QID #26408
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Reverse repo?
A
Systematic record of a country's economic transactions with the rest of the world
B
Market value of final goods and services produced within a country during a given period
C
RBI facility for absorbing liquidity without collateral
D
Mechanism or rate historically used by RBI for absorbing liquidity from banks
Correct Answer: D. Mechanism or rate historically used by RBI for absorbing liquidity from banks
Question: Which statement best explains Reverse repo?
A. Systematic record of a country's economic transactions with the rest of the world
B. Market value of final goods and services produced within a country during a given period
C. RBI facility for absorbing liquidity without collateral
D. Mechanism or rate historically used by RBI for absorbing liquidity from banks
Correct Answer: D. Mechanism or rate historically used by RBI for absorbing liquidity from banks
Explanation: Reverse repo: Mechanism or rate historically used by RBI for absorbing liquidity from banks
QID #26407
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: Mechanism or rate historically used by RBI for absorbing liquidity from banks
A
Reverse repo
B
Deflation
C
Capital or financial account
D
Inclusive growth
Correct Answer: A. Reverse repo
Question: Which of the following is best described as: Mechanism or rate historically used by RBI for absorbing liquidity from banks
A. Reverse repo
B. Deflation
C. Capital or financial account
D. Inclusive growth
Correct Answer: A. Reverse repo
Explanation: The correct answer is Reverse repo. Mechanism or rate historically used by RBI for absorbing liquidity from banks
QID #26406
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Repo rate?
A
Index tracking price changes at the wholesale level for a basket of goods
B
Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
C
Market-driven fall in the rupee's value relative to another currency
D
Fiscal deficit minus interest payments
Correct Answer: B. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
Question: Which statement best explains Repo rate?
A. Index tracking price changes at the wholesale level for a basket of goods
B. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
C. Market-driven fall in the rupee's value relative to another currency
D. Fiscal deficit minus interest payments
Correct Answer: B. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
Explanation: Repo rate: Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
QID #26405
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: Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
A
Repo rate
B
Devaluation
C
Primary deficit
D
Monetary policy
Correct Answer: A. Repo rate
Question: Which of the following is best described as: Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
A. Repo rate
B. Devaluation
C. Primary deficit
D. Monetary policy
Correct Answer: A. Repo rate
Explanation: The correct answer is Repo rate. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
QID #26404
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Wholesale Price Index?
A
Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
B
Share of specified liabilities maintained by banks in prescribed liquid assets
C
Index tracking price changes at the wholesale level for a basket of goods
D
Transfer of ownership or control from public sector to private sector
Correct Answer: C. Index tracking price changes at the wholesale level for a basket of goods
Question: Which statement best explains Wholesale Price Index?
A. Rate at which RBI lends short-term funds to banks against eligible collateral under the liquidity framework
B. Share of specified liabilities maintained by banks in prescribed liquid assets
C. Index tracking price changes at the wholesale level for a basket of goods
D. Transfer of ownership or control from public sector to private sector
Correct Answer: C. Index tracking price changes at the wholesale level for a basket of goods
Explanation: Wholesale Price Index: Index tracking price changes at the wholesale level for a basket of goods
QID #26403
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: Index tracking price changes at the wholesale level for a basket of goods
A
Direct tax
B
Disinvestment
C
Wholesale Price Index
D
Balance of payments
Correct Answer: C. Wholesale Price Index
Question: Which of the following is best described as: Index tracking price changes at the wholesale level for a basket of goods
A. Direct tax
B. Disinvestment
C. Wholesale Price Index
D. Balance of payments
Correct Answer: C. Wholesale Price Index
Explanation: The correct answer is Wholesale Price Index. Index tracking price changes at the wholesale level for a basket of goods
QID #26402
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Consumer Price Index?
