Daily Prelims MCQs — Economy – 9th July 2025
- TPP
- Jul 9
- 8 min read
Welcome to today’s handpicked set of Multiple-Choice Questions (MCQs) from the Economy — crafted specially for the UPSC Prelims! These questions aren’t just a quiz — they’re a smart way to see how current affairs connect with core concepts, just like UPSC asks in the exam.
Each question is based on recent news and backed by clear explanations to help you build strong links between dynamic events and static knowledge.
Today’s topics include: di-ammonium phosphate (DAP), Motor Vehicle Aggregator Guidelines, Solar Energy Corporation of India (SECI), National Statistics Day, Extended Fund Facility (EFF), Extended Fund Facility (EFF), e-Way Bill, Section 20 of the Reserve Bank of India Act, 1934 and more…
Click Here to read the Monthly Current Affairs Pointers (CAP).
QUESTION 1
Consider the following statements regarding di-ammonium phosphate (DAP):
DAP is an essential fertiliser containing phosphorus (P), a nutrient vital for crop growth, especially in the initial stages of root and shoot formation.
It ranks as the most widely used fertiliser in India.
The nutrient composition of DAP includes 18% phosphorus and 82% nitrogen.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer (a)
Explanation:
Statement 1 is correct: Di-ammonium phosphate (DAP) is a key phosphorus-based fertiliser widely used by farmers during sowing, as it provides phosphorus in a form readily available to crops. This nutrient is particularly important during the early growth phase when crops are establishing their root and shoot systems.
Statement 2 is incorrect: While DAP is heavily consumed in India, it is not the most-used fertiliser. That distinction goes to urea, which has a significantly higher annual consumption (approximately 359 lakh tonnes), compared to DAP’s average of 103.4 lakh tonnes per year over the past five years.
Statement 3 is incorrect: The actual nutrient composition of DAP is 18% nitrogen (N) and 46% phosphorus (P₂O₅) — not the other way around. The error in the percentage figures makes this statement factually wrong.
QUESTION 2
With regard to the Motor Vehicle Aggregator Guidelines, 2025, consider the following statements:
Aggregators are allowed to implement a pricing structure that includes a minimum fare up to 50% below the base fare and a maximum dynamic fare up to twice the base fare.
The Central Government is responsible for notifying base fares for various categories of motor vehicles under these guidelines.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (a)
Explanation:
On July 1, the Ministry of Road Transport and Highways (MoRTH) introduced updated regulations under the Motor Vehicle Aggregator Guidelines, 2025, which apply to ride-hailing platforms such as Uber, Ola, and Rapido.
According to the guidelines, aggregators are permitted to:
Lower the minimum fare up to 50% below the base rate.
Charge a maximum dynamic fare up to 2x (twice) the base fare.
This marks an increase from the previous dynamic cap of 1.5 times the base fare.
However, the responsibility for notifying the base fares lies with the State Governments, not the Central Government. States have been advised to implement these updated provisions within a three-month timeframe.
QUESTION 3
Consider the following statements about the Solar Energy Corporation of India (SECI):
SECI holds the status of a Maharatna Central Public Sector Undertaking (CPSU) and is solely dedicated to scaling up India’s renewable energy capacity.
It functions as a nodal agency to facilitate the country's increasing energy demands through renewable sources while simultaneously aiming to reduce dependency on conventional fossil fuels.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (b)
Explanation:
The Solar Energy Corporation of India Limited (SECI) is a key institution under the Ministry of New and Renewable Energy (MNRE), playing a vital role in promoting and implementing renewable energy (RE) projects across the country. SECI has been conferred the status of a Navratna CPSU, not a Maharatna. Hence, Statement 1 is incorrect.
SECI serves as the designated nodal agency for enabling large-scale integration of renewable energy into the national grid. Its objective is to fulfill rising energy demands through renewable sources like solar, wind, and hybrid models, thereby reducing dependence on fossil fuels and supporting India’s clean energy goals. Hence, Statement 2 is correct.
SECI has implemented innovative models such as:
Solar-Wind Hybrid systems (with or without energy storage)
Round-the-Clock (RTC) renewable power supply
Renewable Energy with assured peak power
Firm and Dispatchable Renewable Energy (FDRE)
These models have strengthened the RE ecosystem and enhanced energy accessibility and reliability across different states.
QUESTION 4
Consider the following statements in the context of National Statistics Day:
National Statistics Day is observed annually on June 19 across India.
The day commemorates the birth anniversary of Prasanta Chandra Mahalanobis, widely regarded as the father of Indian statistics.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (b)
Explanation:
India observes National Statistics Day on June 29 each year—not June 19—to honor the contributions of Prof. Prasanta Chandra Mahalanobis, a pioneering figure in the field of statistics in India.
