public finance fiscal & monetary policy section 3 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 7 EXERCISES
-
Top 500+ Fiscal & Monetary Policy GK MCQ Quiz PDF For SSC »
-
New 499+ Public Finance & Policy MCQ GK Quiz & Notes PDF »
-
Top 500 Monetary & Fiscal Policy GK MCQ Quiz PDF For IBPS »
-
New 500+ Indian Budgetary Policy Overview GK MCQ Quiz PDF »
-
500 Monetary & Fiscal Policy Question And Answers Key PDF »
-
Public Finance & Fiscal Policy Questions And Answers Quiz »
-
1000+ Indian Govt Schemes & Policy MCQ Quiz PDF For IBPS »
The following question based on Fiscal Policy, Public Finance and Monetary Policy topic of indian economy mcq
- To enable the Central Bank to control the amount of advances the banks can create
- To make the people’s deposits with banks safe and liquid
- To prevent the commercial banks from making excessive profits
- To force the banks to have sufficient vault cash to meet their day-to-day requirements
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2, 3 and 4
The correct answers to the above question in:
Answer: (c)
Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Practice Fiscal Policy, Public Finance and Monetary Policy (public finance fiscal & monetary policy section 3) Online Quiz
Discuss Form
Read more public finance fiscal and monetary policy Based Indian Economy Questions and Answers
Question : 1
Which one of the following is not included in current revenue of the Union Government ?
a) Interest payments
b) Non-tax revenue
c) Tax revenue
d) Loans
Answer »Answer: (d)
Loans are not included in the current revenue of the Union Government.
Question : 2
The highest rate of income tax before 1975 was
- 72.85
- 97.25
- 46.89
- 27.14
a) 1 only
b) 3 only
c) 2 only
d) 3 and 4
Answer »Answer: (c)
The highest rate of income tax was 97.25, before 1975. Moderate rates of income tax encourage savings, faster growth and motivate voluntary compliance to tax regime. Over the years, the rates have been brought down
Question : 3
Which one of the following was not stipulated in the Fisca Responsibility and Budget Management Act 2003?
a) Fixing government guarantees in any financial year as a percentage of GDP
b) Elimination of primary deficit by the end of the fiscal year 2008-09
c) Elimination of revenue deficit by the end of the fiscal year 2007-08
d) Non-borrowing by the Central Government from Reserve Bank of India except - under certain circumstances
Answer »Answer: (b)
Question : 4
Which of the following is not a technique of Deficit financing?
- Internal Borrowings
- Counting Currency
- Printing Currency
- External aid and borrowings
a) 1 only
b) 2 and 3
c) 2 only
d) 1, 2, 3 and 4
Answer »Answer: (c)
There are three techniques of Deficit financing: Printing Currency, Internal Borrowings and External aid and borrowings. Counting Currency is not a technique of Deficit financing
Question : 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.
a) 1, 2 and 3
b) 2 and 3
c) 1 and 3
d) only 2
Answer »Answer: (b)
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.
Question : 6
Convertibility of rupee implies
a) being able to convert rupee notes into gold
b) developing an international market for currencies in India
c) allowing the value of rupee to be fixed by market forces
d) freely permitting the conversion of rupee to other currencies and vice versa
Answer »Answer: (d)
Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa.
Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.
GET Fiscal Policy, Public Finance and Monetary Policy PRACTICE TEST EXERCISES
public finance fiscal & monetary policy section 1
public finance fiscal & monetary policy section 2
public finance fiscal & monetary policy section 3
public finance fiscal & monetary policy section 4
public finance fiscal & monetary policy section 5
public finance fiscal & monetary policy section 6
public finance fiscal & monetary policy section 7
Fiscal Policy, Public Finance and Monetary Policy Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »