UPSC 2021 Prelims Answer Key (Paper 1 – GS):Â Get UPSC 2021 Answer Key & UPSC Prelims Question Paper (PDF) & updates. UPSC (IAS) Prelims 2021 Paper – 1 was conducted on 10th October (9:30 AM to 11:30 AM). UPSC (IAS) Prelims General Studies Paper 1 contained 100 questions on subjects Indian Polity, History, Indian Economy, Geography, Art and Culture, Science & Technology and Current Affairs etc.
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UPSC Prelims 2021 PDF New  SERIES A
1. Consider the following statements:
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his power from the RBI Act.Â
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only.
(d) 1, 2 and 3
ANSWER 1: D
2. With reference to casual workers employed in India, consider the following statements :
1. All casual workers are entitled for Employees Provident Fund coverage.
2 All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 onlyÂ
(c) 1 and 3 only
(d) 1, 2 and 3
ANSWER 2: B
3. Which among the following steps is most likely to be taken at the time of an economic recession?
(a) Cut in tax rates accompanied by increase in interest rateÂ
(b) Increase in expenditure on public projects
(c) Increase in tax rates accompaniedÂ
(d) Reduction of expenditure on public projects
Answer 3: b
4. Consider the following statements:Â
Other things remaining unchanged, market demand for a good might increase if
1. price of its substitute increases ✔
2. price of its complement increases
3. the good is an inferior good and the income of the consumers increases its price falls
4. Its prices fall
Which of the above statements are correct?
(a) 1 and 4 only
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 3
Answer 4: a
5. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements :Â
1. They are supervised and regulated by local boards set up by the State Governments.Â
2. They can issue equity shares and preference shares.Â
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer 5: b
6. Indian Government Bond Yields are influenced by which of the following?Â
1. Actions of the United States Federal ReserveÂ
2. Actions of the Reserve Bank of IndiaÂ
3. Inflation and short-term interest rates
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Answer 6: d
7. Consider the following:
1. Foreign currency convertible bonds ofÂ
2. Foreign institutional investment with certain conditionsÂ
3. Global depository receiptsÂ
4. Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
(a) 1, 2 and 3
(b) 3 only
(c) 2 and 4
(d) 1 and 4
Answer 7: d
8. Consider the following statements:
The effect of devaluation of a currency is that it necessarily
1. Improves the competitiveness of the domestic exports in the foreign markets
2. increases the foreign domestic currency value
3. improves the trade balance of
Which of the above statements is/are correct?
(a) 1 only
(b) 1 and 2
(c) 3 only
(d) 2 and 3
Answer 8: a
9. Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India?
(a) Diversion of resources to the purchase of real estate and investment in luxury housingÂ
(b) Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.Â
(c) Large donations to political parties and growth of regionalism
(d) Loss of revenue to the State Exchequer due to tax evasion
Answer 9: d
10. Which one of the following is likely to be the most inflationary in its effects?
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from the banks to finance a budget deficit
(d) Â Creation of new money to finance a budget deficit
Answer 10: d
11. The money multiplier in an economy increases with which one of the following?Â
(a) Increase in the Cash Reserve Ratio in the banks
(b) Increase in the Statutory Liquidity Ratio in the banks
(c) Increase in the banking habit of the people
(d) Increase in the population of the country
Answer 11: c
12. With reference to demand-pull inflation can be cluby increased by which of the following?
1. Expansionary policiesÂ
2. Fiscal stimulus
3. Inflation-indexing wages
4. Higher purchasing power
5. Rising interest rates
Select the correct answer using the code given below,
(a) 1, 2 and 4 only
(b) 3, 4 and 5 only
(c) 1, 2, 3 and 5 only
(d) 1, 2, 3, 4 and 5
Answer 12: a
Answer 13: b
Answer 14: c
Answer 15: b
Answer 16: a
Answer 17: d
Answer 18: d
Answer 19: a
Answer 20: c
Answer 21: c
Answer 22: b
Answer 23: d
Answer 24: a
Answer 25: d
Answer 26: c
Answer 27: b
Answer 28: c
Answer 29: a
Answer 30: d
Answer 31: c
Answer 32: a
Answer 32: a
Answer 33: a
Answer 34: b
Answer 35: d
Answer 36: c
Answer 37: d
Answer 38: c
Answer 39: d
Answer 41: b
Answer 43: a
Answer 44: c
Answer 45: c
Answer 49: a
Answer 51: b
Answer 52: b
Answer 53: d
Answer 54: d
Answer 55: a
Answer 56: b
Answer 57: a
Answer 58: a
Answer 59: d
Answer 60: d
Answer 61: c
Answer 62: b
Answer 63: c
Answer 64: b
Answer 65: c
Answer 66: b
Answer 67: b
Answer 68: a
Answer 69: a
Answer 70: b
Answer 71: a
Answer 72: c
Answer 73: d
Answer 74: b
Answer 75: d
Answer 76: d
Answer 77: a
Answer 78: d
Answer 79: c
Answer 80: a
Answer 81: c
Answer 82: b
Answer 83: b
Answer 84: d
Answer 85: a
Answer 86: a
Answer 87: b
Answer 88: c
Answer 89: a
Answer 90: d
Answer 91: b
Answer 92: b
Answer 93: b
Answer 94: d
Answer 95: d
Answer 96: d
Answer 97: d
Answer 98: c
Answer 99: b
Answer 100: d
UPSC Prelims 2021 PDF New  SERIES A
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