FISCAL SYSTEM MCQS SET 08

FISCAL SYSTEM MCQS SET 08

71) Consider the following statements:
(A) In India since independence the share of the primary sector has been declining while the shares. of the secondary and tertiary sectors have been increasing
(B) This trend shows that Indian economy is passing through the transition from an agricultural to an industrial economy
While one of the following is correct?
A) Only A
B) Only B
C) Both A and B
D) A is wrong, B is correct
Answer: Both A and B

   
72) Which of the following is the basis for determining the national income?
A) Total revenue of the State
B) Production of goods and services
C) Net profit earned and expenditure incurred by the State
D) All of the above
Answer: Production of goods and services

   
73) Which of the following is not a method of estimating national income?
A) Income method
B) Value-added method
C) Expenditure method
D) Export-import method
Answer: Export-import method
   
74) Which of the following committees/ commissions was set up to suggest measures for
effective implementation of Public Distribution System (P08)?
A) Kelkar Committee
B) Verma Commission
C) DP Wadhwa Committee
D) Narashimam Committee
Answer: DP Wadhwa Committee

   
75) The national income of India is estimated mainly through:
A) production method alone
B) expenditure method alone
C) production and expenditure methods
D) production and income methods
Answer: production and income methods


76) Which of the following are referred to as the developed economies?
A) Countries earning huge industrial profits
B) Countries proficient in trade and export
C) Countries having large per capita income
D) Countries advanced in technology
Answer: Countries having large per capita income

   
77) An advalorem duty is a tax on the basis of:
A) the price of a commodity
B) the value added
C) the advertisement expenditure
D) the unit of the commodity
Answer: the price of a commodity
    

78) Consider the following statements with regard to Statutory liquidity Ratio (SLR) :
1. To meet SLR, commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks' leverage in pumping more money into the economy.
Which of the statements given above is/are correct?
A) 1, 2 and 3
B) 1 and 3
C) 2 and 3
D) 2 only
Answer: 2 and 3

   
79) Which of the following is not true about 'vote-on-account'?
A) It is a budget presented in the Parliament to cover the deficit left by the last budget
B) It does not allow the Government to set for the economic policies of the new plan which starts from April 1
C) It prevents the Government from imposing fresh taxes or withdrawing old one
D) This allows the Government to withdraw an amount for a period with the consent of Parliament
Answer: It is a budget presented in the Parliament to cover the deficit left by the last budget

   
80) Consider the following statements:
1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
Which of the statements giver, above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: 1 only