1. Why is the Inflation described as a regressive form of taxation?
A. It results into devaluation of currency
B. It affects exports & makes imports attractive
C. It affects the poor & vulnerable sections more
D. It may cause recession
2.What could be the Demand pull factors for inflation?
A. Boost in agricultural output
B. Developmental expenditure
C. Risee in industrial output
D. Balanced budget
3.Who compute the National Income in India?
A. Central Statistical Organisation
B. Ministry of Finance
C. Planning Commission
D. None of these
4.KYC (Know Your Customer) regulations have been introduced in financial transactions under which regulation?
A. Prevention of Money Laundering Act
B. Banking Companies Act
C. Companies Act
D. None of these
5."Inflation increases the average level of prices". What does this statement refers to?
1. The price of commodities exceeds income.
2. In real terms, the Money supply grows at a higher rate than the Gross Domestic Product.
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
6.India has been classified as ___________ by the World Bank on the basis of the size & composition of external debt.
A. Less indebted country
B. Highly indebted country
C. Moderately indebted country
D. None of these
7.Development expenditure of the Central government does not include
A. defence expenditure
B. expenditure on economic services
C. expenditure on social and community services
D. grant to states
8.Devaluation of a currency means
A. reduction in the value of a currency vis-a-vis major internationally traded currencies
B. permitting the currency to seek its worth in the international market
C. fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
D. fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
9. On which one of the followings is the benefits received principle of taxation to achieve optimality bases?
A. Marginal benefit received
B. Total benefit received
C. Average benefit received
D. Ability to pay for the benefit
10. On July 12, 1982, the ARDC was merged into
A. RBI
B. NABARD
C. EXIM Bank
D. None of the above
Solutions
1. C
2. B
3. A
4. A
5. B
6. A
7. A
8. A
9. D
10.B
