public finance fiscal & monetary policy section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

What is referred to as ‘Depository Services’ ?

a) An advisory service to investors

b) A method for regulating stock exchanges

c) A new scheme of fixed deposits

d) An agency for safe-keeping of securities

Question : 2

Value-added tax is

a) ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale

b) special tax levied by states on products from other states

c) ad valorem tax on final consumption collected at manufacturing level

d) tax on final consumption collected at the consumption stage

Question : 3

Choose the correct one from the following.

1. Revenue deficit = Revenue expenditure – Revenue receipts
2. Revenue deficit = Revenue receipts – Revenue expenditure
3. Revenue deficit = Revenue receipts – Total expenditure
4. Revenue deficit = Revenue expenditure – Total receipts

a) 1 only

b) 3 only

c) 1 and 2

d) 1, 2, 3 and 4

Question : 4

Taxes on professions can be levied by :

a) Union government only

b) both by state and union government

c) State government only

d) by panchayats only

Question : 5

Plan expenditure in India is met by-

a) Internal debt and other resources

b) Assistance from OECD countries

c) Assistance from Aid India Club

d) Assistance from IMF

Question : 6

Which one at the following is responsible for the preparation and presentation of Union Budget to the Parliament?

a) Department of Revenue

b) Department of Expenditure

c) Department of Economic Affairs

d) Department of Financial Services