MCQOPTIONS
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MCQOPTIONS
This section includes 133 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Service Tax was introduced in India for the first time in the year |
| A. | 1980-81 |
| B. | 1990-91 |
| C. | 1991-92 |
| D. | 1994-95 |
| Answer» E. | |
| 52. |
Which is the tax that is imposed by the Central Government of India but its revenue is divided between Centre and States? |
| A. | Custorm Duty |
| B. | Central Excise Duty |
| C. | Corporation Tax |
| D. | None of these |
| Answer» C. Corporation Tax | |
| 53. |
Which of the following statements are true for the Income Tax in India?1. It is a progressive tax2. It is a direct tax 3. It is collected by the State Governments 4. It is a proportional taxCodes |
| A. | Only 1 |
| B. | Only 1 and 2 |
| C. | 1, 2 and 3 |
| D. | 2, 3 and 4 |
| Answer» C. 1, 2 and 3 | |
| 54. |
Which amidst the following taxes collected by the Union is not mandated to be assigned to the States? |
| A. | Terminal taxes on food or passengers carried by railway, sea or air |
| B. | Taxes on railway fares and freights |
| C. | Taxes on consignment of goods |
| D. | Service tax |
| Answer» C. Taxes on consignment of goods | |
| 55. |
13th Finance Commission has been constituted under the Chairmanship of |
| A. | Y.S.P. Thorat |
| B. | Montek Singh Ahluwalia |
| C. | C. Rangrajan |
| D. | Vijay L. Kelkar |
| Answer» E. | |
| 56. |
Who had suggested an imposition of expenditure tax in India for first time? |
| A. | Kalechi |
| B. | Kaldor |
| C. | R.J. Chelliah |
| D. | Gautam Mathur |
| Answer» C. R.J. Chelliah | |
| 57. |
The recommendations of the Kelkar Task Force relate to |
| A. | Trade |
| B. | Banking |
| C. | Foreign Investment |
| D. | Taxes |
| Answer» E. | |
| 58. |
Which of the following is/are the Non-Tax Revenue components of the Union Budget of India?1. Custom Duties2. Interest Receipts3. Dividends and ProfitsCodes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | Only 2 and 3 |
| Answer» E. | |
| 59. |
Which of the following is/are the components of the Fiscal Deficit?1. Budgetary Deficit2. Market Borrowings3. Expenditure made from Pradhan Mantri Rahat KoshCodes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» E. | |
| 60. |
Many a time we read in financial news paper about Public Dept. Which of the following is/are the components of Public Debt?1. Market Loans2. External Loans3. Outstanding against saving schemes/ provident fundsCodes |
| A. | only 1 |
| B. | only 2 |
| C. | Both 1 and 2 |
| D. | only 3 |
| Answer» D. only 3 | |
| 61. |
Which of the following deficit gives major contribution to total deficit of Government of India? |
| A. | Revenue Deficit |
| B. | Budgetary Deficit |
| C. | Fiscal Deficit |
| D. | Primary Deficit |
| Answer» D. Primary Deficit | |
| 62. |
Which one of the following is NOT related with income from corporate sector in India? |
| A. | Fringe benefit tax |
| B. | Minimum alternative tax |
| C. | Tax on company profit |
| D. | Capital gains tax |
| Answer» E. | |
| 63. |
Interest on public debt is a part of |
| A. | Transfer payments by the enterprises |
| B. | Transfer payments by the Government |
| C. | National Income |
| D. | Interest payment by house-holds |
| Answer» E. | |
| 64. |
Consider the following1. Fringe Benefit Tax2. Interest Tax3. Securities Transaction TaxWhich of the above mentioned is/are direct Tax/Taxes? |
| A. | 1 only |
| B. | 1 and 3 |
| C. | 2 and 3 |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 65. |
Which of the following is NOT the part of the structure of the Financial System in India? |
| A. | Industrial Finance |
| B. | Agriculture Finance |
| C. | Government Finance |
| D. | Personal Finance |
| Answer» E. | |
| 66. |
