Most Important Economy Current Affairs MCQs 2025-26 for UPSC Civil Services, State PSC and all other competitive exams.
1. USA imposed tariff on imported goods from India under ‘reciprocal’ tariff plan in the first week of April 2025.
(A) 26%
(B) 52%
(C) 74%
(D) 80%
Answer: (A)
2. Which of the following countries spared out from the recently announced by the US?
I. Russia
II. Cuba
III. Belarus
IV. North Korea
Correct code is:
(A) Only I and II
(B) Only II and III
(C) Only I and IV
(D) All I, II, III and IV
Answer: (D) (Hint: Russia, Cuba, Belarus, and North Korea avoided Trump’s latest trade penalties as they were already heavily sanctioned.)
3. Which of the following statements is/are correct about the AB-PMJAY?
I. Ayushman Bharat-Pradhan Mantri Jan Aarogya Yojana was launched on 23rd September, 2018.
II. Except for West Bengal, all States and Union Territories across the nation have been on boarded for the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) as of April 2025.
III. Delhi became the 35th State/UT to implement the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY).
IV. Delhi government would be giving an additional top-up of 5 lakhs over and above the cover provided by Central Government.
Correct code is:
(A) Only I and II
(B) Only I and III
(C) I, II and III
(D) All I, II, III and IV
Answer: (D)
4. Consider the following statements in relation to new Pamban Bridge:
I. the Pamban Bridge connects the town of Mandapam in mainland India with Rameswaram on Pamban Island.
II. It is India’s first vertical lift railway sea bridge.
III. The first train that passed over this new bridge was Rameswaram-Tambaram (Chennai) express.
IV. The new Pamban Bridge replaces the original cantilever bridge constructed by the British in 1914.
How many statements given above are correct?
(A) Only one
(B) Only two
(C) Only three
(D) All four
Answer: (D) (Hint: PM Narendra Modi inaugurated the new Pamban Bridge on April 7, 2025, which is India’s first vertical lift railway sea bridge, replacing the 1914 cantilever bridge.)
5. The Pamban Bridge, inaugurated by PM Narendra Modi, is being compared to famous ones in terms of unique designs and technological advancements like the:
I. Golden Gate Bridge, USA.
II. Tower Bridge, UK.
III. Oresund Bridge between Denmark and Sweden
Correct code is:
(A) Only I and II
(B) Only II and III
(C) Only I and III
(D) All I, II and III
Answer: (D)
6. The implementation of financial inclusion programme in India is based on certain pillars. Which of the following three pillars is reflected in the Financial Inclusion ecosystem through Pradhan Mantri Mudra Yojana (PMMY)?
I. Banking the Unbanked
II. Securing the Unsecured
III. Funding the Unfunded
Correct code is:
(A) Only I and II
(B) Only III
(C) Only I and III
(D) All I, II and III
Answer: (B) (Hint: PMMY reflects the pillar of “Funding the Unfunded” by providing collateral-free credit to small/micro entrepreneurs.)
7. Which of the following pairs is not matched correctly in relation to MUDRA loans?
(A) Shishu: covering loans up to ₹ 50,000
(B) Kishor: covering loans above ₹ 50,000 and up to ₹ 5 lakh
(C) Tarun: covering loans above ₹ 5 lakh and up to ₹ 10 lakh
(D) Tarun Plus: ₹ 10 lakh and up to ₹ 40 lakh
Answer: (D) (Hint: The loan limit for MUDRA loans was increased to ₹ 20 lakh as of October 24, 2024, per the Union Budget 2024-25.)
8. Consider the following statements in relation to CRR/SLR and Bank Rate:
I. All penal interest rates on shortfall in CRR and SLR requirements are specifically linked to the Bank Rate.
II. Effective from April 9, 2025, Bank Rate has been reduced to 6.25 per cent.
III. Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfall) will be Bank Rate plus 3.0 percentage points (9.25 per cent).
IV. Penal interest rates on the shortfalls in reserve requirements (depending on the duration of shortfall) will be Bank Rate plus 5.0 percentage points (11.25 per cent).
Which of the above statements is/are correct?
(A) Only I and II
(B) Only I, II and III
(C) Only I, II and IV
(D) All I, II, III and IV
Answer: (D)
9. Which of the following pairs is not matched correctly in relation to the Monetary policy Review April 9, 2025?
(A) Repo Rate: 6.00%
(B) Cash Reserve Ratio: 4.00%
(C) Standing Deposit Facility Rate: 5.75%
(D) Marginal Standing Facility Rate: 6.50%
Answer: (D) (Hint: Per the Monetary Policy Review, the MSF rate was adjusted to 6.25%)
10. Consider the following statements regarding the strategy of the RBI to control the inflation and support the growth:
I. A neutral stance allows the Reserve Bank to either increase or decrease rates based on inflation and growth dynamics.
II. An accommodative stance focuses on supporting economic growth by lowering interest rates.
III. A withdrawal of accommodative million to control inflation through rate hikes or tighter monetary policy.
How many statements given above are correct?
