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UPSC Economics PYQs 2025 | Vaidra | Vaidra
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Economics UPSC PYQ 2025

23 questions from the UPSC 2025 examination.

23 questions

1Mediumprelims
Economics

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?

AOnly one
BOnly two
COnly three
DAll the four
2Mediumprelims
Economics

Consider the following statements: Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II: Bondholders are lenders to a company whereas stockholders are its owners. Statement III: For repayment purpose, bond-holders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

ABoth Statement II and Statement III are correct and both of them explain Statement I
BBoth Statement I and Statement II are correct and Statement I explains Statement II
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
3Mediumprelims
Economics

Consider the following statements : I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
4Mediumprelims
Economics

Consider the following statements : Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil.

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
5Mediumprelims
Economics

Suppose the revenue expenditure is ₹ 80,000 crores and the revenue receipts of the Government are ₹ 60,000 crores. The Government budget also shows borrowings of ₹ 10,000 crores and interest payments of ₹ 6,000 crores. Which of the following statements are correct? I. Revenue deficit is ₹ 20,000 crores. II. Fiscal deficit is ₹ 10,000 crores. III. Primary deficit is ₹ 4,000 crores. Select the correct answer using the code given below.

AI and II only
BII and III only
CI and III only
DI, II and III
6Mediumprelims
Economics

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?

AI only
BII only
CBoth I and II
DNeither I nor II
7Mediumprelims
Economics

Consider the following statements : Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax. Statement II: In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961. Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
8Mediumprelims
Economics

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.

AI and II only
BII, III and IV
CI, III, IV and V
DI, II and V
9Mediumprelims
Economics

Consider the following activities: I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Production of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

AOnly one
BOnly two
COnly three
DAll the four
10Mediumprelims
Economics

Consider the following statements: Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
11Mediumprelims
Economics

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores. Which of the following statements are correct? I. Revenue deficit is ₹20,000 crores. II. Fiscal deficit is ₹10,000 crores. III. Primary deficit is ₹4,000 crores. Select the correct answer using the code given below.

AI and II only
BII and III only
CI and III only
DI, II and III
12Mediumprelims
Economics

Consider the following activities : I. Production of crude oil II. Refining, storage and distribution of petroleum. III. Marketing and sale of petroleum products IV. Production of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

AOnly one
BOnly two
COnly three
DAll the four
13Mediumprelims
Economics

Consider the following statements : Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II: Bondholders are lenders to a company whereas stockholders are its owners. Statement III : For repayment purpose, bond-holders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

ABoth Statement II and Statement III are correct and both of them explain Statement I
BBoth Statement I and Statement II are correct and Statement I explains Statement II
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
14Mediumprelims
Economics

Consider the following statements: Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
15Mediumprelims
Economics

Consider the following statements: I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
16Mediumprelims
Economics

Consider the following statements: Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax. Statement II: In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961. Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
17Mediumprelims
Economics

Consider the following statements: I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
18Mediumprelims
Economics

Consider the following statements : I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
19Mediumprelims
Economics

A country's fiscal deficit stands at ₹ 50,000 crores. It is receiving ₹ 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹ 1,500 crores. What is the gross primary deficit?

A₹ 48,500 crores
B₹ 51,500 crores
C₹ 58,500 crores
DNone of the above
20Mediumprelims
Economics

Consider the following statements: Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II: Bondholders are lenders to a company whereas stockholders are its owners. Statement III: For repayment purpose, bond-holders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

ABoth Statement II and Statement III are correct and both of them explain Statement I
BBoth Statement I and Statement II are correct and Statement I explains Statement II
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
21Mediumprelims
Economics

Consider the following statements: Statement I: In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax. Statement II: In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961. Which one of the following is correct in respect of the above statements?

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
22Mediumprelims
Economics

A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500 crores. What is the gross primary deficit?

A₹ 48,500 crores
B₹ 51,500 crores
C₹ 58,500 crores
DNone of the above
23Mediumprelims
Economics

Consider the following statements in respect of RTGS and NEFT: I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?

AI only
BI and II
CI and III
DIII only
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