This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The tax whose share in overall taxation revenue has gone up rapidly during the planning period is : A) Income tax. B) Wealth tax. C) Capital gains tax. D) Tax on production. Show Answer Correct Answer: D) Tax on production. 2. The RBI uses the following instruments for quantitative central of credit: (i) Cash Reserve Ratio (ii) Bank Rate (iii) Open Market Operations (iv) Margin Requirements Choose your answer from: A) (i) and (ii). B) (ii) and (iv). C) (i), (ii) and (iii). D) (i), (ii), (iii) and (iv). Show Answer Correct Answer: C) (i), (ii) and (iii). 3. In gross domestic saving by sector of origin, the four sectors in order of importance are: A) Household Sector, Public Enterprises, Government Sector, Corporate Sector. B) Household Sector, Corporate Sector, Government Sector, Public Enterprises. C) Government Sector, Household Sector, Public Enterprises, Corporate Sector. D) Household Sector, Government Sector, Public Enterprises, Corporate Sector. Show Answer Correct Answer: B) Household Sector, Corporate Sector, Government Sector, Public Enterprises. 4. What do we call the instruments of monetary policy which directly affect the quantity of money supply? A) Quantitative instruments. B) Qualitative instruments. C) Money instruments. D) None the above. Show Answer Correct Answer: A) Quantitative instruments. 5. Which of the following would signify scarcity in economics? A) Production of 100 kg of a certain item instead of the targeted 150 kg. B) Availability of 10 kg of rice against a demand for 15 kg. C) Availability of post-graduates for jobs of typists. D) Quantity supplied remains the same when price changes. Show Answer Correct Answer: B) Availability of 10 kg of rice against a demand for 15 kg. 6. The national income of India is estimated mainly through: [CBI 1993] A) Production method alone. B) Expenditure method alone. C) Production and expenditure methods. D) Production and income methods. Show Answer Correct Answer: D) Production and income methods. 7. Net factor income from abroad added to GDP gives: A) GNP. B) NNP. C) NDP. D) Per capita income. Show Answer Correct Answer: A) GNP. 8. Increase in Oil Pool Deficit implies: A) Increasing gap between international and domestic oil prices. B) Domestic oil price is comparatively more than international price. C) Government's Fiscal Deficit goes up. D) None of these. Show Answer Correct Answer: A) Increasing gap between international and domestic oil prices. 9. Since 1951, in India: A) National income has increased but per capita income has decreased. B) National and per capita incomes have both increased fast. C) National income has increased and per capita income has also increased but at a slower rate. D) National income and per capita income have increased every year. Show Answer Correct Answer: C) National income has increased and per capita income has also increased but at a slower rate. 10. The highest sector wise contribution to gross domestic saving comes from: A) Private corporate sector. B) Household sector. C) Public sector. D) Cooperative sector. Show Answer Correct Answer: B) Household sector. 11. In a progressive tax, the following statements holds true: A) INCREASES AS THE NATIONAL INCOME INCREASES. B) DECREASES AS THE NATIONAL INCOME INCREASES. C) DOES NOT ALTER AS THE NATIONAL INCOME INCREASES. D) MAY INCREASES PR DECREASES AS THE NATIONAL INCOME INCREASES. Show Answer Correct Answer: A) INCREASES AS THE NATIONAL INCOME INCREASES. 12. This is a paper component of the money supply, today consisting of Federal Reserve notes. A) Coins. B) Currency. C) Both coins and currency. D) Debit cards. Show Answer Correct Answer: B) Currency. 13. The Central Government had recently allowed additional borrowing limit to the States for current financial year subject to which of the following reform(s)?1. Implementation of One Nation One Ration Card System2. Ease of doing business reform3. Implementation of National Education Policy 2020Select the correct answer using the code given below: A) 1 and 2 only. B) 2 and 3 only. C) 1 and 3 only. D) All of the above. Show Answer Correct Answer: A) 1 and 2 only. 14. On account of some national emergency or in order to carry out some secret mission, the government sometimes requires funds but may not give the details of the expenditure estimates. The House grants some lumpsum for this called : A) Emergency budget. B) Vote of Credit. C) Contingency bill. D) Supplementary budget. Show Answer Correct Answer: B) Vote of Credit. 15. In the short run, a producer continues his production as long as he covers: [Asstt Grade 1992] A) Variable cost. B) Fixed cost. C) Average cost. D) Marginal cost. Show Answer Correct Answer: B) Fixed cost. 16. Which of the following are referred to as the developed economies? A) Countries earning huge industrial profits. B) Countries proficient in trade and export. C) Countries having large per capita income. D) Countries advanced in technology. Show Answer Correct Answer: C) Countries having large per capita income. 17. A deflator is a technique of: [IAS 1992] A) Adjusting for changes in price level. B) Adjusting for change in commodity. C) Accounting for higher increase of GNP. D) Accounting for decline of GNP. Show Answer Correct Answer: A) Adjusting for changes in price level. 18. The standard of living in a country is represented by its: A) National income. B) Per capita income. C) Poverty ratio. D) Unemployment rate. Show Answer Correct Answer: B) Per capita income. 19. The exchange of goods and services without using money is known as ..... A) Near money. B) Bartering. C) Double coincidence of wants. D) Fiat money. Show Answer Correct Answer: B) Bartering. 20. Development is : [CDS 1999] A) Synonymous with economic growth. B) Narrower than economic growth. C) Wider than economic growth. D) Not related to economic growth. Show Answer Correct Answer: C) Wider than economic growth. Next →Related QuizzesIndian Economy QuizzesFiscal System Of India Quiz 2Fiscal System Of India Quiz 3Fiscal System Of India Quiz 4Fiscal System Of India Quiz 5Fiscal System Of India Quiz 6Fiscal System Of India Quiz 7Fiscal System Of India Quiz 8Fiscal System Of India Quiz 9Fiscal System Of India Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books