This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. After the initiation of economic reforms in 1991-92 the percentage share of: [CDS 1999] A) Direct taxes increased and that of indirect taxes decreased in gross tax revenue. B) Both direct and indirect taxes increased in gross tax revenue. C) Both direct and indirect taxes decreased in gross tax revenue. D) Direct taxes decreased and that of indirect taxes increased in gross tax revenue. Show Answer Correct Answer: B) Both direct and indirect taxes increased in gross tax revenue. 2. Which of the following is not part of state tax? A) Land revenue. B) Entertainment tax. C) Sales and purchase of newspapers. D) Stamp duty other than financial documents. Show Answer Correct Answer: C) Sales and purchase of newspapers. 3. The rate of growth of per capita income is equal to: A) Rate of growth of national income divided by the rate of growth of population. B) Growth in national income divided by the increase in population. C) Rate of growth of national income minus the rate of growth of population. D) Rate of growth of national income. Show Answer Correct Answer: C) Rate of growth of national income minus the rate of growth of population. 4. Which one among the following is not a component of fiscal policy? [Asstt Commdt 2011] A) Taxation policy. B) Public debt policy. C) Trade policy. D) Public expenditure policy. Show Answer Correct Answer: C) Trade policy. 5. 'Balanced Growth' means: A) Growth which brings about a balance between the rich and the poor. B) Growth which brings about a balance between the public and private sectors. C) Growth which brings about a balance between the traditional and modern sector. D) Growth pattern on which simultaneous investments are made in all the sectors of the economy, viz., Agriculture, Industry, Transport, Communication, etc. Show Answer Correct Answer: D) Growth pattern on which simultaneous investments are made in all the sectors of the economy, viz., Agriculture, Industry, Transport, Communication, etc. 6. An appropriate fiscal policy to combat a recession would be to increase which of the following? A) Interest rates. B) The money supply. C) Taxes. D) Government spending. Show Answer Correct Answer: D) Government spending. 7. National income of India is compiled by: A) Finance Commission. B) Indian Statistical Institute. C) National Development Council. D) Central Statistical Organisation. Show Answer Correct Answer: D) Central Statistical Organisation. 8. Fiscal deficit in the union budget is equal to A) Net increase in internal and external borrowings. B) The difference between current expenditure and current revenue. C) The sum of monetized deficit and budgetary deficit. D) Net increase in the union government's borrowing from the Reserve Bank of India. Show Answer Correct Answer: A) Net increase in internal and external borrowings. 9. Which one of the following statements appropriately describes the "fiscal stimulus"? [CSAT 2011] 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) It is an intense affirmative action of the Government to boost economic activity in the country. 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) It is an extreme affirmative action by the Government to pursue- its policy of financial inclusion. Show Answer Correct Answer: B) It is an intense affirmative action of the Government to boost economic activity in the country. 10. Among the structural changes which of the following is not wholly welcome? A) Increase in the share of construction in the GNP. B) Relative contribution of agriculture to our GNP is declining. C) Marked improvement in the contribution of manufacturing to the GNP. D) Substantial increase in the percentage contribution of public administration and defence to GDP. Show Answer Correct Answer: D) Substantial increase in the percentage contribution of public administration and defence to GDP. 11. The per capita income is obtained by: A) Summing up the income of all the citizens of the country. B) Dividing national income by the population. C) Estimating the minimum income of individual citizens. D) Dividing the total national capital with the profit earned. Show Answer Correct Answer: B) Dividing national income by the population. 12. What is meant by 'Underwriting', the term frequently used in financial sector? [Punjab & Sindh Bank 2011] A) Under valuation of the assets. B) The Act of taking on a risk for a fee. C) Giving a Guarantee that a loan will not become a bad loan. D) The act of permission to float an IPO. E) None of the above. Show Answer Correct Answer: A) Under valuation of the assets. 13. What is 'Recession'? A) Rise in the cost of production, especially because of wage increase. B) Increase in money supply without a matching increase in production. C) Reduction in production and employment for want of sufficient demand for goods. D) None of these. Show Answer Correct Answer: C) Reduction in production and employment for want of sufficient demand for goods. 14. Companies pay Corporation Tax on their: [UDC 1993] A) Investment. B) Production. C) Sales proceeds. D) Incomes. Show Answer Correct Answer: D) Incomes. 15. Which of the following is an objective of fiscal policy A) Price stability. B) Balance of Payment. C) Foreign exchange market. D) Manage rate of interest. Show Answer Correct Answer: A) Price stability. 16. Fiscal consolidation is one of the objectives of India's economic policy. Which of the following would help in fiscal consolidation?1. increasing taxes2.getting more loans3.reducing subsidiesSelect the correct answer using the codes given below. A) 1 and 2 only. B) 1 and 3 only. C) ) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: B) 1 and 3 only. 17. ..... is the price paid for the use of money. A) Gold. B) Monetary policy. C) Fiscal policy. D) The interest rate. Show Answer Correct Answer: D) The interest rate. 18. An advalorem duty is a tax on the basis of: [IAS 1988] A) The price of a commodity. B) The value added. C) The advertisement expenditure. D) The unit of the commodity. Show Answer Correct Answer: A) The price of a commodity. 19. National income calculated at current prices in India has shown a tendency to rise at a faster rate than national income at constant prices. This is because: A) India's population has been rising fast. B) General price level in the economy has been rising rapidly. C) Statistically manipulations are employed by the Planning. D) Base year chosen is an abnormal year. Show Answer Correct Answer: B) General price level in the economy has been rising rapidly. 20. Which of the following is the basis for determining the national income? A) Total revenue of the State. B) Net profit earned and expenditure incurred by the State. C) Production of goods and services. D) All of the above. Show Answer Correct Answer: C) Production of goods and services. ← 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 7Fiscal System Of India Quiz 9Fiscal System Of India Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books