public finance fiscal & monetary policy section 5 MCQ Questions & Answers Detailed Explanation

Question : 1

An instrument of qualitative credit control is

a) Open market operations

b) Credit rationing

c) variable reserve ratio

d) Bank rate

Question : 2

Consider the following statements: The Indian rupee is fully convertible:

1. in respect of Current Account of Balance of payment
2. in respect of Capital Account of Balance of payment
3. into gold

a) 1 alone

b) 1 and 2

c) 3 alone

d) 1, 2 and 3

Question : 3

Consider the following statements regarding fiscal policy:

1. Contractionary fiscal policy involves government spending exceeding tax revenue.
2. Expansionary fiscal policy occurs when government spending is lower than tax revenue.

a) 1 and 2 both

b) 2 only

c) 1 only

d) None

Question : 4

According to the provisions of the Fiscal Responsibility and Budget Management [FRBM]. Act, 2003 and FRBM Rules, 2004, the Government is under obligation to present three statements before the parliament along with the Annual Budget. Which one of the following is not one of them?

a) Medium-term Fiscal Policy Statement

b) Fiscal Policy Strategy Statement

c) Macroeconomic Framework Statement

d) Statement showing Short term Fiscal Policy

Question : 5

Which of the following is an indirect tax ?

a) Estate Duty

b) Excise Duty

c) Capital Gains Tax

d) Wealth Tax

Question : 6

By whom was the autonomous investment separated from induced investment ?

a) Adam Smith

b) Malthus

c) Schumpeter

d) Joan Robinson