FISCAL SYSTEM MCQS SET 13

FISCAL SYSTEM MCQS SET 13

121) 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

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

   
123) India's progress has been reasonably satisfactory in connection with:
A) growth of per capita income
B) reduction in inequalities
C) reduction of unemployment
D) growth of GNP
Answer: growth of GNP

   
124) Among Indian Economists who had done pioneering work on National Income?
A) P. N. Dhar
B) Jagdish Bhagwati
C) V. K. R.V. Rao
D) Prof. Shenoi
Answer: V. K. R.V. Rao

   
125) Which of the following articles in the Indian constitution lays down that no tax shall be
levied or collected except by authority of law?
A) Article 112
B) Article 265
C) Article 118
D) Article 281
Answer: Article 265


126) Which of the following body does not exercise financial control in a Parliamentary democracy?
A) Parliament
B) The Executive
C) Planning Commission
D) Finance Ministry
Answer: Finance Ministry
    

127) 'Budget Division' is located in which of the department of Ministry of Finance?
A) Department of Economic Affairs
B) Department of Expenditure
C) Department of Revenue
D) Department of Disinvestment
Answer: Department of Economic Affairs

   
128) The financial year in India begins from;
A) 1st March
B) 1st April
C) 1st July
D) 1st January
Answer: 1st April

   
129) Who was the chairman of National Income Committee?
A) P. C. Mahalanobis
B) V.K.R.V. Rao
C) D.R. Gadgil
D) A.M. Khusro
Answer: P. C. Mahalanobis

   
130) The recommendations of the Finance Commission are:
A) binding on the government
B) not binding on the government
C) generally accepted as a matter of convention
D) accepted or rejected by the government according to its convenience
Answer: accepted or rejected by the government according to its convenience