GK in English

GK Chapterwise – CDS Previous Year Papers

Table of Contents

21. Fiscal Policy in India is formulated by

(a)the Reserve Bank of India
(b) the Planning Commission
(c) the Finance Ministry
(d) the Securities and Exchange Board of India
Ans: (c)
CDS Exam (II) 2016

22. Statement I Deficit financing does not lead to inflation if adopted in small doses.
Statement II Deficit financing is an often used tool for financing budgetary deficits. Codes:

(a)Both the Statements are individually true and Statement II is the correct explanation of Statement
(b) Both the Statements are individually true, but Statement II is not the correct explanation of Statement I
(c) Statement I is true, but Statement II is lalse
(d) Statement I is false, but Statement II is true
Ans: (b)

CDS (II) 2008

23. Match the following List I List II
(Five Year Plan) (Emphasis)
A. First 1. Food security and women empowerment
B. Second 2. Heavy industries
C. Fifth 3. Agriculture and community development
D. Ninth 4. Removal of poverty Codes:
A B C D

(a)1 2 4 3
(b) 1 4 2 3
(c) 3 2 4 1
(d) 3 4 2 1
Ans: (c)

CDS (I) 2010

24. Which of the fallowing are responsible for the decrease of per capita holding of cultivated land in India?
1. Low per capita income.
2. Rapid rate of increase of population.
3. Practice of dividing land equally among the heirs.
4. Use of traditional techniques of ploughing.
Select the correct answer using the codes given below

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

CDS (II) 2015

25. Consider the following statements
1. High growth will led to inflation.
2. High growth will lead to deflation.
Which of the statements given above is/are correct?

(a)Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)
CDS Exam (II) 2011

26. Which of the following measures should be taken when an economy is going through in inflationary pressures?
1. The direct taxes should be increased.
2. The interest rate should be reduced.
3. The public spending should be increased.
Select the correct answer using the codes given below

(a)Only 1
(b) Only 2
(c) 2 and 3
(d) 1 and 2
Ans: (a)

CDS (II) 2013

27. Which of the following statements is/ are correct?
1. NIFTY is based upon 50 firms in India.
2. NIFTY is governed and regulated by the Reserve Bank of India.
3. NIFTY does not trade in mutual funds.
Select the correct answer using the codes given below

(a)Only 1
(b) Only 2
(c) Only 3
(d) 1 and 3
Ans: (d)

CDS (I) 2017

28. When the productive capacity of the economic systems of a state is inadequate to create sufficient number of jobs, it is called

(a)seasonal unemployment
(b) structural unemployment
(c) disguised unemployment
(d) cyclical unemployment
Ans: (b)
CDS Exam (I) 2015

29. Which of the following occupations are included under secondary sector as per the national income accounts ?
1. Manufacturing
2. Construction
3. Gas and water supply
4. Mining and quarrying Select the correct answer using the codes given below

(a)1, 2, 3 and 4
(b) 1, 2 and 4
(c) 1, 2 and 3
(d) 3 and 4
Ans: (c)
CDS Exam (II) 2019

30. The sharp depreciation of rupee in the Forex market in the year 2011 was due to
1. flight to safety by foreign investors.
2. meltdown in European markets.
3. inflation in emerging market economies:
4. lag effect of monetary policy tightening.
Select the correct answer using the codes given below

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

CDS (II) 2012

31. The lower growth of coal production in India during 2011-
2012 was primarily due to
1. environmental restrictions.
2. non-availability of forestry clearance.
3. poor law and order situation in coal producing states.
4. excessive rainfall in coal mining areas.
Select the correct answer using the codes given below

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

CDS (I) 2007

32. Which one among the following is an appropriate description of deflation?

(a)it is a sudden fall in the value of a currency against other currencies
(b) It is a persistent recession in the economy
(c) It is a persistent fall in the general price level of goods and services
(d) It is fall in the rate of inflation over a period of time
Ans: (c)
CDS Exam (I) 2009

33. In the parlance of financial investment, the term bear denotes

(a)an investor, who feels that the price of a particular security is going to fall
(b) an investor, who expects the price of a particular share to rise
(c) a shareholder, who has an interest in a company, financially or otherwise
(d) any lender, whether by making a loan or buying a bond
Ans: (a)

CDS (I) 2018

34. Which of the following institutions was/were asked by the Government of India to provide official estimates of black
(unaccounted) money held by Indians, both in India and abroad?
1. National Institute of Public Finance and Policy.
2. National Council of Applied Economic Research.
3. National Institute of Financial Management.
Select the correct answer using the codes given below

(a)Only 1
(b) 1 and 2
(c) 2 and 3
(d) All of these
Ans: (d)

CDS (II) 2016

35. The concept which tries to ascertain the actual deficit in the revenue account after adjusting for expenditure of capital nature is termed as

(a)revenue deficit
(b) effective revenue deficit
(c) fiscal deficit
(d) primary deficit
Ans: (b)

CDS (I) 2008

36. Which of the following are included in the category of direct tax in India?
1. Corporation tax 2. Tax on income
3. Wealth tax 4. Customs duty
5. Excise duty Select the correct answer using the codes given below

(a)1, 2 and 3
(b) 1, 2, 4 and 5
(c) 2 and 3
(d) 1, 3, 4 and 5
Ans: (a)
CDS Exam (I) 2010

37. Which one among the following is a fixed cost to a manufacturing firm in the short run?

(a)Insurance on buildings
(b) Overtime payment to worker
(c) Cost of energy
(d) Cost of raw materials
Ans: (a)

CDS (I) 2015

38. The government can influence private sector expenditure by
1. taxation
2. subsidies
3. macro-economic policies
4. grants Select the correct answer using the codes given below

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

CDS (II) 2011

39. In India, the price of petroleum products has been deregulated mainly to

(a)reduce the burden of subsidies given to the oil companies
(b) discourage the exploration of oil reserves in the country
(c) discourage the demand for private vehicles
(d) curb the use of black money in the economy
Ans: (a)

CDS (I) 2013

40. Consider the following statements
1. The recent decision of Government of India to partially decontrol the sugar industry gives the millers the freedom to sell sugar in open market and removes their obligation to supply sugar at subsidised rates to ration shops.
2. C. Rangarajan panel also suggested decontrolling of sugar industry in India.
Which of the statements given above is/ are correct?

(a)Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)
CDS Exam (I) 2017

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