These are 10 questions of economics from FLT1

Consider the following statements.

1. The first official estimates of national income were prepared by the Central Statistical Organisation (CSO) with base year 1948-49.
2. The base year revision for GDP calculation is done after every 5 years.
3. National Statistical Office under the Ministry of Statistics and Programme Implementation (MoSPI) is responsible for GDP base year revisions.
4. A bill considered as a Money Bill is passed in the Parliament with simple majority to change the base year.

How many of the above statements is/are correct?

In reference to new RBI rules for converting FPI to FDI, consider the following statements.

1. If the FPI’s holding exceeds 10 percent, they must convert their shares to FDI. They cannot sell their shares to stay below 10 percent.
2. Government approval is not required to convert exceeded FPI to FDI.
3. Under the new RBI guidelines, reclassification to FDI must occur within 5 trading days from the date of settlement of the trade causing the breach.

How many of the above pairs is/are correct?

Consider the following statements.

1. The total outstanding debt of the Union government remains to be less than 60 per cent of GDP in last three years.
2. In revised FRBM framework, Central Government debt is to be contained at 40 per cent of GDP.
3. Higher debt to GDP ratio necessarily leads to downgrade of the country's credit rating.

Which of the above statements is/are correct?

Consider the following statements regarding investment in bonds (debt securities) under 'Fully Accessible Route' (FAR).

1. FAR enable non-resident investor to invest in specified Government securities and corporate bonds.
2. Under FAR, there is no ceiling on investment by eligible investors in the specified Government securities.
3. Presently, only short-term G-secs with maturity of 2-5 years will be eligible for investment under the FAR.

Which of the above statements is/are correct?

Why are central banks accumulating gold in large quantities?

In reference to Securities Market index in India, consider the following statements.

1. The Nifty represents the performance of the top 50 largest companies listed on the National Stock Exchange (NSE) whereas Sensex is the market index of 30 companies listed on the Bombay Stock Exchange (BSE)
2. Sensex 50 contains big companies, but Nifty 50 consists of small companies.
3. Public Sector Undertakings (PSUs) or government-owned companies are not part of Sensex 30 but included in Nifty 50.

Which of the above statements is/are correct?

Consider the following statements.

1. Sovereign Green Bonds (SGrBs) were first announced in the 2024-25 budget by Indian Government to raise funds for green projects.
2. Indian government has retained the right to utilize the green shoe option in Sovereign Green Bonds.
3. Investors in bonds issued under this Framework do not bear any project related risks.
4. In India, Foreign Institutional Investors (FII) can invest in Sovereign Green Bonds.

How many of the above statements is/are correct?

With reference to the resource transfer to States/UTs in the Union Budget 2025-26, consider the following statements:

1. The largest component of resource transfer to states is the devolution of states' share in taxes.
2. The allocation for Finance Commission grants is expected to increase significantly in 2025-26.
3. Transfers under centrally sponsored schemes are projected to rise from 2024-25 to 2025-26.

Which of the above statements is/are correct?

When RBI print extra cash, it will:

Which of the following may result in Rupee depreciation?

1. RBI following an expansionary monetary policy
2. Govt stimulating the economy through deficit financing from RBI

Select the correct code.