SSC CGL Economy – Mock Test 3 – Tier II Style

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SSC CGL Economy – Mock Test 3 – Tier II Style – 25 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Imaginary figures in ₹ crore – GDPmp 7,200, consumption of fixed capital 500, NFIA +150, indirect taxes less subsidies 450. Find the national income (NNP at factor cost):

Correct Answer: C [₹ 6,400]

Explanation:

7,200 − 500 + 150 − 450 = ₹ 6,400 crore.

2.  
Nominal GDP is ₹ 8,050 crore and real GDP ₹ 7,000 crore. The GDP deflator is:

Correct Answer: D [115]

Explanation:

Answer: 115. 8,050 ÷ 7,000 × 100 = 115.

3.  
By the Harrod–Domar model, an economy saving 30% of its income with a capital–output ratio of 5 grows at:

Correct Answer: A [6%]

Explanation:

Answer: 6%. g = s ÷ v = 30 ÷ 5 = 6%.

4.  
In Fisher's equation, M = 500, V = 6 and T = 1,000. The price level P is:

Correct Answer: B [3]

Explanation:

P = MV ÷ T = 3,000 ÷ 1,000 = 3.

5.  
The inflation target first notified for the RBI in August 2016 was:

Correct Answer: C [4% CPI inflation within a band of 2–6%]

Explanation:

4% CPI (Combined) with a 2–6% band, up to March 2021; the same target was notified for 2021–26.

6.  
Banks keep one-eighth of every deposit as reserves and the public holds no extra cash. If ₹ 1,500 of new cash enters the banks, the system's deposits can grow to:

Correct Answer: D [₹ 12,000]

Explanation:

Multiplier = 1 ÷ 0.125 = 8; 1,500 × 8 = ₹ 12,000.

7.  
The policy stance adopted by the MPC on 7 October 2026 was:

Correct Answer: A [calibrated tightening]

Explanation:

MPC resolution, 7 October 2026 (as on 15-10-2026).

8.  
A bank loan has an instalment overdue for 75 days. Under the prudential norms it is:

Correct Answer: C [still not a non-performing asset]

Explanation:

A loan becomes an NPA only when overdue for more than 90 days.

9.  
An undated government bond carries a fixed coupon of ₹ 90 every year. If investors now demand a 7.5% return, the bond will trade at:

Correct Answer: B [₹ 1,200]

Explanation:

Answer: ₹ 1,200. 90 ÷ 0.075 = ₹ 1,200.

10.  
An investor pays ₹ 98 for a Treasury bill that repays ₹ 100 after 182 days. Measured on the money invested, the annual return is closest to:

Correct Answer: D [4.09%]

Explanation:

2 ÷ 98 × 365 ÷ 182 × 100 ≈ 4.09% (4.01% is the discount rate on face value).

11.  
Imaginary budget (₹ crore): total expenditure 2,400; revenue receipts 1,700; non-debt capital receipts 100; interest payments 350. The primary deficit is:

Correct Answer: D [₹ 250]

Explanation:

FD = 2,400 − 1,800 = 600; PD = 600 − 350 = ₹ 250 crore.

12.  
For that budget, revenue expenditure is ₹ 2,050 crore, of which ₹ 90 crore are grants for creating capital assets. Find the effective revenue deficit:

Correct Answer: C [₹ 260]

Explanation:

RD = 2,050 − 1,700 = 350; ERD = 350 − 90 = ₹ 260 crore.

13.  
According to the PIB release of 1 February 2026, the Centre's debt-to-GDP ratio is to reach, by 2030-31:

Correct Answer: A [50 ± 1 per cent]

Explanation:

Release title: 'India on track to reach debt-to-GDP ratio of 50±1 percent by 2030-31' (55.6% is BE 2026-27).

14.  
The FRBM Review Committee (2017) proposed a general government debt ceiling of:

Correct Answer: B [60% of GDP]

Explanation:

60% (Centre 40%, States 20%), with an escape clause.

15.  
Input tax credit of IGST can be used to pay:

Correct Answer: D [IGST, CGST and SGST]

Explanation:

IGST credit is usable for all three; CGST and SGST credits cannot be crossed.

16.  
Statement-based
I. The Centre's votes carry one-third of the weight in the GST Council.
II. A decision needs three-fourths of the weighted votes present and voting.
Which is/are correct?

Correct Answer: A [Both I and II]

Explanation:

Art. 279A: Centre 1/3, States 2/3; decisions by 3/4 weighted votes.

17.  
An item at the 18% GST slab costs ₹ 9,440 including tax. Its price before GST is:

Correct Answer: C [₹ 8,000]

Explanation:

9,440 × 100 ÷ 118 = ₹ 8,000 (₹ 7,741 wrongly takes 18% off the inclusive price).

18.  
If the A2+FL cost of a crop is ₹ 2,200 per quintal, the Budget 2018-19 principle implies an MSP of at least:

Correct Answer: B [₹ 3,300]

Explanation:

Answer: ₹ 3,300. 1.5 × 2,200 = ₹ 3,300.

19.  
Under the NFSA, a priority household of five members is entitled each month to:

Correct Answer: A [25 kg of foodgrains]

Explanation:

5 kg per person × 5 = 25 kg (AAY households get 35 kg per household).

20.  
The export price index is 126 and the import price index 140. The terms of trade are:

Correct Answer: D [90]

Explanation:

126 ÷ 140 × 100 = 90 – a deterioration.

21.  
A foreign fund buys 8% of the equity of a listed Indian company. The investment is classified as:

Correct Answer: B [foreign portfolio investment]

Explanation:

Below 10% of a listed company's equity → FPI.

22.  
A survey finds a labour force of 400 persons, of whom 18 are unemployed. The unemployment rate is:

Correct Answer: C [4.5%]

Explanation:

Answer: 4.5%. 18 ÷ 400 × 100 = 4.5%.

23.  
A region has a multidimensional head-count ratio H = 0.25 and average intensity A = 0.44. Its MPI is:

Correct Answer: C [0.11]

Explanation:

MPI = H × A = 0.25 × 0.44 = 0.11.

24.  
The Government holds 70% of a CPSE and sells 15% to the public. After the sale, the company:

Correct Answer: B [remains a government company with a 55% stake]

Explanation:

55% ≥ 51% of paid-up capital → still a government company.

25.  
As per the PIB release of 30 June 2026, the VB-G RAM G Act guarantees each rural household wage employment of:

Correct Answer: D [125 days a year]

Explanation:

In force from 1 July 2026; replaced MGNREGA's 100 days.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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