1982 to consolidate and lead the rural credit system in the country.
Q436. Which of the following best describes the primary lending function of NABARD?
Explanation
NABARD does not typically provide direct loans to individual farmers. Instead, its primary function is to act as an apex refinancing agency. It provides financial resources to other institutions, such as cooperative banks and regional rural banks, which then lend directly to farmers. This structure ensures that rural credit reaches the ground level through a well-organized network of local financial intermediaries.
Q437. Which of the following functions is generally an exception to the operations performed by NABARD?
Explanation
NABARD performs several critical roles, including providing refinance to State Cooperative Banks and supervising Regional Rural Banks. It also manages the Rural Infrastructure Development Fund. However, providing direct crop loans to individual farmers is an exception to its operations. Such retail lending is handled by primary cooperative societies, commercial banks, and regional rural banks using NABARD’s refinance support.
Q438. Consider the following functions:
I. Inspecting District Central Cooperative Banks (DCCBs).
II. Providing refinance support for rural non-farm sectors.
III. Regulating the monetary policy and setting the repo rate.
IV. Promoting microfinance initiatives like SHG-Bank Linkage Programme.
Which of the above statements regarding functions performed by NABARD is/are correct?
I. Inspecting District Central Cooperative Banks (DCCBs).
II. Providing refinance support for rural non-farm sectors.
III. Regulating the monetary policy and setting the repo rate.
IV. Promoting microfinance initiatives like SHG-Bank Linkage Programme.
Which of the above statements regarding functions performed by NABARD is/are correct?
Explanation
NABARD is responsible for inspecting District Central Cooperative Banks and providing refinance for both agricultural and rural non-farm sectors. It also plays a key role in promoting microfinance through initiatives like the SHG- Bank Linkage Programme. However, it does not regulate monetary policy or set repo rates; those functions are the sole responsibility of the Reserve Bank of India.
Q439. The Kisan Credit Card (KCC) scheme, designed to provide adequate and timely credit support from the banking system to the farmers, was introduced in which year?
Explanation
The Kisan Credit Card scheme was introduced in 1998-99 to streamline the delivery of credit to farmers. This initiative was designed to ensure that farmers have access to adequate and timely credit for their agricultural needs through a simplified procedure. Since its launch, it has become a vital tool for providing short-term financial support to millions of rural households.
Q440. Which of the following statements about the scope of the Kisan Credit Card (KCC) scheme is correct?
Explanation
The Kisan Credit Card scheme offers a comprehensive credit limit that covers various financial needs of farmers. It provides short-term credit for crop cultivation expenses, such as seeds and fertilizers, and also covers post-harvest costs. Additionally, it allows for a portion of the credit to be used for the consumption requirements of the farmer’s household and the maintenance of farm assets.Answer key for these questions
| Q | Correct answer |
|---|---|
| 431 | (b) 1986 |
| 432 | (b) India is currently completely self-sufficient in edible oils and is a net exporter. |
| 433 | (d) I, II and III |
| 434 | (c) Shivaraman Committee (CRAFICARD) |
| 435 | (a) III, II, IV, I |
| 436 | (c) It acts as an apex refinancing agency for institutions providing investment and production credit in rural areas. |
| 437 | (b) Providing direct crop loans to individual farmers. |
| 438 | (a) I, II and IV only |
| 439 | (b) 1998-99 |
| 440 | (c) It provides short-term credit for crop cultivation, post-harvest expenses, and consumption requirements of farmer households. |
Key facts from Indian Economy
- The RPSC syllabus lists economic concepts and the Indian economy as the first part of the Economy paper, followed by the economy of Rajasthan.
- Concept questions test definitions: nominal and real GDP, GNP and NDP, per capita income and the value-added method.
- Policy questions pair a tool with its effect, for example a rise in CRR reduces the lendable resources of banks.
- Scheme questions ask for the target group, ministry or year of schemes such as PMKVY, NAPS, PM SVANidhi and PM-SYM.
- Questions on Finance Commission and GST link the body to its Article, such as Article 280.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Indian Economy?
This page has 848 practice MCQs on Indian Economy. Each has the correct answer, and most have an explanation.
Which chapters does the Indian economy set cover?
Ten chapters: economic growth, development and sustainable development; measurement of development (HDI); monetary and fiscal policy and the Union Budget; fiscal federalism and the Finance Commission; agricultural development; industrial growth and LPG reforms; the service sector; energy, transport and communication; skill development and employment; and social justice and empowerment.
Is the Indian economy in the RAS Prelims syllabus?
Yes. RPSC lists Economic Concepts and the Indian Economy as the first part of the Economy paper. The second part covers the economy of Rajasthan, which is on its own page.
How should I revise economy for RAS Prelims?
Learn the definitions and the cause-and-effect chains first, then the schemes with their year, ministry and target group. Attempt each chapter, read every explanation and keep a one-line note for each scheme and body.