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Topic Monetary Policy
Asked 12 times across 4 UPSC exams over 35 years (1989–2024), peaking in 2014.
Key insights
- Most tested in CSE — 9 of 12 PYQs
- Most asked in 2014
- Recurs across 9 years (1989–2024)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CSE 1989 → ESE 2022 → CDS 2023 → LDCE 2024
How the concept evolved
189
214
215
116
117
120
222
123
124
Rising — more than half its appearances (7 of 12) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
LDCE2024
The 'Interest Rate Policy' is a component of which one of the following policies ?
- A Fiscal Policy
- B Monetary Policy ✓
- C Trade Policy
- D Direct Control
✓ Correct answer: (B)
Economy › Money/Banking/Finance
CDS2023
Which one of the following is a measure that can be used by the Government for combatting inflation?
- A Increasing the non-planned expenditure on defence, police, etc.
- B Providing more subsidies on exports
- C Increasing the rate of interest on savings and fixed deposits ✓
- D Reduction in the cash reserve ratio (CRR)
✓ Correct answer: (C)
Economy › Money/Banking/Finance
CSE2022
With reference to the Indian economy, consider the following statements
- If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities
- If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market
- If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars
Which of the statements given above are correct?
- A 1 and 2 only
- B 2 and 3 only ✓
- C 1 and 3 only
- D 1, 2 and 3
✓ Correct answer: (B)
Economy › Money/Banking/Finance
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