UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank

done Fiscal and Monetary Policy Total Questions - 102

• question_answer1)
  The process of budget making after re-evaluating every item of expenditure in every financial year is known as-
  A)
  Performance Budgeting done clear
  B)
  Deficit Budgeting done clear
  C)
  Zero Based Budgeting done clear
  D)
  Fresh Budgeting done clear
  View Solution play_arrow

• question_answer2)
        Which of the following is not viewed as a national debt? 
  A)
  Provident Fund done clear
  B)
  Life Insurance Policies done clear
  C)
  National Saving Certificate done clear
  D)
  Long-term Government Bonds done clear
  View Solution play_arrow

• question_answer3)
   Tarapore Committee submitted its report on "Full Convertibility on Rupee" in-
  A)
  Current account done clear
  B)
  Capital account done clear
  C)
  Both in current as well as in capital account done clear
  D)
  Special Drawing Rights (SDRs) done clear
  View Solution play_arrow

• question_answer4)
        CENVAT is related to-
  A)
  Sales Tax  done clear
  B)
         Excise Duty done clear
  C)
  Custom Duty  done clear
  D)
         Service Tax done clear
  View Solution play_arrow

• question_answer5)
        Plan expenditure in India is met by-
  A)
  Internal debt and other resources done clear
  B)
  Assistance from Aid India Club done clear
  C)
  Assistance from IMF done clear
  D)
  Assistance from OECD countries done clear
  View Solution play_arrow

• question_answer6)
        High fiscal deficit is cause for concern for any economy. What does it denote?
  A)
  It is a measure of the borrowing of an economy done clear
  B)
  It is total expenditure less total receipts excluding borrowings done clear
  C)
  It reflects the decrease in tax collections for the year done clear
  D)
  It means the lack of liquidity and earnings for the economy. done clear
  View Solution play_arrow

• question_answer7)
        With reference to the Finance Commission of India, which of the following statements is correct?
  A)
  It encourages the inflow of foreign capital for infrastructure development done clear
  B)
  It facilitates the proper distribution of finances among the Public Sector Undertakings done clear
  C)
  It ensures transparency in financial administration done clear
  D)
  None of the statements [a], [b] and [c] given above is correct in his context done clear
  View Solution play_arrow

• question_answer8)
        Which one at the following is responsible for the preparation and presentation of Union Budget to the Parliament?
  A)
  Department of Revenue done clear
  B)
  Department of Economic Affairs done clear
  C)
  Department of Financial Services done clear
  D)
  Department of Expenditure done clear
  View Solution play_arrow

• question_answer9)
        In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?
  A)
  Service tax         done clear
  B)
         Personal income tax done clear
  C)
  Excise duty        done clear
  D)
         Corporation tax done clear
  View Solution play_arrow

• question_answer10)
        Fiscal deficit means:
  A)
  Total receipts minus expenditure done clear
  B)
  Total receipts minus interest payments on external debt done clear
  C)
  Revenue receipts minus ex-penditure done clear
  D)
  Revenue receipts minus defense expenditure done clear
  View Solution play_arrow

• question_answer11)
        Value-added tax is
  A)
  ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale done clear
  B)
  ad valorem tax on final consumption collected at manufacturing level done clear
  C)
  tax on final consumption collected at the consumption stage done clear
  D)
  special tax levied by states on products from other states done clear
  View Solution play_arrow

• question_answer12)
        States' debt does not include:
  A)
  loos from State Bank of India done clear
  B)
  loans from the Central government done clear
  C)
  provident fund done clear
  D)
  treasury bills issued to inter-national financial institutions done clear
  View Solution play_arrow

• question_answer13)
        An instrument of qualitative credit control is
  A)
  Open market operations done clear
  B)
  variable reserve ratio done clear
  C)
  Bank rate done clear
  D)
  Credit rationing done clear
  View Solution play_arrow

• question_answer14)
        Budget deficit is:
  A)
  excess of total expenditure including loans net of lending over revenue receipts done clear
  B)
  difference between revenue receipts and revenue expenditure done clear
  C)
  difference between all receipts and all expenditure done clear
  D)
  fiscal deficit less interest payments done clear
  View Solution play_arrow

