Q 3.Which of the following helps reduce the current account deficit?
Anonymous Quiz
11%
(a) Increase in crude oil prices
20%
(b) Rise in import of services
27%
(c) Rise in export of software services
41%
(d) All of the above
Q 4.Which of the following are components of internal debt?
Anonymous Quiz
5%
(a) Market borrowing only
20%
(b) Market borrowing and Treasury bills
9%
(c) Treasury bills only
66%
(d) Market borrowing, Treasury bills, and special securities issued to RBI
Q 5.Deficit financing in India is primarily used for which of the following?
Anonymous Quiz
19%
(a) Redemption of public debt
58%
(b) Adjusting the balance of payments
7%
(c) Reducing foreign debt
16%
(d) Economic development
Q 1.Deficit financing leads to inflation in general, but it can be checked if:
Anonymous Quiz
57%
(a) government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
10%
(b) only aggregate demand is increased
3%
(c) all the expenditure is denoted national debt payment only
30%
(d) All of the above
Q 2.The deficit adjusted for capital nature expenditure in revenue account is:
Anonymous Quiz
32%
The deficit adjusted for capital nature expenditure in revenue account is:
48%
(b) Effective revenue deficit
8%
(c) Fiscal deficit
12%
(d) Primary deficit
Choose the correct relationship:
Statement I: Deficit financing does not lead to inflation if adopted in small doses.
Statement II: It is often used to finance budgetary deficits.
Statement I: Deficit financing does not lead to inflation if adopted in small doses.
Statement II: It is often used to finance budgetary deficits.
Anonymous Quiz
38%
(a) Both true, and II is correct explanation of I
42%
(b) Both true, but II is not the correct explanation of I
13%
(c) I is true, II is false
8%
(d) I is false, II is true
Q 4.Sinking Fund relates to:
Method of repayment of public debt Created out of government budgetary revenues annually
Method of repayment of public debt Created out of government budgetary revenues annually
Anonymous Quiz
15%
(a) Only
19%
(b) Only 2
52%
(c) Both 1 and 2
15%
(d) Neither 1 nor 2
Q5. Which of the following are examples of transfer payments?
Unemployment Allowance Payment of Salary Social Security Payment Old Age Pension
Unemployment Allowance Payment of Salary Social Security Payment Old Age Pension
Anonymous Quiz
24%
(a) 1 and 3 only
27%
(b) 1, 2 and 3 only
48%
(c) 1, 3 and 4 only
0%
(d) None of the above
Q 1.The concept which tries to ascertain the actual deficit in the revenue
account after adjusting for expenditure of capital nature is termed as
account after adjusting for expenditure of capital nature is termed as
Anonymous Quiz
12%
(a) revenue deficit
65%
(b) effective revenue deficit
21%
(c) fiscal deficit
3%
(d) primary deficit
Q 2.Second demonetization of currency notes in independent India took
place during the tenure of .................... as Minister of Finance, Gol.
place during the tenure of .................... as Minister of Finance, Gol.
Anonymous Quiz
14%
(a) H.M. Patel
46%
(b) Morarji Desai
22%
(c) C.D. Deshmukh
19%
(d) Vishwanath Pratap Singh
Q 3.India’s first Long term Fiscal policy was adopted during the tenure of
..................... as Minister of Finance, GoI.
..................... as Minister of Finance, GoI.
Anonymous Quiz
59%
(a) Dr. Manmohan Singh
8%
(b) Yashvant Sinha
28%
(c) Vishwanath Pratap Singh
5%
(d) Pranab Mukherji
Q 4.Which Finance Commission has used forest cover as a criterion for
horizontal distribution of resources in India?
horizontal distribution of resources in India?
Anonymous Quiz
9%
(a) 10th Finance Commission
40%
(b) 12th Finance Commission
19%
(c) 13th Finance Commission
33%
(d) 14th Finance Commission
Q 5.Which one of the following measures is not likely to aid in improving
India’s Balance of Payment position?
India’s Balance of Payment position?
Anonymous Quiz
32%
(a) Promotion of Import Substitution Policy
27%
(b) Devaluation of rupee
20%
(c) Imposition of higher tariff on imports
20%
(d) Levying of higher duties on exports
Q 1With reference to Indian economy, consider the following—
1. Bank rate
2. Open market operations 3. Public debt 4. Public revenue Which of the above is/are component/components of Monetary Policy?
1. Bank rate
2. Open market operations 3. Public debt 4. Public revenue Which of the above is/are component/components of Monetary Policy?
Anonymous Quiz
13%
(a) 1 only
26%
(b) 2, 3 and 4
46%
(c) 1 and 2
15%
(d) 1, 3 and 4
Q 2.The first phase of liberalization was initiated in India under the
regime of—
regime of—
Anonymous Quiz
13%
(a) Rajiv Gandhi
72%
(b) P.V. Narsimha Rao
13%
(c) Atal Bihari Vajapayee
2%
(d) H.D. Dev Gowda
Q 3.What do you understand by ‘regressive taxation’?
Anonymous Quiz
53%
(a)Tax that takes a larger perentage from low-income people than from high income people
43%
(b) Taxation where the tax rate increases irrespective of fall or rise in taxable incomes
3%
(c) Taxation where the tax rate increase with the increase of taxable income
3%
(d) None of above
Q. 4.What is meant by the cascading effect of taxation?
Anonymous Quiz
60%
(a) Tax on tax leading to higher final prices of goods
23%
(b) Tax refund on exported goods
18%
(c) Elimination of indirect taxes
0%
(d) Increase in subsidies to producers
Q 5.Which of the following is associated with fiscal policy?
Anonymous Quiz
26%
(a) Inflation
50%
(b) Taxation
12%
(c) Consumption
12%
(d) Money supply
Q 1.‘Fiscal Drag’ expresses the impact of inflation on which of the
following ?
following ?
Anonymous Quiz
20%
(a) Fiscal Deficit
69%
(b) Tax Revenue and GDP
11%
(c) Black money
0%
(d) Investment
Q 2.Which of the following activities are suitable for Pigovian taxation?
(1) Consumption of cigarettes
(2) Research for new technologies (3) Burning of fossil fuels (4) Restoration of lost cultural heritage
(1) Consumption of cigarettes
(2) Research for new technologies (3) Burning of fossil fuels (4) Restoration of lost cultural heritage
Anonymous Quiz
44%
(a) 1 and 3 only
32%
(b) 2, 3 and 4 only
20%
(c) 1, 2 and 3
4%
(d) 2 and 4 only