Mahalanobis is credited with founding the Indian Statistical Institute (ISI) in Kolkata and playing a crucial role in shaping India’s Planning Commission. His legacy lies in transforming raw data into meaningful insights, a skill that greatly benefited post-independence India in planning and development.
Born in 1893 in Kolkata to an elite Brahmo Samaj family, Mahalanobis pursued his early education at Presidency College, and later studied in London. Despite opportunities abroad, he returned to India and dedicated his life to institutionalizing the discipline of statistics and applying it for national development.
QUESTION 5
The Reserve Bank of India (RBI) has introduced new guidelines stating that certain categories of banks are barred from levying pre-payment or foreclosure charges on loans provided for business purposes to individuals and small businesses. However, some bank categories have been excluded from this directive.
Which among the following are excluded from the RBI's directions?
Commercial Banks
Regional Rural Banks (RRBs)
Local Area Banks (LABs)
Tier 4 Primary (Urban) Co-operative Banks
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 and 4 only
(d) 1 and 4 only
Answer (b)
Explanation:
The Reserve Bank of India has mandated that entities such as Commercial Banks, Tier 4 Urban Co-operative Banks, Non-Banking Financial Companies – Upper Layer (NBFC-UL), and All India Financial Institutions must not impose pre-payment charges on floating-rate business loans extended to individuals and small businesses.
This regulation will come into effect for loans sanctioned or renewed from January 1, 2026, onwards.
However, Regional Rural Banks (RRBs), Local Area Banks (LABs), and Small Finance Banks (SFBs) are not covered under this guideline. Therefore, they are permitted to continue levying prepayment charges, and are excluded from the exemption.
QUESTION 6
Examine the following statements:
Financial support under the Extended Fund Facility (EFF) is offered by the World Bank to nations struggling with medium-term balance of payments difficulties caused by structural economic issues that require extended periods to resolve.
The International Bank for Reconstruction and Development (IBRD), recognized as the world’s largest development bank, delivers loans, guarantees, advisory services, and risk management tools to middle-income nations and creditworthy low-income countries.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (b)
Explanation:
The Extended Fund Facility (EFF) is not administered by the World Bank, but by the International Monetary Fund (IMF). This facility is designed to help countries facing prolonged balance of payments problems arising from deep-rooted structural weaknesses. The EFF provides medium- to long-term financial assistance to allow these nations adequate time for reform implementation and economic recovery.
On the other hand, the International Bank for Reconstruction and Development (IBRD)—a key institution within the World Bank Group—is indeed the largest development bank globally. It extends a range of financial and advisory services including loans, risk management products, guarantees, and technical guidance to middle-income and creditworthy low-income countries, while also helping address regional and global development challenges.
QUESTION 7
Concerning the e-Way Bill system under the GST regime, consider the following statements:
The system allows a GST-registered individual or an enrolled transporter to electronically generate a way bill at the start of the movement of goods.
The goods involved must have a consignment value exceeding ₹50,000, whether it is in the course of supply, for purposes other than supply, or due to an inward supply from an unregistered dealer.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (c)
Explanation:
As per the official portal ewaybillgst.gov.in, the e-Way Bill system is applicable to persons registered under GST, as well as enrolled transporters. It requires them to generate an electronic way bill—a document that must be carried by the person in charge of the conveyance—before the movement of goods begins.
This requirement applies when the value of the consignment exceeds ₹50,000, and it is applicable in three specific situations:
When goods are being moved for the purpose of supply,
When the movement is for reasons other than supply, and
In the case of inward supply of goods received from an unregistered person.
QUESTION 8
Regarding the Reserve Bank of India (RBI) functioning as the Banker to the Government, consider the following statements:
The RBI is mandated to handle the Central Government’s receipts and payments, as well as manage exchange, remittance, and other banking-related activities, including the administration of public debt on behalf of the Union Government.
The RBI undertakes transactions for State Governments based on the recommendations put forth by the Finance Commission every five years.
Which of the above statements is/are accurate?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (a)
Explanation:
As per Section 20 of the Reserve Bank of India Act, 1934, the RBI is legally obligated to carry out all monetary transactions on behalf of the Central Government. This includes managing its receipts and payments, facilitating exchange and remittance services, and overseeing the public debt of the Union.
Furthermore, in accordance with Section 21 of the same Act, the RBI is granted the authority to conduct the Central Government’s banking operations within India.
When it comes to the State Governments, the RBI performs banking functions not based on Finance Commission recommendations, but through mutual agreements formed under Section 21A of the RBI Act. Currently, the RBI has such agreements in place with all State Governments, with the exception of the Government of Sikkim.
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