• question_answer15)
        Current account in the Balance of Payment comprise is
  A)
  difference of total exports and imports in one year done clear
  B)
  invisible account like tourism, shipping, insurance, etc. done clear
  C)
  transactions like net external assistance, NRI deposits, etc. done clear
  D)
  trade balance plus invisible balance done clear
  View Solution play_arrow

• question_answer16)
        Fiscal stability means that, other things remaining constant
  A)
  debt-GDP ratio declines over time done clear
  B)
  both debt and GDP decrease over time done clear
  C)
  debt and GDP increase at the same rate done clear
  D)
  debt increases but GDP remains the same done clear
  View Solution play_arrow

• question_answer17)
        Which is incorrect about convertibility?
  A)
  Exchange rate should be based on forces of demand and supply. done clear
  B)
  Exchange rate should show the strength of the economy. done clear
  C)
  Discourage black market transactions. done clear
  D)
  RBI would become a direct player. done clear
  View Solution play_arrow

• question_answer18)
        ____is not a non-Plan expenditure?
  A)
  Interest payment done clear
  B)
  Subsidies done clear
  C)
  Central assistance for states and UT plans done clear
  D)
  Defense expenditure done clear
  View Solution play_arrow

• question_answer19)
        Which one of the following statements regarding the levying, collecting, and distribution of Income Tax is correct?
  A)
  The Union levies, collects, and distributes the proceeds of income tax between itself and the states. done clear
  B)
  The Union levies, collects, and keeps all the proceeds of income tax itself. done clear
  C)
  The Union levies and collects the tax but all the proceeds are distributed among the states done clear
  D)
  Only the surcharge levied on income tax is shared between the Union and the states. done clear
  View Solution play_arrow

• question_answer20)
        The diagram shows a relationship between inflation and unemployment for an economy. Which of the following policies would move the economy from A to B?            
  A)
  Reduce interest rate and increase income tax rates done clear
  B)
  Reduce interest rates and decrease income tax rates done clear
  C)
  Increase interest rates and decrease income tax rates done clear
  D)
  Increase interest rates and increase Income tax rates done clear
  View Solution play_arrow

• question_answer21)
        If a government budgets for a surplus and there is an unexpected increase in the level of economic activity, which of the following is likely to occur?
  A)
  There will be an increase in tax revenues and an increase in the budget surplus done clear
  B)
  There will be an increase in tax revenues and a decrease in the budget done clear
  C)
  There will be a decrease in tax revenues and an increase in the budget surplus done clear
  D)
  There will be a decrease in tax revenues and a decrease in the budget surplus done clear
  View Solution play_arrow

• question_answer22)
        In India, deficit financing is used for raising resources for
  A)
  economic development done clear
  B)
  redemption of public debt done clear
  C)
  adjusting the balance of payments done clear
  D)
  reducing the foreign debt done clear
  View Solution play_arrow

• question_answer23)
        Which one of the following is the correct statement? Service tax is a/an:
  A)
  direct tax levied by the Central Government. done clear
  B)
  indirect tax levied by the Central Government. done clear
  C)
  direct tax levied by the State Government. done clear
  D)
  indirect tax levied by the State Government. done clear
  View Solution play_arrow

• question_answer24)
        The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:
  A)
  SBR (Statutory Bank Ratio) done clear
  B)
  SLR (Statutory Liquid Ratio) done clear
  C)
  CBR (Central Liquid Reserve) done clear
  D)
  CLR (Central Liquid Reserve) done clear
  View Solution play_arrow

• question_answer25)
        The sales tax you pay while purchasing a toothpaste is a
  A)
  tax imposed by the Central Government done clear
  B)
  tax imposed by the Central Government but collected by the State Government done clear
  C)
  tax imposed by the State Government but collected by the Central Government done clear
  D)
  tax imposed and collected by the State Government done clear
  View Solution play_arrow

• question_answer26)
        According to the provisions of the Fiscal Responsibility and Budget Management Act., 2003 and FRBM Rules, 2004, the Government is under obligation to present three statements before the parliament along with the Annual Budget. Which one of the following is not one of them?
  A)
  Macroeconomic Framework Statement done clear
  B)
  Fiscal Policy Strategy Statement done clear
  C)
  Medium-term Fiscal Policy Statement done clear
  D)
  Statement showing Short term Fiscal Policy done clear
  View Solution play_arrow

