public finance fiscal & monetary policy section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

Fiscal deficit means:

a) Total receipts minus expenditure

b) Revenue receipts minus defense expenditure

c) Total receipts minus interest payments on external debt

d) Revenue receipts minus ex-penditure

Question : 2

Which of the following means rates of tax increase for increasing values or volumes on which the tax is levied

1. Progressive tax
2. Proportional tax
3. Regressive tax
4. Indirect tax

a) 1 only

b) 3 only

c) 2 only

d) 1, 2 and 4

Question : 3

Forced Savings refer to

a) Provident fund contribution of private sector employees

b) Taxes on individual income and wealth

c) Reduction of consumption consequent to a rise in prices

d) Compulsory deposits imposed on income tax payers

Question : 4

With reference to steps taken to achieve financial inclusion in India, consider the following statements:

1. Scheduled commercial banks initiatives to masses.
2. Formation of RRB
3. Adoption of village by bank branches

a) 1 and 3

b) 2 and 3

c) 1 and 2

d) 1, 2 and 3

Question : 5

After 1947, development and non-development expenditures have increased, the increase in the former being more. Nondevelopment expenditure involves

1. interest payments
2. subsidies
3. defence
4. irrigation

a) 1 and 2

b) 1, 2 and 3

c) 1 only

d) 2, 3 and 4