Public Finance-Online Practice Exam 5
Public Finance-Online Practice Exam 5

Public Finance-Online Practice Exam 5

NET / SET Online Practice Exams

Public Finance

Test

Multi-choice 5

Question

1. The biggest holder of Government of India dated securities-

Answers

Reserve Bank of India

Life Insurance Corporation of India

Commercial Banks

Employees Provident Fund

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Question

2. Match the items given in List I with those in List II

List I List II
a. Committee on Taxation of Agricultural Wealth and Income, 1972 i. Raja J Chelliah
b. Direct Taxes Enquiry Committee, 1970 ii. L.K.Jha
c. Tax by Reform Commune, 1991 iii. K.N Wanchoo
d. Indirect Tax Enquiry Committee, 1976 iv. K.N Raj

Answers

a.iv, b.iii, c.i, d.ii

a.ii, b.iii, c.i, d.iv

a.iii, b.iv, c.i, d.ii

a.i, b.iii, c.iv, d.ii

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Question

3. Grants from the Centre to the States under the recommendations of Finance Commission are known as- 

Answers

Discretionary grants

Development assistance

 Plan grants

Statutory grants

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Question

4. Which one of the following tax is within the jurisdiction of the Central Government as enumerated in List-1 of Seventh Schedule of the Constitution of India?

Answers

Taxes on the consumption and sale of electricity

Taxes on sale and purchase of newspapers and on advertisements therein

Taxes on mineral rights subject to any limitation imposed by the Parliament

Excise on alcoholic liquors for human consumption, opium, Indian hemp and other narcotics

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Question

5. Which one of the following taxes is also known as the ‘Death Tax’ ?

Answers

Octroi

Inheritance tax

Estate Duty

 (B) & (C) both

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Question

6. Given two statements, one labelled ‘Assertion A’ and another labelled the ‘Reason R’. Examine these statements carefully and decide if the Assertion A and Reason R are individually true and if so, whether the Reason is a correct explanation of the Assertion. Select your as per the following options.

Assertion (A) : Indian economy is referred to as a ‘mixed economy’.

Reason (R) : Indian Government recognises the relative importance of both public as well as private sectors in the process of economic development.

Answers

Both A and R are true and R is the correct explanation of A

Both A and R are true and R is not a correct explanation of A

A is true but R is false

A is false but R is true

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Question

7. Match List-I with List-II and select the correct answer-using the codes given below the List

List I List II
a. Dutt Commitice (1969) i. Industrial Licensing
b. Wanchoo Committee (1971) ii. Direct Taxes
c. Rajamannar Committee (1971) iii. Central State Fiscal Relations
d. Chakravarty Committee (1985) iv. Monetary System

Answers

a.i, b.ii, c.iii, d.iv

a.iv, b.ii, c.iii, d.i

a.i, b.iv, c.iii, d.ii

a.i, b.ii, c.iv, d.iii

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Question

8. Match List-I with List-II and select the correct answer using the codes given below the Lists:

List I List I
a. Monopolies and Restrictive Trade Practices Commission. i. 1951
b. Long Term Fiscal Policy. ii. 1965
c. Agricultural Prices Commission. iii. 1970
d. Industries (Development and Regulation) Act. iv. 1985

Answers

a.i, b.iv, c.ii, d.iii

a.iii, b.iv, c.ii, d.i

a.iv, b.iii, c.ii, d.i

a.ii, b.iv, c.iii, d.i

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Question

9. The Choksi Committee was appointed to recommended measures to simplify the existing-

Answers

Direct tax laws

Indirect tax laws

Sale tax laws

Corporation tax laws

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Question

10. The Raj Committee (1972) probed into—

Answers

Direct taxes

Agricultural holding tax

Indirect taxes

Non-tax revenue

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