Archive · 25 Dec 2025
UPSC Essentials: Economy MCQs on Trade, SLR, and Solar Parks
UPSC Essentials provides a daily quiz on Economy to help students prepare for their exams.
The quiz covers various topics like the Development of Solar Parks scheme, which encourages setting up solar parks on government-owned land and aims to complete these parks by 2025-26.
It also discusses carry trade, which involves borrowing at low interest rates and investing in higher-yielding assets, requiring interest rate differentials and currency stability.
The quiz explains Open Market Operations (OMOs) by the RBI, where they buy or sell government securities to control money supply.
It also talks about the trade between India and New Zealand, which has seen fluctuations but aims to double in the next five years due to a new free trade agreement.
Finally, it covers the Statutory Liquidity Ratio (SLR), a requirement for certain banks to maintain a percentage of their liabilities in liquid assets.
The Development of Solar Parks scheme, launched in 2014, encourages the use of government-owned land for setting up solar parks with a capacity of 500 MW and above, aiming to complete these parks by 2025-26.
Carry trade requires an interest rate differential and currency stability, involving borrowing at low interest rates and investing in higher-yielding assets.
Open Market Operations (OMOs) are conducted by the RBI to adjust rupee liquidity by buying or selling government securities.
India and New Zealand have a free trade agreement aiming to double bilateral trade to $1.3 billion in the next five years, with India having a trade surplus in recent years.
Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks are required to maintain a Statutory Liquidity Ratio (SLR) as part of their regulatory requirements.
- Who
- UPSC Essentials, Reserve Bank of India (RBI), Ministry of Commerce and Industry
- What
- Daily subject-wise quiz on Economy, covering topics like solar parks, carry trade, OMOs, India-New Zealand trade, and SLR
- When
- Information pertains to various years, including 2024-25 and 2025-26
- Where
- India, New Zealand, and global financial markets
- Why
- To help UPSC aspirants revise important economic topics and stay updated on current economic policies and agreements
- Development of Solar Parks Scheme
- Launched in 2014, encourages use of government-owned waste or non-agricultural land, capacity 500 MW and above, proposed completion by 2025-26
- Carry Trade Requirements
- Requires interest rate differential and currency stability
- Open Market Operations (OMOs)
- RBI conducts sale/purchase of government securities to adjust rupee liquidity
- India-New Zealand Trade
- Bilateral trade was $1.3 billion in 2024-25, FTA aims to double trade in 5 years
- Statutory Liquidity Ratio (SLR)
- Required for Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks