CDS Indian Economy 1 — Questions and Answers
Question 1: Which Five-Year Plan in India gave priority to heavy industries and was based on the Mahalanobis model?
- First Five-Year Plan
- Second Five-Year Plan (Correct answer)
- Third Five-Year Plan
- Fourth Five-Year Plan
Correct answer: Second Five-Year Plan
The Second Five-Year Plan (1956–1961) was based on P.C. Mahalanobis's model and emphasised the development of heavy industries.
Question 2: The Reserve Bank of India was nationalised in which year?
- 1935
- 1947
- 1949 (Correct answer)
- 1955
Correct answer: 1949
The Reserve Bank of India was established in 1935 but was nationalised on 1 January 1949 after independence.
Question 3: What does the term 'NIFTY 50' refer to?
- 50 largest public sector banks in India
- Benchmark stock market index of the National Stock Exchange (Correct answer)
- Top 50 Fortune companies operating in India
- Government scheme covering 50 key infrastructure projects
Correct answer: Benchmark stock market index of the National Stock Exchange
NIFTY 50 is the benchmark broad-based stock market index of the National Stock Exchange of India comprising 50 actively traded stocks.
Question 4: Which body in India is responsible for preparing the Union Budget?
- Reserve Bank of India
- NITI Aayog
- Ministry of Finance (Correct answer)
- Planning Commission
Correct answer: Ministry of Finance
The Union Budget is prepared by the Department of Economic Affairs under the Ministry of Finance, Government of India.
Question 5: The Green Revolution in India during the 1960s primarily benefited which crop?
- Rice and Wheat (Correct answer)
- Cotton and Jute
- Pulses and Oilseeds
- Sugarcane and Maize
Correct answer: Rice and Wheat
The Green Revolution primarily transformed production of rice and wheat through high-yielding variety seeds, irrigation, and fertilisers.
Question 6: What is the full form of GDP?
- Gross Domestic Product (Correct answer)
- General Development Plan
- Gross Development Programme
- Government Domestic Projection
Correct answer: Gross Domestic Product
GDP stands for Gross Domestic Product, which measures the total monetary value of all goods and services produced within a country in a specific period.
Question 7: Which sector is the largest employer in India?
- Industrial sector
- Service sector
- Agricultural sector (Correct answer)
- Mining sector
Correct answer: Agricultural sector
The agricultural sector employs the largest share of India's workforce, accounting for roughly 42–45% of total employment.
CDS Indian Economy 1
Which Five-Year Plan in India gave priority to heavy industries and was based on the Mahalanobis model?