• question_answer27)
        As per the Economic Survey 2007-2008, which one of the following is the largest source of revenue of the Government of India?
  A)
  Excise Duty       done clear
  B)
  Personal income Tax done clear
  C)
  Corporation Tax   done clear
  D)
  Customs Duties done clear
  View Solution play_arrow

• question_answer28)
        Fiscal Policy in India is formulated by
  A)
  the Reserve Bank of India done clear
  B)
  the Planning Commission done clear
  C)
  the Finance Ministry done clear
  D)
  the Securities and Exchange Board of India done clear
  View Solution play_arrow

• question_answer29)
        Corporation tax is imposed by
  A)
  State Government done clear
  B)
  Central Government done clear
  C)
  Local Government done clear
  D)
  State as well as Central Government done clear
  View Solution play_arrow

• question_answer30)
        Convertibility of rupee implies                                                                                           [IAS Prelims 2015]
  A)
  being able to convert rupee notes into gold done clear
  B)
  allowing the value of rupee to be fixed by market forces done clear
  C)
  freely permitting the conversion of rupee to other currencies and vice versa done clear
  D)
  developing an international market for currencies in India done clear
  View Solution play_arrow

• question_answer31)
        When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?                                                                                                                [IAS Prelims 2015]
  A)
  India?s GDP growth rate increases drastically done clear
  B)
  Foreign Institutional Investors may bring more capital into our country done clear
  C)
  Scheduled Commercial Banks may cut their lending rates done clear
  D)
  It may drastically reduce the liquidity to the banking system done clear
  View Solution play_arrow

• question_answer32)
  Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR? [IAS Prelims 2016]
  A)
  Ruble                done clear
  B)
  Rand done clear
  C)
  Indian Rupee  done clear
  D)
  Renminbi done clear
  View Solution play_arrow

• question_answer33)
        After 1947,   development and non-development expenditures have increased, the increase in the former being more. Non-development expenditure involves

  1.  interest payments

  2.  subsidies

  3.  defence

  4.  Irrigation

  A)
  1 and 2   done clear
  B)
                     1 only done clear
  C)
  1, 2 and 3          done clear
  D)
         2, 3 and 4 done clear
  View Solution play_arrow

• question_answer34)
        Consider the following statements in respect of Financial Commission:

  1. It is mandatory to appoint a Finance Commission every five years.

  2. Finance Commission lays down the principles governing grant-in-aid to states.

  3. Finance Minister is the ex-officio Chairperson of the Finance Commission.

  4. The award given by the Finance Commission is binding on Central and State governments.

  Which of the above statements are correct?
  A)
  1, 2, 3 and 4   done clear
  B)
         1, 2 and 4 done clear
  C)
  1, 2 and 3          done clear
  D)
         1, 3 and 4 done clear
  View Solution play_arrow

• question_answer35)
        Increase in net RBI credit for Central Government represents-

  1. Budgetary Deficit

  2. Revenue Deficit

  3. Fiscal Deficit

  4. Monetised Deficit

  Choose the right option
  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only             done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer36)
        Which of the following is the main aim of Indian Monetary Policy?

  1. Control inflationary pressure

  2. Boost economic development

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  1 and 2       done clear
  D)
         Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer37)
  With reference to the Indian Public Finance, consider the following statements.

  1. External liabilities reported in the Union Budget are based on historical exchange rates.

  2. The continued high borrowing has kept the real interest rates high in the economy.

  3. The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect on  private investments.

  4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union  Government.

  Which of these statements are correct?
  A)
  1, 2 and 3          done clear
  B)
  1 and 4 done clear
  C)
  2, 3 and 4   done clear
  D)
  1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer38)
        Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?

  1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.

  2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend.

  3. Devolution of a specified share of central taxes to local bodies as grants.

  Select the correct answer using the codes given below
  A)
  1 only               done clear
  B)
         2 and 3 done clear
  C)
  1 and 3             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer39)
        Which statements about indirect taxes in India are true?

