FISCAL SYSTEM MCQS SET 25

FISCAL SYSTEM MCQS SET 25

241) Consider the following statements relating to estimation of National Income :
1. Foreigners working in Indian Embassies are normal residents of India.
2. Foreigners working in the office of WHO, World Bank. UNO etc. located in India are not normal residents of India.
3. Indians working in foreign embassies in India are not normal residents of India.
Which of the statements given above is/are correct?
A) 1 only
B) 1 and 2
C) 3 only
D) 1, 2 and 3
Answer: 1 and 2

   
242) Consider the following items of wholesale price index:
1. Primary articles
2. Fuel, power, lights and lubricants
3. Manufacturing products
Arrange the above items in descending order in terms of their weightage in calculating wholesale price index
A) 1,2,3
B) 1,3,2
C) 3,1,2
D) 3,2,1
Answer: 3,1,2

   
243) When the Reserve Bank of India announces an increase of the Cash Reserve 'Ratio, what
does it mean?
A) The commercial banks will have less money to lend
B) The Reserve Bank of India will have less money to lend
C) The Union Government will have less money to lend
D) The commercial banks will have more money to lend
Answer: The commercial banks will have less money to lend

   
244) In India, the tax proceeds of which one of the following as a percentage of gross tax
revenue has significantly declined in the last five years?
A) Service tax
B) Personal income tax
C) Excise duty
D) Corporation tax
Answer: Excise duty

   
245) Consider the following statements:
In India, taxes on transactions in Stock Exchanges and Futures Markets are
1. levied by the Union
2. collected by the States
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: 1 only


246) 'With reference to Indian economy, consider the following statements:
1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.
2. The percentage share of Public Sector in GDP has declined in the last 10 years.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither1 nor 2
Answer: 2 only

   
247) Which of the following statements is/are correct?
1. If a country is experiencing increase in its per capita GDP, its GDP must necessarily be growing.
2. If a country is experiencing negative inflation, its GDP must be decreasing.
Select the correct answer using the code given below:
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: Both 1 and 2

   
248) National income ignores
A) sales of firm
B) salary of employees
C) exports of the IT sector
D) sale of land
Answer: salary of employees

   
249) An individual's actual standard of living can be assessed by
A) Gross National Income
B) Net National Income
C) Per Capita Income
D) Disposable Personal Income
Answer: Disposable Personal Income

   
250) Consider the following statements about Sinking Fund:
1. It is a method of repayment of public debt.
2. It is created by the government out of budgetary revenues every year.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: Both 1 and 2