This quiz works best with JavaScript enabled. Home > Indian Economy > Planning > Fiscal System Of India – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal System Of India Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is correct regarding the Gross Domestic Saving In India? [Asstt Grade 1992] A) Contribution of Household sector is the largest. B) Contribution of Government sector is the largest. C) Contribution of Corporate sector is the largest. D) None of these. Show Answer Correct Answer: A) Contribution of Household sector is the largest. 2. The measure of a worker's real wage is : [CPO SI 2002] A) The change in his productivity over a given time. B) His earning after deduction at source. C) His daily earnings. D) The purchasing power of his earnings. Show Answer Correct Answer: D) The purchasing power of his earnings. 3. The primary role of the Federal Reserve Bank is to steer the economy by A) Controlling the budget. B) Setting spending levels. C) Controlling the money supply. D) Loaning out money. Show Answer Correct Answer: C) Controlling the money supply. 4. Buyer's market denotes the place where: A) The supply exceeds the demand. B) The demand exceeds the supply. C) The demand and supply are well balanced. D) Commodities are available at competitive rates. Show Answer Correct Answer: B) The demand exceeds the supply. 5. When the government spends more money than they take in each year is called a ..... ? A) Debt. B) Deficit. C) Surplus. D) Expansionary. Show Answer Correct Answer: B) Deficit. 6. An individual's actual standard of living can be assessed by [SSC Grad 2011] A) Gross National Income. B) Net National Income. C) Per Capita Income. D) Disposable Personal Income. Show Answer Correct Answer: D) Disposable Personal Income. 7. Which of the following is not required while computing Gross National Product (GNP)? [Asstt Grade 1992] A) Net foreign investment. B) Private investment. C) Per capita income of citizens. D) Purchase of goods by government. Show Answer Correct Answer: C) Per capita income of citizens. 8. An expansionary 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: A) Increase the size of the nation's money supply. 9. Fiscal policy in India is formulated by ..... A) Reserve Bank of India. B) Planning Commission. C) Finance Ministry. D) Securities and Exchange Board of India. Show Answer Correct Answer: B) Planning Commission. 10. The Zero Base Budgeting in India was first experimented from: A) April, 1987. B) April, 2000. C) April, 1991. D) None of these. Show Answer Correct Answer: A) April, 1987. 11. Which of the following is not true about 'vote-on-account'? [Bank PO 1991] A) It is a budget presented in the Parliament to cover the deficit left by the last budget. B) It does not allow the Government to set for the economic policies of the new plan which starts from April 1. C) It prevents the Government from imposing fresh taxes or withdrawing old one. D) This allows the Government to withdraw an amount for a period with the consent of Parliament. Show Answer Correct Answer: A) It is a budget presented in the Parliament to cover the deficit left by the last budget. 12. An amount given by a government agency or even private body to encourage a particular economic activity is a : A) Grant. B) Loan. C) Subsidy. D) Mutual fund. Show Answer Correct Answer: C) Subsidy. 13. What is the main source of revenue to meet different expenditures? A) Excise duties. B) Customs duties. C) Internal borrowings. D) Income tax. Show Answer Correct Answer: C) Internal borrowings. 14. Value-added tax is : A) An ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale. B) An ad valorem tax on final consumption collected at the manufacturing level. C) Tax on final consumption collected at the consumption stage. D) A special tax levised by states on products from other states. Show Answer Correct Answer: A) An ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale. 15. A tax that takes away a higher proportion of one's income as the income rises is termed as [I. Tax & Central Excise 1990] A) Indirect tax. B) Progressive tax. C) Regressive tax. D) Proportional tax. Show Answer Correct Answer: B) Progressive tax. 16. Gross National Income is always more than Net National Income because it includes: A) Foreign income. B) Capital consumption allowance. C) Indirect taxes. D) Direct taxes. Show Answer Correct Answer: B) Capital consumption allowance. 17. In India GDP is higher than GNP because country's: A) Import > export. B) Capital inflow > capital outflow. C) Net factor income is negative. D) Govt. expenditure is more than it's income. Show Answer Correct Answer: A) Import > export. 18. During a contraction / recession, the Federal Government should use A) An expansionary fiscal policy. B) A contractionary fiscal policy. Show Answer Correct Answer: A) An expansionary fiscal policy. 19. In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years? [IAS 2010] A) Service tax. B) Personal income tax. C) Excise duty. D) Corporation tax. Show Answer Correct Answer: C) Excise duty. 20. Math the following: [CDS 1999] List I List II A. Income Tax 1. Levied and collected by the Central Government B. Corporation 2. Levied and collected Tax by the Central Government and shared with the State Governments C. Professional 3. Levied by the Central Tax Government but collected and appropriated by the State Governments D. Stamp Duties 4. Levied and collected by the State Governments 5. Levied and collected by the local bodies A B C D A) 1 2 3 4. B) 1 2 3 5. C) 2 1 4 3. D) 2 1 5 3. Show Answer Correct Answer: C) 2 1 4 3. ← 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 8Fiscal System Of India Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books