FISCAL SYSTEM MCQS SET 10

FISCAL SYSTEM MCQS SET 10

91) Which of the following is an incorrect step in the preparation of budget in India?
A) Preparation of preliminary estimates by disbursing officers;
B) Scrutiny and review of estimates by the controlling officers;
C) Scrutiny and review of revised estimates by Finance offices attached to the Administrative Departments
D) Obtaining comments of Comptroller and Auditor General of India
Answer: Obtaining comments of Comptroller and Auditor General of India

   
92) 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

   
93) 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: 4,3,2,1

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

   
95) 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


96) 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
    

97) Which one of the following is not a department of the Finance Ministry?
A) Department of Economic Affairs
B) Department of Expenditure
C) Department of Revenue
D) Department of Budget
Answer: Department of Budget
    

98) Independent audit was established in India by the British Government in:
A) 1858
B) 1919
C) 1935
D) 1937
Answer: 1919
    

99) 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 net domestic product
Answer: higher than the overall rate of growth of the net domestic product
    

100) Since independence, both development and non-development expenditures have Increased, the increase 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