Public Finance & Taxation
1. Tax on inheritance is called:
a) Excise Duty
b) Estate Duty
c) Gift Duty
d) Sales Duty
Answer: b) Estate Duty
2. Which among the following is not a direct tax?
a) Income Tax
b) Wealth Tax
c) Corporate Tax
d) None of these
Answer: d) None of these
3. Which among the following is an example of a progressive tax?
a) Excise Duty
b) Octroi
c) Income Tax
d) House Tax
Answer: c) Income Tax
4. Fiscal policy is related to:
a) Monetary policy
b) Banking system
c) Economic Progress Planning
d) Receiving and Expenditure of Government
Answer: d) Receiving and Expenditure of Government
5. Fiscal policy is concerned with:
a) Public Revenue
b) Public Expenditure and Debt
c) Bank Rate Policy
d) Both (a) and (b)
Answer: d) Both (a) and (b)
Government Budgeting
6. In the budget figures of the Government of India, fiscal deficit is:
a) Total Expenditure – Total Receipts
b) Revenue Expenditure – Revenue Receipts
c) Capital Expenditure – Capital Receipts + Market Borrowings
d) Sum of Budget Deficit and Government’s Market Borrowings and Liabilities
Answer: b) Revenue Expenditure – Revenue Receipts
7. The Economic Survey of India is published by:
a) Statistical Department
b) CSO
c) Ministry of Finance
d) Department of Economic Affairs
Answer: c) Ministry of Finance
8. Who generally presents the Finance Budget in the Indian Parliament?
a) RBI Governor
b) Budget Ministry
c) Finance Minister
d) Finance Secretary
Answer: c) Finance Minister
9. The difference between Revenue Expenditure and Revenue Receipts is called:
a) Revenue
b) Total Expenditure
c) Revenue Deficit
d) Total Revenue
Answer: c) Revenue Deficit
10. The Fringe Benefit Tax was introduced in the budget of:
a) 2003-04
b) 2004-05
c) 2005-06
d) 2006-07
Answer: c) 2005-06
Economic Development and Policies
11. Which state government abolished “Agriculture Income Tax” in 2016?
a) Karnataka
b) Rajasthan
c) Bihar
d) Assam
Answer: a) Karnataka
12. Which one of the following is a development expenditure?
a) Irrigation Expenditure
b) Civil Administration
c) Debt Services
d) Grant-in-Aid
Answer: a) Irrigation Expenditure
13. Which one of the following is not an objective of Fiscal Policy in India?
a) Full Employment
b) Price Stability
c) Equitable distribution of wealth and incomes
d) Regulation of international trade
Answer: d) Regulation of international trade
14. Beyond a certain point, deficit financing will certainly lead to:
a) Inflation
b) Deflation
c) Recession
d) Economic Stagnation
Answer: a) Inflation
15. The sale proceeds of Government Bonds come under the budget head of:
a) Revenue Receipts
b) Current Expenditure
c) Capital Outlay
d) Capital Receipts
Answer: d) Capital Receipts
Miscellaneous Economic Aspects
16. The industry having the largest investment in the Indian economy is:
a) Tea
b) Cement
c) Steel
d) Jute
Answer: c) Steel
17. “Capital Gains” refers to goods which:
a) Serve as a source of raising further capital
b) Help in further production of goods
c) Directly satisfy human wants
d) Find multiple uses
Answer: a) Serve as a source of raising further capital
18. Who was the Chairman of the Tenth Finance Commission?
a) Manmohan Singh
b) Vasant Sathe
c) Shiv Shankar
d) K.C. Pant
Answer: d) K.C. Pant
19. Taxation is a tool of:
a) Monetary Policy
b) Fiscal Policy
c) Price Policy
d) Wage Policy
Answer: b) Fiscal Policy
20. In case of direct tax, the impact and incidence of tax is:
a) On two different persons
b) On the same person
c) On any other person
d) On the department which collects the tax
Answer: b) On the same person