public finance fiscal & monetary policy section 7 Practice Questions Answers Test with Solutions & More Shortcuts
Fiscal Policy, Public Finance and Monetary Policy PRACTICE TEST [7 - EXERCISES]
public finance fiscal & monetary policy section 1
public finance fiscal & monetary policy section 2
public finance fiscal & monetary policy section 3
public finance fiscal & monetary policy section 4
public finance fiscal & monetary policy section 5
public finance fiscal & monetary policy section 6
public finance fiscal & monetary policy section 7
Question : 31
With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
- Defence expenditure
- Interest payments
- Salaries and pensions
- Subsidies
a) 1 only
b) 1, 2, 3 and 4
c) 2 and 3 only
d) None
Answer »Answer: (b)
Non-plan expenditure covers
- interest payments,
- subsidies (mainly on food and fertilisers),
- wage and salary payments to government employees,
- grants to States and Union Territories governments,
- pensions,
- police,
- economic services in various sectors,
- defence,
- loans to public enterprises,
- loans to States, Union Territories and foreign governments.
Question : 32
Which of the following is/are the major Objectives of Deficit financing?
- Used as an instrument of economic policy
- It is used as a tool for meeting financial needs of government
- Used for the mobilization of surplus, non- utilized and idle resources in the economy
a) 1 only
b) 3 only
c) 1 and 2
d) 1, 2 and 3
Answer »Answer: (d)
In under-developed countries, deficit-financing has been considered essential for financing the plans of economic development. It is used as a tool for meeting the financial needs of the government, especially in times of war.
It is used for the mobilization of surplus, non-utilized and idle resources in the economy. It is also used as an instrument of economic policy for removing the conditions of depression 4 to raise the level of output and employment.
Question : 33
Which of the following is the tax on income of the companies?
- Corporation tax
- Reliable tax
- Compensatory tax
a) 1 only
b) 3 only
c) 2 only
d) 1, 2 and 3
Answer »Answer: (a)
Corporation tax is the tax on income/profit of the organizations. In India, at one time, corporation tax was quite high
Question : 34
In which of the following years, did govt introduce Minimum Alternate tax on companies?
- 1996
- 1949
- 1972
- 2005
a) 1 only
b) 3 only
c) 2 only
d) 4 only
Answer »Answer: (a)
In 1996, govt introduced minimum Alternate tax (MAT) on companies which escaped the corporation tax net by using the provisions of exemptions, deductions incentives, deprecation and so on
Question : 35 [SSC HSLEDO 2010]
Which one of the following is not a ‘canon of taxation’ according to Adam Smith ?
a) Canon of economy
b) Canon of simplicity
c) Canon of certainty
d) Canon of convenience
Answer »Answer: (b)
In this book, titled ‘The Wealth of Nations, ‘Adam smith only gave four canons of taxation:
- canon of equity;
- canon of certainty;
- canon of convenience; and
- canon of the economy.
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Fiscal Policy, Public Finance and Monetary Policy Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
-
» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
-
» Poverty & Unemployment
-
» Introduction to Micro Economics
-
» Introduction to Macro Economics
-
» Macro fundamentals, GDP, Investment, Growth
-
» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
-
» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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