MCQs
Total Questions : 217
| Page 18 of 22 pages
Answer: Option B. -> Elimination of primary deficit by the end of the fiscal year 2008-09
Answer: (b)
Answer: (b)
Answer: Option C. -> 2 only
Answer: (c)The highest rate of income tax was 97.25, before 1975. Moderate rates of income tax encourage savings, faster growth and motivate voluntary compliance to tax regime. Over the years, the rates have been brought down
Answer: (c)The highest rate of income tax was 97.25, before 1975. Moderate rates of income tax encourage savings, faster growth and motivate voluntary compliance to tax regime. Over the years, the rates have been brought down
Answer: Option A. -> economic development
Answer: (a)
Deficit financing refers to the difference between expenditure and receipts. In public finance, it means the govt. is spending more than what it is earning.
Deficit financing is a necessary evil in a welfare state as the states often fail to generate tax revenue that is sufficient enough to take care of the expenditure of the state.
The basic intention behind deficit financing is to provide the necessary impetus to economic growth by artificial means.
Answer: (a)
Deficit financing refers to the difference between expenditure and receipts. In public finance, it means the govt. is spending more than what it is earning.
Deficit financing is a necessary evil in a welfare state as the states often fail to generate tax revenue that is sufficient enough to take care of the expenditure of the state.
The basic intention behind deficit financing is to provide the necessary impetus to economic growth by artificial means.
Question 174. Which of the following details can be obtained by Annual financial statement?
- Government forecasts of receipts and payments for the next year
- An outline of the results of the last financial year compared with the previous budget estimates
- Proposed changes in taxes and expenditure allocations
Answer: Option D. -> 1, 2 and 3
Answer: (d)Annual financial statement gives various information for the current, last and next year
Answer: (d)Annual financial statement gives various information for the current, last and next year
Question 175. 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 A. -> 2 and 3
Answer: (a)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: (a)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 A. -> an overdraft
Answer: (a)
Overdrafts are an extension of credit from a lending institution when an account reaches zero.
An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically, the bank allows people to borrow a set amount of money.
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be “overdrawn.”
Answer: (a)
Overdrafts are an extension of credit from a lending institution when an account reaches zero.
An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically, the bank allows people to borrow a set amount of money.
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be “overdrawn.”
Answer: Option D. -> International market
Answer: (d)
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment.
Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times.
The gold price has shown a long term correlation with the price of crude oil.
Answer: (d)
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment.
Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times.
The gold price has shown a long term correlation with the price of crude oil.
Answer: Option C. -> Schumpeter
Answer: (c)
Under his concept of creative destruction, Schumpeter distinguished between two types of investment that he called induced and autonomous.
Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs.
He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of the output that is withheld from investment and consumption.
Answer: (c)
Under his concept of creative destruction, Schumpeter distinguished between two types of investment that he called induced and autonomous.
Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs.
He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of the output that is withheld from investment and consumption.
Answer: Option B. -> Credit rationing
Answer: (b)
Answer: (b)
Answer: Option D. -> Statement showing Short term Fiscal Policy
Answer: (d)The Act requires the government to lay before the parliament three policy statements in each financial year namely Medium Term Fiscal Policy Statement; Fiscal Policy Strategy Statement and Macroeconomic Framework Policy Statement.
Answer: (d)The Act requires the government to lay before the parliament three policy statements in each financial year namely Medium Term Fiscal Policy Statement; Fiscal Policy Strategy Statement and Macroeconomic Framework Policy Statement.
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