  1. Yield from indirect taxes is more than that from direct taxes.

  2. Indirect taxes have grown faster than direct taxes after 1947.

  3. Indirect taxes are ultimately paid for by persons who do not actually pay taxes to the government.

  4. Increase in indirect taxes is good in a developing country.

  A)
  1, 2 and 4          done clear
  B)
         1 and 2 done clear
  C)
  2 only                           done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer40)
  Which are the pre-requisites required by the Indian economy to implement convertibility of rupee on trade account as suggested by the Rangarajan Committee?

  1. There should be comfortable foreign exchange resources

  2. Low rate of inflation.

  3. Mechanism by which me government can pass on the changes in the price of imported goods to the consumers

  4. SLR and CRR must below.

   
  A)
  1 and 2             done clear
  B)
  1, 2 and 3 done clear
  C)
  1 and 4             done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer41)
        Consider the following statements Full convertibility of the rupee may mean

  1. Its free float with the international currencies.

  2. Its direct exchange with any other international currency at any prescribed place inside and outside the country.

  3. It acts just like any other international currency.

  Which of these statements are correct?
  A)
  1 and 2             done clear
  B)
         1 and 3 done clear
  C)
  2 and 3             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer42)
        Which of the following is/are type of Budget?

  1. Capital budget

  2. Revenue budget

  A)
  1 only    done clear
  B)
                     1 and 2 done clear
  C)
  2 only             done clear
  D)
         Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer43)
        Which of the following are among the non-plan expenditures of the Government of India?

  1. Defence expenditure

  2. Subsidies

  3. All expenditures linked with the previous plan periods

  4. Interest payment

  Codes:
  A)
  1 and 2             done clear
  B)
         1 and 3 done clear
  C)
  2 and 4             done clear
  D)
         1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer44)
        Consider the following statements:

  The Indian rupee is fully convertible:

  1. in respect of Current Account of Balance of payment

  2. in respect of Capital Account of Balance of payment

  3. into gold

  Which of these statements is/are correct?
  A)
  1 alone              done clear
  B)
         3 alone done clear
  C)
  1 and 2             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer45)
        With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

  1. Defence expenditure

  2. Interest payments

  3. Salaries and pensions

  4. Subsidies

  Select the correct answer using the code given below.
  A)
  1 only               done clear
  B)
         2 and 3 only done clear
  C)
  1, 2, 3 and 4  done clear
  D)
         None done clear
  View Solution play_arrow

• question_answer46)
  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   done clear
  B)
  1, 2, 4 and 5 done clear
  C)
  2 and 3           done clear
  D)
  1, 3, 4 and 5 done clear
  View Solution play_arrow

• question_answer47)
        Which of the following refers to mat part of deficit for which the government borrows from the RBI?

  1.  Primary deficit

  2.  Secondary deficit

  3.  Regulatory deficit

  4.  Monetised deficit

  A)
  1 only   done clear
  B)
         1 and 2 done clear
  C)
  3 only done clear
  D)
                                 4 only done clear
  View Solution play_arrow

• question_answer48)
        Which of the following statements is/are correct in terms of Direct and Indirect taxes?

  1. Excise duty and sales tax are examples of indirect taxes

  2. Taxes like income tax and property tax are direct taxes

  3. There is no difference between Direct and Indirect tax

  Select the correct answer using the code given below:
  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  1 and 2             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer49)
        Which of the following refers to the freedom for firms and residents to freely buy into overseas assets?

  1. Capital Account Consumption

  2. Capital Across Convertibility

  3. Capital Account Continuity

  4. Capital Account Convertibility

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer50)
        Which of the following refers to the RBI buying and selling eligible securities to regulate money supply?

  1. Repo and Reverse Repo

  2. Open Market Operations

  3. Response and Reverse Repo

  4. Relative Market Operations

  A)
  1 and 2             done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 4 done clear
  View Solution play_arrow

• question_answer51)
        Which of the following is/are the major Objectives of Deficit financing?

  1. Used as an instrument of economic policy

  2. It is used as a tool for meeting financial needs of government

  3. Used for the mobilization of surplus, non-utilized and idle resources in the economy

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer52)
        Which of the following statements is incorrect in regards to Black money?

  1. Hawala market has deep roots with this black money

  2. It is unaccounted money which is concealed from tax authorities

  3. All legal economic activities are dealt with this Black Money

  4. It puts an adverse pressure on equitable distribution of wealth and income in the economy

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 4 done clear
  View Solution play_arrow

• question_answer53)
        Which of the following is the tax imposed on commodities imported into India (import duty) or those exported from India (export duty)?