A
Excess of total expenditure over total non-debt receipts of government
B
Index measuring changes in retail prices of a basket of consumer goods and services
C
Sustained decline in the general price level
D
Fiscal deficit minus interest payments
Correct Answer: B. Index measuring changes in retail prices of a basket of consumer goods and services
Question: Which statement best explains Consumer Price Index?
A. Excess of total expenditure over total non-debt receipts of government
B. Index measuring changes in retail prices of a basket of consumer goods and services
C. Sustained decline in the general price level
D. Fiscal deficit minus interest payments
Correct Answer: B. Index measuring changes in retail prices of a basket of consumer goods and services
Explanation: Consumer Price Index: Index measuring changes in retail prices of a basket of consumer goods and services
QID #26401
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: Index measuring changes in retail prices of a basket of consumer goods and services
A
Devaluation
B
Consumer Price Index
C
Real GDP
D
Nominal GDP
Correct Answer: B. Consumer Price Index
Question: Which of the following is best described as: Index measuring changes in retail prices of a basket of consumer goods and services
A. Devaluation
B. Consumer Price Index
C. Real GDP
D. Nominal GDP
Correct Answer: B. Consumer Price Index
Explanation: The correct answer is Consumer Price Index. Index measuring changes in retail prices of a basket of consumer goods and services
QID #26400
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Deflation?
A
Value of output minus intermediate consumption generated by producers
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
Sustained decline in the general price level
Correct Answer: D. Sustained decline in the general price level
Question: Which statement best explains Deflation?
A. Value of output minus intermediate consumption generated by producers
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. Sustained decline in the general price level
Correct Answer: D. Sustained decline in the general price level
Explanation: Deflation: Sustained decline in the general price level
QID #26399
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: Sustained decline in the general price level
A
Nominal GDP
B
Deflation
C
Primary deficit
D
Direct tax
Correct Answer: B. Deflation
Question: Which of the following is best described as: Sustained decline in the general price level
A. Nominal GDP
B. Deflation
C. Primary deficit
D. Direct tax
Correct Answer: B. Deflation
Explanation: The correct answer is Deflation. Sustained decline in the general price level
QID #26398
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Inflation?
A
Part of balance of payments covering trade in goods and services, income and current transfers
B
Sustained rise in the general price level
C
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
D
Economic growth whose opportunities and benefits are broadly shared
Correct Answer: B. Sustained rise in the general price level
Question: Which statement best explains Inflation?
A. Part of balance of payments covering trade in goods and services, income and current transfers
B. Sustained rise in the general price level
C. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
D. Economic growth whose opportunities and benefits are broadly shared
Correct Answer: B. Sustained rise in the general price level
Explanation: Inflation: Sustained rise in the general price level
QID #26397
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: Sustained rise in the general price level
A
Monetary policy
B
Inflation
C
Wholesale Price Index
D
Indirect tax
Correct Answer: B. Inflation
Question: Which of the following is best described as: Sustained rise in the general price level
A. Monetary policy
B. Inflation
C. Wholesale Price Index
D. Indirect tax
Correct Answer: B. Inflation
Explanation: The correct answer is Inflation. Sustained rise in the general price level
QID #26396
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Real GDP?
A
RBI facility for absorbing liquidity without collateral
B
Tax collected through transactions where burden may be shifted to another person
C
Sale or dilution of government equity in public-sector enterprises
D
GDP measured at constant prices to remove price-change effects
Correct Answer: D. GDP measured at constant prices to remove price-change effects
Question: Which statement best explains Real GDP?
A. RBI facility for absorbing liquidity without collateral
B. Tax collected through transactions where burden may be shifted to another person
C. Sale or dilution of government equity in public-sector enterprises
D. GDP measured at constant prices to remove price-change effects
Correct Answer: D. GDP measured at constant prices to remove price-change effects
Explanation: Real GDP: GDP measured at constant prices to remove price-change effects
QID #26395
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: GDP measured at constant prices to remove price-change effects
A
Real GDP
B
Current account
C
Balance of payments
D
Fiscal deficit
Correct Answer: A. Real GDP
Question: Which of the following is best described as: GDP measured at constant prices to remove price-change effects
A. Real GDP
B. Current account
C. Balance of payments
D. Fiscal deficit
Correct Answer: A. Real GDP
Explanation: The correct answer is Real GDP. GDP measured at constant prices to remove price-change effects
QID #26394
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains Nominal GDP?
