QID #26428
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Balance of payments?
A
Index tracking price changes at the wholesale level for a basket of goods
B
Excess of total expenditure over total non-debt receipts of government
C
Systematic record of a country's economic transactions with the rest of the world
D
Part of external accounts recording capital transfers and financial flows
Correct Answer: C. Systematic record of a country's economic transactions with the rest of the world
Question: Which statement best explains Balance of payments?
A. Index tracking price changes at the wholesale level for a basket of goods
B. Excess of total expenditure over total non-debt receipts of government
C. Systematic record of a country's economic transactions with the rest of the world
D. Part of external accounts recording capital transfers and financial flows
Correct Answer: C. Systematic record of a country's economic transactions with the rest of the world
Explanation: Balance of payments: Systematic record of a country's economic transactions with the rest of the world
QID #26427
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: Systematic record of a country's economic transactions with the rest of the world
A
Balance of payments
B
Foreign exchange reserves
C
Wholesale Price Index
D
Indirect tax
Correct Answer: A. Balance of payments
Question: Which of the following is best described as: Systematic record of a country's economic transactions with the rest of the world
A. Balance of payments
B. Foreign exchange reserves
C. Wholesale Price Index
D. Indirect tax
Correct Answer: A. Balance of payments
Explanation: The correct answer is Balance of payments. Systematic record of a country's economic transactions with the rest of the world
QID #26426
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains GST?
A
Index measuring changes in retail prices of a basket of consumer goods and services
B
Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
C
Part of balance of payments covering trade in goods and services, income and current transfers
D
Transfer of ownership or control from public sector to private sector
Correct Answer: B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
Question: Which statement best explains GST?
A. Index measuring changes in retail prices of a basket of consumer goods and services
B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
C. Part of balance of payments covering trade in goods and services, income and current transfers
D. Transfer of ownership or control from public sector to private sector
Correct Answer: B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
Explanation: GST: Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
QID #26425
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: Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
A
Capital or financial account
B
GST
C
GDP
D
Depreciation of rupee
Correct Answer: B. GST
Question: Which of the following is best described as: Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
A. Capital or financial account
B. GST
C. GDP
D. Depreciation of rupee
Correct Answer: B. GST
Explanation: The correct answer is GST. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
QID #26424
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Indirect tax?
A
Tax whose burden is generally intended to fall on the person on whom it is imposed
B
Tax collected through transactions where burden may be shifted to another person
C
Economic growth whose opportunities and benefits are broadly shared
D
GDP measured at current prices
Correct Answer: B. Tax collected through transactions where burden may be shifted to another person
Question: Which statement best explains Indirect tax?
A. Tax whose burden is generally intended to fall on the person on whom it is imposed
B. Tax collected through transactions where burden may be shifted to another person
C. Economic growth whose opportunities and benefits are broadly shared
D. GDP measured at current prices
Correct Answer: B. Tax collected through transactions where burden may be shifted to another person
Explanation: Indirect tax: Tax collected through transactions where burden may be shifted to another person
QID #26423
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: Tax collected through transactions where burden may be shifted to another person
A
Nominal GDP
B
Cash Reserve Ratio
C
Direct tax
D
Indirect tax
Correct Answer: D. Indirect tax
Question: Which of the following is best described as: Tax collected through transactions where burden may be shifted to another person
A. Nominal GDP
B. Cash Reserve Ratio
C. Direct tax
D. Indirect tax
Correct Answer: D. Indirect tax
Explanation: The correct answer is Indirect tax. Tax collected through transactions where burden may be shifted to another person
QID #26422
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Direct tax?
A
Part of balance of payments covering trade in goods and services, income and current transfers
B
Market-driven fall in the rupee's value relative to another currency
C
Tax whose burden is generally intended to fall on the person on whom it is imposed
D
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Correct Answer: C. Tax whose burden is generally intended to fall on the person on whom it is imposed
Question: Which statement best explains Direct tax?
