QID #26448
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Fiscal policy?
A
Government policy regarding taxation, expenditure and borrowing
B
Value of output minus intermediate consumption generated by producers
C
Excess of revenue expenditure over revenue receipts
D
Sustained decline in the general price level
Correct Answer: A. Government policy regarding taxation, expenditure and borrowing
Question: Which statement best explains Fiscal policy?
A. Government policy regarding taxation, expenditure and borrowing
B. Value of output minus intermediate consumption generated by producers
C. Excess of revenue expenditure over revenue receipts
D. Sustained decline in the general price level
Correct Answer: A. Government policy regarding taxation, expenditure and borrowing
Explanation: Fiscal policy: Government policy regarding taxation, expenditure and borrowing
QID #26447
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Government policy regarding taxation, expenditure and borrowing
A
Fiscal policy
B
Monetary policy
C
Standing Deposit Facility
D
Nominal GDP
Correct Answer: A. Fiscal policy
Question: Which of the following is best described as: Government policy regarding taxation, expenditure and borrowing
A. Fiscal policy
B. Monetary policy
C. Standing Deposit Facility
D. Nominal GDP
Correct Answer: A. Fiscal policy
Explanation: The correct answer is Fiscal policy. Government policy regarding taxation, expenditure and borrowing
QID #26446
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Monetary policy?
A
Part of external accounts recording capital transfers and financial flows
B
Market value of final goods and services produced within a country during a given period
C
Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
D
Excess of total expenditure over total non-debt receipts of government
Correct Answer: C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
Question: Which statement best explains Monetary policy?
A. Part of external accounts recording capital transfers and financial flows
B. Market value of final goods and services produced within a country during a given period
C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
D. Excess of total expenditure over total non-debt receipts of government
Correct Answer: C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
Explanation: Monetary policy: Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
QID #26445
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
A
Monetary policy
B
Current account
C
Statutory Liquidity Ratio
D
Cash Reserve Ratio
Correct Answer: A. Monetary policy
Question: Which of the following is best described as: Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
A. Monetary policy
B. Current account
C. Statutory Liquidity Ratio
D. Cash Reserve Ratio
Correct Answer: A. Monetary policy
Explanation: The correct answer is Monetary policy. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
QID #26444
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Inclusive growth?
A
Tax collected through transactions where burden may be shifted to another person
B
Tax whose burden is generally intended to fall on the person on whom it is imposed
C
External reserve assets held by the central bank
D
Economic growth whose opportunities and benefits are broadly shared
Correct Answer: D. Economic growth whose opportunities and benefits are broadly shared
Question: Which statement best explains Inclusive growth?
A. Tax collected through transactions where burden may be shifted to another person
B. Tax whose burden is generally intended to fall on the person on whom it is imposed
C. External reserve assets held by the central bank
D. Economic growth whose opportunities and benefits are broadly shared
Correct Answer: D. Economic growth whose opportunities and benefits are broadly shared
Explanation: Inclusive growth: Economic growth whose opportunities and benefits are broadly shared
QID #26443
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Economic growth whose opportunities and benefits are broadly shared
A
Statutory Liquidity Ratio
B
Inclusive growth
C
Fiscal policy
D
Standing Deposit Facility
Correct Answer: B. Inclusive growth
Question: Which of the following is best described as: Economic growth whose opportunities and benefits are broadly shared
A. Statutory Liquidity Ratio
B. Inclusive growth
C. Fiscal policy
D. Standing Deposit Facility
Correct Answer: B. Inclusive growth
Explanation: The correct answer is Inclusive growth. Economic growth whose opportunities and benefits are broadly shared
QID #26442
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Privatization?
A
Excess of revenue expenditure over revenue receipts
B
Market-driven fall in the rupee's value relative to another currency
C
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
D
Transfer of ownership or control from public sector to private sector
Correct Answer: D. Transfer of ownership or control from public sector to private sector
Question: Which statement best explains Privatization?
