PTS 2025 | Test Code : 211127 |

DO NOT OPEN THIS TEST BOOKLET UNTIL YOU ARE TOLD TO DO SO

T.B.C. : FIAS-PTS25 Test Booklet Series
Serial No.

A
TEST BOOKLET
GENERAL STUDIES
Paper – 1

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 PTS 2025 | Test Code : 211127 |

Q.1) Consider the following pairs: Q.5) With reference to Monopoly Market,
Curve Indicates relationship consider the following statements:
between Statement I: The market price of a commodity
1. Kuznets Curve Income inequality and depends on the amount supplied by the
economic development monopoly firm producing that commodity.
2. Philips Curve Inflation and Statement II: The market demand curve is the
unemployment average revenue curve for the monopoly firm.
3. Lorenz Curve Tax rates and tax revenue Which one of the following is correct in
How many of the above pairs are correctly respect of the above statements?
matched? a) Both Statement I and statement II are
a) Only one correct, and Statement II explains
b) Only two Statement I
c) All three b) Both Statement-I and Statement-II are
d) None correct, but Statement-II does not explain
Statement-I
Q.2) Consider the following instruments with c) Statement-I is correct, but Statement-II is
regard to different forms of derivatives in incorrect
Indian capital market: d) Statement-I is incorrect, but Statement-II
1. Forwards are regulated contracts between is correct
parties which cannot be customized and
are tradable on stock exchanges. Q.6) With reference to "Open Market
2. Futures are unregulated contracts between Operations" by Reserve Bank of India (RBI),
parties, which are customizable and are consider the following statements:
tradable in Over the counter (OTC) 1. This instrument is utilized by the Reserve
markets. Bank of India (RBI) to regulate inflation
3. In Options contracts, buyers are not through the purchase and sale of
obligated to execute the contract. government securities.
4. Swaps are generally used to manage 2. Under Open Market Operation, sale of
interest rate and currency risks. Government securities by RBI leads to a
Which of the statements given above is/are reduction in money supply in the market.
correct? Which of the statements given above is/are
a) 1, 3 and 4 only correct?
b) 3 and 4 only a) 1 only
c) 2, 3 and 4 only b) 2 only
d) 1, 2, 3 and 4 c) Both 1 and 2
d) Neither 1 nor 2
Q.3) Which of the following is an example of
fixed capital in an industry? Q.7) Consider the following statements with
a) Raw materials reference to the State Development Loans:
b) Plant and Machinery 1. The purpose of issuing such loans is to
c) Finished goods inventory meet the budgetary needs of state
d) Labor cost governments.
2. These loans are issued through normal
Q.4) In the context of banking in India, what is auctions conducted by the Reserve Bank of
a Special Mention Account? India.
a) Loans that are showing early signs of 3. These securities do not qualify for
becoming a bad asset for banks. Statutory Liquidity Ratio (SLR) status for
b) An account comprising only the high- banks.
quality assets of banks. How many of the statements given above are
c) A loan account in a bank by which money is correct?
given to a loanee to spend for a specific a) Only one
purpose. b) Only two
d) Deposit Accounts getting special services c) All three
and privileges by the banks. d) None

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 PTS 2025 | Test Code : 211127 |