A. Part of balance of payments covering trade in goods and services, income and current transfers
B. Market-driven fall in the rupee's value relative to another currency
C. Tax whose burden is generally intended to fall on the person on whom it is imposed
D. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
Correct Answer: C. Tax whose burden is generally intended to fall on the person on whom it is imposed
Explanation: Direct tax: Tax whose burden is generally intended to fall on the person on whom it is imposed
QID #26421
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: Tax whose burden is generally intended to fall on the person on whom it is imposed
A
Direct tax
B
Reverse repo
C
Privatization
D
Current account
Correct Answer: A. Direct tax
Question: Which of the following is best described as: Tax whose burden is generally intended to fall on the person on whom it is imposed
A. Direct tax
B. Reverse repo
C. Privatization
D. Current account
Correct Answer: A. Direct tax
Explanation: The correct answer is Direct tax. Tax whose burden is generally intended to fall on the person on whom it is imposed
QID #26420
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Primary deficit?
A
Fiscal deficit minus interest payments
B
Sustained decline in the general price level
C
Part of balance of payments covering trade in goods and services, income and current transfers
D
GDP measured at constant prices to remove price-change effects
Correct Answer: A. Fiscal deficit minus interest payments
Question: Which statement best explains Primary deficit?
A. Fiscal deficit minus interest payments
B. Sustained decline in the general price level
C. Part of balance of payments covering trade in goods and services, income and current transfers
D. GDP measured at constant prices to remove price-change effects
Correct Answer: A. Fiscal deficit minus interest payments
Explanation: Primary deficit: Fiscal deficit minus interest payments
QID #26419
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: Fiscal deficit minus interest payments
A
Primary deficit
B
Real GDP
C
Fiscal deficit
D
Deflation
Correct Answer: A. Primary deficit
Question: Which of the following is best described as: Fiscal deficit minus interest payments
A. Primary deficit
B. Real GDP
C. Fiscal deficit
D. Deflation
Correct Answer: A. Primary deficit
Explanation: The correct answer is Primary deficit. Fiscal deficit minus interest payments
QID #26418
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Revenue deficit?
A
RBI facility for absorbing liquidity without collateral
B
Index measuring changes in retail prices of a basket of consumer goods and services
C
External reserve assets held by the central bank
D
Excess of revenue expenditure over revenue receipts
Correct Answer: D. Excess of revenue expenditure over revenue receipts
Question: Which statement best explains Revenue deficit?
A. RBI facility for absorbing liquidity without collateral
B. Index measuring changes in retail prices of a basket of consumer goods and services
C. External reserve assets held by the central bank
D. Excess of revenue expenditure over revenue receipts
Correct Answer: D. Excess of revenue expenditure over revenue receipts
Explanation: Revenue deficit: Excess of revenue expenditure over revenue receipts
QID #26417
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: Excess of revenue expenditure over revenue receipts
A
Standing Deposit Facility
B
Consumer Price Index
C
Revenue deficit
D
Inflation
Correct Answer: C. Revenue deficit
Question: Which of the following is best described as: Excess of revenue expenditure over revenue receipts
A. Standing Deposit Facility
B. Consumer Price Index
C. Revenue deficit
D. Inflation
Correct Answer: C. Revenue deficit
Explanation: The correct answer is Revenue deficit. Excess of revenue expenditure over revenue receipts
QID #26416
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Fiscal deficit?
A
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
B
Excess of total expenditure over total non-debt receipts of government
C
Sustained rise in the general price level
D
GDP measured at current prices
Correct Answer: B. Excess of total expenditure over total non-debt receipts of government
Question: Which statement best explains Fiscal deficit?
A. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
B. Excess of total expenditure over total non-debt receipts of government
C. Sustained rise in the general price level
D. GDP measured at current prices
Correct Answer: B. Excess of total expenditure over total non-debt receipts of government
Explanation: Fiscal deficit: Excess of total expenditure over total non-debt receipts of government
QID #26415
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: Excess of total expenditure over total non-debt receipts of government
A
Consumer Price Index
B
Foreign exchange reserves
C
Fiscal deficit
D
Capital or financial account
Correct Answer: C. Fiscal deficit
Question: Which of the following is best described as: Excess of total expenditure over total non-debt receipts of government
A. Consumer Price Index
B. Foreign exchange reserves
C. Fiscal deficit
D. Capital or financial account
Correct Answer: C. Fiscal deficit
Explanation: The correct answer is Fiscal deficit. Excess of total expenditure over total non-debt receipts of government
QID #26414
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Statutory Liquidity Ratio?
