MCQs
Total Questions : 163
| Page 13 of 17 pages
Answer: Option A. -> 2 and 4
Answer: (a)
Answer: (a)
Answer: Option D. -> 1996-97
Answer: (d)
Answer: (d)
Answer: Option A. -> Progressive taxation combined with regressive expenditure
Answer: (a)
Answer: (a)
Answer: Option C. -> Central Government
Answer: (c)
Corporation Tax is imposed by Central Government.
Answer: (c)
Corporation Tax is imposed by Central Government.
Answer: Option D. -> Toll Tax
Answer: (d)
Answer: (d)
Answer: Option A. -> Non-tax revenue receipts
Answer: (a)
The RBI transferred its (accumulated) surplus reserve to its annual income and then this annual income was transferred to Govt. of India as a dividend.
Dividend from PSUs (RBI is a PSU which is 100% owned by Govt. of India) is considered as non-tax revenue receipts.
Answer: (a)
The RBI transferred its (accumulated) surplus reserve to its annual income and then this annual income was transferred to Govt. of India as a dividend.
Dividend from PSUs (RBI is a PSU which is 100% owned by Govt. of India) is considered as non-tax revenue receipts.
Question 127. The term ‘Crowd-in’ in the economy is related to which of the following?
Select the correct answer using the code given below:
- Targeted government spending acts as an engine of growth in the short run
- Government spending complements the private investment
- Government spending substitutes the private investment
- Government spending boosts demand for goods which in turn increases private demand
Select the correct answer using the code given below:
Answer: Option B. -> (i), (ii) & (iv) only
Answer: (b)
The opposite of crowding out is "crowding in" where private investment increases as debt-financed government spending increases.
If the economy is in a slowdown phase or the demand in the economy is less, then an increased government spending boosts the demand for goods which in turn increases the private sector demand for new output sources such as factories, equipment.
Thus, the private sector crowds in to satisfy increasing consumer needs.
Answer: (b)
The opposite of crowding out is "crowding in" where private investment increases as debt-financed government spending increases.
If the economy is in a slowdown phase or the demand in the economy is less, then an increased government spending boosts the demand for goods which in turn increases the private sector demand for new output sources such as factories, equipment.
Thus, the private sector crowds in to satisfy increasing consumer needs.
Question 128. Consider the following statements regarding the presentation of the Budget in the Parliament:
Select the correct answer using the code given below:
- Finance Bill is introduced on the very first day when the Finance Minister presents Budget in the Parliament
- Appropriation Bill is introduced after the voting on demand for grants is over
Select the correct answer using the code given below:
Answer: Option B. -> Both (i) & (ii)
Answer: (b)
The budget is discussed in two stages - the general discussion followed by a detailed discussion.
1st Feb 31st March Detailed Discussion On 1st Feb, the Finance bill is also introduced after the budget presentation.
Answer: (b)
The budget is discussed in two stages - the general discussion followed by a detailed discussion.
1st Feb 31st March Detailed Discussion On 1st Feb, the Finance bill is also introduced after the budget presentation.
Question 129. Consider the following statements regarding the "National Small Savings Funds (NSSF)":
Select the correct answer using the code given below:
- The proceeds of the small savings scheme of the Central government goes to NSSF
- NSSF is a part of the Public Account of India
- NSSF is a part of the Consolidated Fund of India (CFI)
Select the correct answer using the code given below:
Answer: Option A. -> (i) & (ii) only
Answer: (a)
Post Office Savings Account, National Savings Certificate, Public Provident Fund, Kisan Vikas Patra, Sukanya Samriddhi Account are all Small Savings Schemes and the funds accruing in through these schemes goes into National Small Savings Funds (NSSF) maintained in Public Account of India. These all receipts create debt on the Government of India and are capital receipts.
National Small Savings Fund (NSSF) was set up on 1st April 1999 under the Public Account of India. The objective of NSSF was to account for all the monetary transactions under small savings schemes of the Central Government under one umbrella. The net collection in NSSF is invested in Central and State Government Securities.
Answer: (a)
Post Office Savings Account, National Savings Certificate, Public Provident Fund, Kisan Vikas Patra, Sukanya Samriddhi Account are all Small Savings Schemes and the funds accruing in through these schemes goes into National Small Savings Funds (NSSF) maintained in Public Account of India. These all receipts create debt on the Government of India and are capital receipts.
National Small Savings Fund (NSSF) was set up on 1st April 1999 under the Public Account of India. The objective of NSSF was to account for all the monetary transactions under small savings schemes of the Central Government under one umbrella. The net collection in NSSF is invested in Central and State Government Securities.
Answer: Option A. -> (i) & (ii) only
Answer: (a)
There are certain capital receipts of the Central Government which do not create debt/liability on it. For example, when the government is selling its shares in PSUs it is capital receipts but is not creating debt on Govt. rather it is decreasing its assets. In the same way recovery of loans is capital receipt but does not create debt.
But, if the Govt. issues securities (treasury bills) then it will be debt creating capital receipts. And money received in Public Account are liabilities for Govt. of India and are considered as debt creating capital receipts.
Answer: (a)
There are certain capital receipts of the Central Government which do not create debt/liability on it. For example, when the government is selling its shares in PSUs it is capital receipts but is not creating debt on Govt. rather it is decreasing its assets. In the same way recovery of loans is capital receipt but does not create debt.
But, if the Govt. issues securities (treasury bills) then it will be debt creating capital receipts. And money received in Public Account are liabilities for Govt. of India and are considered as debt creating capital receipts.
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