Top 150+ Solved Fiscal System of India MCQ Questions Answer
Q. Buyer's market denotes the place where:
a. the supply exceeds the demand
b. the demand exceeds the supply
c. the demand and supply are well balanced
d. commodities are available at competitive rates
Q. Deficit financing is spending:
a. by getting foreign aid
b. less than what is needed
c. in excess of revenue
d. by borrowing from abroad
Q. Main bearers of the burden of indirect tax are:
a. manufacturers
b. traders
c. consumes
d. tax payers
Q. A tax that takes away a higher proportion of one's income as the income rises is termedas [I. Tax & Central Excise 1990]
a. indirect tax
b. progressive tax
c. regressive tax
d. proportional tax
Q. The Indian income tax is : 1. direct 2. progressive 3. indirect 4. proportional
a. 1and 2
b. 1and 4
c. 2 and 3
d. 3 and 4
Q. Excise Duties are taxes on :
a. sale of commodities
b. export of commodities
c. production of commodities
d. import of commodities
Q. The minimum effect of Direct Taxes is on :
a. food price
b. consumer goods
c. capital goods
d. income
Q. Companies pay Corporation Tax on their: [UDC 1993]
a. investment
b. production
c. sales proceeds
d. incomes
Q. In a country like India, why should an increase of direct taxes be preferred to an increase in indirect taxes?
a. Direct taxes serve the end of Socialism by taking away the excessive wealth from the rich
b. Direct taxes involve the well-off sections of the society while indirect taxes affect the masses
c. It is easy to realise direct taxes and is thus useful in a country troubled by tax evasion
d. All of the above
Q. Fresh evalution of every item of expenditure from the very beginning of each financial year is called: [SBI PO 1991]
a. fresh Budgeting
b. deficit Budgeting
c. performance Budgeting
d. zero-based Budgeting
Q. The rate of growth of per capita income is equal to:
a. Rate of growth of national income divided by the rate of growth of population
b. Growth in national income divided by the increase in population
c. Rate of growth of national income minus the rate of growth of population
d. Rate of growth of national income
Q. Consider the following items of wholesale price index: [Asstt Commt 2010] 1. Primary articles 2. Fuel, power, lights and lubricants 3. Manufacturing products Arrange the above items in descending order in terms of their weightage in calculating wholesale price index
a. 1, 2, 3
b. 1, 3, 2
c. 3, 1, 2
d. 3, 2, 1
Q. When the Reserve Bank of India announces an increase of the Cash Reserve 'Ratio, what does it mean? [IAS 2010]
a. The commercial banks will have less money to lend
b. The Reserve Bank of India will have less money to lend
c. The Union Government will have less money to lend
d. The commercial banks will have more money to lend
Q. In India, the tax proceeds of which one of the following as a percentage of gross taxrevenue has significantly declined in the last five years? [IAS 2010]
a. Service tax
b. Personal income tax
c. Excise duty
d. Corporation tax