  1. Customs duty

  2. Central excise duty

  3. Incorporate duty

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         2 and 3 done clear
  View Solution play_arrow

• question_answer54)
        Which among the following statements is incorrect in regards to statutory liquid ratio?

  1. Statutory liquid ratio refers to the amount that the commercial banks require to maintain in the form of cash, or gold or govt. approved securities before providing credit to the customers

  2. Statutory liquid ratio is determined and maintained by RBI in order to control the expansion of bank credit

  3. At present, the SLR is 4 %

  4. It is determined as percentage total demand and percentage of time liabilities

  A)
  1 only                           done clear
  B)
  1 and 2 done clear
  C)
  3 only               done clear
  D)
         None of the above done clear
  View Solution play_arrow

• question_answer55)
        Which of the following statements is/are correct in regards to Revenue budget?

  1. It consists of all capital receipts and expenditure such as domestic and foreign loans loan repayment foreign and etc.

  2. It consists of all current receipts such as taxation dividends of public sector units (PSU's) and expenditure of the government

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  1 and 2             done clear
  D)
         Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer56)
        With reference to 'Central excise duty', which of the following statements is/are correct?

  1. Commodities on which state governments impose excise duties are exempted from the central excise duty

  2. In recent years large number of goods has come under excise duty. Moreover, the rates of these duties have also been increasing

  3. Commodities which are produced within the country levied by central excise duty

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer57)
        Mobilization of resources and channelizing the same for productive investment is the primary purpose of

  1.  Expenditure

  2. VAT

  3.  Taxation

  4. CRR

  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 4 done clear
  View Solution play_arrow

• question_answer58)
  Which of the following is the process of bridging the gap between the revenue and expenditure?

  1. Multiple financing

  2. Bridge financing

  3. Accurate financing

  4. Deficit financing

   
  A)
  1 only               done clear
  B)
  2 only done clear
  C)
  3 only               done clear
  D)
  4 only done clear
  View Solution play_arrow

• question_answer59)
        In which year was Service tax introduced?

  1. 1983-84

  2. 1994-95

  3. 1967-68

  4. 2003-2004

  A)
  I only                done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer60)
        Which of the following means rates of tax increase for increasing values or volumes on which the tax is levied

  1. Progressive tax

  2. Proportional tax

  3. Regressive tax

  4. Indirect tax

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 4 done clear
  View Solution play_arrow

• question_answer61)
        Which of the following is not a technique of Deficit financing?

  1. Internal Borrowings

  2. Counting Currency

  3. Printing Currency

  4. External aid and borrowings

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  2 and 3             done clear
  D)
         1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer62)
        Where was VAT introduced?

  1. France

  2. USA

  3. Australia

  4. China

  A)
  1 only                           done clear
  B)
  1 and 2 done clear
  C)
  3 only             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer63)
        Which of the following taxes is the one by which the revenue collected rises proportionally with income?

  1. Regressive tax

  2. Progressive tax

  3. Corporate tax

  4. Proportional tax

  A)
  1 only done clear
  B)
                                 2 only done clear
  C)
  3 only               done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer64)
        Which of the following statements is/are correct with reference to Primary deficit?

  1. India started using this term since 1997-98

  2. Primary deficit is fiscal deficit minus interest payments

  3. It shows the current state of government finances

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer65)
        In the context of economic liberalization, which of the following is/are the major themes of the fiscal policy?

  1. A deliberate move to a regime of reasonable direct tax rates and better administration and enforcement

  2. A systematic effort to simplify tax structure and tax laws

  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  1 and 2             done clear
  D)
         Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer66)
        With reference to ?Cash Reserve Ratio?, which of the following statements is/are correct?

  1. The RBI varies Cash Reserve Ratio to change the liquidity of market

  2. CRR is subject to frequent changes as RBI intervenes from time to time to correct monetary or exchange rate imbalances

  3. CRR currently is 4%

  4. RBI is empowered to fix the CRR at a rate ranging between three per cent and 15 per cent

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer67)
  Which of the following statements is incorrect about Repo and Reverse Repo?

