UPSC Static Quiz – Economy : 25 October 2025

UPSC Static Quiz – Economy : 25 October 2025 We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more. We are excited to bring you our daily UPSC Static Quiz, designed to help you prepare for the UPSC Civil Services Preliminary Examination. Each day, we will post 5 questions on static topics mentioned in the UPSC syllabus. This week, we are focusing on Indian and World Geography.

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• Question 1 of 5 1. Question At any time after the expiration of three years from the date of the grant of a patent, any person interested may make an application for grant of compulsory licence on patent on which of the following grounds? The requirements of the public with respect to the patented invention have not been satisfied. The patented invention is not available to the public at a reasonably affordable price. The patented invention is not worked in the territory of India. Select the correct answer code: (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: D At any time after the expiration of three years from the date of the grant of a patent, any person interested may make an application to the Controller for grant of compulsory licence on patent on any of the following grounds, namely:— (a) that the reasonable requirements of the public with respect to the patented invention have not been satisfied, or (b) that the patented invention is not available to the public at a reasonably affordable price, or (c) that the patented invention is not worked in the territory of India. Incorrect Solution: D At any time after the expiration of three years from the date of the grant of a patent, any person interested may make an application to the Controller for grant of compulsory licence on patent on any of the following grounds, namely:— (a) that the reasonable requirements of the public with respect to the patented invention have not been satisfied, or (b) that the patented invention is not available to the public at a reasonably affordable price, or (c) that the patented invention is not worked in the territory of India.

#### 1. Question

At any time after the expiration of three years from the date of the grant of a patent, any person interested may make an application for grant of compulsory licence on patent on which of the following grounds?

• The requirements of the public with respect to the patented invention have not been satisfied.

• The patented invention is not available to the public at a reasonably affordable price.

• The patented invention is not worked in the territory of India.

Select the correct answer code:

• (a) 1 and 2 only

• (b) 1 and 3 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: D

At any time after the expiration of three years from the date of the grant of a patent, any person interested may make an application to the Controller for grant of compulsory licence on patent on any of the following grounds, namely:—

(a) that the reasonable requirements of the public with respect to the patented invention have not been satisfied, or

(b) that the patented invention is not available to the public at a reasonably affordable price, or

Solution: D

(a) that the reasonable requirements of the public with respect to the patented invention have not been satisfied, or

(b) that the patented invention is not available to the public at a reasonably affordable price, or

• Question 2 of 5 2. Question Consider the following statements regarding Share buyback. According to SEBI proceeds, a loss-making company cannot repurchase its shares. To be eligible to participate in the share repurchase process, a shareholder needs to hold the shares of the company, which has announced the buyback, before the record date declared in the announcement. Which of the above statements is/are incorrect? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Correct Solution: A While a company can go for repurchase of its shares when it is sitting on a lot of cash but does not have many avenues to invest and prefers to return cash to shareholders, the case of Paytm is different – it’s sitting on huge losses and now using part of investors’ proceeds for the buyback. Who is eligible to participate in buyback? To be eligible to participate in the share repurchase process, a shareholder needs to hold the shares of the company, which has announced the buyback, before the record date declared in the announcement. The share also needs to be held in the demat form. Incorrect Solution: A While a company can go for repurchase of its shares when it is sitting on a lot of cash but does not have many avenues to invest and prefers to return cash to shareholders, the case of Paytm is different – it’s sitting on huge losses and now using part of investors’ proceeds for the buyback. Who is eligible to participate in buyback? To be eligible to participate in the share repurchase process, a shareholder needs to hold the shares of the company, which has announced the buyback, before the record date declared in the announcement. The share also needs to be held in the demat form.

#### 2. Question

Consider the following statements regarding Share buyback.

• According to SEBI proceeds, a loss-making company cannot repurchase its shares.

• To be eligible to participate in the share repurchase process, a shareholder needs to hold the shares of the company, which has announced the buyback, before the record date declared in the announcement.

Which of the above statements is/are incorrect?

• c) Both 1 and 2

• d) Neither 1 nor 2

Solution: A

While a company can go for repurchase of its shares when it is sitting on a lot of cash but does not have many avenues to invest and prefers to return cash to shareholders, the case of Paytm is different – it’s sitting on huge losses and now using part of investors’ proceeds for the buyback.

Who is eligible to participate in buyback?

To be eligible to participate in the share repurchase process, a shareholder needs to hold the shares of the company, which has announced the buyback, before the record date declared in the announcement. The share also needs to be held in the demat form.

Solution: A

Who is eligible to participate in buyback?

• Question 3 of 5 3. Question Consider the following statements regarding Payments bank. Payments banks are registered as public limited companies and licensed under the Banking Regulation Act of 1949. At present Payments banks can accept deposits up to ₹100,000 per customer. They can issue loans to their customers. Which of the above statements are correct? (a) 1 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: A A payments bank is a new type of bank that can perform most banking operations but cannot issue credit cards or loans. Payments banks are registered as public limited companies and licensed under the Banking Regulation Act of 1949. Payments banks can accept deposits up to ₹200,000 per customer, but this limit may increase. Incorrect Solution: A A payments bank is a new type of bank that can perform most banking operations but cannot issue credit cards or loans. Payments banks are registered as public limited companies and licensed under the Banking Regulation Act of 1949. Payments banks can accept deposits up to ₹200,000 per customer, but this limit may increase.

