public finance fiscal & monetary policy section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following statements Full convertibility of the rupee may mean

1. Its free float with the international currencies.
2. Its direct exchange with any other international currency at any prescribed place inside and outside the country. 3. It acts just like any other international currency.

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) 1, 2 and 3

Question : 2

Which one of the following is the correct statement? Service tax is a/an:

a) direct tax levied by the Central Government.

b) indirect tax levied by the State Government.

c) indirect tax levied by the Central Government.

d) direct tax levied by the State Government.

Question : 3

Which among the following taxes is not levied in India:

a) Minimum alternative tax

b) Dividend distribution tax

c) Capital gains tax

d) Estate duty

Question : 4

In which year was Service tax introduced?

1. 1983-84
2. 1994-95
3. 1967-68
4. 2003-2004

a) 1 only

b) 3 only

c) 2 only

d) 4 only

Question : 5

An economy is in equili-brium when

a) intended investment exceeds intended savings

b) planned consumption exceeds planned investment

c) planned consumption exceeds planned saving

d) intended investment equals intended investment

Question : 6

Match columns A and B wherein column B shows the tax to GDP ratio for a respective year in Column A 

a) I-c, II-a, III-b

b) I-b, II-c, III-a

c) I-a, II-c, III-b

d) I-b, II-a, III-b