This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Share of Direct tax in post economic reform is: A) Increasing. B) Decreasing. C) Can't say anything. D) Fluctuating. Show Answer Correct Answer: A) Increasing. 2. India's progress has been reasonably satisfactory in connection with: A) Growth of per capita income. B) Reduction in inequalities. C) Reduction of unemployment. D) Growth of GNP. Show Answer Correct Answer: D) Growth of GNP. 3. If saving exceeds investment, the national income will : A) Fall. B) Rise. C) Fluctuate. D) Remain constant. Show Answer Correct Answer: D) Remain constant. 4. One of the major objectives of Fiscal Policy in India has been to attain a match between the revenue receipts and revenue expenditures. Which among the following is NOT a measure towards achieving this objective? A) EFFECTS TO SLOW DOWN THE GROWTH RATE IN EXPENDITURE. B) EFFORTS TO INCREASE TAX REVENUE. C) EFFORTS TO RAISE PROFITS OF PUBLIC UNDERTAKINGS. D) ALL ARE CORRECT. Show Answer Correct Answer: B) EFFORTS TO INCREASE TAX REVENUE. 5. The Indian budget includes: A) Revised estimates for the current year. B) Budget estimates for the following year. C) Actual figures of the preceding year. D) All of these. Show Answer Correct Answer: D) All of these. 6. Real national income denotes: A) National income at constant prices. B) Per capita income. C) National income at current prices. D) Net factor income. Show Answer Correct Answer: A) National income at constant prices. 7. After 1991, the Central Government implemented various far-reaching reforms in the area of taxation. This was based on the recommendations of the: [CDS 1999] A) Wanchoo Committee. B) Rajah Chelliah Committee. C) Raj Committee. D) Narsimhan Committee. Show Answer Correct Answer: B) Rajah Chelliah Committee. 8. The prime pirpose of moentary policy is to maintain A) Wealth. B) Exchange rate. C) Growth. D) Price stability. Show Answer Correct Answer: D) Price stability. 9. The recommendations of the Finance Commission are: A) Binding on the government. B) Not binding on the government. C) Generally accepted as a matter of convention. D) Accepted or rejected by the government according to its convenience. Show Answer Correct Answer: D) Accepted or rejected by the government according to its convenience. 10. Dear Money Policy implies: A) High price level. B) Large money supply. C) High production. D) High interest rates. Show Answer Correct Answer: D) High interest rates. 11. Equality in a country can be best brought through A) Progressive expenditure. B) Regressive taxation. C) Regressive expenditure. D) None of the abov. Show Answer Correct Answer: B) Regressive taxation. 12. Which of the following scenarios would cause the nation's money supply to increase? A) Decreasing government spending. B) Lowering interest rates. C) Raising interest rates. D) Selling bonds to investors. Show Answer Correct Answer: B) Lowering interest rates. 13. Which among the following sectors received the largest Central plan outlay in the last few Central Government annual budgets? [CDS 2002] A) Energy. B) Agriculture and allied activities. C) Social Services. D) Communication. Show Answer Correct Answer: A) Energy. 14. The rate of growth of the tertiary sector has been: A) Higher than the overall rate of growth of the net domestic product. B) Lower than the overall rate of growth of the net domestic product. C) Same as the overall rate of growth of the net domestic product. D) Fluctuating when compared to growth of net domestic product. Show Answer Correct Answer: A) Higher than the overall rate of growth of the net domestic product. 15. Which among the following formulates fiscal policy? A) RBI. B) Finance Ministry. C) SEBI. D) Planning Commission. Show Answer Correct Answer: B) Finance Ministry. 16. In recent years the capital outlays for the defence service have been: A) Increasing steadily. B) More or less constant. C) Going down steeply. D) Fluctuating frequently. Show Answer Correct Answer: A) Increasing steadily. 17. Under VAT, how many slabs are there? A) 3. B) 4. C) 2. D) 5. Show Answer Correct Answer: B) 4. 18. A tax Which is paid by the person on whom the tax is incident is called a : A) Local tax. B) Indirect tax. C) Direct tax. D) Rate. Show Answer Correct Answer: C) Direct tax. 19. Which policy would help fight unemployment? A) Expansionary. B) Contractionary. Show Answer Correct Answer: A) Expansionary. 20. The existence of a Parallel Economy or Black Money: [CPO SI 2003] A) Makes the economy more competitive. B) Makes the monetary policies less effective. C) Ensures a better distribution of income and wealth. D) Ensures increasing productive investment. Show Answer Correct Answer: B) Makes the monetary policies less effective. ← PreviousNext →Related QuizzesIndian Economy QuizzesFiscal System Of India Quiz 1Fiscal System Of India Quiz 2Fiscal 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