Indian Economy problems
- 1. Revenue of the state governments are raised from the following sources, except
Options- A. entertainment tax
- B. expenditure tax
- C. agricultural income tax
- D. land revenue Discuss
Correct Answer: agricultural income tax
- 2. Short-term finance is usually for a period ranging up to
Options- A. 5 months
- B. 10 months
- C. 12 months
- D. 15 months Discuss
Correct Answer: 12 months
- 3. Which of the following is not viewed as a national debt?
Options- A. Provident Fund
- B. Life Insurance Policies
- C. National Saving Certificate
- D. Long-term Government Bonds Discuss
Correct Answer: National Saving Certificate
- 4. Since the inception of the co-operative movement, rural credits has been
Options- A. institutionalized
- B. rationalized
- C. cheapened
- D. All of the above Discuss
Correct Answer: All of the above
- 5. Debenture holders of a company are its
Options- A. shareholders
- B. creditors
- C. debtors
- D. directors Discuss
Correct Answer: creditors
- 6. Devaluation of a currency means
Options- A. reduction in the value of a currency vis-a-vis major internationally traded currencies
- B. permitting the currency to seek its worth in the international market
- C. fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
- D. fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners Discuss
Correct Answer: reduction in the value of a currency vis-a-vis major internationally traded currencies
- 7. If the RBI adopts an expansionist open market operations policy, this means that it will
Options- A. buy securities from non-government holders
- B. sell securities in the open market
- C. offer commercial banks more credit in the open market
- D. openly announce to the market that it intends to expand credit Discuss
Correct Answer: offer commercial banks more credit in the open market
- 8. Excise duty is a tax levied on the
Options- A. import of goods
- B. export of goods
- C. production of goods
- D. sale of goods Discuss
Correct Answer: production of goods
Explanation:
What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax?
Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944.
Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.
Reference: http://www.cbec.gov.in/faq.htm
- 9. If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?
Options- A. Rs. 50,000 crores
- B. Rs. 25,000 crores
- C. Rs. 1,00,000 crores
- D. Rs. 1,25,000 crores Discuss
Correct Answer: Rs. 50,000 crores
- 10. Resurgent India Bonds were issued in US dollar, Pound Sterling and
Options- A. Japanese Yen
- B. Deutsche Mark
- C. Euro
- D. French Franc Discuss
Correct Answer: Deutsche Mark
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