Practice Quiz set 5 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Excess of total expenditure over total revenues is termed as- Revenue deficit
- Fiscal deficit
- Budget deficit
- Overall deficit
(a)
(b)
(c)
(d)
Budget deficit is the overall deficit i.e., the excess of total expenditure over total revenues. It includes both capital and revenue items in receipts and expenditure. Traditionally, deficit financing in Indian budgets had meant filling this gap
Q-2) Which of the following details can be obtained by Annual financial statement? - Government forecasts of receipts and payments for the next year
- An outline of the results of the last financial year compared with the previous budget estimates
- Proposed changes in taxes and expenditure allocations
(a)
(b)
(c)
(d)
Annual financial statement gives various information for the current, last and next year
Q-3) Where was VAT introduced? - France
- USA
- Australia
- China
(a)
(b)
(c)
(d)
It was introduced in France to overcome the cascading effect of several taxes-from raw material to the final product in the process of production
Q-4) Annual financial statement has to be placed before parliament for every financial year i.e. - January 1 to December 31
- March 31 to April 1
- April 1 to March 31
(a)
(b)
(c)
(d)
Q-5) Consider the following statements with regard to Statutory Liquidity Ratio (SLR) - To meet SLR, Commercial banks can use cash only.
- SLR is maintained by the banks with themselves.
- SLR restricts the banks leverage in pumping more money into the economy.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
SLR used by bankers indicates the minimum percentage of deposits that the banks have to maintain in the form of gold, cash or other approved securities..
Q-6) Consider the following statements: The Indian rupee is fully convertible: - in respect of Current Account of Balance of payment
- in respect of Capital Account of Balance of payment
- into gold
Which of these statements is/are correct ?
(a)
(b)
(c)
(d)
In respect of capital account of balance of payment, the Indian rupee is partially convertible after 1991.
Q-7) With reference to the Indian Public Finance, consider the following statements. - External liabilities reported in the Union Budget are based on historical exchange rates.
- The continued high borrowing has kept the real interest rates high in the economy.
- The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect on private investments.
- Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government.
Which of these statements are correct?
(a)
(b)
(c)
(d)
Q-8) Consider the following: - Income tax
- Fringe tax
- Interest tax
- Security transaction tax (STT)
Which of the above mentioned taxes are direct taxes?
(a)
(b)
(c)
(d)
Income tax, fringe tax, interest tax all are direct taxes paid directly to the government by the persons on whom it is imposed.
Q-9) Which of the following is an indirect tax ?
(a)
(b)
(c)
(d)
Some examples of indirect taxes include value added tax, excise duty, sales tax, stamp duty and custom duty levied on imports. These are taxes levied by the state on expenditure and consumption, but not on property or income.
Q-10) By whom was the autonomous investment separated from induced investment ?
(a)
(b)
(c)
(d)
Under his concept of creative destruction, Schumpeter distinguished between two types of investment that he called induced and autonomous.
Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs.
He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of the output that is withheld from investment and consumption.
