Prelims Mock Test January 2026

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General Studies – Paper I

Current Affairs Special (February 2026)

Time Allowed: 2 Hours
Maximum Marks: 80 (40 Questions × 2 Marks each)
Negative Marking: 1/3rd of marks deducted for wrong answer

QUESTION PAPER

1. With reference to Capital Expenditure (Capex), consider the following statements:

  1. It leads to the creation of long-term productive assets.
  2. It includes subsidies and salaries.
  3. It has a higher multiplier effect compared to revenue expenditure.

Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

2. Fiscal deficit is:

(a) Total expenditure minus total revenue including borrowings
(b) Total expenditure minus total receipts excluding borrowings
(c) Revenue deficit minus capital receipts
(d) Primary deficit plus interest payments

3. The “crowding-in effect” refers to:

(a) Public borrowing reducing private investment
(b) Public spending encouraging private investment
(c) Increased imports
(d) Inflation due to taxation

4. Semiconductor ATMP facilities relate to:

(a) Mining rare earth minerals
(b) Chip design software
(c) Final stage processing of semiconductor chips
(d) Manufacturing of lithography tools

5. Domestic semiconductor manufacturing strengthens:

  1. National security
  2. Digital sovereignty
  3. Agricultural productivity

Select the correct answer:
(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

6. The Raman Effect involves:

(a) Absorption of sound waves
(b) Change in wavelength of scattered light
(c) Nuclear radiation
(d) Magnetic flux variation

7. Applications of the Raman Effect include:

  1. Forensic analysis
  2. Chemical composition testing
  3. DNA sequencing

(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3
(d) 2 only

8. HPV vaccination primarily prevents:

(a) Ovarian cancer
(b) Cervical cancer
(c) Lung cancer
(d) HIV/AIDS

9. Preventive healthcare policies reduce:

(a) Long-term public health expenditure
(b) GDP growth
(c) Capital formation
(d) Tax revenue

10. Inland waterways are preferred because they:

(a) Are faster than airways
(b) Are fuel-efficient for bulk transport
(c) Require no maintenance
(d) Increase carbon emissions

11. Development of inland waterways in Northeast India supports:

(a) Blue Revolution
(b) Act East Policy
(c) Green Revolution
(d) Operation Flood

12. Foreign Exchange Reserves help in:

  1. Stabilizing currency
  2. Managing balance of payments
  3. Directly controlling unemployment

(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

13. A decline in forex reserves may lead to:

(a) Currency appreciation
(b) External vulnerability
(c) Higher exports automatically
(d) Lower imports compulsorily

14. Multi-factor authentication enhances:

(a) Exchange rate stability
(b) Cybersecurity
(c) Monetary supply
(d) Trade surplus

15. Digital Public Infrastructure promotes:

(a) Financial inclusion
(b) Territorial expansion
(c) Climate change
(d) Import substitution

16. Article 6 of the Paris Agreement deals with:

(a) Carbon markets
(b) Fossil fuel ban
(c) Nuclear disarmament
(d) Trade liberalization

17. Carbon credits represent:

(a) Permission for unlimited emissions
(b) Measured emission reductions
(c) Fossil fuel subsidies
(d) Export quotas

18. High GDP growth generally indicates:

(a) Economic contraction
(b) Increase in output
(c) Decrease in tax base
(d) Lower consumption

19. GDP under expenditure method includes:

  1. Consumption
  2. Investment
  3. Government spending
  4. Net exports

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4

20. Primary deficit equals:

(a) Fiscal deficit minus interest payments
(b) Revenue deficit minus capital receipts
(c) Fiscal deficit plus borrowings
(d) Revenue receipts minus expenditure

21. Persistent high fiscal deficit may cause:

  1. Inflation
  2. Higher public debt
  3. Currency stability

(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

22. Indigenous defence platforms contribute to:

(a) Strategic autonomy
(b) Import dependence
(c) Trade deficit
(d) Revenue deficit

23. Oil price volatility can impact:

  1. Inflation
  2. Trade deficit
  3. Fiscal deficit

(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3

24. The capital expenditure multiplier refers to:

(a) Impact of infra spending on GDP
(b) Tax collection efficiency
(c) Exchange rate adjustment
(d) Export competitiveness

25. Revenue expenditure includes:

  1. Salaries
  2. Interest payments
  3. Infrastructure creation

(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 3 only

26. Balance of Payments consists of:

(a) Current and Capital Account
(b) Fiscal and Revenue Account
(c) Trade and Budget Account
(d) Capital and Budget Account

27. A widening trade deficit implies:

(a) Exports exceed imports
(b) Imports exceed exports
(c) Balanced trade
(d) Reduced foreign exchange

28. Semiconductor supply chains are vulnerable due to:

(a) Geographic concentration
(b) Low demand
(c) Excess production
(d) Lack of innovation

29. Inland waterways reduce:

(a) Logistics costs
(b) River pollution
(c) Agricultural output
(d) Urbanization

30. Preventive vaccination programs improve:

(a) Human capital
(b) Trade deficit
(c) Capital outflow
(d) Fiscal contraction

31. Which of the following affects exchange rate stability?

  1. Forex reserves
  2. Inflation differential
  3. Interest rates

(a) 1 only
(b) 1 and 2 only
(c) 1, 2 and 3
(d) 2 only

32. Digital payment security upgrades primarily reduce:

(a) Cyber fraud
(b) Fiscal deficit
(c) Trade imbalance
(d) GDP growth

33. Capital receipts include:

  1. Borrowings
  2. Disinvestment proceeds
  3. Tax revenue

(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3

34. India’s climate commitments under Paris Agreement aim at:

(a) Increasing coal dependency
(b) Reducing emission intensity
(c) Eliminating agriculture
(d) Promoting fossil subsidies

35. Semiconductor chips are essential for:

  1. Defence systems
  2. Smartphones
  3. Electric vehicles

(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

36. Which of the following increases fiscal stress?

(a) High subsidies
(b) Rising GDP
(c) Export growth
(d) Tax compliance

37. Inland waterways are most suitable for transporting:

(a) Perishable goods urgently
(b) Bulk commodities
(c) IT services
(d) High-speed passengers

38. Strong forex reserves increase:

(a) External vulnerability
(b) Investor confidence
(c) Currency instability
(d) Fiscal deficit

39. Multi-factor authentication includes:

  1. Something you know
  2. Something you have
  3. Something you are

(a) 1 and 2 only
(b) 2 only
(c) 1, 2 and 3
(d) 1 only

40. The main objective of digital public infrastructure is:

(a) Financial inclusion and efficient service delivery
(b) Military expansion
(c) Trade barriers
(d) Currency devaluation

✅ ANSWER KEY

  1. (a)
  2. (b)
  3. (b)
  4. (c)
  5. (a)
  6. (b)
  7. (a)
  8. (b)
  9. (a)
  10. (b)
  11. (b)
  12. (a)
  13. (b)
  14. (b)
  15. (a)
  16. (a)
  17. (b)
  18. (b)
  19. (d)
  20. (a)
  21. (a)
  22. (a)
  23. (d)
  24. (a)
  25. (a)
  26. (a)
  27. (b)
  28. (a)
  29. (a)
  30. (a)
  31. (c)
  32. (a)
  33. (a)
  34. (b)
  35. (c)
  36. (a)
  37. (b)
  38. (b)
  39. (c)
  40. (a)
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