The Government: Budget and the Economy Test

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The Government: Budget and the Economy Test - 16

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following is/are the components of the Fiscal Deficit?
A. Budgetary Deficit
B. Market Borrowings
C. Expenditure made from Pradhan Mantri Rahat Kosh

A
Only (A)

B
Only (B)

C
Only (C)

D
All (A), (B) and (C)
Question 2
1 / -0

Provision regarding levy of duties and taxes are announced in _______.

A
finance budget every year.

B
railway budget

C
appropriation account

D
none of the above

Solution

Finance budget is nothing but a financial plan for a definite period mostly for a year. It contains details about all sorts of revenues, expenses, assets and liabilities, taxes and duties, etc. Hence, provision regarding levy of duties and taxes are announced in finance budget for every year.
Question 3
1 / -0

CENVAT was introduced in_________.

A
2000

B
1986

C
1999

D
2002

Solution

CENVAT is an adaptation of VAT, which came into force in the country in 1986 in the form of MODVAT. This MODVAT was converted into CENVAT in the early 2000 with no major changes in its implementation and execution. The full form of CENVAT is Central Value Added Tax. Hence, CENVAT was introduced in 2000.
Question 4
1 / -0

Marginal propensity to consume + Marginal propensity to save = ______.

A
Zero

B
One

C
Two

D
Minus one

Solution

The marginal propensity to consume is the portion of each extra dollar of a household's income used in extra expenditure whereas marginal propensity to save is the portion of each extra dollar of a household's income used for saving. Thus, they balance each other well. Hence, marginal propensity to consume + marginal propensity to save is equal to one.
Question 5
1 / -0

When income increases the consumption expenditure _______.

A
increases

B
decreases

C
becomes equal

D
becomes zero

Solution

It is a general thing that a person spends more when he has more money. Every individual likes to fulfill his desire. Hence, when income increases, people have more money to spend and thus the consumption expenditure increases.
Question 6
1 / -0

For ____________separate budget presents every year before the Parliament.

A
defence

B
railway

C
post and telegraph

D
all the three

Solution

The practice of a separate Railway Budget started in 1924 during the British rule in India. During those days, Railways was the largest industrial asset of the country and used to occupy a significant portion of the budgetary allocations (75 to 85 %). Since the Railways then constituted such a large portion of the General Budget, it was recommended by the Britishers to have a seperate budget for railways for better policy formation.
Question 7
1 / -0

First finance budget was presented by______.

A
RK Shanmukam Chetty

B
Jawaharlal Nehru

C
Govind Ballabh Pant

D
BR Ambedkar

Solution

First finance budget also known as the union budget of India is also called as the annual financial statement in the Article 112 of the constitution of India. It is the annual budget of the republic of India. It is presented on the first day of February so that it can be materialized till the start of the financial year from $$1^{st}$$ of April. The first finance budget of independent India was presented by RK Shanmukam Chetty on $$26^{th}$$ November, 1947.
Question 8
1 / -0

The peak rate of custom duty in India is _____.

A
5%

B
8%

C
10%

D
12%

Solution

In today's scenario there are three types of rates for custom duty. They are 5%, 7.5% and 10%. Here, peak rate means the highest rate charged. Hence, the peak rate for custom duty is 10%.
Question 9
1 / -0

Service tax was initially started with _______ tax rate.

A
10%

B
12%

C
16%

D
5%

Solution

Service tax was introduced in 1994 by the finance minister Dr. Manmohan singh in which he emphasized the need for service tax.
Service tax is the tax levied on the service provided by the seller to customer and is borne by the customer.
The rate at which it was initially started with was 5%.
Question 10
1 / -0

Service tax was first introduced in_____.

A
1993-94

B
1994-95

C
1995-96

D
1998-99

Solution

Service tax was introduced in 1994 by the finance minister Dr.Manmohan Singh in which he emphasized the need for service tax. Service tax is the tax levied on the service provided by the seller to the customer and is borne by the customer. Hence, service tax was introduced in 1994-95.

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Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 16

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The Government: Budget and the Economy Test - 16

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SHARING IS CARING

Question 1

Only (A)

Only (B)

Only (C)

All (A), (B) and (C)

Question 2

finance budget every year.

railway budget

appropriation account

none of the above

Solution

Question 3

2000

1986

1999

2002

Solution

Question 4

Zero

One

Two

Minus one

Solution

Question 5

increases

decreases

becomes equal

becomes zero

Solution

Question 6

defence

railway

post and telegraph

all the three

Solution

Question 7

RK Shanmukam Chetty

Jawaharlal Nehru

Govind Ballabh Pant

BR Ambedkar

Solution

Question 8

5%

8%

10%

12%

Solution

Question 9

10%

12%

16%

5%

Solution

Question 10

1993-94

1994-95

1995-96

1998-99

Solution

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