Public Finance and Budget
Exam Duration: 45 Mins Total Questions : 30
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
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
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
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
The maximum amount of the total revenue earned by the Government of India comes from
- (a)
Income Tax
- (b)
Customer Duty
- (c)
Excise Duty
- (d)
Value Added Tax
- (e)
Corporate Tax
Service Tax was introduced in India for the first time in the year?
- (a)
1990 - 91
- (b)
1991 - 92
- (c)
1994 - 95
- (d)
1980 - 81
- (e)
2000 - 01
Which of the following is/are the Non - Tax Revenue components of the Union Budget of India?
I. Customs Duties
II. Interest Receipts
III. Dividends and Profits
Select the correct answer using the codes given below
- (a)
Only I
- (b)
Only II
- (c)
II and III
- (d)
Only IV
- (e)
All of these
Transport of goods by which of the following is free from levy of the Service Tax?
- (a)
Indian railways
- (b)
shipping companies owned by NRIs
- (c)
All private road transport companies
- (d)
By the Transport Corporation of India in its own special containers
- (e)
None of these
Which of the following is a measure of fiscal reforms Governments of India has adopted?
- (a)
Bringing down fiscal deficit to a particular level by an Act of Law
- (b)
Fixing higher rate of growth
- (c)
Allocation of more funds to provide education to children who are 6 - 14 years of age
- (d)
None of the above
Which of the following policies is known as Annual Policy Statement?
- (a)
Annual Budget of the Central Government
- (b)
Credit and monetary policy of RBI
- (c)
Foreign trade policy of DGFT
- (d)
Regulations issued by SEBI
- (e)
None of the above
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 codes given below
- (a)
I and III
- (b)
II and IV
- (c)
II, III and IV
- (d)
All of the above
- (e)
None of these
Many times we read about 'Hawala' transactions in newspapers. Hawala, in India, is prohibited under the provision of which of the following Acts?
- (a)
Fiscal Responsibility and Budget Management Act
- (b)
Banking Regulation Act
- (c)
Financial Action Task Force Act
- (d)
Foreign Exchange Management Act
- (e)
None of the above
Goods and Services Tax (GST) would replace which of the following taxes levied at present?
- (a)
Income Tax
- (b)
Corporate Tax
- (c)
Capital gains Tax
- (d)
Value Added Tax (VAT)
- (e)
All of the above
Which of the following bills presented Parliament will bring some changes in the existing tax regime?
- (a)
Direct Taxes Code (DTC) Bill
- (b)
Foreign Exchange Mangement Regulatory Bill
- (c)
Companies Act Bill
- (d)
Salaries and Perks for MPs Bill
- (e)
Finance Bill 2010 - 11
What is a fiscal deficit?
- (a)
It is a gap between the values of exports and imports
- (b)
It is a gap between exports and imports minus external borrowings
- (c)
It is a gap between total expenditure and total receipts of the government
- (d)
It is a gap between total receipts minus external borrowings
- (e)
None of the above
Which one of the following items will be subsumed under the Goods and Services Tax of India?
- (a)
Additional excise duties
- (b)
Special additional custom duties
- (c)
Additional surcharges and cesses
- (d)
All of the above
- (e)
None of the above
Which of the following is/are different categories of inflation?
I. Open and Suppressed
II. Cost Push
III. Demand pull
Select the correct answer using the codes given below
- (a)
Only I
- (b)
I and II
- (c)
II and III
- (d)
All of these
- (e)
None of these
Lot of discussions is going on these days on the issue of 'Participatory note' (P Notes) used in financial sector/money market. What is participatory note?
I. It is nothing but another name of the banking operation by which banks exchange Indian rupee into US dollars without depositing a single rupee in the account of the party who are NRIs. The entire operation is carried out by the banks solely on the basis of the credit and good, will of the NRI party.
II. It is an off shore derivative instrument used by overseas buyers/investors who buy shares of Indian companies listed in Indian stock exchange anonymously.
III. It is nothing but the type of undertaking given to the banks that they should continue investing money in stock markets on behalf of the NRIs and in case the market crashes NRI's will make the losses good without delay.
Select the correct answer using the codes given below.
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
All of the above
- (e)
None of these
'Dark Block' is an area
- (a)
Where literacy rate is below 15 %
- (b)
Where people below the poverty line are more than 90%
- (c)
Where underground source of water is not available
- (d)
Where more than 85% exploitation has taken place on the available underground water
- (e)
None of these above
'Hedging' denotes
- (a)
Protecting against fluctuations/uncertainty risk in forex markets
- (b)
Credit risk assessment in respect of advance
- (c)
Speculative buying/selling of foreign currency
- (d)
Capital risk assessment in respect of advances
- (e)
None of these
Which one of the following is the major source of the revenue to state Government in India?
- (a)
Agriculture income tax
- (b)
Professional tax
- (c)
General sales tax
- (d)
Stamp duties
- (e)
All of the above
Which one of the following is not included in government securities?
- (a)
Promissory notes
- (b)
Debentures
- (c)
Bearer bonds
- (d)
All of the above
- (e)
None of the above
Inflation is caused by
- (a)
increase in supply of goods
- (b)
increase in cash with the government
- (c)
decrease in money supply
- (d)
increase in money supply
- (e)
All of the above
Sub - prime refers to
- (a)
lending done by banks at rates below PLR
- (b)
funds raised by the banks at sub libor rates
- (c)
group of banks which are not rate as prime banks as per banker's almanac
- (d)
lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
- (e)
None of the above
The Goods and Services Tax (GST) proposed to be introduced covers taxes like
- (a)
Trade/Sales Tax
- (b)
Service Tax
- (c)
Service, Excise
- (d)
Service, Excise, VAT
- (e)
All of the above
The purpose of providing depreciation on the bank's property is
- (a)
to reduce the profit of the bank
- (b)
to make usual allowances for annual wear and tear
- (c)
to enable the bank to recover this amount from the Reserve Bank of India
- (d)
to strengthen the financial position of the bank
- (e)
None of the above
Among which of the following is related to bank risks?
- (a)
Deposits
- (b)
Bank funds
- (c)
NPA
- (d)
All of these
- (e)
None of these
Which among the following is called life blood of business?
- (a)
Marketing
- (b)
Product
- (c)
Finance
- (d)
Staff
- (e)
None of these
'Sub prime lending' is a term applied to the loans made to
- (a)
these borrowers who do not have a good credit history
- (b)
those who wish to take loan against the mortgage of tangible assets
- (c)
those who have a good credit history and are known to bank since 10 years
- (d)
Both 1 and 2
- (e)
None of the above
Securitisation is
- (a)
non - performing loans are acquired from banks and financial institutions at a discounted value and security receipts issued to them so that these loans are removed from their balance sheet enabling them to reduce the provision in respect of such loans and improve profitability
- (b)
converting the illiquid loans of banks and financial institutions by securitisation companies into tradable securities, after they are acquired and sold to the investors
- (c)
a process of acquisition of non - performing loans from banks by a securitisation company and convert them int tradable securities and sold to the investors
- (d)
All of the above
- (e)
None of the above