Which of the following is true about Value Added Tax (VAT)?1. It is consumption tax levied on value added to the product on every stage of its production.2. VAT is levied by the Union Governments.3. The income tax on retailers is now decided on the basis of their VAT collection in a year.Codes |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» B. Only 2 | |
| 67. |
A larger part of the fiscal deficit in the Union Budget is filled by |
| A. | Tax revenue |
| B. | Domestic Borrowing |
| C. | Foreign borrowing |
| D. | Printing paper currency |
| Answer» C. Foreign borrowing | |
| 68. |
Match List-I with List-II and select the correct answer using the codes given below the listsList-I (Term)List-II (Explanation)F. Fiscal Deficit1. Excess of Total Expenditure over Total Receipts lees Borro-wingsG. Budget Deficit2. Excess of Total Expenditure over Total ReceiptsH. Revenue Deficit3. Excess of Revenue Expenditure over Revenue ReceiptsJ. Primary Deficit4. Excess of Total Total Expenditure over Total Receiptsless Borrowings and Interest PaymentsCodeFGHJA. 1234B. 1243C. 4321D. 4312 |
| A. | A. |
| B. | B. |
| C. | C. |
| D. | D. |
| Answer» B. B. | |
| 69. |
Recommendations to the President of India on the specific Union-State fiscal relations are made by the |
| A. | Finance Minster |
| B. | Reserve Bank of India |
| C. | Planning Commission |
| D. | Finance Commission |
| Answer» E. | |
| 70. |
The tax on import and export is known as |
| A. | Income tax |
| B. | Trade tax |
| C. | Custom duty |
| D. | Excise duty |
| Answer» D. Excise duty | |
| 71. |
Which authority recommends the principles governing the |
| A. | Public Accounts Committee |
| B. | Union Ministry of Finance |
| C. | Finance Commission |
| D. | Inter-State Council |
| Answer» E. | |
| 72. |
Fiscal Deficit |
| A. | Total expenditure-Total receipts |
| B. | Revenue expenditure-Revenue receipts |
| C. | Capital expenditure-Capital receipt-Borrowings |
| D. | Sum of budget deficit and Government's market borrowings and Liabilities |
| Answer» E. | |
| 73. |
Which one of the following group of |
| A. | Income Tax, Corporate Tax, Custom Duty |
| B. | Income Tax, Corporate Tax, Excise Duty |
| C. | Excise Duty, Cess on Income, Corporate Tax |
| D. | Excise Duty, Cess on Income, Custom Duty |
| Answer» C. Excise Duty, Cess on Income, Corporate Tax | |
| 74. |
Consider the following statements : In India, stamp duties on |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» C. Both 1 and 2 | |
| 75. |
Which one of the following taxes is |
| A. | Corporation Tax |
| B. | Tax on income other than on agricultural income |
| C. | Tax on railway fares and freights |
| D. | Custos |
| Answer» C. Tax on railway fares and freights | |
| 76. |
If interest payment is added to primay deficit, it is equivalent to |
| A. | Budget deficit |
| B. | Fiscal deficit |
| C. | Revenue deficit |
| D. | Deficit financing |
| Answer» C. Revenue deficit | |
| 77. |
Finance Commission |
| A. | every year |
| B. | once in two years |
| C. | once in four years |
| D. | once in five years |
| Answer» E. | |
| 78. |
MODVAT |
| A. | Sales Tax |
| B. | wealth Tax |
| C. | Income Tax |
| D. | Excise Duty |
| Answer» E. | |
| 79. |
Economic Planning |
| A. | Union List |
| B. | State List |
| C. | Concurrent List |
| D. | not any specific list |
| Answer» D. not any specific list | |
| 80. |
Fiscal Responsibility and Budget Management Act |
| A. | Fiscal deficit only |
| B. | Revenue deficit only |
| C. | Both fiscal deficit and revenue deficit |
| D. | Neither fiscal deficit nor revenue deficit |
| Answer» D. Neither fiscal deficit nor revenue deficit | |
| 81. |
Agricultural |
| A. | the finance commission |
| B. | the constitution of India |
| C. | the interstate council |
| D. | the National Development council |