A. Excess of revenue expenditure over revenue receipts
B. Market-driven fall in the rupee's value relative to another currency
C. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
D. Transfer of ownership or control from public sector to private sector
Correct Answer: D. Transfer of ownership or control from public sector to private sector
Explanation: Privatization: Transfer of ownership or control from public sector to private sector
QID #26441
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Transfer of ownership or control from public sector to private sector
A
Privatization
B
Nominal GDP
C
Foreign exchange reserves
D
Standing Deposit Facility
Correct Answer: A. Privatization
Question: Which of the following is best described as: Transfer of ownership or control from public sector to private sector
A. Privatization
B. Nominal GDP
C. Foreign exchange reserves
D. Standing Deposit Facility
Correct Answer: A. Privatization
Explanation: The correct answer is Privatization. Transfer of ownership or control from public sector to private sector
QID #26440
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Disinvestment?
A
External reserve assets held by the central bank
B
Share of specified liabilities maintained by banks in prescribed liquid assets
C
Excess of total expenditure over total non-debt receipts of government
D
Sale or dilution of government equity in public-sector enterprises
Correct Answer: D. Sale or dilution of government equity in public-sector enterprises
Question: Which statement best explains Disinvestment?
A. External reserve assets held by the central bank
B. Share of specified liabilities maintained by banks in prescribed liquid assets
C. Excess of total expenditure over total non-debt receipts of government
D. Sale or dilution of government equity in public-sector enterprises
Correct Answer: D. Sale or dilution of government equity in public-sector enterprises
Explanation: Disinvestment: Sale or dilution of government equity in public-sector enterprises
QID #26439
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Sale or dilution of government equity in public-sector enterprises
A
Disinvestment
B
Inflation
C
Revenue deficit
D
Wholesale Price Index
Correct Answer: A. Disinvestment
Question: Which of the following is best described as: Sale or dilution of government equity in public-sector enterprises
A. Disinvestment
B. Inflation
C. Revenue deficit
D. Wholesale Price Index
Correct Answer: A. Disinvestment
Explanation: The correct answer is Disinvestment. Sale or dilution of government equity in public-sector enterprises
QID #26438
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Devaluation?
A
Index measuring changes in retail prices of a basket of consumer goods and services
B
Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
C
Mechanism or rate historically used by RBI for absorbing liquidity from banks
D
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Correct Answer: D. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Question: Which statement best explains Devaluation?
A. Index measuring changes in retail prices of a basket of consumer goods and services
B. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
C. Mechanism or rate historically used by RBI for absorbing liquidity from banks
D. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Correct Answer: D. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Explanation: Devaluation: Official downward adjustment of currency value under a fixed or managed exchange-rate regime
QID #26437
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Official downward adjustment of currency value under a fixed or managed exchange-rate regime
A
Current account
B
Devaluation
C
Nominal GDP
D
Repo rate
Correct Answer: B. Devaluation
Question: Which of the following is best described as: Official downward adjustment of currency value under a fixed or managed exchange-rate regime
A. Current account
B. Devaluation
C. Nominal GDP
D. Repo rate
Correct Answer: B. Devaluation
Explanation: The correct answer is Devaluation. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
QID #26436
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Depreciation of rupee?
A
Transfer of ownership or control from public sector to private sector
B
GDP measured at current prices
C
Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
D
Market-driven fall in the rupee's value relative to another currency
Correct Answer: D. Market-driven fall in the rupee's value relative to another currency
Question: Which statement best explains Depreciation of rupee?
A. Transfer of ownership or control from public sector to private sector
B. GDP measured at current prices
C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
D. Market-driven fall in the rupee's value relative to another currency
Correct Answer: D. Market-driven fall in the rupee's value relative to another currency
Explanation: Depreciation of rupee: Market-driven fall in the rupee's value relative to another currency
QID #26435
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Market-driven fall in the rupee's value relative to another currency
A
Inflation
B
Depreciation of rupee
C
Fiscal deficit
D
Reverse repo
Correct Answer: B. Depreciation of rupee
Question: Which of the following is best described as: Market-driven fall in the rupee's value relative to another currency
A. Inflation
B. Depreciation of rupee
C. Fiscal deficit
D. Reverse repo
Correct Answer: B. Depreciation of rupee
Explanation: The correct answer is Depreciation of rupee. Market-driven fall in the rupee's value relative to another currency
QID #26434
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Foreign exchange reserves?