Q.8) Gross Domestic Product (GDP) of an c) 2, 3 and 4 only

economy indicates: d) 3 only
1. The size and net flow of its ‘balance of
trade”. Q.12) In the context of the Indian economy,
2. The size and net flow of ‘private consider the following statements regarding
remittances’ in the country. the Capital Output Ratio (COR):
3. The net flow of ‘interests’ on its external 1. It represents the amount of capital
lending and borrowings. necessary to produce one unit of output,
How many of the statements given above are whether in goods or services.
correct? 2. The higher the Capital Output Ratio, the
a) Only one lesser the capital required to produce the
b) Only two same amount of goods or services.
c) All three 3. A shift towards labor-intensive industries
d) None leads to an increase in the Capital Output
Ratio.
Q.9) Consider the following: Which of the above statements is/are correct?
This is the purest measure of the income of a a) 1 only
nation. When we divide it by the total b) 2 only
population of a nation, we get the 'per capita c) 1 and 3 only
income' (PCI) of that nation. d) 2 and 3 only
Which of the following is best described in the
passage above? Q.13) With reference to Consumer Price Index
a) Gross Domestic Product (GDP) (CPI) and Wholesale Price Index (WPI) in India,
b) Gross National Product (GNP) consider the following statements:
c) Net Domestic Product (NDP) 1. The Consumer Price Index (CPI) accounts
d) Net National Product (NNP) for both goods and services, while the
Wholesale Price Index (WPI) exclusively
Q.10) Which of the following consumer goods considers goods.
are both non-rivalrous and non-excludable in 2. The Consumer Price Index is published by
nature? the National Statistical Office (NSO), and
a) National Defence the Wholesale Price Index is issued by the
b) Petrol Office of Economic Advisor (OEA).
c) Cable television Which of the above statements is/are correct?
d) Private Car a) 1 only
b) 2 only
Q.11) In which of the following circumstances, c) Both 1 and 2
the calculation of GDP would be inaccurate? d) Neither 1 nor 2
1. Including net exports in Expenditure
method of GDP estimation. Q.14) Economic Growth in a country is most
2. Accounting for depreciation in Income likely to take place –
method a) If there is expansion in global trade.
3. Including both intermediate and final goods b) If research and technological
in Value Addition method of GDP advancements in the world economy
estimation. excels.
4. Subtracting Product subsides in the GDP c) If the population of the given country
estimation. increases.
Select the correct answer from the code given d) If there is capital formation in the given
below: country.
a) 1 and 2 only
b) 3 and 4 only

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 PTS 2025 | Test Code : 211127 |

Q.15) In the context of methods for calculating Q.18) With reference to Non-Fungible Tokens
National Income, which among the following is (NFT), consider the following statements:
the correct expression for "Net Factor Income 1. An NFT is a digital certificate that verifies
from Abroad" (NFIA)? the ownership and authenticity of a specific
a) Gross Domestic Product (GDP) - Net asset, whether digital or physical.
Domestic Product (NDP) 2. Each NFT has a unique identifier, a
b) Gross National Product (GNP) - Net combination of metadata and a digital
National Product (NNP) signature, making it distinct from all other
c) Gross National Product (GNP) - Gross tokens.
Domestic Product (GDP) 3. Ownership of an NFT is verifiable and
d) Gross Domestic Product (GDP) - Net trackable via blockchain.
National Product (NNP) Which of the statements given above is/are
correct?
Q.16) Which of the following is considered an a) 1 and 3 only
asset in a bank's balance sheet? b) 2 and 3 only
1. Fixed deposit of a customer c) 1 and 2 only
2. Current deposit of a customer d) 1, 2 and 3
3. Interest accrued on deposit of a customer
4. Banks investment in government securities Q.19) Consider the following statements with
5. Interest accrued on loans to customers regards to National Bank for Agriculture and
6. Gold deposits of customers Rural Development (NABARD):
Select the correct answer using the code given 1. It is an apex institution providing financial
below: support and credit for the development of
a) 1, 2 and 3 only agriculture and small-scale industries in
b) 2, 4 and 5 only rural areas.
c) 1, 3 and 6 only 2. It is wholly owned entity of Government of
d) 4 and 5 only India.
3. It is headquartered in Lucknow, Uttar
Q.17) Consider the following statements with Pradesh.
reference to Reserve Bank of India (RBI): Which of the statements given above is/are
Statement - I: Reserve Bank of India (RBI) is correct?
the lender of last resort. a) 1 and 2 only
Statement - II: Reserve bank of India is banker b) 1 and 3 only
to all the States and the Union Territories of c) 2 and 3 only
India. d) 1, 2 and 3
Which one of the following is correct in
respect of the above statements? Q.20) With reference to Indian financial
a) Both Statement-I and Statement-II are institutions the loans named "Shishu, Kishor
correct and Statement-II is the correct and Tarun" are associated with lending facility
explanation for Statement-I of which of the following agencies?
b) Both Statement-I and Statement-II are a) Export Import Bank of India (EXIM Bank)
correct and Statement-II is not the correct b) Small Industries Development Bank of India
explanation for Statement for Statement-I (SIDBI)
c) Statement-I is correct but Statement-II is c) Micro Units Development and Refinance
incorrect Agency Bank (MUDRA)
d) Statement-I is incorrect but Statement-II is d) Industrial Finance Corporation of India
correct (IFCI)

