FISCAL SYSTEM MCQS SET 05

FISCAL SYSTEM MCQS SET 05

41) For personal income tax, Kelkar in his final report recommends tax-free income up to the annual income of :
A) Rs.50000
B) Rs.750000
C) Rs.100000
D) Rs.150000
Answer: Rs.100000

   
42) 'Balanced Growth' means :
A) growth which brings about a balance between the rich and the poor
B) growth which brings about a balance between the public and the private sectors
C) growth which brings about a balance between the traditional and modern sector
D) growth pattern on which simultaneous investments are made in all the sector
of the economy, viz., agriculture, industry, transport, communication, etc.
 Answer: growth pattern on which simultaneous investments are made in all the sector of the economy, viz., agriculture, industry, transport, communication, etc.

   
43) Increase in Oil Pool Deficit implies :
A) increasing gap between international and domestic oil prices
B) domestic oil price is comparatively more than international price
C) government's Fiscal Deficit goes up
D) none of these
Answer: increasing gap between international and domestic oil prices

   
44) Dear Money Policy implies :
A) high price level
B) large money supply
C) high production
D) high interest rates
Answer: high interest rates

   
45) Which of the following is wrongly matched :
A) share market - stock exchange
B) interest rate -fiscal policy
C) export subsidy - fiscal policy
D) general price index - inflation
Answer: interest rate -fiscal policy

46) Railway Budget in India was separated from general budget in :
A) 1924-25
B) 1941-42
C) 1947-48
D) 1950-51
Answer: 1924-25

   
47) In recent years the capital outlays for the defence service have been :
A) increasing steadily
B) more or less constant
C) going down steeply
D) fluctuating frequently
Answer: more or less constant

   
48) Which one of the following is the most important item of non-plan
expenditure ?
A) interest payment
B) Defence
C) Fertiliser subsidies
D) Loans to public enterprises
Answer: interest payment

   
49) Which among the following is true ?
1. Decrease in cash reserve ratio injects higher liquidity in the system
2. Higher liquidity in the system may soften interest rates
3. Higher market borrowing by the government leads to rise in interest rates
Choose your answer from :
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) 1, 2 and 3
Answer: 1, 2 and 3

   
50) One of the problems in calculating the national income in India correctly is :
A) under-employment
B) inflation
C) non-monetised consumption
D) low savings
Answer: non-monetised consumption