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State PSC Economy — practice by topic

Browse 139 questions across 8 Economy topics. Choose what you want to revise, then open a question to check its answer and worked solution.

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Economy topics

Indian Economy (135)Planning And Economy (122)Financial Regulators (32)Taxation (32)Agriculture (29)Modern Indian History (29)Indian Polity and Economy (15)Mixed Gs (15)

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With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :Read the answer and worked solution →Growing cotton depends mainly on rainfall, sunshine and climate. Such activities belong to the:Read the answer and worked solution →Spinning yarn from cotton or making sugar from cane is an activity of the:Read the answer and worked solution →Transport, storage, banking and trade support production without making goods. They form the:Read the answer and worked solution →

Worked practice questions

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :

  1. Bond market
  2. Forex market
  3. Money market
  4. Stock market
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Correct answer: C. Money market

Answer: C. Collateralized Borrowing and Lending Obligation (CBLO) is a MONEY MARKET instrument. CBLO is a money-market product introduced by Clearing Corporation of India Ltd (CCIL) in 2003 for short-term funds. It allows borrowing and lending against eligible collateral (mainly G-Secs) with maturities ranging from one day to one year. Discontinued in 2018 and replaced by the Tri-party Repo (TREPS). CBLO/TREPS are short-tenor instruments serving banks, mutual funds, insurance companies and other institutions for liquidity management. The money market deals with such short-term debt instruments (typically less than one year), as opposed to bond market (long-term debt), forex (currency), or stock market (equities). Source: RBI Money Market documentation / CCIL website.

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Growing cotton depends mainly on rainfall, sunshine and climate. Such activities belong to the:

  1. Primary sector
  2. Secondary sector
  3. Tertiary sector
  4. Public sector
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Correct answer: A. Primary sector

1. The product is a natural one. 2. Agriculture and related activities are grouped here. 3. This is the primary sector. _Source: syllabus Economics, Understanding Economic Development, Chapter 2, Sectors of the Indian Economy._

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Spinning yarn from cotton or making sugar from cane is an activity of the:

  1. Unorganised sector
  2. Secondary sector
  3. Primary sector
  4. Tertiary sector
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Correct answer: B. Secondary sector

1. Natural products are changed into other forms. 2. Manufacturing is essential. 3. This is the secondary or industrial sector. _Source: syllabus Economics, Understanding Economic Development, Chapter 2, Sectors of the Indian Economy._

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