public finance fiscal & monetary policy section 6 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11 [SSC CHSL 2015]

Mixed Economy means :

a) Co-existence of small and large industries

b) Co-existence of public and private sectors

c) Promoting both agriculture and industries in the economy

d) Co-existence of rich and poor

Question : 12

Which one of the following statements regarding the levying, collecting, and distribution of Income Tax is correct?

a) The Union levies, collects, and distributes the proceeds of income tax between itself and the states.

b) Only the surcharge levied on income tax is shared between the Union and the states.

c) The Union levies, collects, and keeps all the proceeds of income tax itself.

d) The Union levies and collects the tax but all the proceeds are distributed among the states

Question : 13

With reference to the Finance Commission of India, which of the following statements is correct ?

a) It encourages the inflow of foreign capital for infrastructure development

b) None of the statements (a), (b) and (c) given above is correct in his context

c) It facilitates the proper distribution of finances among the Public Sector Undertakings

d) It ensures transparency in financial administration

Question : 14

Which of the following refers to the set of measures adopted by the central bank?

1. Monetary policy
2. GAAR
3. Finance Commission
4. Black Money

a) 1 only

b) 3 only

c) 1 and 2

d) 4 only

Question : 15

____ is not a non-Plan expenditure?

a) Interest payment

b) Defense expenditure

c) Subsidies

d) Central assistance for states and UT plans