Competitive Exams: Economics MCQs (Practice-Test 122 of 122)

  1. Consider the following statements: The reverse bank of India

    1. acts as a Bankers'Bank

    2. acts as a controller of capital issues

    3. issues currency notes of various denominations

    4. acts as a lender of the last resort for the sick industrial unit

    Which of the above statements are correct?

    1. 1, 2, 3, and 4

    2. 1, 2 and 4

    3. 2 and 4

    4. 1 and 3

  2. Match List with List II and select the correct answer:

    List-I List-II
    1. Revenue deficit

    2. Budget deficit

    3. Monetised deficit

    4. Fiscal deficit

    1. Total expenditure-Revenue receipts

    2. Net increase in holding of Treasury bill by RBI and its contribution to market borrowings of government

    3. total expendtiture-total receipts

    4. Revenue expenditure-Revenue receipts

    • A
    • B
    • C
    • D
      • 4
      • 3
      • 1
      • 2
      • 3
      • 4
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3
      • 2
      • 1
  3. Which one of the following is the exemption limit of personal income tax (for non-corporate assesses) in the budget estimates of 1999 − 2000?

    1. Rs. 400, 000

    2. Rs. 45, 000

    3. Rs. 50, 000

    4. Rs. 60, 000

  4. Which one of the following ODES NOT come under the jurisdiction of state taxations?

    1. land revenue

    2. Taxes on agricultural income

    3. Taxes on land and building

    4. Personal income tax

  5. Which one of the following is the most important source of revenue of state governments in India?

    1. land revenue

    2. state excise duties

    3. sales tax

    4. Stamps and registration fees

  6. In respect of which one of the following items, did the Union budget of 1999 − 2000 propose a higher rate of excise duty compared to the previous year's budget?

    1. Kerosene

    2. Cooking gas

    3. Colour TV

    4. Paper and paper board

  7. The percentage share of states n the net proceeds of In come Tax, as recommended by the Tenth Finance Commission, is

    1. 66.7

    2. 75.5

    3. 81.7

    4. 77.5

    • Assertion (A): Primary Financial market deals in new financial claims.
    • Reason (R): It mobilises savings and supplies new capital to the business units.
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): More reliance should be placed on progressive income taxes.
    • Reason (R): It is in accordance with the principles of equity.
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The market value of corporate equity is not included in National income.
    • Reason (R): Such valuation of equity is a part of the wealth of the society.
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

  8. Under standard assumptions of the neoclassical model of trade. As long as both countries are completely specialized in production of one commodity, international trade will lead to complete factor-price equalizations. Reason (R): Free trade lead to an increase in the price of the abundant factor, and a decrease in the price of the scarce factor in both countries.

    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The monetarist approach to the problem of disequilibrium in the balance of payments implies that the disequilibrium is a temporary phenomenon.
    • Reason (R): In the long run, the disequilibrium in the balance of payments is self-correcting.
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): If in a particular nation, the real interest rate is rising more rapidly than in other nati9ons, then it can expect the international value of its currency to depreciate.
    • Reason (R): If domestic real interest rates are increasing more quickly than those in other countries, supply of foreign currency will increase.
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

  9. Depreciation of exchange rate tends to increase the price level. Reason (R): It is assumed that the Central Bank undertakes no stabilization policies.

    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): In less developed countries, the share of employment in agriculture in total employment exceeds the share of agricultural income in total income.
    • Reason (R): Agriculture in less developed countries is characterized by low productivity
    1. both A and R are true and R is the correct explanation of A

    2. Both a and R are true but R is NOT the correct Explanation.

    3. A is true but R is false

    4. A is false but R is true