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 PTS 2025 | Test Code : 211127 |

Q.21) Consider the following credit control Q.24) With reference to committees dealing
instruments: with Banking reforms in India, consider the
1. Cash Reserve ratio following pairs:
2. Repo rate Committee Key recommendation
3. Open market operation 1. Nachiket mor Setting up of Payments
4. Statutory Liquidity ratio committee (2013) Banks
5. Reverse repo rate 2. Shankar Acharya Deepening of Digital
How many of the credit control instruments Committee (2016) Payments
above given are part of Liquidity Adjustment 3. Bimal Jalan Reforming the Economic
Facility of Reserve Bank of India? Committee (2018) Capital Framework
a) Only two 4. Nandan Nilekani Positioning of Financial
b) Only three Committee (2019) year with calendar year
c) Only four How many of pairs given above are correctly
d) All five matched?
a) Only one
Q.22) With reference to Small Finance Banks in b) Only two
India, consider the following statements: c) Only three
1. They are public limited companies d) All four
established under Companies Act of 2013.
2. They are covered under regulatory Q.25) With reference to Digital payments
supervision of Reserve Bank of India. system in India, which among the following
3. Minimum paid up capital requirement for correctly explains the term "Merchant
Small Finance Banks is 500 crores. Discount Rate'?
4. 75% of their loan facility must be for a) The discounted interest rate on the loans
priority sector lending. extended by the Banks to the Merchants
5. They are not allowed to accept time for buying Point of sale (PoS) machine.
deposits from the customers. b) The transaction fee paid by the customers
How many of the statements given above are for making the transactions using debit or
correct? credit cards.
a) Only two c) The discount offered by the merchants to
b) Only three the consumer for using digital payments
c) Only four through Point of sale (PoS) machine and
d) All five debit card.
d) The transaction fee charged by a bank to a
Q.23) With reference to Money supply in the merchant for accepting payments through
economy, consider the following: bank’s debit cards.
1. Demand deposit with banks.
2. Cash currency held by the public. Q.26) Consider the following statements with
3. Savings deposit with post office. regards to the Financial Services Institutions
4. Time deposit with banks. Bureau (FSIB):
Arrange the above options in increasing order 1. It is chaired by the Minister of Finance,
of their liquidity. Government of India.
a) 1-2-3-4 2. It recommends a person for the
b) 2-1-3-4 appointment of Whole-time directors and
c) 4-3-2-1 non-executive chairpersons on the board
d) 4-3-1-2 of directors of public sector banks.
Which of the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

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 PTS 2025 | Test Code : 211127 |

Q.27) In India, Treasury bills - Which of the statements given above are
1. are issued at a discounted price and correct?
redeemed at face value. a) 1 and 2 only
2. are highly liquid. b) 1 and 3 only
3. are generally considered risk-free. c) 2 and 3 only
4. cannot be issued by state governments. d) 1, 2, and 3
Select the correct answer using the codes
given below: Q.31) With reference to economy, consider the
a) 1 and 2 only following statements about the indifference
b) 2 and 4 only curve:
c) 1,3 and 4 only 1. Indifference curve is a representation of
d) 1,2,3 and 4 different combinations of two goods that
provide equal level of satisfaction and
Q.28) In India, the purpose of ‘Ways and Means utility to the consumer, resulting in
Advances’ facility of Reserve Bank of India is indifference.
to- 2. The slope of the indifference curve
a) fund long-term infrastructure projects represents the rate at which consumer
b) stabilize the currency exchange rate substitutes one good for another, also
c) provide short-term liquidity support to the called Marginal Rate of Substitution.
central and state governments 3. Two indifference curves never touch each
d) regulate the stock market other.
Which of the above given statements are
Q.29) Consider the following pairs: correct?
Short term Meaning a) 1 and 2 only
loan b) 2 and 3 only
1. Call Borrowing or lending of funds c) 1 and 3 only
money for 1 day d) 1, 2, and 3
2. Notice Borrowing or lending of funds
Money for a period exceeding 14 days Q.32) With reference to Indian Capital Market,
3. Term Borrowing or lending of funds consider the following statements about
Money for 2 to 14 days, Debentures:
How many of the above pairs are correctly 1. They are a kind of debt instrument which
matched? can have either a fixed or a floating rate of
a) Only one interest.
b) Only two 2. They are generally classified as unsecured
c) All three financial instruments.
d) None 3. They are strictly not convertible into equity
shares of the issuing company.
Q.30) Consider the following statements with How many of the statements given above are
regard to the International Financial Services correct?
Centers Authority (IFSCA): a) Only one
1. It is a statutory authority established in b) Only two
2020. c) All three
2. It is a unified authority to regulate all d) None
financial services in International Financial
Services Centers in India.
3. It is headquartered in GIFT City, Gujarat.