#### 3. Question

Consider the following statements regarding Payments bank.

• Payments banks are registered as public limited companies and licensed under the Banking Regulation Act of 1949.

• At present Payments banks can accept deposits up to ₹100,000 per customer.

• They can issue loans to their customers.

Which of the above statements are correct?

• (a) 1 only

• (b) 1 and 3 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: A

A payments bank is a new type of bank that can perform most banking operations but cannot issue credit cards or loans. Payments banks are registered as public limited companies and licensed under the Banking Regulation Act of 1949.

Payments banks can accept deposits up to ₹200,000 per customer, but this limit may increase.

Solution: A

Payments banks can accept deposits up to ₹200,000 per customer, but this limit may increase.

• Question 4 of 5 4. Question The Government considers which of the following as the sources of Deficit financing? State Provident Funds Securities against small savings External Debt Draw down of cash balance Select the correct answer code: (a) 1 and 2 only (b) 1, 3, and 4 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4 Correct Solution: D The Fiscal Deficit is the total borrowing requirement of the government. The sources used to finance this requirement typically include: State Provident Funds: These are part of the Public Account and represent funds deposited by the public with the government, which the government utilizes. Securities against small savings: These are also part of the Public Account. Small savings collections (like National Savings Certificates, Public Provident Fund, etc.) are deployed by the government. External Debt: This refers to borrowing from foreign sources (foreign governments, international organizations, etc.). Draw down of cash balance: This is the utilization of the government’s accumulated cash balances, usually held with the central bank. Incorrect Solution: D The Fiscal Deficit is the total borrowing requirement of the government. The sources used to finance this requirement typically include: State Provident Funds: These are part of the Public Account and represent funds deposited by the public with the government, which the government utilizes. Securities against small savings: These are also part of the Public Account. Small savings collections (like National Savings Certificates, Public Provident Fund, etc.) are deployed by the government. External Debt: This refers to borrowing from foreign sources (foreign governments, international organizations, etc.). Draw down of cash balance: This is the utilization of the government’s accumulated cash balances, usually held with the central bank.

#### 4. Question

The Government considers which of the following as the sources of Deficit financing?

• State Provident Funds

• Securities against small savings

• External Debt

• Draw down of cash balance

Select the correct answer code:

• (a) 1 and 2 only

• (b) 1, 3, and 4 only

• (c) 1, 2 and 3 only

• (d) 1, 2, 3 and 4

Solution: D

The Fiscal Deficit is the total borrowing requirement of the government. The sources used to finance this requirement typically include:

• State Provident Funds: These are part of the Public Account and represent funds deposited by the public with the government, which the government utilizes.

• Securities against small savings: These are also part of the Public Account. Small savings collections (like National Savings Certificates, Public Provident Fund, etc.) are deployed by the government.

• External Debt: This refers to borrowing from foreign sources (foreign governments, international organizations, etc.).

• Draw down of cash balance: This is the utilization of the government’s accumulated cash balances, usually held with the central bank.

Solution: D

The Fiscal Deficit is the total borrowing requirement of the government. The sources used to finance this requirement typically include:

• State Provident Funds: These are part of the Public Account and represent funds deposited by the public with the government, which the government utilizes.

• External Debt: This refers to borrowing from foreign sources (foreign governments, international organizations, etc.).

• Draw down of cash balance: This is the utilization of the government’s accumulated cash balances, usually held with the central bank.

• Question 5 of 5 5. Question Consider the following statements. In India, only the Ministry of Finance measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency. How many of the above statements is/are incorrect? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Only statement 2 is correct. Inflation: Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time. The opposite and rare fall in the price index of this basket of items is called ‘deflation’. Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. RBI through its Monetary Policy Committee (MPC) Controls Money supply in the market. Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation. Inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively. Incorrect Solution: B Only statement 2 is correct. Inflation: Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time. The opposite and rare fall in the price index of this basket of items is called ‘deflation’. Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. RBI through its Monetary Policy Committee (MPC) Controls Money supply in the market. Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation. Inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively.

#### 5. Question

Consider the following statements.

• In India, only the Ministry of Finance measures inflation.

• RBI through its Monetary Policy Committee (MPC) controls Money supply in the market.

• Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.

How many of the above statements is/are incorrect?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Only statement 2 is correct.

Inflation:

• Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.

• Inflation measures the average price change in a basket of commodities and services over time.

• The opposite and rare fall in the price index of this basket of items is called ‘deflation’.

• Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency.

• RBI through its Monetary Policy Committee (MPC) Controls Money supply in the market.

• Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation.

• Inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively.

Solution: B

Only statement 2 is correct.

Inflation:

• Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.

• Inflation measures the average price change in a basket of commodities and services over time.

• The opposite and rare fall in the price index of this basket of items is called ‘deflation’.

• Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency.

• RBI through its Monetary Policy Committee (MPC) Controls Money supply in the market.

• Inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively.

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