FISCAL SYSTEM MCQS SET 03

FISCAL SYSTEM MCQS SET 03

21) The system of Budget was introduced in India during the viceroyalty of :
A) Canning
B) Dalhousie
C) Ripon
D) Elgin
Answer: Canning

   
22) Of the total revenue of the Union Government, the Indirect Taxes account for nearly :
A) 0.7
B) 0.75
C) 0.8
D) 0.85
Answer: 0.8
   
23) Temporary tax levied to obtain additional revenue is called :
A) cess
B) rate
C) fee
D) surcharge
Answer: cess

   
24) Which of the following is wrongly matched?
A) Cess - a compulsory levy collected by the government for a particular purpose from all persons
B) Rate - a compulsory levy collected by the government from the beneficent of
particular schemes
C) Corporation tax - levied by corporations for civic amenities
D) Proportional tax - a tax levied at the sae time at all levels of the base
Answer: Corporation tax - levied by corporations for civic amenities

   
25) The basic attribute of a formal organization is :
A) esteem and prestige
B) roles and duties
C) dominance and supremacy
D) rules and regulations
Answer: rules and regulations


26) If the price of an inferior good falls, its demand :
A) rises
B) falls
C) remains constant
D) can be any of the above
Answer: remains constant

   
27) The existence of a Parallel Economy or Black Money :
A) makes the economy more competitive
B) makes the monetary policies less effective
C) ensures a better distribution of income and wealth
D) ensures increasing productive investment
Answer: makes the monetary policies less effective
   
28) Put the main sources of revenue of the Central Government in ascending order of importance:
1. Income tax
2. Corporation tax
3. Customs
4. Excise duties
A) 1, 2, 3, 4
B) 3, 2, 4, 1
C) 4, 3, 1, 2
D) 4, 3, 2, 1
Answer: 4, 3, 1, 2

   
29) The highest sector wise contribution to gross domestic saving comes from :
A) private corporate sector
B) household sector
C) public sector
D) corporative sector
Answer: household sector

   
30) 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
Answer: subsidy