Previous Year’s Questions - Economics MCQ 4


30 Questions MCQ Test Economy Traditional for UPSC (Civil Services) Prelims | Previous Year’s Questions - Economics MCQ 4


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This mock test of Previous Year’s Questions - Economics MCQ 4 for UPSC helps you for every UPSC entrance exam. This contains 30 Multiple Choice Questions for UPSC Previous Year’s Questions - Economics MCQ 4 (mcq) to study with solutions a complete question bank. The solved questions answers in this Previous Year’s Questions - Economics MCQ 4 quiz give you a good mix of easy questions and tough questions. UPSC students definitely take this Previous Year’s Questions - Economics MCQ 4 exercise for a better result in the exam. You can find other Previous Year’s Questions - Economics MCQ 4 extra questions, long questions & short questions for UPSC on EduRev as well by searching above.
QUESTION: 1

Which of the following taxes is levied by the Union and appropriated and planned by the states?                     

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QUESTION: 2

Interest on public debt is part of                    

Solution:

The correct option is B.
In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income in the market system. ... Government debt is the debt owed by a central government. In the budget, it is listed among the transfer payments by the government.

QUESTION: 3

Which of the following taxes is such which does not cause rise in price?            

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QUESTION: 4

Which amidst the following taxes collected by the Union is not mandated to be assigned to the states?                    

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QUESTION: 5

The main source of revenue for a State Government in India is             

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QUESTION: 6

The proceeds of Income tax go to         

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QUESTION: 7

How does the consumer benefit with VAT?                    

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QUESTION: 8

The receipts of which of the following taxes/duties are not shared with the states?         

Solution:

The shareable central taxes include corporation tax, income tax, wealth tax, customs, excise duty and service tax. The taxes, which are not shared with states include some cesses like education and road. Income Tax in India includes all income except the agricultural income that is levied and collected by the central government.

QUESTION: 9

Government securities are considered liquid because they are            

Solution:

option  ( c) quickly and easily marketable is the correct answer. 

 

Explanation:- 

Liquid assets is an asset that can be converted into cash quickly and with minimum impact to the price received. In a liquid Market, assets can be easily converted without considerable price fluctuation and with a minimal decline in worth.

QUESTION: 10

State which amongst the following is not true about VAT?             

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QUESTION: 11

When too much money is chasing too few goods, the situation is             

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QUESTION: 12

A tax is characterised by horizontal equity if its liability is                 

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QUESTION: 13

Which authority recommends the principles governing the grants in aid of the revenues of the states out of the Consolidated Fund of India?         

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QUESTION: 14

Buoyancy of a tax is defined as         

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QUESTION: 15

    Investment is equal to             

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QUESTION: 16

Which one of the following is not an example of Indirect tax?             

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QUESTION: 17

Non-insurable or uncertainty risk is                    

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QUESTION: 18

‘Gold Bullion Standard’ refers to                    

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QUESTION: 19

When Central Bank buys securities bank reserves                    

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QUESTION: 20

Reserve Bank of India was nationalised in                    

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QUESTION: 21

The reserve held by commercial banks over and above the statutory minimum, with the RBI are called    

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QUESTION: 22

Who is authorised to issue coins in India?                    

Solution:

Coins may be coined at the Mint for issue under the authority of the Central Government, (of such denominations not higher than one hundred rupees),of such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may, by notification in the official Gazette, determine.) Paper Currency in India consists of notes of various denominations which are issued by the RBI and the Government of India. The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. All currency notes are legal tender.

QUESTION: 23

Which one of the following is not a function of the Central Bank in an economy?        

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QUESTION: 24

Inflation redistributes income and wealth in favour of                    

Solution:

The correct option is D.
Redistribution of wealth occurs because some asset prices increase more rapidly than the price level while other asset prices increase more slowly than the price level. ... One important redistribution of income and wealth that occurs during unanticipated inflation is the redistribution between debtors and creditors.

QUESTION: 25

When there is an official change in the exchange rate of domestic currency, then it is called                        

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QUESTION: 26

A short-term government security paper is called                    

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QUESTION: 27

At present, India is following        

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QUESTION: 28

Which is the biggest tax paying sector in India?                    

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QUESTION: 29

Consequent upon the recommendations of the working group on rural banks, 5 Rural Regional Banks were initially set-up in the year        

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QUESTION: 30

Cheap money means             

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