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 PTS 2025 | Test Code : 211127 |

Q.33) Consider the following statements: How many of the statements given above are
Statement-I: During the COVID-19 pandemic, correct?
bonds with reduced or even negative yields a) Only one
saw a significant rise in demand across various b) Only two
countries globally. c) All three
Statement-II: A negative bond yield arises d) None
when the total amount received by an investor
upon the bond's maturity is more than the Q.36) With reference to India Energy
initial amount paid to purchase the bond. Exchange, consider the following statements:
Which one of the following is correct in 1. It is regulated by the Securities and
respect of the above statements? Exchange Board of India (SEBI).
a) Both Statement-I and Statement-II are 2. It started its operations in 2020 with its
correct and Statement-II is the correct headquarters in Mumbai.
explanation for Statement-I 3. It enhances price discovery and
b) Both Statement-I and Statement-II are transparency in the power market in India.
correct and Statement-II is not the correct Which of the statements given above is/are
explanation for Statement for Statement-I correct?
c) Statement-I is correct but Statement-II is a) 1 and 2 only
incorrect b) 2 and 3 only
d) Statement-I is incorrect but Statement-II is c) 3 only
correct d) 1 and 3 only

Q.34) In context of Mutual funds market in Q.37) Which of the following best reflects the
India, consider the following statements about meaning of the term Venture Capital?
"Total Expense Ratio"(TER): a) Investment in companies listed on the
1. It is a measure of total cost associated with stock exchange
managing and operating a mutual fund. b) Long-term investment in startup
2. SEBI prescribes the maximum TER that can companies characterized by high growth
be charged by a company from its potential
investors. c) Investment in government bonds with
Which of the statements given above is/are guaranteed returns.
correct? d) Short-term loans provided to companies
a) 1 only for working capital requirements
b) 2 only
c) Both 1 and 2 Q.38) If Reserve Bank of India (RBI) reduces the
d) Neither 1 nor 2 bank rate, which one of the following is likely
to take place in Indian economy?
Q.35) With reference to the ‘Depreciation of a) Reduction in government expenditure on
Assets’, consider the following statements: public infrastructure projects.
1. It represents the decrease in the value of b) Increase in the mandatory Cash Reserve
an asset over time due to use or wear and Ratio (CRR) for banks.
tear. c) Contraction in the availability of credit to
2. Both human as well as physical capitals are small business enterprises.
subject to depreciation. d) Reduction in the lending rates by
3. In India, the Income Tax Act of 1961 commercial banks.
specifies the depreciation rate for various
assets.

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 PTS 2025 | Test Code : 211127 |

