This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The system of Budget was introduced in India during the viceroyalty of: [Central Excise 1994] A) Canning. B) Dalhousie. C) Ripon. D) Elgin. Show Answer Correct Answer: A) Canning. 2. What is an example of a positive externality? A) Air pollution from factories. B) Eminent domain. C) Allowing people to smoke on school campuses. D) A student getting immunizations in order to go to school. Show Answer Correct Answer: D) A student getting immunizations in order to go to school. 3. The total value of goods and services, produced' in a country during a given period is [CPO SI 2011] A) Disposable income. B) National income. C) Per capita income. D) Net national income. Show Answer Correct Answer: B) National income. 4. Which is the best measure of economic growth of a country ? A) GNP. B) GDP. C) Net revenue. D) None of these. Show Answer Correct Answer: A) GNP. 5. Who is the custodian of Contingency Fund of India? A) THE PRESIDENT. B) PRIME MINISTER. C) RBI. D) FINANCE MINISTER. Show Answer Correct Answer: A) THE PRESIDENT. 6. Who is the chairperson of the Monetary Policy committee of India? A) Finance Minister. B) Prime Minister. C) RBI Governor. D) Chief Economic Advisor. Show Answer Correct Answer: C) RBI Governor. 7. When the government raises taxes, what does it take out of circulation? A) Money. B) Credit. C) People. D) Jobs. Show Answer Correct Answer: A) Money. 8. The first estimate of national income in India was made by: A) Mahalanobis. B) V.K.R.V. Rao. C) Dadabhai Naoroji. D) Prof. Sheroi. Show Answer Correct Answer: C) Dadabhai Naoroji. 9. The basic attribute of a formal organization is : [CPO AC 2003] A) Esteem and prestige. B) Roles and duties. C) Dominance and supremacy. D) Rules and regulations. Show Answer Correct Answer: D) Rules and regulations. 10. Excise Duties are taxes on : A) Sale of commodities. B) Export of commodities. C) Production of commodities. D) Import of commodities. Show Answer Correct Answer: C) Production of commodities. 11. Main bearers of the burden of indirect tax are: A) Manufacturers. B) Traders. C) Consumes. D) Tax payers. Show Answer Correct Answer: C) Consumes. 12. Which of the following is not a component of revenue receipts of the union government? A) Corporate tax receipts. B) Dividends and profits. C) Disinvestment receipts. D) Interest receipts. Show Answer Correct Answer: C) Disinvestment receipts. 13. 'Liquidity trap' is a situation in which: A) People want to hold only cash because prices are falling everyday. B) People want to hold only. cash because there is too much of liquidity in the economy. C) The rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash. D) There is an excess of foregin exchange reserves in the economy leading to excess of money supply. Show Answer Correct Answer: C) The rate of interest is so low that no one wants to hold interest bearing assets and people wants to hold cash. 14. Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns [IAS 2006] A) Fiscal deficit only. B) Revenue deficit only. C) Both fiscal and revenue deficit. D) Neither fiscal deficit nor revenue deficit. Show Answer Correct Answer: C) Both fiscal and revenue deficit. 15. The per capita income has been low in India because: A) Of population growth. B) Of price rise. C) More people are in rural areas. D) Of regional imbalances. Show Answer Correct Answer: A) Of population growth. 16. Which of the following constitute the internal debt of the Central Government?1.Treasury Bills2.Non-marketable securities issued by Central GovernmentSelect the correct answer using the code given below: A) 1 only. B) 2 only. C) Both 1 and 2. D) ) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 17. Which of the following schemes was intended to tap the black money? A) SBI Deposit Scheme. B) UTI Bonds. C) Long term Operations Scheme. D) India Development Bonds. Show Answer Correct Answer: D) India Development Bonds. 18. "The Fed" refers to the ..... A) Federal Bureau of Investigation. B) Federal Government. C) Federal Reserve System. D) Federal Income Tax. Show Answer Correct Answer: C) Federal Reserve System. 19. Which one of the following is the most important item of non-plan expenditure? A) Interest payment. B) Defence. C) Fertiliser subsidies. D) Loans to public enterprises. Show Answer Correct Answer: A) Interest payment. 20. Fiscal Policy in India is formulated by which of the following? A) RBI. B) MINISTRY OF FINANCE. C) NEETI AAYOG. D) NONE OF THEM. Show Answer Correct Answer: B) MINISTRY OF FINANCE. ← PreviousNext →Related QuizzesIndian Economy QuizzesFiscal System Of India Quiz 1Fiscal 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