FISCAL SYSTEM MCQS SET 09

FISCAL SYSTEM MCQS SET 09

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

   
82) Which of the following body in USA is akin to the Finance Ministry in India?
A) Treasury of USA
B) The Bureau of Budget
C) The Office of Management & Budget
D) The Central Secretariat
Answer: The Office of Management & Budget

   
83) Which of the following was the most popular budgetary approach during the post-world
war II time?
A) Line Item Budget
B) Lump Sum Budget
C) Performance Budgeting
D) Zero-Base Budgeting
Answer: Lump Sum Budget

   
84) The Budget is a viable instrument of financial administration because of all the following reasons except:
A) It brings together the demands of various departments for their different programmes.
B) It brings coordination between the demands and resources.
C) It shows practical ways of improving the financial performance of various programmes.
D) It helps in fixation of priorities for different programmes.
Answer: It shows practical ways of improving the financial performance of various programmes.
 
  
85) Which one of the following statements is correct?
Fiscal Responsibility and Budget Management Act (FRBMA) concerns
A) fiscal deficit only
B) revenue deficit only
C) both fiscal and revenue deficit
D) neither fiscal deficit nor revenue deficit
Answer: both fiscal and revenue deficit


86) Temporary tax levied to obtain additional revenue is called:
A) cess
B) rate
C) fee
D) surcharge
Answer: surcharge
    

87) The department under the Ministry of Finance which is responsible for the preparation of
budget
A) Department of Economic Affairs
B) Department of Expenditure
C) Department of Revenue
D) Department of Disinvestment
Answer: Department of Economic Affairs

   
88) Which of the following is incorrectly 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 beneficiaries of particular schemes
C) Corporation tax - levied by corporations for civic amenities
D) Proportional tax - a tax levied at the same time at all levels of the base
Answer: Corporation tax - levied by corporations for civic amenities

   
89) 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
   
90) 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