taxes types, methods & budgeting process section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

Which of the following figures are presented as part of the Budget presentation in Parliament?

1. Budgeted receipts and expenses for the next Financial Year (FY)
2. Budgeted receipts and expenses for the current FY
3. Revised receipts and expenses for the current FY
4. Actual receipts and expenses for the last FY

a) (i) & (ii) only

b) (i), (ii), & (iii) only

c) (i) only

d) All of the above

Question : 12 [MPPSC (Pre) 2005]

When was the Wealth tax first introduced in India?

a) 1976

b) 1957

c) 1991

d) 1948

Question : 13

Which of the following taxes fall under the state list of Indian Constitution?

1. Entertainment tax
2. Luxury tax
3. Stamp Duty
4. Custom Duty

a) 2, 4 and 5

b) 1 and 2

c) 1, 3 and 4

d) 1, 2 and 4

Question : 14

Which of the following statements are true regarding “Deficit Financing”?

1. It raises aggregate demand in the economy
2. It may result in inflation in the economy
3. It is used as a developmental tool by developing countries
4. It is done by issuing government bonds

a) (i), (ii) & (iii) only

b) (iii) & (iv) only

c) (i) & (ii) only

d) All of the above

Question : 15

The Public Debt of the Government of India includes which of the following:

1. Treasury Bills
2. External Commercial Borrowing (ECB)
3. NRI deposits
4. Foreign Direct Investment in India (FDI)

a) (i) & (iii) only

b) (i), (ii) & (iii) only

c) (i) only

d) (ii) & (iv) only