public finance fiscal & monetary policy section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

Consider the following statements Full convertibility of the rupee may mean

1. Its free float with the international currencies.
2. Its direct exchange with any other international currency at any prescribed place inside and outside the country. 3. It acts just like any other international currency.

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) 1, 2 and 3

Question : 12

Which one of the following is the correct statement? Service tax is a/an:

a) direct tax levied by the Central Government.

b) indirect tax levied by the State Government.

c) indirect tax levied by the Central Government.

d) direct tax levied by the State Government.

Question : 13

Which among the following taxes is not levied in India:

a) Minimum alternative tax

b) Dividend distribution tax

c) Capital gains tax

d) Estate duty

Question : 14 [SSC SO 2005]

Interest on public debt is part of

a) Interest payments by households

b) Transfer payments by the government

c) Transfer payments by the enterprises

d) National income

Question : 15

Which of the following statements is/are correct in regards to Revenue budget?

1. It consists of all capital receipts and expenditure such as domestic and foreign loans, loan repayment, foreign and etc
2. It consists of all current receipts, such as taxation, dividends of public sector units (PSU’s) and expenditure of the government

a) 1 only

b) 1 and 2

c) 2 only

d) Neither 1 nor 2