Important Questions of Economy for CDS II 2019

20 Important Questions of Economy for CDS II 2019

As CDS 2 2019 is approaching, every candidate has pulled up their socks to clear the written examination and get SSB Interview call letter. In this article, we would be providing you the 20 important Economy Questions for CDS II 2019 exam. Economy plays a key role in the General Awareness Paper and to qualify the written exam, a candidate must score good in this section. The level of difficulty of this section is difficult as compare to other sections like History, Polity, Geography, Science and Current Affairs.


20 Important Questions of Economy for CDS II 2019


1. Which among the following can not be called an ant inflationary measure?

A. Raising the Bank Rates 
B. Raising the Reserve Ratio Requirements 
C. Purchase of securities in the Open Markets 
D. Rationing of the Credit

Answer- C

2. Which among the following body regulates Mutual Funds in India? 

A. RBI 
B. SEBI 
C. NABARD 
D. AMFI

Answer- B

3. Economic Capital Framework, often seen in the news refers to:


A. It is the capital required to complete the pending infrastructure projects of the central government
B. It is the risk capital required by the central bank while taking into account different risks.
C. It is the foreign currency earning of the services sector in India.
D. It is the capital required to resolve India’s external debt owed by government entities

Answer- B

4. With reference to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), consider the following statements

1. It is a  is a multilateral convention initiated by Organisation for Economic Co-operation and Development.
2. India has not ratified the treaty yet.
3. It will ensure that profits are taxed where substantive economic activities generating the profits are carried out and where value is created

Which among the above statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 3 only

Answer- C

5. With respect to the National Defence Fund (NDF), consider the following statements

1. It is created by mandatory contribution by all the employees of Armed forces.
2. The fund is administered by an Executive Committee with the Prime Minister as the Chairperson and the Defence, Finance and Home Ministers as Members.

Which among the above statements is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Answer - B

6. In the context of ‘Economic census’, consider the following statements

1. It is launched in 1976 as a plan scheme.
2. It has been undertaken in every 10 years in the country.
3. It is been conducted by the Ministry of Statistics and Programme Implementation.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

Answer- C

7.  With regard to recently released IMD World Competitiveness Rankings, consider the following statements

1. It is used to evaluate a country’s ability to foster an environment where enterprises can achieve desirable sustainable growth, generate employment and increase its citizen’s welfare.
2. India increased its ranking this year compared to the previous year.

Which among the above statements is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Answer- C

8.  Which among the following statements is/are true regarding ‘ Population Research Centers (PRCs)’?

1. It works under the Ministry of Statistics and Programme Implementation.
2. They are provided 100 per cent central assistance in the form of grant-in-aid on a year-to-year basis.

Select the correct answer using the codes given below:

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Answer- B

9. With respect to Masala Bonds, consider the following statements

1. Through these funds would be raised from the overseas market in Indian rupees.
2. Only Government and public sector banks are eligible to issue Rupee denominated bonds overseas.
3. Money raised through such bonds can be used for any activities such as real estate activities, affordable housing projects, etc.

Which among the above statements is/are correct?

A. 1 only
B. 2 and 3 only
C. 3 only
D. 1 and 3

Answer- A

10. With regard to  Economic Census -2019, consider the following statements

1. Economic Census is launched in 1976 as a plan scheme.
2. All entrepreneurial units in the country which are involved in any economic activities of either agricultural or non-agricultural sector are included in the Economic census.
3. It is conducted by the Ministry of Statistics and Programme Implementation.

Which among the above statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3

Answer- D

11. Which among the following best describes RBI's  ‘Currency Chest'?

A.  It is the total count of total currency in circulation
B. It is the Reserve money with the RBI.
C. Special Drawing Right (SDR) of Indian With IMF
D. The branches of selected banks authorized by the RBI to stock rupee notes and coins.

Answer- D

12. With regard to the Shanghai Cooperation Organization (SCO), consider the following statements

1. It is a Eurasian political, economic, and military organization which was founded in 2001.

2. The SCO comprises eight member states presently.

3. China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan are the founding members of SCO.

Which among the above statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3

Answer- D

13.  With regard to  e-Vidhan Project, consider the following statements

1. It is a Mission Mode Project (MMP) that comes under the Digital India Programme.
2. Ministry of Electronics and Information Technology is the ‘Nodal Ministry’ for its implementation.
3. Himachal Pradesh is the first Digital Legislature of the country.

Which among the above statements is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3

Answer- C

14. International Religious Freedom 2019 report recently seen in the news is released by which among the following?

A. Amnesty International
B. United States Commission
C. United Nation Human Rights Council
D. World Economic Forum

Answer- B

15. Which among the following is correct about an Equity Fund? 

A. It gives fixed returns 
B. It invests primarily in shares
C. It invest in both debt and shares
D. It assures growth in value

Answer- B

16. Which of the following organization publishes the ‘Services Trade Restrictiveness Index’?

A.World Trade Organization (WTO)
B. Organisation for Economic Cooperation and Development (OECD)
C. World Bank
D. World Economic Forum (WEF)

Answer- B

17.   Which of the following statements is not correct about Ayushman Bharat Scheme?

A. Ayushman Bharat is a centrally sponsored scheme with the center’s share of 60 percent.
B. The scheme covers all investigations, medicine, pre-hospitalization expenses as well as pre-existing illnesses.
C. The benefits under the scheme are restricted to five persons in a family and age less than 70 years.
D. Beneficiaries under the scheme are selected using the data from the latest Socio-Economic Caste Census.

Answer- C

18. ‘Closing the Skills Gap’ project is an initiative of

A. World Bank
B. World Economic Forum
C. NITI Aayog
D. G-20

Answer- B

19. Which of the following statement correctly describes the term ‘Liquidity Coverage Ratio’ (LCR), often seen in the news?

A. It is a measure of the reserves that commercial banks are required to hold in the form of government bonds, gold, and similar liquid assets.
B. It is a measure of the reserves that banks need to hold in the form of cash.
C. It is a measure of highly liquid assets which can easily be converted into cash that banks are required to hold.
D. None of the statements given above are correct in this context.

Answer- C

20. Public Debt Management Cell (PDMC) is an office under the,

A. NITI Aayog
B. Reserve Bank of India
C. Department of Economic Affairs
D. Cabinet secretariat

Answer- C


Jai Hind !!

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