taxes types, methods & budgeting process section 5 MCQ Questions & Answers Detailed Explanation

Question : 1

A redistribution of income in a country can be best brought through

a) Progressive taxation combined with regressive expenditure

b) Regressive taxation combined with regressive expenditure

c) Progressive taxation combined with progressive expenditure

d) Regressive taxation combined with progressive expenditure

Question : 2

Consider the following statements regarding Forex Reserves:

1. The country’s Forex Reserves fully covers the external debt
2. The country’s Forex Reserves fully covers its one-year imports of goods and services

a) (ii) only

b) Both (i) & (ii)

c) (i) only

d) Neither (i) nor (ii)

Question : 3

Which of the following is associated with fiscal policy?

a) Consumption

b) Inflation

c) Taxation

d) Money supply

Question : 4

The Minimum Alternate Tax (MAT) was introduced in the Budget of the Government of India for the year

a) 1995-96

b) 1993-94

c) 1991-92

d) 1996-97

Question : 5

Consider the following taxes.

1. Corporation Tax
2. Customs Duty
3. Wealth Tax
4. Excise Duty

a) 2 and 4

b) 1 and 3

c) Only 1

d) 2 and 3

Question : 6

What has been kept under the purview of Goods and Services Tax (GST)?

a) Electricity

b) Petroleum products

c) Alcohol for human consumption

d) Ghee