How many Economics questions appear in UPSC Prelims?

With reference to investments, consider the following : I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds?

(a) Only one

(b) Only two

(d) All the four

Answer: (b)

Trap: Absolute Qualifier

Bonds and Stocks are traditional/conventional investments, NOT alternative investments. Hedge Funds and Venture Capital are AIFs. Candidates who don't know the AIF definition may include bonds or stocks, picking (c) or (d).

2025 Q32Economics

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling Government bonds II. Buying and selling foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes Select the correct answer using the code given below.

(a) I and II only

(b) II, III and IV

(d) I, II and V

Answer: (d)

Trap: Common Misconception

RBI does NOT manage pension funds (III wrong) and does NOT lend to private companies directly (IV wrong - it lends to banks). Candidates may think RBI has these functions, picking (b) or (c). RBI earns from OMOs, forex operations, and seigniorage from currency notes.

2025 Q34Economics

Consider the following statements : I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?

(a) I only

(b) II only

(d) Neither I nor II

Answer: (b)

Trap: Common Misconception

BRSR is mandated by SEBI, NOT RBI. Candidates who don't distinguish between financial sector regulators may accept Statement I and pick (c). SEBI requires top listed companies to file BRSR with ESG disclosures (non-financial in nature).

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