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HPSC 2022 — Indian Economy Questions with Answers

All 9 Indian Economy previous-year questions from HPSC 2022, each with the correct answer and a full explanation. Practise them as a free, timed mock test with instant scoring.

1. Q1.Infrastructure Development

   Which of the following statement/statements is/are correct about Bharatmala Pariyojna? 1. It envisages replacement of level crossing on national highways by road over bridges/road under bridges. 2. It aims to develop the road connectivity to border areas. 3. It aims at development of coastal roads including road connectivity for non major ports. 4. It aims at the improvement in the efficiency of national corridors. Select the correct answer using the code below:

   • a)1, 2 and 3 only
   • b)2, 3 and 4 only
   • c)1, 2 and 4 only
   • d)1, 2, 3 and 4
2. Q2.Economic Planning in India

   Before the inception of the five-year plan in India, which of these plans were in existence? 1. Bharat Plan 2. Sarvodaya Plan 3. Farmer Plan 4. Bombay Plan Select the correct answer using the code given below :

   • a)1, 2 and 3 only
   • b)1 and 4 only
   • c)2 and 4 only
   • d)1, 2 and 4 only
3. Q3.Banking Sector

   Which of the following statements are true about the India Post Payments Bank (IPPB)? 1. IPPB was set up in 2016. 2. IPPB got incorporated as a Public Limited Company with 100 percent GOI equity under Department of Posts. 3. Post Office Savings Bank products primarily focus on encouraging digital payments and remittance whereas IPPB primarily aim at savings. 4. Services launched by IPPB include Life and General Insurance, Digital Life Certificate, Domestic Money Transfer.

   • a)1, 2 and 3 only
   • b)2, 3 and 4 only
   • c)1, 2 and 4 only
   • d)1, 3 and 4 only
4. Q4.Monetary Policy

   Reserve Bank of India raised the repo rate by 40 basis points in May 2022. Now consider the following statements: 1. Repo rates are increased to control inflation. 2. With increase in repo rates, cost of borrowing money increases. 3. With reduction in repo rates, Industry gets loans at higher rates from the lender. 4. To decrease money supply in the economy, the RBI hikes up repo rates to encourage banks for borrowing funds.

   • a)1 and 2 only
   • b)2 and 3 only
   • c)3 and 4 only
   • d)1 and 4 only
5. Q5.State Finances

   Consider the following from Haryana's Budget 2022-23. 1. Revenue deficit has been brought within the limits prescribed by 15th Finance Commission under the FRBM Act. 2. Fiscal deficit has been projected at 2.98 per cent of GSDP in BE of 2022-23. 3. Debt to GSDP ratio is below 25 per cent for Fiscal Year 2021-22 RE. 4. 47 existing budgetary demands for grants have been consolidated into 29 budgetary demands for grants.

   • a)1 and 2 only
   • b)2 and 3 only
   • c)3 and 4 only
   • d)1 and 4 only
6. Q6.India's Foreign Trade

   Top three commodities by percentage contribution in India's export growth of $400bn are:- 1. Engineering goods 2. Petroleum products 3. Gems and Jewellery 4. Rice

   • a)1, 2 and 4 only
   • b)1, 3 and 4 only
   • c)1, 2 and 3 only
   • d)2, 3 and 4 only
7. Q7.National Income Accounting

   Which of the following statements are true ? 1. GDPMP is the market value of all final Goods and Services produced within the geographical boundary of a country in a year. 2. If the GDP of a country is rising, the welfare may not rise as a consequence. 3. The ratio of nominal GDP to Real GDP is called GDP Deflator. 4. The ratio of real GDP to nominal GDP is called GDP Deflator.

   • a)1, 2 and 3 only
   • b)2, 3 and 4 only
   • c)1, 3 and 4 only
   • d)1, 2 and 4 only
8. Q8.Agriculture

   Explain with suitable examples the role of road transport in agricultural development in India.

9. Q9.Taxation

   'Good and Services Tax (GST) is a game-changer in the indirect tax regime of India.' Comment.