A
Market value of final goods and services produced within a country during a given period
B
Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
C
Market-driven fall in the rupee's value relative to another currency
D
Share of specified liabilities maintained by banks in prescribed liquid assets
Correct Answer: D. Share of specified liabilities maintained by banks in prescribed liquid assets
Question: Which statement best explains Statutory Liquidity Ratio?
A. Market value of final goods and services produced within a country during a given period
B. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
C. Market-driven fall in the rupee's value relative to another currency
D. Share of specified liabilities maintained by banks in prescribed liquid assets
Correct Answer: D. Share of specified liabilities maintained by banks in prescribed liquid assets
Explanation: Statutory Liquidity Ratio: Share of specified liabilities maintained by banks in prescribed liquid assets
QID #26413
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: Share of specified liabilities maintained by banks in prescribed liquid assets
A
Statutory Liquidity Ratio
B
Balance of payments
C
Monetary policy
D
Consumer Price Index
Correct Answer: A. Statutory Liquidity Ratio
Question: Which of the following is best described as: Share of specified liabilities maintained by banks in prescribed liquid assets
A. Statutory Liquidity Ratio
B. Balance of payments
C. Monetary policy
D. Consumer Price Index
Correct Answer: A. Statutory Liquidity Ratio
Explanation: The correct answer is Statutory Liquidity Ratio. Share of specified liabilities maintained by banks in prescribed liquid assets
QID #26412
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Cash Reserve Ratio?
A
Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
B
Share of a bank's net demand and time liabilities maintained as cash balance with RBI
C
Sustained rise in the general price level
D
Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
Correct Answer: B. Share of a bank's net demand and time liabilities maintained as cash balance with RBI
Question: Which statement best explains Cash Reserve Ratio?
A. Destination-based indirect tax on supply of goods and services with input-tax-credit mechanism
B. Share of a bank's net demand and time liabilities maintained as cash balance with RBI
C. Sustained rise in the general price level
D. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
Correct Answer: B. Share of a bank's net demand and time liabilities maintained as cash balance with RBI
Explanation: Cash Reserve Ratio: Share of a bank's net demand and time liabilities maintained as cash balance with RBI
QID #26411
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: Share of a bank's net demand and time liabilities maintained as cash balance with RBI
A
Cash Reserve Ratio
B
Nominal GDP
C
Primary deficit
D
Deflation
Correct Answer: A. Cash Reserve Ratio
Question: Which of the following is best described as: Share of a bank's net demand and time liabilities maintained as cash balance with RBI
A. Cash Reserve Ratio
B. Nominal GDP
C. Primary deficit
D. Deflation
Correct Answer: A. Cash Reserve Ratio
Explanation: The correct answer is Cash Reserve Ratio. Share of a bank's net demand and time liabilities maintained as cash balance with RBI
QID #26410
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Standing Deposit Facility?
A
Part of external accounts recording capital transfers and financial flows
B
RBI facility for absorbing liquidity without collateral
C
GDP measured at current prices
D
Market value of final goods and services produced within a country during a given period
Correct Answer: B. RBI facility for absorbing liquidity without collateral
Question: Which statement best explains Standing Deposit Facility?
A. Part of external accounts recording capital transfers and financial flows
B. RBI facility for absorbing liquidity without collateral
C. GDP measured at current prices
D. Market value of final goods and services produced within a country during a given period
Correct Answer: B. RBI facility for absorbing liquidity without collateral
Explanation: Standing Deposit Facility: RBI facility for absorbing liquidity without collateral
QID #26409
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: RBI facility for absorbing liquidity without collateral
A
GDP
B
Devaluation
C
Inflation
D
Standing Deposit Facility
Correct Answer: D. Standing Deposit Facility
Question: Which of the following is best described as: RBI facility for absorbing liquidity without collateral
A. GDP
B. Devaluation
C. Inflation
D. Standing Deposit Facility
Correct Answer: D. Standing Deposit Facility
Explanation: The correct answer is Standing Deposit Facility. RBI facility for absorbing liquidity without collateral
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