Top 150+ Solved Fiscal System of India MCQ Questions Answer
Q. Which of the following is not an indirect tax?
a. Land revenue
b. Customs duties
c. Entertainment tax
d. Sales tax
Q. Which of the following is not a direct tax?
a. Estate tax
b. Sales tax
c. Corporation tax
d. Wealth tax
Q. Estimation of national income in India is difficult due to : I. illiteracy of people II. non-monetised consumption III. inflation IV. people holding multiple jobs
a. I, II, III and IV
b. II and III
c. I and IV
d. I, II and IV
Q. The annual financial statement shows the receipts and payments of the government under the 3 parts in which government accounts are kept in : 1. Consolidated Fund 2. Contingency Fund 3. Public Account Which of the following items are covered under the Public Account?
a. All revenue received by the government
b. Loans raised by the government
c. Funds placed at the disposal of the President
d. Transactions relating to provident fund, small savings, etc.
Q. 'Liquidity trap' is a situation in which:
a. people want to hold only cash because prices are falling everyday
b. people want to hold only. cash because there is too much of liquidity in the economy
c. the rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash
d. there is an excess of foregin exchange reserves in the economy leading to excess of money supply
Q. Consider the following: 1. Market Borrowing 2. Treasury Bills 3. Special Securities to the RBI Which of these is/are components of internal debt of the government?
a. 1 only
b. 1 and 2
c. 1 and 3
d. 1, 2 and 3
Q. The RBI uses the following instruments for quantitative central of credit:(i) Cash Reserve Ratio (ii) Bank Rate (iii) Open Market Operations (iv) Margin Requirements Choose your answer from:
a. (i) and (ii)
b. (ii) and (iv)
c. (i), (ii) and (iii)
d. (i), (ii), (iii) and (iv)
Q. Consider the following taxes: 1. Corporation Tax 2. Value Added Tax 3. Wealth Tax 4. Import duty Which of these is/are Indirect taxes?
a. 1 only
b. 2 and 4
c. 1 and 3
d. 1, 2 and 4
Q. The tax whose share in overall taxation revenue has gone up rapidly during the planningperiod is :
a. income tax
b. wealth tax
c. capital gains tax
d. tax on production
Q. The most appropriate measure of a country's economic growth is the:
a. gross domestic product
b. net domestic product
c. net national product
d. per capita real income
Q. CENVAT is associated with:
a. rate of indirect tax
b. rate of income tax
c. rate of direct tax
d. none of the above
Q. Taxation and the government's expenditure policy are dealt under the :
a. trade policy
b. budget
c. fiscal policy
d. monetary policy