Questions and answers for exam Preparation

MCQs

Total Questions : 650 | Page 2 of 65 pages

Question 11. Which of following statement is true about the Primary deficit?

It is difference between Capital Receipts and Interest Payment
It is addition of Fiscal Deficit and Interest Payment
It is difference between the Fiscal Deficit and Interest Payment
It is difference between Revenue Receipts and Revenue Expenditure

Discuss Question

Answer: Option C. -> It is difference between the Fiscal Deficit and Interest Payment
Answer: (c)

Question 12. NABARD is the name of a

Financial Institution
Commercial bank
Specialised bank to help agriculture
Non-Banking Financial Institution

Discuss Question

Answer: Option C. -> Specialised bank to help agriculture
Answer: (c)
The National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non-farm sector.
It has been accredited with "matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India.”

Question 13. NIFTY is associated with

NSE Index
Consumer Price Index
BSE Index
Cloth Market Price Index

Discuss Question

Answer: Option A. -> NSE Index
Answer: (a)
The NSE’s key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization.
Nifty Fifty was an informal term used to refer to 50 popular large-cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.

Question 14. In India, inflation is measured by the :

consumers price Index for urban non-manual workers.
consumers price Index for agricultural
wholesale price Index Number
National Income Deflation

Discuss Question

Answer: Option C. -> wholesale price Index Number
Answer: (c)In India, inflation is measured by the wholesale price Index . The wholesale prices of commodities of base year are compared with wholesale prices of current year to compute inflation.

Question 15. The receipts of which of the following taxes/duties are not shared with the States ?

Corporation tax
Tax on income except agriculture
Surcharge on income tax
Capital gain tax

Discuss Question

Answer: Option B. -> Tax on income except agriculture
Answer: (b)
The shareable central taxes include corporation tax, income tax, wealth tax, customs, excise duty and service tax. The taxes, which are not shared with states include some cesses like education and road.
Income Tax in India includes all income except the agricultural income that is levied and collected by the central government (List I, Entry 82).

Question 16. Regional Rural Banks are sponsored by

Government of India
Reserve Bank of India
State Bank of India
Nationalised Commercial Bank

Discuss Question

Answer: Option D. -> Nationalised Commercial Bank
Answer: (d)
The Narasimham committee conceptualized the foundation of regional rural banks in India. Five regional rural banks were set up on October 2, 1975. There were five commercial banks, viz.
Punjab National Bank, State Bank of India, Syndicate Bank, United Bank of India and United Commercial Bank, which sponsored the regional rural banks.

Question 17. The Ganga Action Plan was directed by :

Atal Bihari Vajpayee
Rajiv Gandhi
Manmohan Singh
Indira Gandhi

Discuss Question

Answer: Option B. -> Rajiv Gandhi
Answer: (b)The Ganga Action Plan was launched by Rajiv Gandhi in April 1986 to reduce the pollution load on the river .

Question 18. Distribution of food rains operates under a two tier system with the introduction of

The Service Cooperatives
The Consumers Cooperatives
The Cooperative Marketing Societies
Targetted Public Distribution System

Discuss Question

Answer: Option D. -> Targetted Public Distribution System
Answer: (d)The Targeted Public Distribution System (TPDS) replaced the erstwhile PDS from June 1997. Under the new system a two tier subsidized pricing system was introduced to benefit the poor.

Question 19. Which of the following is the characteristic of progressive tax?

Marginal tax rate should be increasing.
Marginal tax rates should be more than average tax rate.

Select the correct answer using the code given below:

2 only
Both 1 and 2
1 only
Neither 1 nor 2

Discuss Question

Answer: Option B. -> Both 1 and 2
Answer: (b)A progressive tax is a tax in which the tax rate increases as the taxable base amount increases Regarding progressive tax, marginal tax rate should be increasing and it should be more than average tax rate.

Question 20. The Ministry of Corporate Affairs has notified the Corporate Social Responsibility (CSR) rules and they would come into effect from April 1. Under the new laws that govern companies, spending on CSR or social welfare activities is mandatory for certain classes of firms. They are required to shell out at least 2 per cent of their three-year average annual profit towards such works. Which of the following firms classify under the new law to make CSR spend?

Companies having a net worth of at least Rs. 750 crore

Companies having a minimum turnover of Rs. 500 crore

Companies with at least a net profit of RS. 5 crore

(i), (ii) & (iii)
Only (iii)
(i) & (ii)
(i) & (iii)

Discuss Question

Answer: Option B. -> Only (iii)
Answer: (b)
Companies having a net worth of at least Rs. 500 crore or having a minimum turnover of Rs. 1,000 crore or those with at least net profit of Rs. 5 crores, have to make CSR spend.