public finance fiscal & monetary policy section 7 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
(a) Producers
(b) Wholesale dealers
(c) Consumers
(d) Retail dealers
The correct answers to the above question in:
Answer: (c)
In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.
Tax incidence is said to “fall” upon the group that ultimately bears the burden of, or ultimately has to pay, the tax. The key concept is that the tax incidence or tax burden does not depend on where the revenue is collected but on the price elasticity of demand and price elasticity of supply.
A tax on the sale of goods (sales tax, excise tax) will ultimately be paid by either the consumer or the firm based on elasticities, regardless of who the government actually levies the tax on. If the consumer ultimately pays the tax, it means that the tax incidence falls on the consumer.
If the firm ultimately pays the tax, it means that the tax incidence ultimately falls on the firm.
Practice Fiscal Policy, Public Finance and Monetary Policy (public finance fiscal & monetary policy section 7) Online Quiz
Discuss Form
Read more public finance fiscal and monetary policy Based Indian Economy Questions and Answers
Question : 1
Taxation is a tool of
a) Wage policy
b) Fiscal policy
c) Monetary policy
d) Price policy
Answer »Answer: (b)
In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.
Question : 2
Which of the following is the rate at which RBI lends to commercial banks?
- Corporate rate
- Economy rate
- Bank rate
- Growth rate
a) 1 only
b) 3 only
c) 1 and 2
d) 4 only
Answer »Answer: (b)
Bank rate is an instrument of monetary policy which is the rate at which RBI lends to commercial banks
Question : 3
The diagram shows a relationship between inflation and unemployment for an economy. Which of the following policies would move the economy from A to B?
a) Reduce interest rate and increase income tax rates
b) Increase interest rates and increase Income tax rates
c) Reduce interest rates and decrease income tax rates
d) Increase interest rates and decrease income tax rates
Answer »Answer: (b)
Question : 4
Which of the following is the tax imposed on commodities imported into India (import duty) or those exported from India (export duty)?
- Customs duty
- Central excise duty
- Incorporate duty
a) 1 only
b) 3 only
c) 2 only
d) 2 and 3
Answer »Answer: (a)
Customs duty is the tax imposed on commodities imported into India (import duty) or those exported from India (export duty).
Since imposing duties on exports reduced the competitive position of the country, the government withdrew export duties
Question : 5
The New Economic Policy was introduced by:
a) Khrushchev
b) Stalin
c) Lenin
d) Kerensky
Answer »Answer: (c)
The New Economics Policy was introduced by Vladimir Ilyich Lenin (1870-1924). He was the founder of modern communist Russia. He was the leader of the Soviet Revolution of October 1917.
He liberated the country from the Czars and became Head of its first Communist Government (1917-1924). He dedicated himself to the cause of the workers’ revolution.
Question : 6
Which among the following is/are the main objective of Monetary Policy?
- Maintenance of domestic price level
- Reducing the impact of business cycles
- Stability of external value
a) 1 only
b) 3 only
c) 1 and 2
d) 1, 2 and 3
Answer »Answer: (d)
Objectives of Monetary Policy are:
Stability of external value: Fluctuation in the exchange rate of a currency affects foreign trade and investment.
It is, therefore, important that the rate of exchange is maintained without violent fluctuations. Maintenance of domestic price level: Fluctuation in prices affects investment decisions.
It also leads to increasing income disparities. However, monetary policy alone cannot ensure the maintenance of domestic prices, as several other factors such as erratic monsoons, changes in tastes, fluctuation in world prices etc., affect domestic prices.
Reducing the impact of business cycles (slumps and booms) by manipulation of credit and interest policy. However, economists are not of the same opinion on whether business cycles are primarily caused by monetary factors.
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
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »