ECONOMY MCQS SET 109

ECONOMY MCQS SET 109

1081) In India, deficit financing is used for raising resources for
A) economic development
B) redemption of public debt
C) adjusting the Balance of Payments
D) reducing the foreign debt
Correct Answer: economic development   
1082) The Goods and Services Tax (GST) proposed to be introduced, covers taxes like
A) Trade/Sale Tax
B) Service Tax
C) Service, Excise
D) Service, Excise, VAT
Correct Answer: Service, Excise, VAT
   
1083) Consider the following
1. Fringe Benefit Tax
2. Interest Tax
3. Securities Transaction Tax
Which of the mentioned above are Direct tax/taxes?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) All of these
Correct Answer: All of these
   
1084) Which one of the following is correct for Primary deficit?
A) Gross Fiscal deficit--Net Fiscal deficit
B) Gross Fiscal deficit--Net Interest liabilities
C) Gross Fiscal deficit--Capital disbursement
D) Gross Fiscal deficit--Interest receipts
Correct Answer: Gross Fiscal deficit--Net Interest liabilities
   
1085) Consider the following statements about the Ad valorem tax
1. Ad valorem tax is a tax based on the value of real estate or personal property.
2. Ad valorem tax is imposed only at the time of a transaction.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1

1086) Economic growth in country X will necessarily have to occur if
A) there is technical progress in the world economy
B) there is population growth in X
C) there is capital formation in X
D) the volume of trade grows in the world economy
Correct Answer: there is capital formation in X
   
1087) Consider the following statements
1. The custom duty is imposed on the commodities produced in India.
2. In the last few years, the importance of the custom duty in the revenue receipts of the Central Government is declined.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 2
   
1088) 'Other liabilities' of the Central Government of India include out-standings against which one of the following?
A) Small saving schemes
B) Securities issued to Industrial Development Bank of India, Unit Trust of India and nationalised banks
C) Deposits under the special deposit schemes
D) All of the above
Correct Answer: All of the above
   
1089) Consider the following actions by the government
1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies
Which of the statements given above is/are correct?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) All of these
Correct Answer: All of these
   
1090) Which one of the following cities In India Imposed the General Sales Tax for the first time?
A) Madras
B) Bombay
C) Calcutta
D) Poona
Correct Answer: Madras