Question 1

Revenue of the state governments are raised from the following sources, except

Accepted Answer

agricultural income tax

Question 2

Short-term finance is usually for a period ranging up to

Accepted Answer

12 months

Question 3

Which of the following is not viewed as a national debt?

Accepted Answer

National Saving Certificate

Question 4

Since the inception of the co-operative movement, rural credits has been

Accepted Answer

All of the above

Question 5

Debenture holders of a company are its

Accepted Answer

creditors

Question 6

Devaluation of a currency means

Accepted Answer

reduction in the value of a currency vis-a-vis major internationally traded currencies

Question 7

If the RBI adopts an expansionist open market operations policy, this means that it will

Accepted Answer

offer commercial banks more credit in the open market

Question 8

Excise duty is a tax levied on the

Accepted Answer

What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax? Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944. Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods. Reference: http://www.cbec.gov.in/faq.htm

Question 9

If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?

Accepted Answer

Rs. 50,000 crores

Question 10

Resurgent India Bonds were issued in US dollar, Pound Sterling and

Accepted Answer

Deutsche Mark

Question 11

If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits

Accepted Answer

will neither increase nor decrease

Question 12

Deficit financing means that the government borrows money from the

Accepted Answer

RBI

Question 13

Notes on which denomination has the portrait of Mahatma Gandhi printed on them?

Accepted Answer

All of the above

Question 14

One of the reasons for India's occupational structure remaining more or less the same over the years has been that

Accepted Answer

investment pattern has been directed towards capital intensive industries

Question 15

Which of the following is the first Indian private company to sign an accord with Government of Myanmar for oil exploration in two offshore blocks in that country?

Accepted Answer

Essar Oil

Question 16

The central banking functions in India are performed by the Central Bank of India Reserve Bank of India State Bank of India Punjab National Bank

Accepted Answer

II

Question 17

Redistribution polices geared to reduce economic inequalities include

Accepted Answer

All the above

Question 18

Regional rural banks have limited area of operation have free access to liberal refinance facilities from NABARD are required to lend only to weaker sections

Accepted Answer

I, II

Question 19

On which one of the followings is the benefits received principle of taxation to achieve optimality bases?

Accepted Answer

Ability to pay for the benefit

Question 20

The annual yield from which of the following Union Government taxes is the highest?

Accepted Answer

Excise duties

Indian Economy Questions