taxes types, methods & budgeting process section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

The objective of SEZ is

a) Promotion of Regional Trade

b) Promotion of MSME’s

c) Promotion of Goods and Services

d) Promotion of Government Schemes

Question : 2

Which of the following statements are true regarding FRBM Act 2003?

1. RBI can subscribe to the primary issues of Central government securities
2. RBI can fund Central government fiscal deficit
3. The central government can take advances from RBI in case there is a mismatch in cash disbursements and cash receipts

a) (i) & (iii) only

b) (ii) & (iii) only

c) (i) only

d) (iii) only

Question : 3

The Kelkar proposals which were

a) recommendations for tax reforms

b) guidelines for the privatisation of public sector undertakings

c) recommendations for reforms in the power sector

d) guidelines for reducing vehicular pollution and the promotion of CNG use

Question : 4

Which one of the following is the major source of gross tax revenue (GTR) for the Government of India?

a) Customs duty

b) Income tax

c) Corporation tax

d) Service tax

Question : 5

Consider the following statements. In India, taxes on transactions in Stock exchanges and Futures Markets are

1. Levied by the union
2. Collected by the States

a) Both 1 and 2

b) Neither 1 nor 2

c) Only 1

d) Only 2

Question : 6

‘Fiscal Drag’ expresses the impact of inflation on which of the following ?

a) Black money

b) Fiscal Deficit

c) Tax Revenue and GDP

d) Investment