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Monetary Policy

10 UPSC Prelims MCQs tagged "Monetary Policy". Free practice with answer keys, explanations, and timed mock tests on Anantam IAS.

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Which of the statement/s given below is/are correct?
Which of the statement/s given below is/are correct?
1. AOnly 1
2. BOnly 2
3. COnly 1 and 3
4. DOnly 1 and 2
Answer and explanation
Correct answer: D
Statement 1 is right: the Liquidity Adjustment Facility lets the RBI inject or absorb liquidity through repo and reverse-repo operations. Statement 2 is right too: the Marginal Standing Facility is a penal-rate overnight borrowing window above the repo rate. Statement 3 is wrong because MSF borrowing is not collateral-free; banks tap it against eligible securities, including by dipping into their SLR holdings.
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Indian Economy UPSC GPSC-2026 Medium
Match List I with List II and select the answer using the code given below the Lists:
Match List I with List II and select the answer using the code given below the Lists:
1. List I (Project Supported by India)
2. List II (Country)
3. A. Mangdechhu Hydroelectric Project
4. 1. Maldives
5. B. Restoration of Stor Palace
6. 2. Afghanistan
7. C. District Hospital at Dickoya
8. 3. Bhutan
9. D. Institute of Security and Law Enforcement Studies
10. 4. Sri Lanka
11. Code:
12. A
13. B
14. C
15. D
1. A1 4 2 3
2. B3 2 4 1
3. C3 4 2 1
4. D1 2 4 3
Answer and explanation
Correct answer: B
Mangdechhu Hydroelectric Project (720 MW) was built with Indian assistance in Bhutan (A-3). The Stor Palace in Kabul was restored with Indian aid, located in Afghanistan (B-2). The District Hospital at Dickoya was constructed by India in the Central Province of Sri Lanka (C-4). The Institute of Security and Law Enforcement Studies in Addu City was built by India in Maldives (D-1). Therefore the correct matching is A-3, B-2, C-4, D-1, which corresponds to option (c). These are standard India's development cooperation projects listed in MEA annual reports. Read more: Tiger Reserves in India: Project Tiger, NTCA & Complete List (2025).
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General Studies UPSC 2026 Hard
Which of the following statements about a Zero First Information Report (Zero FIR) under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 is/are correct?
Which of the following statements about a Zero First Information Report (Zero FIR) under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 is/are correct?
1. A Zero FIR can be lodged at a police station, even though the place of commission of a cognizable/non-cognizable offence is outside the territorial jurisdiction of that police station.
2. The Officer-in-Charge of the police station where a Zero FIR has been lodged may, with the permission of the competent authority, initiate a preliminary enquiry.
3. Under Zero FIR, it is obligatory for the informant to furnish information electronically.
Select the answer using the code given below:
1. A1, 2 and 3
2. B2 and 3 only
3. C1 only
4. D2 only
Answer
Statement 1 is correct — Section 173 of the BNSS, 2023 codifies the Zero FIR concept: information relating to a cognizable offence can be registered at any police station irrespective of territorial jurisdiction and then transferred to the station having jurisdiction. Statement 2 is wrong — preliminary enquiry under Section 173(3) is permissible only for cognizable offences punishable with 3 to less than 7 years, and only with prior permission of an officer not below DSP; it is not a general feature tied specifically to Zero FIR. Statement 3 is wrong — electronic communication of information is permitted, not obligatory, and the informant must subsequently sign it within three days. Hence only 1 is correct.
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Indian Polity UPSC 2026 Medium
Mr. X, a senior officer, was overseeing a critical vaccination programme during a pandemic. He found that a private service provider responsible for vaccine distribution was compromising on quality to make profits. Despite immense pressure to mana…
Mr. X, a senior officer, was overseeing a critical vaccination programme during a pandemic. He found that a private service provider responsible for vaccine distribution was compromising on quality to make profits. Despite immense pressure to manage the issue due to vested interests, he raised his voice based on the principles of public administration which he learnt during various training programmes attended across his career. He reported the issue to the appropriate vigilance authority and halted the contract to ensure citizen welfare.
1. Which one among the following principles of public administration was most strongly demonstrated by Mr. X's actions?
1. AEsprit de corps
2. BEquity
3. CAccountability
4. DDelegation
Answer and explanation
Correct answer: C
Mr. X's action of reporting wrongdoing to the vigilance authority and halting a compromised contract, despite pressure from vested interests, is a textbook demonstration of accountability — the obligation of a public servant to answer for actions, decisions, and outcomes in the discharge of public duties. Esprit de corps relates to team spirit and unity among staff, equity concerns fair and impartial treatment of citizens, and delegation refers to entrusting tasks downward. None of these capture the act of standing up against malpractice and being answerable for citizen welfare, which is the essence of accountability in public administration as emphasised by 2nd ARC and Nolan principles.
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Science & Tech UPSC 2026 Easy
Which of the following statements with regard to stealth technology is/are correct?
Which of the following statements with regard to stealth technology is/are correct?
1. Stealth objects have a very small radar cross-section and are coated with Radar Absorbing Material.
2. Stealth objects can be detected using specific frequencies.
3. Stealth objects are coated with metamaterials to increase the scattering of electromagnetic radiation.
Select the answer using the code given below:
1. A1 only
2. B2 and 3 only
3. C1 and 2 only
4. D1, 2 and 3
Answer and explanation
Correct answer: C
Stealth aircraft minimise radar cross-section using shaping and Radar Absorbing Materials (RAM) like iron-ball paint (1 correct). They can be detected by low-frequency radars (VHF/UHF), bistatic and over-the-horizon systems that exploit resonance and Rayleigh scattering at specific frequencies (2 correct). Statement 3 is wrong: metamaterials in stealth are designed to absorb or guide electromagnetic waves around the object (cloaking), reducing scattering and reflection, not increasing it. Hence 1 and 2 only. Read more: INS Tamal: Indian Navy’s Newest Stealth Frigate — Complete Guide.
