Banking Awareness - Public Finance and Budget

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Question - 1

Money Laundering normally involves

  • A placement of funds
  • B layering of funds
  • C integration of funds
  • D all the above
  • E None of the above

Question - 2

As we all know Government of India collects tax revenue on various activities in the country. Which of the following is a part of the tax revenue of the government?
I. Tax on Income
II. Tax on Expenditure
III. Tax on Property or Capital Asset
IV. Tax on Goods and Services
Select the correct answer using the code given below

  • A I and III
  • B II and IV
  • C II, III and IV
  • D All of these
  • E None of these

Question - 3

Union budget is always presented first in 

  • A the Lok Sabha
  • B the Rajya Sabha
  • C joint session of the Parliment
  • D meeting of the Union Cabinet
  • E the State Assemblies

Question - 4

Many time we read the term 'ECB' in financial newspapers. What is the full form of 'ECB'?

  • A Essential Commercial Borrowing
  • B Essential Credit and Borrowing
  • C External Credit and Business
  • D External Commercial Borrowing
  • E None of the above

Question - 5

As we all know, the Ministry of Finance every year prepares the Union Budget and presents it to the Parliment. Which of the following is/are the elements of the Union Budget?
I. Estimates of revenue and capital receipts.
II. Ways and means to raise the revenue.
III. Estimates of Expenditure.
Select the correct answer using the codes given below.

  • A Only I
  • B Only II
  • C Only III
  • D All of these
  • E None of these

Question - 6

Which of the following is not a tax/duty levied by the Government of India?

  • A Income Tax
  • B Education Cess
  • C Service Tax
  • D Customs Duty
  • E Toll Tax

Question - 7

Fiscal deficit is

  • A total income less government borrowing
  • B total payments less total receipts
  • C total payments less capital receipts
  • D total expenditure less total receipts excluding borrowing
  • E None of the above

Question - 8

As we all know India has a three -tier structure of tax administration. There are taxes levied by Central Government, State Governments and Local Governments. Which of the following taxes is levied by the local government bodies?

  • A Value added Tax
  • B Stamp Duty
  • C Service Tax
  • D Land Revenue
  • E Tax on water supply and drainage etc.

Question - 9

The amount of which of the following reflects the overall budgetary position of the Government of India at a given time?

  • A Revenue deficit
  • B Total amount of income tax collected
  • C Capital deficit
  • D Fiscal deficit
  • E None of these

Question - 10

Which of the following service provided by a bank in India is not liable for Service Tax as per existing laws?

  • A Safe deposit lockers
  • B Merchant banking services
  • C Credits cards
  • D Discount earned on certain discounted bills
  • E None of these