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

Question : 16

Which of the following refers to that part of deficit for which the government borrows from the RBI?

1. Primary deficit
2. Secondary deficit
3. Regulatory deficit
4. Monetised deficit

a) 1 only

b) 3 only

c) 1 and 2

d) 4 only

Question : 17

Mobilization of resources and channelizing the same for productive investment is the primary purpose of

1. Expenditure
2. VAT
3. Taxation
4. CRR

a) 1 only

b) 3 only

c) 2 only

d) 1, 2 and 4

Question : 18

In the context of economic liberalization, which of the following is/are the major themes of the fiscal policy?

1. A deliberate move to a regime of reasonable direct tax rates and better administration and enforcement
2. A systematic effort to simplify tax structure and tax laws

a) 1 only

b) 1 and 2

c) 2 only

d) Neither 1 nor 2

Question : 19 [SSC CGL Pre 2008]

Which of the following is not considered as National Debt ?

a) Provident Fund

b) Long-term Government Bonds

c) National Savings Certificates

d) Insurance Policies

Question : 20

Which of the following statements is incorrect in regards to Black money?

1. Hawala market has deep roots with this black money
2. It is unaccounted money which is concealed from tax authorities
3. All legal economic activities are dealt with this Black Money
4. It puts an adverse pressure on equitable distribution of wealth and income in the economy

a) 1 only

b) 3 only

c) 1 and 2

d) 1, 2 and 4