(A) Only one
(B) Only two
(C) All three
(D) None of the above
Answer: (C)
11. According to RBI’s observation in Monetary Policy Review April 2025 growth will be supported by:
I. Rural demand
II. Urban demand
III. Government capital spending
IV. Strong corporate and banking balance sheets
Correct code is:
(A) Only I and III
(B) Only III
(C) Only III and IV
(D) All I, II, III and IV
Answer: (D)
12. According to RBI’s observation in Monetary Policy Review April 2025 the outlook for food inflation looks good due to:
I. A record wheat harvest.
II. Strong pulses and kharif arrivals.
III. A expectation of normal monsoon.
IV. Sharp decline in crude oil prices in the international market.
Correct code is:
(A) Only I and II
(B) Only III
(C) Only IV
(D) All I, II, III and IV
Answer: (D)
13. Consider the following facts about the PM POSHAN:
I. PM POSHAN Scheme is a centrally sponsored scheme.
II. One hot cooked meal is served to students studying in Bal vatika and classes I to VIII.
III. The scheme is being implemented in Government and Government-aided schools on all school-days.
IV. The scheme aims at providing nutritional support and enhancing school participation of students.
How many statements given above are correct?
(A) Only one
(B) Only two
(C) Only three
(D) All four
Answer: (D)
14. Consider the following statements in relation to World Bank’s recently released report on poverty:
I. Extreme poverty in declined from 16 per cent in 2011-12 to 2.3 per cent in 2022-23.
II. World Bank measures extreme poverty at US $2.15 per day in purchasing power parity.
Which of the above statements is correct?
(A) Only I
(B) Only II
(C) Both I and II
(D) Neither I nor II
Answer: (C)
15. Tariffs are imposed by importing country on imported goods with the following objectives:
I. Protecting domestic industries.
II. Generating tax revenue.
III. Correcting trade imbalances.
IV. Exerting economic leverage.
Correct code is:
(A) Only I and III
(B) Only II and III
(C) Only I, II and III
(D) All I, II, III and IV
Answer: (D)
16. Which of the following statements is/are correct in relation to World Bank’s latest report ‘Poverty and Equity Brief’?
I. In 2023-24, the median earning of the top 10 per cent Indians were 13 times higher than those of the bottom 10 per cent.
II. India’s consumption-based Gini Index improved from 28.8 in 2011-12 to 25.5 in 2022-23.
Correct code is:
(A) Only I
(B) Only II
(C) Both I and II
(D) Neither I nor II
Answer: (C)
17. Consider the following statements in relation to recently proposed Global Carbon tax on entire shipping industry:
I. International Maritime Organisation (IMO) proposes a global carbon tax on shipping industry.
II. The deal was supported by 63 countries including the US, China, EU, Russia and India.
III. Levy of carbon tax will be starting in the year 2028.
IV. All the funds will be used exclusively for supporting climate action in developing countries.
Correct code is:
(A) Only I and II
(B) Only III and IV
(C) Only I and III
(D) Only II and IV
Answer: (C) (Hint: The deal was supported by 63 countries including India, China, and Brazil, but not the US or Russia. Funds are for cutting emissions in the shipping industry, not exclusively for developing countries.)
18. ______ has becomes the first train in India to have an ATM installed onboard.
(A) Taj Express
(B) Gomati Express
(C) August Kranti Express
(D) Panchavati Express
Answer: (D) (Hint: The Panchavati Express became the first train with an onboard ATM, introduced under Indian Railways’ INFRIS.)
19. Which of the following countries was the India’s biggest trade partner in FY 2024-25?
(A) China
(B) The US
(C) UAE
(D) Russian Federation
Answer: (B) (Hint: The US was India’s largest trading partner with bilateral trade of $131.84 billion.)
20. India’s exports were maximum to which of the country in FY 2024-25?
(A) China
(B) USA
(C) UK
(D) UAE
Answer: (B) (Hint: Exports to the US were $86.51 billion.)
21. India’s imports were maximum from which country in the FY 2024-25?
(A) Russia
(B) USA
(C) China
(D) UAE
Answer: (C) (Hint: Imports from China were $113.46 billion.)
22. Total value of exports from India in FY 2024-25 were:
(A) US $437.42 billion
(B) US $437.07 billion
(C) US $470.23 billion
(D) US $492.45 billion
Answer: (A) (Hint: Merchandise exports were $437.42 billion.)
23. Total value of imports into India in FY 2024-25 were:
(A) US $746.23 billion
(B) US $720.24 billion
(C) US $689.34 billion
(D) US $703.56 billion
Answer: (B) (Hint: Merchandise imports were $720.24 billion.)
