introduction to indian economy section 8 MCQ Questions & Answers Detailed Explanation

Answer: (a)

Answer: (a)

Apart from taxes levied and collected by the States, the Constitution has provided for the revenues for certain taxes on the Union List to be allotted, partly or wholly to the States.

There are taxes that are levied and collected by the Union, but the entire proceeds of which are assigned to the states, in a proportion determined by the Parliament.

These taxes include:

1. Succession and Estate duty;
2. Terminal taxes on goods and passengers;
3. Taxes on railway freight and fares;
4. Taxes on transactions in stock exchanges and
5. future markets; and Taxes on sale and purchase of newspapers and advertisements therein.

Answer: (c)

Gilts are bonds issued by certain, national governments. The term is of British origin and originally referred to the debt securities issued by the Bank of England, which had a gilt (or gilded) edge.

Hence, they are called gilt-edged securities, or gilts for short. The term is also sometimes used in Ireland and some British Commonwealth Countries, South Africa and India.

The term “Gilt Account” is also a term used by the RBI of India to refer to a constituent account maintained by a custodian bank for maintenance and servicing of dematerialised Government Securities owned by a retail customer.

Answer: (c)

Indira Gandhi was the only woman who took over the Finance portfolio from 1970 to 1971. She presented the Union Budget in these years.

Answer: (d)

The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing).

The elements of the fiscal deficit are

1. the revenue deficit, which is the difference between the government’s current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and
2. capital expenditure.

The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks).

Answer: (b)

2, 3, 1, i.e. High birth rate with high death rate, High birth rate with low death rate, Low birth rate with low death rate.