| Answer» C. the interstate council | |
| 82. |
Which of the following statements are true for the Income Tax in |
| A. | Only 1 |
| B. | Only 1 and 2 |
| C. | 1, 2 and 3 |
| D. | 2, 3 and 4 |
| Answer» C. 1, 2 and 3 | |
| 83. |
Which amidst the following |
| A. | Terminal taxes on food or passengers carried by railway, sea or air |
| B. | Taxes on railway fares and freights |
| C. | Taxes on consignment of goods |
| D. | Service tax |
| Answer» C. Taxes on consignment of goods | |
| 84. |
Which two of the following taxes are indirect taxes? |
| A. | Sales tax and Income tax |
| B. | Income tax and Wealth tax |
| C. | Sales tax and Excise tax |
| D. | Income tax and Excise tax |
| Answer» D. Income tax and Excise tax | |
| 85. |
When was the |
| A. | 1948 |
| B. | 1957 |
| C. | 1976 |
| D. | 1991 |
| Answer» C. 1976 | |
| 86. |
Which of the following taxes is exclusively and totally assigned to the Central Government by the Constitution? |
| A. | Estate duty |
| B. | Sales Tax |
| C. | Taxes on Railway Fares and Freights |
| D. | Corporation Tax |
| Answer» B. Sales Tax | |
| 87. |
Which of the following committees examined and suggested |
| A. | Abid Hussain Committee |
| B. | Bhagwati Committee |
| C. | Chelliah Committee |
| D. | Narsimhan Committee |
| Answer» D. Narsimhan Committee | |
| 88. |
Which one of the following sets of |
| A. | Gift tax, Holding tax |
| B. | Sales tax, Income tax |
| C. | Wealth tax, Land revenue |
| D. | Custom duties, Corporation tax |
| Answer» E. | |
| 89. |
The largest item of expenditure in the current account of the |
| A. | Defence Expenditure |
| B. | Subsidies |
| C. | Interest Payments |
| D. | Expenditure on social services |
| Answer» D. Expenditure on social services | |
| 90. |
Which one of the following is NOT related with income from |
| A. | Fringe benefit tax |
| B. | Minimum alternative tax |
| C. | Tax on company profit |
| D. | Capital gains tax |
| Answer» E. | |
| 91. |
Interest on public |
| A. | Transfer payments by the enterprises |
| B. | Transfer payments by the Government |
| C. | National Income |
| D. | Interest payment by house-holds |
| Answer» E. | |
| 92. |
Which one of the following is NOT a function of |
| A. | Devolution of Income Tax |
| B. | Devolution of Excise Duty |
| C. | Award of grants-in-aid |
| D. | Devolution of Trade Tax |
| Answer» E. | |
| 93. |
Which of the following is NOT the part of the structure of the |
| A. | Industrial Finance |
| B. | Agriculture Finance |
| C. | Government Finance |
| D. | Personal Finance |
| Answer» E. | |
| 94. |
Which of the following is/are the |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | Only 2 and 3 |
| Answer» E. | |
| 95. |
Which of the following is/are the components of the |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» E. | |
| 96. |
Many a time we read in financial news paper about Public Dept. Which of the following is/are the components of |
| A. | only 1 |
| B. | only 2 |
| C. | Both 1 and 2 |
| D. | only 3 |
| Answer» D. only 3 | |
| 97. |
The amount of which of the following reflects the overall budgetary position of the Government of India at a given time. |
| A. | Revenue Deficit |
| B. | Total Amount of income tax collected |
| C. | Capital Deficit |
| D. | Fiscal Deficit |
| Answer» E. | |
| 98. |
Which of the following taxes sis NOT levied by the Union Government? |
| A. | Customs |
| B. | Corporate Tax |
| C. | Land Revenue |
| D. | Income Tax |
| Answer» D. Income Tax | |
| 99. |
Service Tax |
| A. | 1980-81 |
| B. | 1990-91 |
| C. | 1991-92 |
| D. | 1994-95 |
| Answer» E. | |
| 100. |
Which is the tax that is imposed by the Central Government of India but its |
| A. | Custorm Duty |
| B. | Central Excise Duty |
| C. | Corporation Tax |
| D. | None of these |
| Answer» C. Corporation Tax | |