This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest weight in the revised Whole Sale Price Index, implemented from September 2010 is given to which of the following item? [Corporation Bank PO 2011] A) Fuel. B) Food items. C) Manufactured items. D) Primary Articles. E) All of these. Show Answer Correct Answer: B) Food items. 2. Invisible trade is a trade: [IAS 1992] A) Of government with public institutions. B) Of the services like the bank, marine companies and shipping companies. C) Of corporate and financial institutions with government. D) Of government with other countries. Show Answer Correct Answer: B) Of the services like the bank, marine companies and shipping companies. 3. Once the demands for grants and expenditure of different departments are passed by the Parliament, a bill to draw money from Consolidated Fund India for these purposes is introduced. This bill is called: A) Finance bill. B) Money bill. C) Appropriation bill. D) Credit budget bill. Show Answer Correct Answer: C) Appropriation bill. 4. The principal source of revenue to the State Government in India is : A) Income Tax. B) Sales Tax. C) State Excise Duties. D) Land Revenue. Show Answer Correct Answer: B) Sales Tax. 5. Estimation of national income in India is difficult due to : I. illiteracy of people II. non-monetised consumption III. inflation IV. people holding multiple jobs A) I, II, III and IV. B) II and III. C) I and IV. D) I, II and IV. Show Answer Correct Answer: D) I, II and IV. 6. Octroi is levied and collected by: A) Centre. B) State Government. C) Local bodies. D) All the above. Show Answer Correct Answer: C) Local bodies. 7. During a economic expansion, the Federal Government should use ..... A) An expansionary fiscal policy. B) A contractionary fiscal policy. Show Answer Correct Answer: B) A contractionary fiscal policy. 8. Fiscal deficit in the budget means: [CDS 1999] A) Revenue deficit plus the net borrowings of the government. B) Budgetary deficit plus the net borrowings of the government. C) Capital deficit plus revenue deficit. D) Primary deficit minus capital deficit. Show Answer Correct Answer: B) Budgetary deficit plus the net borrowings of the government. 9. The Fiscal Responsibility and Budget Management (FRBM) Act aimed fora. eliminating both revenue deficit and fiscal deficitb. giving flexibility to RBI for inflation management A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: B) 2 only. 10. The most appropriate measure of a country's economic growth is the: A) Gross domestic product. B) Net domestic product. C) Net national product. D) Per capita real income. Show Answer Correct Answer: D) Per capita real income. 11. In India, the service tax was first introduced in the year: [CDS 2001] A) 1998. B) 1996. C) 1994. D) 1992. Show Answer Correct Answer: C) 1994. 12. Which one of the following is the correct statements? Service tax is a/an [IAS 2006] A) Direct tax levied by the Central Government. B) Indirect tax levied by the Central Government. C) Direct tax levied by the State Government. D) Indirect tax levied by the State Government. Show Answer Correct Answer: B) Indirect tax levied by the Central Government. 13. Match List I with List II and select the correct answer using the codes given below the Lists1. Fiscal deficit-(A) Excess of total expenditure over total receipts2. Budget deficit-(B) Excess of revenue expenditure over revenue receipts3. Revenue deficit-(C) Excess of total expenditure over total receipts less borrowings4. Primary deficit ..... (D) Excess of total expenditure over total receipts less borrowings and interest payments A) 1-C, 2-A, 3-B, 4-D. B) 1-D, 2-C, 3-B, 4-A. C) 1-A, 2-C, 3-B, 4-D. D) 1-C, 2-A, 3-D, 4-B. Show Answer Correct Answer: B) 1-D, 2-C, 3-B, 4-A. 14. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to [CSAT 2011] A) Export. B) Import. C) Production. D) Consumption. Show Answer Correct Answer: A) Export. 15. One of the problems in calculating the national income in India correctly is : [Railways 1994] A) Under-er-employment. B) Inflation. C) Non-monetised consumption. D) Low savings. Show Answer Correct Answer: C) Non-monetised consumption. 16. In a country like India, why should an increase of direct taxes be preferred to an increase in indirect taxes? A) Direct taxes serve the end of Socialism by taking away the excessive wealth from the rich. B) Direct taxes involve the well-off sections of the society while indirect taxes affect the masses. C) It is easy to realise direct taxes and is thus useful in a country troubled by tax evasion. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which one of the following is not a feature of "Value Added Tax"? [CSAT 2011] A) It is a multi-point destination-based system of taxation. B) It is a tax levied on value addition at each stage of transaction in the production- distribution chain. C) It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer. D) It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation. Show Answer Correct Answer: D) It is basically a subject of the Central Government and the State Governments are only a facilitator for its Successful implementation. 18. Which of the following is not a tool of fiscal policy? A) Taxing. B) Spending. C) Interest Rates. D) All of these options are tools of fiscal policy. Show Answer Correct Answer: C) Interest Rates. 19. National income refers to: [CPO SI 2002] A) Money value of goods 'and services produced in a country during a year. B) Money value of stocks and shares of a country during a year. C) Money value of capital goods produced by a country during a year. D) Money value of consumer goods produced by a country during a year. Show Answer Correct Answer: A) Money value of goods 'and services produced in a country during a year. 20. Who was the chairman of National Income Committee? A) P. C. Mahalanobis. B) V.K.R.V. Rao. C) D.R. Gadgil. D) A.M. Khusro. Show Answer Correct Answer: A) P. C. Mahalanobis. ← PreviousNext →Related QuizzesIndian Economy QuizzesFiscal System Of India Quiz 1Fiscal System Of India Quiz 2Fiscal System Of India Quiz 3Fiscal System Of India Quiz 4Fiscal 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