A
Market value of final goods and services produced within a country during a given period
B
GDP measured at current prices
C
Systematic record of a country's economic transactions with the rest of the world
D
Mechanism or rate historically used by RBI for absorbing liquidity from banks
Correct Answer: B. GDP measured at current prices
Question: Which statement best explains Nominal GDP?
A. Market value of final goods and services produced within a country during a given period
B. GDP measured at current prices
C. Systematic record of a country's economic transactions with the rest of the world
D. Mechanism or rate historically used by RBI for absorbing liquidity from banks
Correct Answer: B. GDP measured at current prices
Explanation: Nominal GDP: GDP measured at current prices
QID #26393
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: GDP measured at current prices
A
Cash Reserve Ratio
B
Primary deficit
C
GVA
D
Nominal GDP
Correct Answer: D. Nominal GDP
Question: Which of the following is best described as: GDP measured at current prices
A. Cash Reserve Ratio
B. Primary deficit
C. GVA
D. Nominal GDP
Correct Answer: D. Nominal GDP
Explanation: The correct answer is Nominal GDP. GDP measured at current prices
QID #26392
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains GVA?
A
Share of a bank's net demand and time liabilities maintained as cash balance with RBI
B
GDP measured at current prices
C
External reserve assets held by the central bank
D
Value of output minus intermediate consumption generated by producers
Correct Answer: D. Value of output minus intermediate consumption generated by producers
Question: Which statement best explains GVA?
A. Share of a bank's net demand and time liabilities maintained as cash balance with RBI
B. GDP measured at current prices
C. External reserve assets held by the central bank
D. Value of output minus intermediate consumption generated by producers
Correct Answer: D. Value of output minus intermediate consumption generated by producers
Explanation: GVA: Value of output minus intermediate consumption generated by producers
QID #26391
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: Value of output minus intermediate consumption generated by producers
A
Inclusive growth
B
GVA
C
Deflation
D
Repo rate
Correct Answer: B. GVA
Question: Which of the following is best described as: Value of output minus intermediate consumption generated by producers
A. Inclusive growth
B. GVA
C. Deflation
D. Repo rate
Correct Answer: B. GVA
Explanation: The correct answer is GVA. Value of output minus intermediate consumption generated by producers
QID #26390
UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium
Which statement best explains GDP?
A
Sustained rise in the general price level
B
Official downward adjustment of currency value under a fixed or managed exchange-rate regime
C
Market value of final goods and services produced within a country during a given period
D
Government policy regarding taxation, expenditure and borrowing
Correct Answer: C. Market value of final goods and services produced within a country during a given period
Question: Which statement best explains GDP?
A. Sustained rise in the general price level
B. Official downward adjustment of currency value under a fixed or managed exchange-rate regime
C. Market value of final goods and services produced within a country during a given period
D. Government policy regarding taxation, expenditure and borrowing
Correct Answer: C. Market value of final goods and services produced within a country during a given period
Explanation: GDP: Market value of final goods and services produced within a country during a given period
QID #26389
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 value of final goods and services produced within a country during a given period
A
GST
B
Revenue deficit
C
GDP
D
Wholesale Price Index
Correct Answer: C. GDP
Question: Which of the following is best described as: Market value of final goods and services produced within a country during a given period
A. GST
B. Revenue deficit
C. GDP
D. Wholesale Price Index
Correct Answer: C. GDP
Explanation: The correct answer is GDP. Market value of final goods and services produced within a country during a given period
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