Fiscal Policy and Monetary Policy TNPSC Group 2 2A Questions

Indian Economy

Fiscal Policy and Monetary Policy MCQ Questions

1.
Fiscal policy in India is formulated by
A.
the Finance ministry
B.
the RBI
C.
the SEBI
D.
the CSO
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ANSWER :
A. the Finance ministry
2.
The major finance for small scale industries is
A.
shares and debentures
B.
bank loans
C.
public deposits
D.
foreign aid
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ANSWER :
B. bank loans
3.
Which of the following provides the largest part of the demand for loanable funds in India?
A.
Hire-purchase borrowers
B.
Private house purchasers
C.
Corporate businesses
D.
Farmers
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ANSWER :
C. Corporate businesses
4.
______________ is NOT a Central government tax
A.
Income tax
B.
Customs duty
C.
Land Revenue
D.
Corporation Tax
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ANSWER :
C. Land Revenue
5.
What is 'hard currency' ?
A.
Currency earned after a hard work
B.
A foreign currency short in supply
C.
the amount borrowed to be repaid with a high interest
D.
Currency earned through income tax by the government
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ANSWER :
B. A foreign currency short in supply
6.
An ad valorem tax is a tax levied on the basis of
A.
the price of a commodity
B.
the unit of a commodity
C.
the cost of production of a commodity
D.
value of real estate of personal property
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ANSWER :
D. value of real estate of personal property