FISCAL SYSTEM MCQS SET 04

FISCAL SYSTEM MCQS SET 04

31) Why has the general budget till recently always been presented at 5 o' clock in the evening ?
A) All countries present their budgets at this time
B) So that there is no time for traders to manipulate the prices
C) It is a convention of official secrecy
D) It is a carry-over from times of British rule when the Budget could be discussed in the British Parliament simultaneously
Answer: It is a carry-over from times of British rule when the Budget could be discussed in the British Parliament simultaneously

   
32) Which of the following would signify scarcity in economics ?
A) Production of 100 kg of a certain item instead of the targeted 150 kg
B) Availability of 10 kg of rice against a demand for 15 kg
C) Availability of post-graduates for jobs of typists
D) Quantity supplied remains the same when price changes.
Answer: Availability of 10 kg of rice against a demand for 15 kg
   
33) The per capita income has been low in India because :
A) of population growth
B) of price rise
C) more people are in rural areas
D) of regional imbalances
Answer: of population growth

   
34) The rate of growth of the tertiary sector has been :
A) higher than the overall rate of growth of the net domestic product
B) lower than the overall rate of growth of the net domestic product
C) same as the overall rate of growth of the net domestic product
D) fluctuating when compared to growth of the net domestic product
Answer: higher than the overall rate of growth of the net domestic product

   
35) Since independence, both development and non-development expenditures have increased, the increase in the former being a little more than in the former being a little more than in the other. Non development expenditure involves :
1. interest payment 2. subsidies
3. defence 4. irrigation
A) 1 and 2
B) 1 only
C) 1, 2 and 3
D) 2, 3 and 4
Answer: 1, 2 and 3


36) Which among the following formulates fiscal policy ?
A) RBI
B) Finance Ministry
C) SEBI
D) Planning Commission
Answer: Finance Ministry

   
37) Which among the following is the regulatory authority for giving clearance for
External Commercial borrowing ?
A) Foreign Investment Promotion Board
B) RBI
C) SEBI
D) Foreign Investment Promotion Council
Answer: RBI

   
38) The Zero Base Budgeting in India was first experimented from :
A) April, 1987
B) April, 2000
C) April, 1991
D) None of these
Answer: April, 1987
   
39) The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer stocks are known as :
A) Minimum Support Prices
B) Procurement Prices
C) Issue Prices
D) Ceiling Prices
Answer: Procurement Prices

   
40) Who is the chairman of 12th Finance Commission ?
A) C. Rangarajan
B) M.N. Vohra
C) Bimal Jalan
D) Vijay Kelkar
Answer: C. Rangarajan