ECONOMY MCQS SET 114

ECONOMY MCQS SET 114

1131) Consider the following statements
1. Interest Tax is the tax imposed on the interest income of commercial banks on their gross loans and advances.
2. Interest tax is in effect currently only in India.
Which of the above statements is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Only 1   
 
1132) Octroi is levied and collected by
A) Central Government
B) State Government
C) Local bodies
D) Both 'a' and 'b'
Correct Answer: Local bodies   
 
1133) Consider the following Taxes/duties
1. Stamp and Registration Duties
2. Land Revenue
3. Tax on Urban Immovable property
4. General Sales Tax
Which of the taxes/duties given above are the main sources of the revenue from the property and capital transaction of the State Government in India?
A) 1, 2, 3 and 4
B) 1, 2 and 3
C) 2 and 3
D) 2 and 4
Correct Answer: 1, 2 and 3
   
1134) The Eurozone Finance Ministers and the International Monetary Fund signed a deal in Brussels to and Cyprus with bailout worth 10 billion Euros. Which of the following is/are features of the bailout deal?
1. Cyprus agreed for increasing the nominal corporate tax rate to 112.5%. Thus increasing it by 2.5%.
2. An imposition of 9.9% apart from the bank deposits above 100000 Euros in the Banks a part from the 6.75% tax on the smaller deposits.
3. The tax on interest, which will be generated by the deposits will also be levied.
4. The tax measures will help in boosting the revenues of Cyprus a part from limiting the loan size, which is required from Eurozone.
Choose the correct answer from codes given below.
A) Only 1
B) 2, 3 and 4
C) 3 and 4
D) All of these
Correct Answer: 3 and 4   
 
1135) Consider the following
1. VAT is the neutral tax since it does not influence the organisation of production.
2. VAT is easier to enforce than the Sales Tax to impose through cross-checking.
Which of the statements given above is/are correct about Value Added Tax (VAT)?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
 
1136) Which one of the following is the major component of budget of the financial year of the Union Government in India?
A) Actual figures for the preceding year
B) Budget and revised figures for the current Year
C) Budget estimates for the following Year
D) All of the above
Correct Answer: All of the above
   
1137) Consider the following sources
1. State's share in the Central Taxes
2. Grand-in aid from the Central Government
3. States' own non-tax revenue
Which of the sources given above is/are the important source of revenue for the states?
A) 1 and 2
B) Only 1
C) 2 and 3
D) All of these
Correct Answer: All of these
   
1138) In which one of the following years, the Value-Aided Tax was imposed in India except some States?
A) 1991
B) 1995
C) 2005
D) 2010
Correct Answer: 2005   
 
1139) Consider the following taxes
1. Taxes on passenger
2. Taxes on electricity consumption
3. Entertainment tax
Which of the taxes given above are the main taxes under the commodities and services in the Indian states?
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) All of these
Correct Answer: All of these
   
1140) Which one of the following deficits deducted the interest payments to internal and external debt from the fiscal deficit to calculate the deficit of an economy?
A) Revenue deficit
B) Twin deficit
C) Primary deficit
D) Budgetary deficit
Correct Answer: Primary deficit