MCQs
Total Questions : 217
| Page 17 of 22 pages
Answer: Option B. -> treasury bills issued to inter-national financial institutions
Answer: (b)
Answer: (b)
Answer: Option C. -> 1 only
Answer: (c)Sales tax come under exclusive jurisdiction of state government and custom duties comes under Central govt jurisdiction.
Answer: (c)Sales tax come under exclusive jurisdiction of state government and custom duties comes under Central govt jurisdiction.
Answer: Option C. -> proportional to the income of tax payers
Answer: (c)
The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual’s ability to pay. The idea of the ability to pay principle considers whether or not it is fair to tax someone higher just because that person has the ability and resources to pay.
If it is decided that they should be required to pay more, the question of how much more arises.
These questions can be analyzed through horizontal and vertical equity which are subsets of the ability-to-pay principle. Horizontal equity suggests it is fair for people of equal ability to pay the same amount in taxes.
Vertical equity is the idea that people who have a higher ability to pay more than those who have a lower ability to pay, as long as the increase in tax level is considered to be reasonable.
Answer: (c)
The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual’s ability to pay. The idea of the ability to pay principle considers whether or not it is fair to tax someone higher just because that person has the ability and resources to pay.
If it is decided that they should be required to pay more, the question of how much more arises.
These questions can be analyzed through horizontal and vertical equity which are subsets of the ability-to-pay principle. Horizontal equity suggests it is fair for people of equal ability to pay the same amount in taxes.
Vertical equity is the idea that people who have a higher ability to pay more than those who have a lower ability to pay, as long as the increase in tax level is considered to be reasonable.
Answer: Option B. -> 3 only
Answer: (b)Under Article 280 of the Constitution, the President appoints a Finance Commission every five years
Answer: (b)Under Article 280 of the Constitution, the President appoints a Finance Commission every five years
Answer: Option D. -> freely permitting the conversion of rupee to other currencies and vice versa
Answer: (d)
Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa.
Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.
Answer: (d)
Convertibility of rupee implies freely permitting the conversion of rupee to other currencies and vice versa.
Currency Convertibility is the ease with which a country’s currency can be converted into gold or another currency.
Question 166. Consider the following statements with regard to Statutory Liquidity Ratio (SLR)
- To meet SLR, Commercial banks can use cash only.
- SLR is maintained by the banks with themselves.
- SLR restricts the banks leverage in pumping more money into the economy.
Answer: Option B. -> 2 and 3
Answer: (b)SLR used by bankers indicates the minimum percentage of deposits that the banks have to maintain in the form of gold, cash or other approved securities.
Answer: (b)SLR used by bankers indicates the minimum percentage of deposits that the banks have to maintain in the form of gold, cash or other approved securities.
Answer: Option C. -> Capital account
Answer: (c)
Answer: (c)
Answer: Option C. -> 2 only
Answer: (c)There are three techniques of Deficit financing: Printing Currency, Internal Borrowings and External aid and borrowings. Counting Currency is not a technique of Deficit financing
Answer: (c)There are three techniques of Deficit financing: Printing Currency, Internal Borrowings and External aid and borrowings. Counting Currency is not a technique of Deficit financing
Question 169. In the context of Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
Select the correct answer using the code given below.
- To enable the Central Bank to control the amount of advances the banks can create
- To make the people’s deposits with banks safe and liquid
- To prevent the commercial banks from making excessive profits
- To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below.
Answer: Option C. -> 1 and 2 only
Answer: (c)
Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Answer: (c)
Because Reserve Requirements are designed as “precautionary measures” and not to stop banks from “excessive” profit.
Answer: Option D. -> Loans
Answer: (d)Loans are not included in the current revenue of the Union Government.
Answer: (d)Loans are not included in the current revenue of the Union Government.
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