24. Merchandise trade deficit during FY 2024-25 was:
(A) US $262.03 billion
(B) US $289.83 billion
(C) US $278.64 billion
(D) US $282.83 billion
Answer: (D) (Hint: Trade deficit was $282.83 billion.)
25. Consider the following commodities:
I. Engineering Goods
II. Petroleum Products
III. Electrical Goods
IV. Drugs & Pharmaceuticals
V. Gems & Jewellery
Which of the following combination forms top three export commodities of India’s exports in FY 2024-25?
(A) I, II, III
(B) II, III, IV
(C) III, IV, V
(D) I, II, V
Answer: (A) (Hint: Top exports were Engineering Goods ($116.67 billion), Petroleum Products ($63.34 billion), and Electrical Goods ($38.58 billion).)
26. Consider the following commodities of India’s import baskets in the FY 2024-25:
I. Gold
II. Electrical Goods
III. Petroleum, Crude and Products
IV. Machinery, Electrical and Non-electrical
V. Transport Equipments
Which of the following combination forms top three imports of India?
(A) I, II and III
(B) II, III and V
(C) III, II and I
(D) III, I, V
Answer: (C)
27. The share of gold holdings in India’s total foreign exchange reserves on April 4, 2025 were approximately:
(A) 11.73%
(B) 10.59%
(C) 9.75%
(D) 6.45%
Answer: (A)
28. India has trade surplus with which of the following country in FY 2024-25?
(A) UAE
(B) USA
(C) China
(D) Saudi Arabia
Answer: (B)
29. Which of the following states registered highest growth rate in real GSDP in FY 2024-25?
(A) Tamil Nadu
(B) Maharashtra
(C) Telangana
(D) Madhya Pradesh
Answer: (A)
30. Which of the following states has registered highest growth rate in Gross State Value Added (GSVA) in FY 25?
(A) Maharashtra
(B) Rajasthan
(C) Tamil Nadu
(D) Karnataka
Answer: (C)
31. Consider the following states:
I. Tamil Nadu
II. Rajasthan
III. Andhra Pradesh
IV. Maharashtra
Which of the above states’ services GSVA growth in FY 2024-25 was less than its real GSDP growth in the same year?
(A) Only I and II
(B) Only II
(C) Only III and IV
(D) Only IV
Answer: (B)
32. Services trade (export/import) data in terms of receipts/payments are released by:
(A) RBI
(B) DGFT
(C) MoSPI
(D) Ministry of Commerce and Industry
Answer: (A)
33. Consider the following statements about the PM MUDRA Yojana:
I. It is one of the most socially inclusive credit programmes of the world.
II. Under PMMY, women accounts for 68 per cent of all beneficiaries.
III. Over 50 per cent of accounts are held by SCs, STs and OBCs entrepreneurs.
How many statements given above are correct?
(A) Only one
(B) Only two
(C) All three
(D) None of the above
Answer: (C)
34. Indian jeweller Mehul Choksi, who has been accused of involvement in one of India’s biggest bank frauds, was arrested in Belgium on April 14, 2025. Mehul Choksi and his diamond tycoon nephew Nirav Modi are accused of a ₹ 13,500 crore bank loan fraud involving:
(A) Punjab National Bank
(B) Union Bank of India
(C) Bank of Baroda
(D) Canara Bank
Answer: (A)
35. Outstanding liability as percentage of Gross State Product (GSDP) of FY 2024-25 was highest in the country in which state?
(A) Uttar Pradesh
(B) Madhya Pradesh
(C) Bihar
(D) Punjab
Answer: (C)
36. Concept of ‘invisible hand’ was introduced by:
(A) Karl Marx
(B) Adam Smith
(C) Paul Robin Krugman
(D) Amartya Sen
Answer: (B)
37. If a commodity is provided free to the public by the government, then the opportunity cost is:
(A) Zero
(B) Transferred from the consumer of the product to the tax paying public
(C) Ignored
(D) Transferred from the consumer of the product to the government
Answer: (B)
38. In the estimation of national income the primary sector does not include:
(A) Agriculture and Livestock
(B) Forestry and Fishing
(C) Electricity, Gas and Water Supply
(D) Mining and Quarrying
Answer: (C)
39. Capability approach on poverty was discussed at large by:
(A) Suresh Tendulkar
(B) C. Rangarajan
(C) Amartya Sen
(D) D.T. Lakdawala
Answer: (C)
40. Deflation in an economy means:
(A) Sudden fall in the value of the currency against the US dollar
(B) Persistent recession in both the monetary and real sectors of the economy
(C) Persistent fall in the general price level of goods and services
(D) Fall in the rate of inflation over a period of time
Answer: (C)