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GS Paper IUPSC Prelims 2024
Indian Economic Planning & Growth
Question No. 298Interactive Test Mode
00:00
+2-0.66

Q298. Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments?

Consider the following:

  1. Exchange-Traded Funds (ETF)
  2. Motor vehicles
  3. Currency swap Which of the above is/are considered financial instruments?
Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2024 • Indian Economy

Correct Answer: Option (D) — 1 and 3 only

Concept & Option Breakdown

Standard Reference Verified

A financial instrument is a monetary contract between parties that creates an asset for one party and a financial liability or equity instrument for another.

  • 1 is correct: Exchange-Traded Funds (ETFs) are marketable financial securities that track an index, commodity, or basket of assets.
  • 2 is incorrect: Motor vehicles are physical tangible capital goods/consumer durables, not financial contracts or monetary claims.
  • 3 is correct: A currency swap is a derivative financial contract in which two counterparties exchange principal and interest payments in different currencies.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2024 (Q298)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — 1 and 3 only

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Frequently Asked Questions — UPSC Prelims 2024 Q298

What is the official answer for UPSC Prelims 2024 GS Paper I Question 298 (Indian Economy)?

The official UPSC answer key for this 2024 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "1 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2024 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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