This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. By which bill does the government make arrangement for the collection of revenues for a year? A) Supplementary Budget. B) Finance Bill. C) Fiscal Budget. D) Economic Bill. Show Answer Correct Answer: B) Finance Bill. 2. A contractionary policy means that the Fed is attempting to A) Increase the size of the nation's money supply. B) Decrease the size of the nation's money supply. Show Answer Correct Answer: B) Decrease the size of the nation's money supply. 3. Railway Budget in India was separated from general budget in : A) 1924-25. B) 1941-42. C) 1947-48. D) 1950-51. Show Answer Correct Answer: A) 1924-25. 4. Which policy would help fight inflation? A) Expansionary. B) Contractionary. Show Answer Correct Answer: B) Contractionary. 5. Many times we see in financial journals/bulletins a term M3. What is M3? [RBI Grade B Officer 2011] A) Currency in circulation on a particular day. B) Total value of foreign exchange on a particular day. C) Total value of export credit on a given date. D) Total value of the tax collected in a year. E) None of these. Show Answer Correct Answer: E) None of these. 6. Which one of the following is the largest item of expenditure of the Government of India on revenue account?a) Defenceb) Subsidiesc) Pensionsd) Interest payment A) ONLY A. B) A, B, AND C. C) ONLY D. D) C, D, AND A. Show Answer Correct Answer: C) ONLY D. 7. With respect to the government expenditure in India, which of the following is / are Transfer Payments?1.The payments which are made by the government to its employees2.The payments which are made as financial aid in a social welfare programme3.The payments which are made to foreign countries and institutions as interests on loans taken in past4.The payments which are made to oil companies in lieu of the subsidiesSelect the correct option from the codes given below: A) ONLY 1 AND 3. B) 1, 2, 3, 4. C) ONLY 2 AND 4. D) ONLY 1, 2 AND 3. Show Answer Correct Answer: C) ONLY 2 AND 4. 8. If the price of an inferior good falls, its demand: [CPO SI 2003] A) Rises. B) Falls. C) Remains constant. D) Can be any of the above. Show Answer Correct Answer: C) Remains constant. 9. Which one of the following is the updated base for Wholesale Price Index (WPI) ? [Corporation Bank PO 2011] A) 2002-2003. B) 2003-2004. C) 2004-2005. D) 2005-2006. E) 2006-2007. Show Answer Correct Answer: C) 2004-2005. 10. Which of the following is fiscal Measure to controll inflation in India? A) Cash Reserve Ratio. B) Statutory Liquidity Ratio. C) Public Expenditure. D) Repo Rate. Show Answer Correct Answer: C) Public Expenditure. 11. Consider the following statements regarding plan and non-plan expenditure1.Plan expenditure is believed to be under the discretion of the central government, whereas non-plan expenditure is not part of discretion of the central government2.The distinction between plan and non-plan expenditures has been eliminated from Budget 2017-18 onwards.Which of the statements given above is/are correct? 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. 12. Gross National Product is less than Gross Domestic Product depending upon whether: A) Indirect taxes are more than subsidies. B) Depreciation is included or not. C) Net factor income from abroad is positive or negative. D) Indirect taxes are less than subsides. Show Answer Correct Answer: C) Net factor income from abroad is positive or negative. 13. Which among the following is the regulatory authority for giving clearance for External Commercial borrowing? A) Foreign Investment Promotion Board. B) RBI. C) SEBI. D) Foreign Investment Promotion Council. Show Answer Correct Answer: B) RBI. 14. If and economy experiences a dramatic rise in prices, which fiscal policy action could be taken? A) Selling securities on the open market. B) Raising interest rates. C) Reducing government spending. D) Raising reserve requirements. Show Answer Correct Answer: C) Reducing government spending. 15. Which of the following is poorest state in India? A) Odisha. B) Bihar. C) U.P. D) M.P. Show Answer Correct Answer: A) Odisha. 16. Sales tax is a ..... tax A) Regressive. B) Progressive. Show Answer Correct Answer: A) Regressive. 17. Who is the chairman of 13th Finance Commission? A) C. Rangarajan. B) M.N. Vohra. C) Bimal Jalan. D) Vijay Kelkar. Show Answer Correct Answer: D) Vijay Kelkar. 18. Which one of the following statements appropriately describes the "fiscal stimulus" ? A) (a.) It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth. B) (b.) It is an intense affirmative action of the Government to boost economic activity in the country. C) (c.) It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation. D) (d.) It is an extreme affirmative action by the Government to pursue its policy of financial inclusion. Show Answer Correct Answer: B) (b.) It is an intense affirmative action of the Government to boost economic activity in the country. 19. Gross National Product at market prices is defined as : [CPO AC 2003] A) The market value of all final goods and services produced in an economy taking into account net factor income from abroad. B) The market value of all final goods and services produced in an economy. C) The market value of all final goods and services produced in an economy plus indirect taxes. D) The market value of all final goods and services produced in an economy plus indirect taxes minus subsidies. Show Answer Correct Answer: A) The market value of all final goods and services produced in an economy taking into account net factor income from abroad. 20. What do we call the rate at which the Reserve Bank of India lends money to commercial banks? A) Repo-rate. B) Reserve-repo rate. C) CRR. D) SLR. Show Answer Correct Answer: A) Repo-rate. ← 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 5Fiscal System Of India Quiz 6Fiscal System Of India Quiz 8Fiscal System Of India Quiz 9Fiscal System Of India Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books