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Q1. The important function of taxation in India is to

reduce black money

generate funds for government expenditure

reduce inflation

none of these

Q2. Which of the following Five Year Plans was terminated one year before its completion?

Second

Third

Fourth

Fifth

Q3. Stagflation refers to .....

constant rate of inflation

low inflation with high recession

high inflation with low recession

stagnation and inflation.

Q4. ...............is not a method of estimating the national income.

product method

export import method

income method

expenditure method

Q5. Centre state financial relations are looked after by the

Ministry of Finance

National Development Council

Finance Commission

Planning Commission

Q6. The major source of revenue for executing Five Year Plans is

direct taxes

indirect taxes

foreign loans

interest on investments

Q7. Price rise goes in favour of those who are

debtors

pensioners

businessmen

government servants

Q8. Arrange the allocations made to the following sectors in the Sixth Five Year Plan in the descending order: (1) Irrigation and flood control (2) Agriculture and allied programmes (3) village and small industries (4) power

4,2,1 and 3

3,4 1 and 3

2, 4,1 and 3

1,3,4 and 2

Q9. The novelty in the Sixth Plan was

area planning

sectoral planning

rural development

new expansion programme

Q10. Maximum revenue is being earned from

excise

non tax revenue

customs

corporation tax

Q11. Some of the priority measures of the Fifth Five Year Plan was ....(I) Removal of poverty (ii) Economic Self Sufficiency (iii) Heavy industrialisation (iv) Conservation of foreign exchange . Now, arrange them in their order of priority.

I, II, III, IV

II, I, III, IV

I, II, IV, III

II, I, IV, III

Q12. Arrange the following in correct priority order in different Five Year Plans: (I) Removal of Poverty (II) Rehabilitation of economy (III) Heavy Industrialisation (IV) Import substitutions.

I, II, III, IV

II, I, III, IV

I, II, IV, III

II, I, IV, III

Q13. The maximum revenue source of village panchayats is

government grants

sales tax

voluntary help by village cooperatives

local taxes on lands, fairs and festivals

Q14. Grants in aid is given to the states for

improving the centre state relationships

reducing regional imbalances

improving the development of backward areas

various development schemes and rehabilitation purposes

Q15. What is the trade policy of India?

exports promotion and import substitution

export oriented

import oriented

none of these

Q16. What was the main aim of the "Bearer Bonds Scheme" launched in the year 1991?

to mop up black money

to enable the black money holders to invest for rural reconstruction programme

to enable the public to deposit money with the government for development work

none of these

Q17. Finance commission is appointed once in ......years

Q18. Mixed Economy refers to

co existence of heavy, small scale and cottage industries

promotion of agriculture as well as cottage industries

co existence of rich as well as poor

co existence of public as well as private sector

Q19. Who signature is found on a hundred rupee note?

President

Governor of RBI

Finance Minister

Finance Secretary

Q20. Which Article of the Constitution deals with "Service Tax"?

116

146

268A

278

Q21. The present Whole Sale Price Index is based on ................prices.

2001..2002

2002..2003

2003..2004

2004..2005

Q22. Monopolies and Restrictive Trade Practices Act was replaced by the Competititon Act of ..............., which came into effect from ..................

2001, April 2002

2002, April 2006

2002, September 2009

2004, April 2009

Q23. Temporary control of inflation can be effected by

increasing the prices

increasing the taxes

restraint on the growth

reducing the prices

Q24. Our country spends mosts of its foreign exchange reserves for

import of chemicals and fertilizers

import of heavy machineries

import of crude petroleum

import of newsprint

Q25. India earns maximum foreign exchange by the export of ...........

sugar

tea

leather

none of these

Q26. "Socialistic Pattern" comes through .....

Free Economy

Mixed Economy

Public Sector

none of these

Q27. What is a Scheduled Bank?

A bank having Rs.1000 Cr deposits

A bank included in the Second Schedule of the RBI

A bank having 500 crore deposits

A cooperative bank

Q28. What is the likely impact of decrease of population on economy?

increase in per capita income

decrease in per capita income

increase in investment

decrease in savings

Q29. The purpose of Central and state warehousing corporations is to

distribute fertilizers and seeds

to refinance farm credit

provide storage facility

process agricultural products

Q30. The World Summit on Sustainable Development held in Johannesburg achieved limited success, partly due to the rigid stand of USA on many issues of development. The US policy, as stated at the Summit, can be summarised as....

fighting terror is more important than fighting poverty

poor countries have failed to protect the environment

trade in the engine of development

debt relief is the best means of helping developing nations.