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Science & Tech UPSC 2026 Medium
With reference to different Committees in India, consider the following details:
With reference to different Committees in India, consider the following details:
1. Sl. No.
2. Committee
3. Objective
4. Organization under which it was formed
5. 1.
6. R. N. Malhotra Committee
7. Comprehensive reforms of Insurance sector in India
8. Insurance Regulatory and Development Authority of India
9. 2.
10. L. C. Gupta Committee
11. Preparing a roadmap for the introduction of derivatives trading in India
12. Securities and Exchange Board of India
13. 3.
14. Urjit R. Patel Committee
15. Preparing a roadmap for reforming bank lending to the Housing sector
16. Reserve Bank of India
17. 4.
18. Y. H. Malegam Committee
19. Preparing a roadmap for reforms in Microfinance sector in India
20. Reserve Bank of India
21. In which of the above rows are all the details correctly matched?
1. A2 only
2. B2 and 3
3. C1, 3 and 4
4. D2 and 4
Answer and explanation
Correct answer: B
Row 1 is wrong: the R.N. Malhotra Committee (1993) on insurance-sector reforms was set up by the Government of India, not IRDAI — IRDAI itself was created in 1999 on the committee's recommendation. Row 3 is wrong: the Urjit Patel Committee (2014) was on revising the monetary policy framework (inflation targeting), not housing-sector lending. Row 2 (L.C. Gupta, SEBI, derivatives roadmap, 1998) and Row 4 (Y.H. Malegam, RBI, microfinance reforms, 2011) are correctly matched. Hence 2 and 4.
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Indian Economy UPSC 2026 Hard
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24×7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:
1. A1, 2 and 3
2. B2 and 3 only
3. C1 and 2 only
4. D1 and 3 only
Answer and explanation
Correct answer: A
RWA tokenisation converts ownership/economic rights in physical or financial assets (real estate, bonds, gold, art) into blockchain-based tokens (1 correct). Because tokens trade on always-on distributed ledgers, they enable 24x7 access and fractional ownership, supporting financial inclusion (2 correct). For Indian retail investors, tokenisation can open access to high-growth assets such as fractional real estate or pre-IPO equity (3 correct). All three statements reflect the IFSCA and RBI working-group framing of RWA tokenisation.
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Indian Economy UPSC 2026 Medium
Which of the following statements about M1xchange’s role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
Which of the following statements about M1xchange's role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
1. M1xchange provides collateral based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3. M1xchange functions as a credit rating agency for MSMEs.
Select the answer using the code given below:
1. A1, 2 and 3
2. B2 only
3. C2 and 3 only
4. D1 only
Answer and explanation
Correct answer: B
M1xchange is one of RBI's licensed TReDS (Trade Receivables Discounting System) platforms. It enables MSMEs to get their invoices and bills of exchange discounted by financiers through competitive bidding, improving working-capital access (statement 2 correct). It does not extend collateral-based loans itself (1 wrong) and is not a credit rating agency (3 wrong); CRAs are licensed separately by SEBI. Hence only statement 2 is correct. Read more: AI-Powered Financial Inclusion in India: How DPI and Analytics Are Rewriting Credit Access.
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Indian Economy UPSC 2026 Medium
Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?
Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?
1. ACG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics : Gujarat
2. BTata Semiconductor Assembly and Test Pvt. Ltd. : Assam
3. CHCL-Foxconn Joint Venture India Chip Ltd. : Madhya Pradesh
4. DSicSem Pvt. Ltd. : Odisha
Answer and explanation
Correct answer: C
Under the India Semiconductor Mission, the approved fabs and OSATs are: Tata-PSMC at Dholera, Gujarat; Tata Semiconductor Assembly & Test (TSAT) at Jagiroad, Assam; CG Power-Renesas-STARS OSAT at Sanand, Gujarat; Kaynes at Sanand; SicSem (silicon carbide) at Bhubaneswar, Odisha; and the HCL-Foxconn JV approved in 2025 for Jewar, Uttar Pradesh — NOT Madhya Pradesh. Hence option (c) is mismatched. All other pairings are correctly mapped, making (c) the answer.
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Science & Tech UPSC 2026 Easy
Consider the following statements with regard to the film ‘Boong’:
Consider the following statements with regard to the film 'Boong':
1. The film has recently won the British Academy of Film and Television Arts (BAFTA) Award in the Children's and Family Film category.
2. The film is directed by Lakshmipriya Devi.
3. This is the first Indian film to win a BAFTA award in the Children's and Family Film category.
Which of the statements given above is/are correct?
1. A1, 2 and 3
2. B2 and 3 only
3. C1 and 2 only
4. D3 only
Answer and explanation
Correct answer: A
'Boong', a Manipuri-language coming-of-age film directed by Lakshmipriya Devi and produced by Excel Entertainment (Farhan Akhtar and Ritesh Sidhwani), won the 2026 BAFTA Award for Best Children's and Family Film at the 79th British Academy Film Awards in London — confirmed by The Hollywood Reporter India, DD News, Outlook India and The Better India. The film is reported in multiple authoritative outlets as the FIRST Indian film to win a BAFTA in the Children's and Family Film category, making statement 3 also correct. Hence all three statements 1, 2 and 3 are correct, option (a).
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Art & Culture UPSC 2026 Medium