Indian Economy – Test Set 5 (Fiscal System of India)

1. Which of the following is the basis for determining the national income?
(a) Total revenue of the State
(b) Net profit earned and expenditure incurred by the State
(c) Production of goods and services
(d) All of the above

Ans: (c)

2. Which of the following is not a method of estimating national income? [I. Tax & Central Excise 1991]
(a) Income method
(b) Value-added method
(c) Expenditure method
(d) Export-import method

Ans: (d)

3. The national income of India is estimated mainly through: [CBI 1993]
(a) production method alone
(b) expenditure method alone
(c) production and expenditure methods
(d) production and income methods

Ans: (d)



4. Which of the following are referred to as the developed economies?
(a) Countries earning huge industrial profits
(b) Countries proficient in trade and export
(c) Countries having large per capita income
(d) Countries advanced in technology

Ans: (c)

5. An advalorem duty is a tax on the basis of: [IAS 1988]
(a) the price of a commodity
(b) the value added
(c) the advertisement expenditure
(d) the unit of the commodity

Ans: (a)

6. 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 banks’ leverage in pumping more money into the economy.
Which of the statements given above is/are correct? [CDS 2010]
(a) 1, 2 and 3
(b) 1 and 3
(c) 2 and 3
(d) 2 only

Ans: (c)

7. Which of the following is not true about ‘vote-on-account’? [Bank PO 1991]
(a) It is a budget presented in the Parliament to cover the deficit left by the last budget
(b) It does not allow the Government to set for the economic policies of the new plan which starts from April 1
(c) It prevents the Government from imposing fresh taxes or withdrawing old one
(d) This allows the Government to withdraw an amount for a period with the consent of Parliament

Ans: (a)




8. Consider the following statements:
1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
Which of the statements giver, above is/are correct? [IAS 2007]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Ans: (a)

9. The system of Budget was introduced in India during the viceroyalty of: [Central Excise 1994]
(a) Canning
(b) Dalhousie
(c) Ripon
(d) Elgin

Ans: (a)

10. Which one of the following statements is correct?
Fiscal Responsibility and Budget Management Act (FRBMA) concerns [IAS 2006]
(a) fiscal deficit only
(b) revenue deficit only
(c) both fiscal and revenue deficit
(d) neither fiscal deficit nor revenue deficit

Ans: (c)

Spread the Love by Sharing...
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *