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

Answer: (a)

The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium.

In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.

Answer: (c)

The term indirect tax has more than one meaning.

In the colloquial sense, an indirect tax (such as sales tax, a specific tax, value-added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).

The intermediary later files a tax return and forwards the tax proceeds to the government with the return.

In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by the government from the persons (legal or natural) on which it is imposed.

Answer: (d)

It GST being levied then excise, VAT, Octroi, Service Tax etc will likely go away to make a single taxation system. GST in India will be divided between state & centre.