public finance fiscal & monetary policy section 7 MCQ Questions & Answers Detailed Explanation

Question : 1

Excise duty on a commodity is payable with reference to its

a) production, transportation and sale

b) production and sale

c) production

d) production and transportation

Question : 2

Choose the correct one from the below expressions

1. Fiscal deficit = Budget deficit – Government’s market borrowing and liabilities
2. Fiscal deficit = Budget deficit + Government’s market borrowing and liabilities
3. Fiscal deficit = Revenue expenditure – Budget receipts
4. Fiscal deficit = Revenue expenditure + Budget receipts

a) 1 only

b) 3 only

c) 2 only

d) None of the above

Question : 3

The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?

a) Securities Roll-back Operators

b) Small Revenue Operators

c) Self regulatory Organisations

d) Securities Regulatory Organisations

Question : 4

Which statements about indirect taxes in India are true?

1. Yield from indirect taxes is more than that from direct taxes.
2. Indirect taxes have grown faster than direct taxes after 1947.
3. Indirect taxes are ultimately paid for by persons who do not actually pay taxes to the government.
4. Increase in indirect taxes is good in a developing country.

a) 1, 2 and 4

b) 2 only

c) 1 and 2

d) 1, 2 and 3

Question : 5

Which one of the following is part of fiscal policy?

a) Interest rate policy

b) Foreign policy

c) Production policy

d) Tax policy

Question : 6

The theory of “Maximum Social Advantage” in Public Finance was given by

a) Dalten

b) Musgrave

c) Robbins

d) Findley