Q.39) The supply curve of a firm shows the Q.42) Which of the following statements
levels of output (plotted on the x-axis) that the regarding the Price Elasticity of Demand is
firm chooses to produce corresponding to correct?
different values of the market price (plotted on a) It is the maximum amount a consumer is
the y-axis). In this context, consider the willing to pay for an additional unit of a
following statements about shift in Supply product.
Curve: b) It is the amount of change in demand of a
1. Technological progress is expected to shift good due to change in its price.
the supply curve of a firm to the right. c) It is the change in the demand of a good
2. An increase in input prices is expected to due to change in purchasing power of the
shift the supply curve of a firm to the right. consumer.
3. The imposition of a unit tax shifts the d) It is the practice of setting the price of a
supply curve of a firm to the left. product equal to the extra cost of
Which of the statements given above is/are producing an extra unit.
correct?
a) 1 only Q.43) With reference to the Cash Management
b) 1 and 2 only Bill, consider the following statements:
c) 1 and 3 only 1. It allows the Scheduled Commercial Banks
d) 1, 2, and 3 to meet temporary mismatches in their
cash flow.
Q.40) Which of the following accurately 2. It is issued at a discount and redeemed at
describes the effect of sustained high inflation face value on maturity.
in an economy? Which of the statements given above is/are
1. In the long run, the cost of borrowing may correct?
decrease. a) 1 only
2. In the short run, the cost of imports may b) 2 only
reduce. c) Both 1 and 2
3. In the short run, the exports may rise. d) Neither 1 nor 2
4. In the long run, the saving rate in an
economy may decrease. Q.44) With reference to the money raised by
Select the answer using the code given below: the companies from the Capital Market,
a) 1 and 2 only consider the following:
b) 2 and 3 only Various types of Description
c) 3 and 4 only Capital
d) 1 and 4 only 1. Authorized It is a limit up to which
Capital shares can be issued by a
Q.41) With reference to market economy, company
consider the following features: 2. Paid Up It is amount which is
1. A large number of buyers and sellers in the Capital sought by a company to be
market raised by issuing shares
2. Product differentiation among the firms 3. Subscribed It is the value of shares that
3. High barriers to entry and exit of the firms Capital investors have promised to
in market buy when they are released.
4. Independent decision-making by firms 4. Issued Capital It is part of the authorized
How many of the above features are capital that has actually
characteristic of monopolistic competition? been paid by shareholders.
a) Only one How many of the above given pairs are
b) Only two correct?
c) Only three a) Only one
d) All four b) Only two
c) Only three
d) All four

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 PTS 2025 | Test Code : 211127 |

Q.45) Which of the following would most likely How many of the statements given above are
lead to a rise in the bond yields? correct?
1. Rise in market interest rates a) Only one
2. Increase in Fiscal Deficit b) Only two
3. Rise in inflation c) All three
4. Increase in foreign investments d) None
Select the correct answer using the codes
given below: Q.49) Consider the following statements
a) 1 and 2 only regarding the distinction between Gross
b) 2, 3 and 4 only Domestic Product (GDP) and Gross Value
c) 1 and 3 only Added (GVA):
d) 1, 2 and 3 only 1. While GDP measures the value of goods
and services, GVA measures only the value
Q.46) Which of the following is the most of goods.
appropriate example of a product in an 2. While GDP measures the final value of
oligopolistic market? goods, the GVA measures the value of
a) Wheat flour intermediate goods.
b) Automobiles 3. The value of GDP will always be greater
c) Handcrafted Jewelry than that of GVA.
d) Space Industry How many of the statements given above are
correct?
Q.47) With reference to ‘GDP Deflator’, a) Only one
consider the following statements: b) Only two
1. It is a more comprehensive measure of c) All three
inflation compared to the Wholesale Price d) None
Index.
2. Unlike Consumer Price Index, GDP deflator Q.50) The price at which equilibrium of
accounts for goods and services which are demand and supply of certain product is
produced both within India and outside reached is called equilibrium price. In this
India. context, consider the following statements:
3. In India, GDP deflator data is available on a 1. Imposition of a price ceiling below the
quarterly basis along with GDP estimates. equilibrium price leads to an excess
How many of the statements given above are demand.
correct? 2. Imposition of a price floor above the
a) Only one equilibrium price leads to an excess supply.
b) Only two Which of the statements given above is/are
c) All three correct?
d) None a) 1 only
b) 2 only
Q.48) Consider the following statements with c) Both 1 and 2
reference to Purchasing Power Parity (PPP): d) Neither 1 nor 2
1. It helps in determining the differences in
the quality of goods and services between
the countries.
2. It takes into account the cost of non-
traded goods and services.
3. It allows comparison of costs of living
across different countries in the world.

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