  1. At present, the repo rate is 11.75 %

  2. At present, the reverse repo rate is 5.75 %

  3. Repo rate is the rate at which RBI lends to commercial banks

  4. Reverse Repo is the rate at which RBI borrows from commercial banks

   
  A)
  1 only               done clear
  B)
  1 and 2 done clear
  C)
  1, 3 and 4          done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer68)
        Which of the following is/are the components of Public debt?

  1. External debt

  2. Other internal liabilities

  3. Internal debt

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer69)
  Choose the correct one from the below expressions

  1. Fiscal deficit = Budget deficit – Government’s market borrowing and liabilities

  2. Fiscal deficit = Budget deficit + Government's market borrowing and liabilities

  3. Fiscal deficit = Revenue expenditure - Budget receipts

  4. Fiscal deficit = Revenue expenditure + Budget receipts

   
  A)
  1 only               done clear
  B)
  2 only done clear
  C)
  3 only               done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer70)
        Regressive tax can be defined as

  1. The one by which the revenue collected rises proportionally with income

  2. The rates of tax increase for increasing values or volumes on which the tax is levied

  3. The one where the proportion of tax paid falls as income rises

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer71)
        Which of the following precautions has to be taken by a country going for foreign aid?

  1. Keeping foreign aid strings-free

  2. Keeping the borrowing level low so that country does not fall in a debt trap

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  Both 1 and 2       done clear
  D)
        Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer72)
        Which of the following is a type of the Public expenditure in India?

  1. Plan

  2. Non-plan

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  1 and 2   done clear
  D)
         Neither 1 nor 2 done clear
  View Solution play_arrow

• question_answer73)
        Choose the correct one from the following.

  1. Revenue deficit = Revenue expenditure - Revenue receipts

  2. Revenue deficit = Revenue receipts - Revenue expenditure

  3. Revenue deficit = Revenue receipts - Total expenditure

  4. Revenue deficit = Revenue expenditure - Total receipts

  A)
  1 only     done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer74)
        Annual financial statement has to be placed before parliament for every financial year i.e.

  1. January 1 to December 31

  2. March 31 to April 1

  3. April 1 to March 31

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only   done clear
  D)
         None of the above done clear
  View Solution play_arrow

• question_answer75)
        Consider the following:

  1. Market borrowing

  2. Treasury bills

  3. Special securities issued to RBI

  Which of these is/are components(s) of internal debt?
  A)
  1 only                 done clear
  B)
         1 and 2 done clear
  C)
  2 only             done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer76)
        Consider the following statements with regard to Statutory Liquidity Ratio (SLR)

  1. To meet SLR, Commercial banks can use cash only.

  2. SLR is maintained by the banks with themselves.

  3. SLR restricts the bank?s leverage in pumping more money into the economy

  Which of the statements given above is/are correct?
  A)
  1, 2 and 3          done clear
  B)
         1 and 3 done clear
  C)
  2 and 3                         done clear
  D)
  only 2 done clear
  View Solution play_arrow

• question_answer77)
        Which among the following is/are the nodal agency for implementing the monetary policy?

  State Bank of India

  Reserve Bank of India

  Union Bank

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  2 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer78)
        Which of the following refers to the set of measures adopted by the central bank?

  1. Monetary policy

  2. GAAR

  3. Finance Commission

  4. Black Money

  A)
  1 only                           done clear
  B)
  1 and 2 done clear
  C)
  3 only               done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer79)
        Which of the following refers to the use by the government of me various instruments such as taxation, expenditure and borrowing in order to achieve the objectives of balanced economic development etc.?

  1. Annual financial statement

  2. Fiscal policy

  3. Revenue budget

  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer80)
        Which among the following is/are the main objective of Monetary Policy?

  1. Maintenance of domestic price level

  2. Reducing the impact of business cycles

  3. Stability of external value

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer81)
        The highest rate of income tax before 1975 was

  1. 72.85

  2. 97.25

  3. 46.89

  4. 27.14

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         3 and 4             done clear
  View Solution play_arrow

• question_answer82)
        In which of the following years, did govt introduce Minimum Alternate tax on companies?