A
External reserve assets held by the central bank
B
Tax collected through transactions where burden may be shifted to another person
C
GDP measured at current prices
D
Fiscal deficit minus interest payments
Correct Answer: A. External reserve assets held by the central bank
Question: Which statement best explains Foreign exchange reserves?
A. External reserve assets held by the central bank
B. Tax collected through transactions where burden may be shifted to another person
C. GDP measured at current prices
D. Fiscal deficit minus interest payments
Correct Answer: A. External reserve assets held by the central bank
Explanation: Foreign exchange reserves: External reserve assets held by the central bank
QID #26433
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: External reserve assets held by the central bank
A
Direct tax
B
Standing Deposit Facility
C
Reverse repo
D
Foreign exchange reserves
Correct Answer: D. Foreign exchange reserves
Question: Which of the following is best described as: External reserve assets held by the central bank
A. Direct tax
B. Standing Deposit Facility
C. Reverse repo
D. Foreign exchange reserves
Correct Answer: D. Foreign exchange reserves
Explanation: The correct answer is Foreign exchange reserves. External reserve assets held by the central bank
QID #26432
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Capital or financial account?
A
Part of external accounts recording capital transfers and financial flows
B
Systematic record of a country's economic transactions with the rest of the world
C
Part of balance of payments covering trade in goods and services, income and current transfers
D
Market-driven fall in the rupee's value relative to another currency
Correct Answer: A. Part of external accounts recording capital transfers and financial flows
Question: Which statement best explains Capital or financial account?
A. Part of external accounts recording capital transfers and financial flows
B. Systematic record of a country's economic transactions with the rest of the world
C. Part of balance of payments covering trade in goods and services, income and current transfers
D. Market-driven fall in the rupee's value relative to another currency
Correct Answer: A. Part of external accounts recording capital transfers and financial flows
Explanation: Capital or financial account: Part of external accounts recording capital transfers and financial flows
QID #26431
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Part of external accounts recording capital transfers and financial flows
A
Direct tax
B
Disinvestment
C
Balance of payments
D
Capital or financial account
Correct Answer: D. Capital or financial account
Question: Which of the following is best described as: Part of external accounts recording capital transfers and financial flows
A. Direct tax
B. Disinvestment
C. Balance of payments
D. Capital or financial account
Correct Answer: D. Capital or financial account
Explanation: The correct answer is Capital or financial account. Part of external accounts recording capital transfers and financial flows
QID #26430
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Current account?
A
Part of balance of payments covering trade in goods and services, income and current transfers
B
Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
C
GDP measured at constant prices to remove price-change effects
D
Market-driven fall in the rupee's value relative to another currency
Correct Answer: A. Part of balance of payments covering trade in goods and services, income and current transfers
Question: Which statement best explains Current account?
A. Part of balance of payments covering trade in goods and services, income and current transfers
B. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
C. GDP measured at constant prices to remove price-change effects
D. Market-driven fall in the rupee's value relative to another currency
Correct Answer: A. Part of balance of payments covering trade in goods and services, income and current transfers
Explanation: Current account: Part of balance of payments covering trade in goods and services, income and current transfers
QID #26429
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which of the following is best described as: Part of balance of payments covering trade in goods and services, income and current transfers
A
Direct tax
B
Devaluation
C
Primary deficit
D
Current account
Correct Answer: D. Current account
Question: Which of the following is best described as: Part of balance of payments covering trade in goods and services, income and current transfers
A. Direct tax
B. Devaluation
C. Primary deficit
D. Current account
Correct Answer: D. Current account
Explanation: The correct answer is Current account. Part of balance of payments covering trade in goods and services, income and current transfers
Free MCQs with Answers and Explanations
This MCQ library is created for MNS, Nursing Officer, English, GK, MBA and competitive exam students. Every question has option-wise content, instant checking, a dedicated SEO view page and social share support.
Offer
📢 MNS Exam 2026 Latest Updates
WhatsApp
Follow WhatsApp Channel
Telegram
Join Telegram Channel
