ECONOMY MCQS SET 38

ECONOMY MCQS SET 38

371) The annual financial statement is laid before the two Houses of Parliament in accordance with:
A) Article 74
B) Article 112
C) Article 268
D) Article 370
Answer:  Article 112
   
372) According to the Reserve Bank of India Credit and Monetary Policy, the rate of increase in the Minimum Support Price(MSP)of food grains has been more than that of the rate of inflation. This would mean that
A) inflation will be more than the price of food grains
B) there will be an increase in the availability of food grains
C) increase in the price of food grains will be more than proportionate to the rate of inflation
D) there will be a reduction in the open market price of food grains
Answer:  increase in the price of food grains will be more than proportionate to the rate of inflation
  
373) On the basis of the size and composition of external debt, World Bank has classified India as
A) a less indebted country
B) a moderately indebted country
C) a heavily indebted country.
D) a severely indebted country
Answer:  a less indebted country   
374) Among the tax revenues of the union government, the most important source is:
A) Income Tax
B) Corporation Tax
C) Union Excise Duties
D) Customs Duty
Answer:  Union Excise Duties
   
375) Which South Asian country has adopted Gross National Happiness as an index of the well-being of its citizens?
A) Bangladesh
B) Bhutan
C) Sri Lanka
D) Myanmar
Answer:  Bhutan

376) A significant victory for the developing countries on the issue of TRIPS at the Doha Meet was
A) postponement of the issue of labour standards;
B) special dispensation for least developed countries;
C) power to grant exemption from patent regime in the interest of public health;
D) discussion on implementation issues
Answer:  power to grant exemption from patent regime in the interest of public health;
   
377) Direct taxation is a better form of taxation because:
A) it fetches more revenue
B) it can be more easily collected
C) it allows for taxation according to means
D) it has greater tax compliance
Answer:  it allows for taxation according to means
   
378) Which of the following conditions need not be fulfilled , for declaring an offence under the Prevention of Money Laundering Act. 2002?
A) There must be commission of a crime;
B) There must be proceeds or gains from the crime;
C) The crime must have been committed beyond the country's boundaries;
D) There must be a transaction in respect of the proceeds of the crime.
Answer:  The crime must have been committed beyond the country's boundaries;
   
379) Consider the following statements about India's tax-to-GDP Ratio:
1. The ratio is arrived at by dividing the total tax collection of Central and State Governments by the GDP of the country
2. The ratio has been declining since 2007
3. Inflation can lead to a reduction in the ratio
4. The introduction of Goods and Services Tax is expected to increase the ratio.
Select the correct answer from the following:
A) 2 and 3 only
B) 1, 3 and 4 only
C) 1,2,3 and 4only
D) 1,2 and 3 only
Answer:  1,2,3 and 4only
   
380) Consider the following functions:
(1) Issue of bank notes of all denominations.
(2) Lender of the last resort
(3) Underwrite the loans of state and central government
(4) Periodic inspection of commercial banks.
which of the above are functions of the Reserve Bank of India?
A) 1, 2 and 4
B) 1 and 4
C) 1,2,3 and 4
D) 1 and 3
Answer:  1, 2 and 4