  1. 1996

  2. 1949

  3. 1972

  4. 2005

  A)
  1 only   done clear
  B)
         2 only done clear
  C)
  3 only                           done clear
  D)
  4 only done clear
  View Solution play_arrow

• question_answer83)
        Which of the following has been introduced as a very important component of Direct Tax code with the objective of preventing such deals and transactions?

  1. General Avoidance Rules

  2. General Anti Affect Rules

  3. General Anti Avoidance Rules

  4. General Arm Affect Rules

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 4 done clear
  View Solution play_arrow

• question_answer84)
        Which of the following details can be obtained by Annual financial statement?

  1. Government forecasts of receipts and payments for the next year

  2. An outline of the results of the last financial year compared with the previous budget estimates

  3. Proposed changes in taxes and expenditure allocations

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer85)
        Excess of total expenditure over total revenues is termed as

  1. Revenue deficit

  2. Fiscal deficit

  3. Budget deficit

  4. Overall deficit

  A)
  1 only              done clear
  B)
  1 and 2 done clear
  C)
  3 only               done clear
  D)
  4 only done clear
  View Solution play_arrow

• question_answer86)
        Which of the following may lead 10 a pressure on the government for an upward revision in salaries of government employees?

  1. Internal Borrowings

  2. External aid and borrowings

  3. Counting Currency

  4. Printing currency

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only              done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer87)
        Which of the following is the tax on income of the companies?

  1. Corporation tax

  2. Reliable tax

  3. Compensatory tax

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer88)
        Who among the following appoints a Finance Commission under Article 280 of the Constitution?

  1. Prime Minister

  2. Finance Minister

  3. President

  4. Public

  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         3 and 4 done clear
  View Solution play_arrow

• question_answer89)
        Which of the following statements is/are correct as per Article 114(3) of the Constitution?

  1. No money can be taken out of consolidated fund without the approval of the Rajya Sabha

  2. No money can be taken out of consolidated fund without the approval of the Lok Sabha

  3. Money can be taken out of consolidated fund without any approval

  Select the correct answer using the code given below:
  A)
  1 only               done clear
  B)
         2 only done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer90)
        Which of the following statements of the government gives expression to its fiscal policy?

  1. Annual financial statement

  2. Deficit financing

  3. Open capital account

  A)
  1 only   done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer91)
        Which of the following is the rate at which RBI lends to commercial banks?

  1. Corporate rate

  2. Economy rate

  3. Bank rate

  4. Growth rate

  A)
  1 only               done clear
  B)
         1 and 2 done clear
  C)
  3 only               done clear
  D)
         4 only done clear
  View Solution play_arrow

• question_answer92)
  In the context of Indian economy, which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'? (IAS Prelims 2014)

  1. To enable the Central Bank to control the amount of advances the banks can create

  2. To make the people deposits with banks safe and liquid

  3. To prevent the commercial banks from making excessive profits

  4.  To force the banks to have sufficient vault cash to meet their day-to-day requirements

  Select the correct answer using the code given below.
  A)
  1 only               done clear
  B)
  1 and 2 only done clear
  C)
  2 and 3 only        done clear
  D)
  1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer93)
        With reference to Indian economy, consider the following.                      [IAS Prelims 2014]

  1. Bank rate

  2. Open market operations

  3. Public debt

  4. Public revenue

  Which of the above is/are component/ components of Monetary Policy?
  A)
  1 only               done clear
  B)
         2, 3 and 4 done clear
  C)
  1 and 2             done clear
  D)
         1, 3 and 4 done clear
  View Solution play_arrow

• question_answer94)
        There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?                                            [IAS Prelims 2016]

  1. Reducing revenue expenditure

  2. Introducing new welfare schemes

  3. Rationalizing subsidies

  4. Reducing import duty

  Select the correct answer using the code given below.
  A)
  1 only               done clear
  B)
         2 and 3 only done clear
  C)
  1 and 3 only  done clear
  D)
         1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer95)
        Which of the following is/are included in the capital budget of the Government of India?         (IAS Prelims 2016)

  1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.

