taxes types, methods & budgeting process section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 6 [BPSC (Pre) 2017]

Service tax was introduced in India on the recommendation of

a) Raja J. Chelliah Committee

b) Manmohan Singh Committee

c) Kelkar Committee

d) Yashwant Sinha Committee (E) None of the above/More than one of the above

Question : 7

Which of the following is the characteristic of progressive tax?

1. Marginal tax rate should be increasing.
2. Marginal tax rates should be more than average tax rate.

a) Both 1 and 2

b) 1 only

c) 2 only

d) Neither 1 nor 2

Question : 8

As per the FRBM Act 2003, Central Government shall endeavour to ensure that:

1. The general government debt shall not exceed 60% of GDP by 2024-25
2. The central government debt shall not exceed 40% of GDP by 2024-25
3. The central government shall not give additional guarantees on loans in excess of 0.5% of GDP in any financial year

a) (iii) only

b) (i) & (ii) only

c) (ii) only

d) All of the above

Question : 9 [CDS-2013-I]

The government can influence private sector expenditure by

1. taxation
2. subsidies
3. macro-economic policies
4. grants

a) 1, 2 and 3

b) 1, 2, 3 and 4

c) 1, 2 and 4

d) 3 and 4

Question : 10

Which of the following statements are true regarding "fiscal stimulus":

1. It is a strategy to boost the sluggish economy
2. RBI pumps money into the economy
3. Government reduces subsidies
4. Public spending increases

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

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

c) (i) & (ii) only

d) (i) & (iv) only