Fiscal System of India Set 5 MCQs

Q1 | A budgetary deficit means:

total expenditure is more than total revenue

current expenditure is more than current revenue

capital expenditure is more than capital revenue

total expenditure is more than current revenue

Q2 | Fiscal deficit in the budget means: [CDS 1999]

Revenue deficit plus the net borrowings of the government

Budgetary deficit plus the net borrowings of the government

Capital deficit plus revenue deficit

Primary deficit minus capital deficit

Q3 | Fiscal deficit in the Union Budget means: [IAS 1994]

the difference between current expenditure and current revenue

net increase in Union Government's borrowings from the Reserve Bank of India

the sum of budgetary deficit and net increase in internal and external borrowings

the sum of monetised deficit and budgetary deficit

Q4 | Among the structural changes which of the following is not wholly welcome?

Increase in the share of construction in the GNP

Relative contribution of agriculture to our GNP is declining

Marked improvement in the contribution of manufacturing to the GNP

Substantial increase in the percentage contribution of public administration and defence to GDP

Q5 | Net factor income from abroad added to GDP gives:

GNP

NNP

NDP

per capita income

Q6 | Gross National Income is always more than Net National Income because it includes:

foreign income

capital consumption allowance

indirect taxes

direct taxes

Q7 | Gross National Product at market prices is defined as : [CPO AC 2003]

the market value of all final goods and services produced in an economy taking into account net factor income from abroad

the market value of all final goods and services produced in an economy

the market value of all final goods and services produced in an economy plus indirect taxes

the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies

Q8 | National income refers to: [CPO SI 2002]

money value of goods 'and services produced in a country during a year.

money value of stocks and shares of a country during a year.

money value of capital goods produced by a country during a year.

money value of consumer goods produced by a country during a year.

Q9 | National income calculated at current prices in India has shown a tendency to rise at afaster rate than national income at constant prices. This is because:

India's population has been rising fast

General price level in the economy has been rising rapidly

Statistically manipulations are employed by the Planning

Base year chosen is an abnormal year

Q10 | The measure of a worker's real wage is : [CPO SI 2002]

the change in his productivity over a given time

his earning after deduction at source

his daily earnings

the purchasing power of his earnings

Q11 | Real national income denotes:

national income at constant prices

per capita income

national income at current prices

net factor income

Q12 | Under VAT, how many slabs are there?

3

4

2

5

Q13 | Which one of the following forms the largest share of deficit in Govt. of India budget? [UP PCS 2002]

Primary deficit

Fiscal deficit

Revenue deficit

Budgetary deficit

Q14 | Gross National Product is less than Gross Domestic Product depending upon whether:

indirect taxes are more than subsidies

depreciation is included or not

net factor income from abroad is positive or negative

indirect taxes are less than subsides

Q15 | One of the following leads to underestimation of national income in India: 1. Inflation 2. Devaluation 3. Non-Monetary consumption 4. Large unorganized sector Choose correct answer from:

1, 2, 3 and 4

1, 3 and 4

3 and 4

2, 3 and 4

Q16 | Which of the following schemes was intended to tap the black money?

SBI Deposit Scheme

UTI Bonds

Long term Operations Scheme

India Development Bonds

Q17 | According to the law of demand, when:

price increases demand decreases

price decreases demand decreases

price increases demand increases

price decreases demand does not change

Q18 | Which one of the following situations makes a firm most efficient? [CDS 2002]

Falling average costs

Rising average costs

Constant average costs

Lowest average costs

Q19 | National Income total reveals: 1. Production side of the economy 2. Distribution side of the economy 3. Expenditure side of the economy Choose your answer from

1 only

2 only

1, 2 and 3

3 only

Q20 | Octroi is levied and collected by:

Centre

State Government

local bodies

all the above

Q21 | What is meant by 'Underwriting', the term frequently used in financial sector? [Punjab & Sindh Bank 2011]

Under valuation of the assets.

The Act of taking on a risk for a fee.

Giving a Guarantee that a loan will not become a bad loan.

The act of permission to float an IPO.

Q22 | What is a fiscal deficit? [Punjab & Sindh Bank 2011]

It is a gap between the values of the exports and imports

It is a gap between exports and imports minus external borrowings

It is a gap between total expenditure and total receipts of the Govt.

It is a gap between total receipts minus External Borrowing

Q23 | Which one of the following organizations/agencies' are involved in drafting the UnionBudget of India? [Punjab & Sindh Bank 2011]

The Planning Commission only

The Comptroller and Auditor General only

Administrative Ministries only

(1) & (2) only

Q24 | The highest weight in the revised Whole Sale Price Index, implemented from September 2010 is given to which of the following item? [Corporation Bank PO 2011]

Fuel

Food items

Manufactured items

Primary Articles

Q25 | Which one of the following is the updated base for Wholesale Price Index (WPI) ? [Corporation Bank PO 2011]

2002-2003

2003-2004

2004-2005

2005-2006