public finance fiscal & monetary policy section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

Which of the following is not a technique of Deficit financing?

1. Internal Borrowings
2. Counting Currency
3. Printing Currency
4. External aid and borrowings

a) 1 only

b) 2 and 3

c) 2 only

d) 1, 2, 3 and 4

Question : 17

In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

a) 1 only

b) 2 and 3 only

c) 1 and 2 only

d) 1, 2, 3 and 4

Question : 18 [SSC LDEO 2012]

Which one of the following is not included in current revenue of the Union Government ?

a) Interest payments

b) Non-tax revenue

c) Tax revenue

d) Loans

Question : 19

The highest rate of income tax before 1975 was

1. 72.85
2. 97.25
3. 46.89
4. 27.14

a) 1 only

b) 3 only

c) 2 only

d) 3 and 4

Question : 20 [PSC (Pre) 2010]

Which one of the following was not stipulated in the Fisca Responsibility and Budget Management Act 2003?

a) Fixing government guarantees in any financial year as a percentage of GDP

b) Elimination of primary deficit by the end of the fiscal year 2008-09

c) Elimination of revenue deficit by the end of the fiscal year 2007-08

d) Non-borrowing by the Central Government from Reserve Bank of India except - under certain circumstances