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

Question : 1

States’ debt does not include:

a) loos from State Bank of India

b) treasury bills issued to inter-national financial institutions

c) loans from the Central government

d) provident fund

Question : 2

Who among the following appoints a Finance Commission under Article 280 of the Constitution?

1. Prime Minister
2. Finance Minister
3. President
4. Public

a) 1 only

b) 3 only

c) 2 only

d) 3 and 4

Question : 3

Tarapore Committee submitted its report on “Full Convertibility on Rupee” in-

a) Current account

b) Special Drawing Rights (SDRs)

c) Capital account

d) Both in current as well as in capital account

Question : 4

‘Golden Handshake Scheme’ is associated with

a) voluntary retirement

b) private investment in public enterprises

c) inviting foreign companies

d) establishing joint enterprises

Question : 5

Consider the following statements:

1. Sales tax comes under exclusive jurisdiction of state government.
2. Custom duties come under state govt jurisdiction.

a) 1 and 2 both

b) 2 only

c) 1 only

d) None

Question : 6

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