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

Question : 16 [UPPCS (Pre) 2009]

Fiscal responsibility and Budget Management Act was enacted in India in the year

a) 2003

b) 2002

c) 2007

d) 2005

Question : 17

If a government budgets for a surplus and there is an unexpected increase in the level of economic activity, which of the following is likely to occur?

a) There will be an increase in tax revenues and an increase in the budget surplus

b) There will be a decrease in tax revenues and a decrease in the budget surplus

c) There will be an increase in tax revenues and a decrease in the budget

d) There will be a decrease in tax revenues and an increase in the budget surplus

Question : 18 [SSC CPO 2005]

Deficit financing is an instrument of

a) tax policy

b) credit policy

c) monetary policy

d) fiscal policy

Question : 19

Which of the following are included in the category of direct tax in India?

1. Corporation tax
2. Tax on income
3. Wealth tax
4. Customs duty
5. Excise duty

a) 1, 2 and 3

b) 2 and 3

c) 1, 2, 4 and 5

d) 1, 3, 4 and 5

Question : 20 [SSC CML 2000]

A mixed economy refers to an economic system where

a) No foreign investment is allowed

b) Only the private sector operates under government control

c) The economy functions with foreign collaboration

d) Both the government and the private sectors operate sectors operate simultaneously