public finance fiscal & monetary policy section 6 MCQ Questions & Answers Detailed Explanation

Question : 1

Which of the following refers to the set of measures adopted by the central bank?

1. Monetary policy
2. GAAR
3. Finance Commission
4. Black Money

a) 1 only

b) 3 only

c) 1 and 2

d) 4 only

Question : 2

____ is not a non-Plan expenditure?

a) Interest payment

b) Defense expenditure

c) Subsidies

d) Central assistance for states and UT plans

Question : 3

Which of the following refers to that part of deficit for which the government borrows from the RBI?

1. Primary deficit
2. Secondary deficit
3. Regulatory deficit
4. Monetised deficit

a) 1 only

b) 3 only

c) 1 and 2

d) 4 only

Question : 4

Which one of the following statements regarding the levying, collecting, and distribution of Income Tax is correct?

a) The Union levies, collects, and distributes the proceeds of income tax between itself and the states.

b) Only the surcharge levied on income tax is shared between the Union and the states.

c) The Union levies, collects, and keeps all the proceeds of income tax itself.

d) The Union levies and collects the tax but all the proceeds are distributed among the states

Question : 5

Mixed Economy means :

a) Co-existence of small and large industries

b) Co-existence of public and private sectors

c) Promoting both agriculture and industries in the economy

d) Co-existence of rich and poor

Question : 6

Current account in the Balance of Payment comprise is ___?

a) difference of total exports and imports in one year

b) trade balance plus invisible balance

c) invisible account like tourism, shipping, insurance, etc.

d) transactions like net external assistance, NRI deposits, etc.