  2. Loans received from foreign governments

  3. Loans and advances granted to the States and Union Territories

  Select the correct answer using the code given below.
  A)
  1 only               done clear
  B)
         2 and 3 only done clear
  C)
  1 and 3 only    done clear
  D)
         1, 2 and 3 done clear
  View Solution play_arrow

• question_answer96)
        Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct?               (IAS Prelims 2016)

  1. KKC is calculated in the same way as Service Tax is calculated.

  2. The current rate of KKC is 0.50%

  3. KKC is similar to the KKS (Krishi Kalyan Surcharge).

  Select the correct answer using the code given below:
  A)
  1, 2 and 3      done clear
  B)
         1 and 2 only done clear
  C)
  2 and 3 only    done clear
  D)
         1 only done clear
  View Solution play_arrow

• question_answer97)
        DIRECTION: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B wherein Column B defines Column A

  	Column A		Column B
  I.	Public Account	A.	Consists of all revenues and loans received by the government
  II.	Consolidated	B.	Comprises  of the sum placed at the disposal of the president to meet unforeseen expenditure
  III.	Contingency	C.	Consists of receipts and payments, which are in from of deposit account with the government, such as provident funds, small saving, etc

  A)
  I-C, II-A, III-B    done clear
  B)
         I-A, II-B, III-C done clear
  C)
  I-A, II-D, III-B     done clear
  D)
         I-B, II-A, III-C done clear
  View Solution play_arrow

• question_answer98)
        DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists.

  Match columns A and B wherein column B shows the tax to GDP ratio for respective year in Column-A
  	Column A		Column B
  I.	1950-51	A.	10.60%
  II.	2007-08	B.	6%
  III.	Present	C.	11.89%

  A)
  I-C, II-A, III-B    done clear
  B)
  I-A, II-C, III-B done clear
  C)
  I-B, II-C, III-A    done clear
  D)
         I-B, II-A, III-B done clear
  View Solution play_arrow

• question_answer99)
        DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B Column A

  	Column A		Column B
  I.	Planned expenditure	A.	2,21,733 Crores
  II.	Non-Planned	B.	4,65,277 Crores expenditure
  III.	Tax revenue	C.	13,12,200 Crores
  IV.	Non-tax revenue	D.	9,19,842 Crores

  A)
  I-C, II-A, III-B, IV-D        done clear
  B)
  I-B, II-C, III-D, IV-A done clear
  C)
  I-A, II-C, III-D, IV-B        done clear
  D)
  I-D, II-C, III-D, IV-A done clear
  View Solution play_arrow

• question_answer100)
        DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B wherein Column B defines Column A

  	Column A		Column B
  I.	External debt of the	A.	Includes  small  saving  schemes, provident fund, reserve
  II.	Includes debt	B.	Includes loan  from foreign countries and    international financial institutions
  III.	Other internal liabilities	C.	Includes market loans from banks and financial institutions

  A)
  I-C, II-A, III-B       done clear
  B)
        I-B, II-C, III-A done clear
  C)
  I-A, II-D, III-B       done clear
  D)
        I-B, II-A, III-C done clear
  View Solution play_arrow

• question_answer101)
  DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists.

  	List-I		List-II
  [A]	Partial convertibility	(1)	Unified exchange rate, applied for export and import of goods only, visible transaction of BoP.
  [B]	Convertibility on trade account	(2)	Currency can be converted on all accounts.
  [C]	Convertibility on trade account	(3)	60% of foreign exchange rates and rest at official rate.
  [D]	Full convertibility	(4)	Full convertibility in all visible and invisible transaction of goods and Services.

   
  A)
  A-1;   B-2;   C-3;   D-4       done clear
  B)
  A-3;   B-1;   C-4;   D-2 done clear
  C)
  A-4;   B-2;   C-1;   D-3       done clear
  D)
  A-1;   B-4;   C-3;   D-2 done clear
  View Solution play_arrow

• question_answer102)
  DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists.

  Match columns A and B wherein Column B defines Column A
  	Column A		Column B
  I.	Capital expenditure	A.	Includes interest payments, subsidies, defence expenditure
  II.	Plan expenditure	B.	Includes loans to PSUs, states, foreign governments
  III.	Revenue expenditure	C.	Includes expenditure on central plans such as agriculture, rural development, irrigation, transport, communications, environment and welfare schemes

   
  A)
  I-C, II-A, III-B       done clear
  B)
  I-B, II-C, III-A done clear
  C)
  I-A, II-D, III-B       done clear
  D)
  I-B, II-A, III-C done clear
  View Solution play_arrow