Q1.In public budgets, zero base budgeting was first introduced in
(a) USA
(b) UK
(c) France
(d) Sweden
Q2.Buoyancy of a tax is defined as
(a) increase of tax rate
(b) decrease in tax revenue
(c) increase in tax revenue
(d) increase in ratio of direct to indirect tax
Q3.When Central Bank buys securities bank reserves
(a) has no impact on the reserves
(b) expands
(c) contracts
(d) remains the same
Q4.The reserve held by commercial banks over and above the statutory minimum, with the RBI are called
(a) Cash reserves
(b) Deposit reserves
(c) Excess reserves
(d) Momentary reserves
Q5.Which is the biggest tax paying sector in India?
(a) Agriculture sector
(b) Industrial sector
(c) Transport sector
(d) Banking sector
Q6.Which bank in India performs duties of Central Bank?
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Both ‘a’ and ‘b’
Q7.Bank deposits that can be withdrawn without notice are called
(a) account payee deposits
(b) fixed deposits
(c) variable deposits
(d) demand deposits
Q8.Interest paid by the government on the loans raised is called
(a) Debt servicing
(b) Deficit financing
(c) Discounted budgeting
(d) Bridge loan
Q9.‘Dear Money’ means
(a) low rate of interest
(b) high rate of interest
(c) depression
(d) inflation
Q10.Which of the following can be used for checking inflation temporarily?
(a) Increase in wages
(b) Decrease in money supply
(c) Decrease in taxes
(d) None of the above
