public finance fiscal & monetary policy section 7 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 26

Which statements about indirect taxes in India are true?

1. Yield from indirect taxes is more than that from direct taxes.
2. Indirect taxes have grown faster than direct taxes after 1947.
3. Indirect taxes are ultimately paid for by persons who do not actually pay taxes to the government.
4. Increase in indirect taxes is good in a developing country.

a) 1, 2 and 4

b) 2 only

c) 1 and 2

d) 1, 2 and 3

Question : 27 [UKPCS (Pre) 2014]

Which of the following economists, introduced fiscal policy as a tool to rectify the Great Depression of 1929-30?

a) Prof. Crowther

b) Prof. Marshall

c) Prof. Keynes

d) Prof. Pigou

Question : 28 [SSC SO 2007]

Excise duty on a commodity is payable with reference to its

a) production, transportation and sale

b) production and sale

c) production

d) production and transportation

Question : 29

Choose the correct one from the below expressions

1. Fiscal deficit = Budget deficit – Government’s market borrowing and liabilities
2. Fiscal deficit = Budget deficit + Government’s market borrowing and liabilities
3. Fiscal deficit = Revenue expenditure – Budget receipts
4. Fiscal deficit = Revenue expenditure + Budget receipts

a) 1 only

b) 3 only

c) 2 only

d) None of the above

Question : 30

The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?

a) Securities Roll-back Operators

b) Small Revenue Operators

c) Self regulatory Organisations

d) Securities Regulatory Organisations