CDS (II) 2017 Exam: GK Practice Question – Indian Economy Set 01

This Indian Economy practice questions set cover important aspects like – schemes, important committees, budget, taxation reforms, etc.

Created On: Oct 25, 2017 16:17 IST
CDS (II) 2017 Exam: GK Practice Question – Indian Economy Set 01
CDS (II) 2017 Exam: GK Practice Question – Indian Economy Set 01

The UPSC will conduct the CDS (II) Exam 2017 on 19 November 2017. For the benefit of aspirants, Jagran Josh is providing Indian Economy practice questions. The questions given below cover important aspects like – schemes, important committees, budget, taxation reforms, etc. The answers along with explanations as given below will help the candidates in understanding the nature of the questions in the exam.

1. Which one of the following is not a component of Revenue Receipts of the Union Government?

(a) Corporate tax receipts
(b) Dividends and profits
(c) Disinvestment receipts
(d) Interest receipts

Answer. C

Government receipts which either create liabilities or reduce assets are called capital receipts. Whereas revenue receipts refer to those receipts which neither create any liability nor cause any reduction in the assets of the government. Since disinvestment causes reduction in assets, it is treated as capital receipt.

2. TRIPS Agreement pertains to

(a) international tariff regime
(b) intellectual property protection
(c) international practices on trade facilitation
(d) international taxation of property

Answer. B

TRIPS stands for Trade Related Aspects of Intellectual Property Rights. The agreement lays down minimum standards for protection and enforcement of intellectual property rights in member countries which are required to promote effective and adequate protection of intellectual property rights with a view to reducing distortions and impediments to international trade. The TRIPS Agreement is an outcome of negotiations of the WTO member-countries.

3. What is India’s rank in the World Economic Forum's Global Competitive Index (GCI) 2017-18?

a) 37
b) 38
c) 39
d) 40

Answer. D

India has been positioned as the 40th most competitive economy on the World Economic Forum's Global Competitive Index (GCI) 2017-18. It has slipped one place from the last year ranking. Switzerland is at the top of the world global index followed by US Singapore at the second and third places, individually. In total, 137 countries surveyed for the index by the WEF.

CDS (II) 2017 Exam: GK Practice Questions on Current Affairs – Set 01

4. Who was appointed as the first chairman of the Banks Board Bureau?

a) Vinod Rai
b) Arvind Subramanian
c) Amitabh Kant
d) YV Reddy

Answer. A

Vinod Rai was appointed as the first chairman of the Banks Board Bureau (BBB) in February 2017. He is the former CAG of India. Arvind Subramanian is the current Chief Economic Advisor to the Union Government. Amitabh Kant is the CEO of the NITI Aayog. YV Reddy is a former IAS officer and the ex-RBI chairperson.

5. Recently approved SANKALP & STRIKE schemes are related to –

a) Energy Reforms
b) Skill Development
c) Modernisation of armed forces
d) Agriculture development

Answer. B
The Cabinet Committee on Economic Affairs (CCEA) on 11 October 2017 approved two World Bank supported schemes Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening for Industrial Value Enhancement (STRIVE) to boost Skill India Mission.
SANKALP is Rs 4455 crore centrally sponsored scheme including Rs 3300 crore loan support from World Bank whereas STRIVE is a Rs 2200 crore central sector scheme with half of the scheme outlay as World bank loan assistance.

6. Which bank was recently added to the List of Domestic Systemically Important Banks by the RBI?

a) Axis Bank
b) HDFC Bank
c) YES Bank
d) Kotak Mahindra Bank

Answer. B

Reserve Bank of India (RBI) has released its 2017 list of the Domestic Systemically Important Banks (D-SIBs). The list identifies private sector lender HDFC Bank Ltd as a D-SIB. With this inclusion in the list, the HDFC has joined State Bank of India (SBI) and ICICI Bank Ltd, which has been tagged as D-SIBs or too-big-to-fail for the consecutive third year.

7. Who among the following is not a member of the RBI’s Monetary Policy Committee?

a) RBI Governor
b) RBI Deputy Governor in charge of monetary policy
c) One official nominated by the RBI Board
d) NITI Aayog CEO

Answer. D

The Monetary Policy Committee (MPC) is a committee of the Central Bank in India (Reserve Bank of India), headed by its Governor, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level. The MPC replaces the current system where the RBI governor, with the aid and advice of his internal team and a technical advisory committee, has complete control over monetary policy decisions.

The Central Government constitutes the MPC through a notification in the Official Gazette. Altogether, the MPC will have six members, - the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board and the remaining three members would represent the Government of India.

CDS (II) 2017 Exam: English Practice Questions - Antonyms Set 02

8. Which of the following was not subsumed under the GST?

a) Central Excise Duty
b) Service Tax
c) Octroi and Entry Tax
d) Income Tax

Answer. D

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. While the GST is an indirect tax, Income Tax is a direct tax and not subsumed by it.

9. In which of the following sectors, 100% FDI is allowed through automatic route?

1. Broadcasting
2. Print Media
3. Civil Aviation – Airports
Identify the correct code
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

Answer. C
At present, only 26% FDI is allowed through automatic route in the print media sector.

10. The Uday Kotak Committee is related to

a) Corporate Governance
b) Taxation Reforms
c) Banking Reforms
d) Digital Literacy

Answer. A
In October 2017, the 23-member committee on corporate governance submitted its 177-page report to the Securities and Exchange Board of India (SEBI). The committee was headed by Kotal Mahindra Bank MD Uday Kotak.

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