Q31. Which committee recommended that the percentage of equity to be disinvested in industries reserved for public sector should be 49 per cent.

Chelliah Committee

Rangarajan Committee

Santhanam Committee

Narasimhan Committee

Q32. In the year 2000, the Government recase some of its policies on Disinvestment to provide for 'strategic sale'. The new norms involved:

sale with a change in management

majority holding to be sold to a private party

sale of only loss making PSUs

sale of share of defence PSUs.

Q33. According to the National Investment Policy 1991, the revenues generated from disinvestments will, apart from being utilised for the financial support of existing PSUs, be spent on ......

safety net for the retrenched employees of PSUs

strengthening the Public Sector Enterprises Board

providing financial assistance to Khadi and Village industries

none of these

Q34. What does "Level Playing Field" mean with reference to industrial investments?

MNCs to be stopped from investing in India

Licence for MNCs to be given only in environment friendly technology

domestic industry to be given preference

domestic industry to be treated on par with MNCs

Q35. A company is declared to be "sick" when the accumulated loss at the end of any financial year leads to erosion of ..............percent of its networth.

0.8

0.5

0.35

Q36. Which of the following does not constitute to be a factor for industrial sickness?

management deficiencies

shortage of power

wrong dividend policy

diversion of funds

Q37. One of the disadvantages of the Wholesale Price Index in our country is that

it does not cover the services sector

it is not available for individual commodities

it is available only on monthly basis

it is available only at constant prices

Q38. National Renewal Fund was instituted for the purpose of

rural reconstruction

social security

restructuring and modernization of industries

none of these

Q39. Under which Article of the constitution the Annual Financial Statement is laid before the two Houses of Parliament?

Article 75

Article 112

Article 265

Article 365

Q40. According to the Reserve Bank of India Credit and Monetary Policy, the rate of increase in the Minimum Support Price (MSP) of food grains has been more than that of the rate of inflation. This would mean that........

Inflation will be more than the price of food grains

There will be an increase in the availability of good grains

increase in the price of food grains will be more than proportionate to the rate of inflation

there will be a reduction in the open market price of food grains

Q41. On the basis of the size and composition of external debt, World Bank has classified India as

a less indebted country

a moderately indebted country

a heavily indebted country

a severely indebted country

Q42. Among the tax revenues of the union government, the most important source is

income tax

corporation tax

central exercise

customs duty

Q43. A significant victory for the developing countries on the issue of TRIPS (Trade Related Aspects of Intellectural Property Rights) at the Doha Meet (November 2001) was

postponement of the issue of labour standards

special dispensation for least developed countries

power to grant exemption from patent regime in the interest of public health

discussion on implementation issues.

Q44. Direct taxation is a better form of taxation because

it allows for taxation according to means

it has greater tax compliance

it fetches more revenue

it can be more easily collected

Q45. Which of the following conditions need not be fulfilled for declaring an offence under the Prevention of Money Laundering Act, 2002?

There must be commission of a crime

there must be proceeds or gains from the crime

the crime must have been committed beyond the country's boundaries

there must be a transaction in respect of the proceeds of the crime.

Q46. Consider the following statements and pick the one/s that is/are correct with reference to the functions of the RBI? (1) Issue of bank notes of all denominations. (2) Lender of the last resort (3) Underwrite the loans of state and central governments (4) Periodic inspection of commercial banks.

1,2 and 4

1 and 4

1 and 3

all of them

Q47. Which of the following sectors has attracted the maximum Foreign Direct Investment in our country?

Telecommunications

Pharmaceuticals

Steel

Cement

Q48. The Chelliah Committee (1992..1993) report recommended that in Income Tax there should be

higher rates

broader spread between minimum and maximum rates

minimum incentives

maximum of incentives

Q49. Multi Fibre Agreement (1974) deals with .......

trade in narcotic substances

paper and pulp products

textiles

optical fiber

Q50. As per the National Institute of Public Finance and Policy (NIPFP) estimates made in 1985, black money accounted for .............percent of Gross Domestic Product.

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