Online GK Series

This site is dedicated to the aspirants of competitive exams SSC, UPSC, Railways, Postal Assistants, Bank, GATE and NET

Federal Finance System in India - General Knowledge Multiple Choice Questions and Answers

Questions
1 Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List – II of the Constitution of India?
A Taxes other than stamp duties on transactions in stock exchange and future markets
B Taxes on Railway freights and fares.
C Taxes on mineral rights subject to any limitations imposed by the Parliament.
D Rate of stamp duty in respect of certain financial documents.

Answer: Option [C]
2 Which of the following taxes is introduced in India in 1953 and abolished in 1985?
A Estate Duty
B Expenditure Tax
C Gift Tax
D Agricultural Income-tax

Answer: Option [A]
3 The Constitution of India provides for transfer of resources from Centre to States in the form of:
I. Tax sharing
II. Loans
III. Grants-in-aid
IV. Grants for implementation of Five Year Plans
A (i), (ii) and (iii) are correct
B (i) and (iii) are correct
C (i), (iii) and (iv) are correct
D All are correct

Answer: Option [A]
4 The share of the tax borne by the seller will be larger:
A if the demand for the product is less elastic
B if the demand for the product is inelastic
C if the demand for the product has greater elasticity
D if the elasticity of supply of the product is larger

Answer: Option [C]
5 The Sarkaria Commission has been appointed by the Government of India to report on:
A Child Development
B Centre-State relations
C Stabilize agricultural prices
D Study and report the representation of Backward Classes in the State public services

Answer: Option [B]
6 The distribution of the burden of paying a tax is called:
A Sharing of tax burden
B Shifting of the tax
C Incidence of a tax
D Tax capitalization

Answer: Option [C]
7 Grants from the Centre to the States under the recommendations of Finance Commission are known as:
A Plan grants
B Development assistance
C Statutory grants
D Discretionary grants

Answer: Option [C]
8 Funds not belonging to the Government are called:
A Contingency Fund
B Private Accounts
C Consolidated Fund
D Public Accounts

Answer: Option [B]
9 Which are the three inter-related activities involve in the process of Capital Formation?
A Savings, Finance and Donation
B Savings, Loan and Investment
C Donation, Loan and Investment
D Savings, Finance and Investment

Answer: Option [D]
10 Which of the following is not an element of Financial Organisations?
A Public ownership of Financial Institution
B Strengthening of Institutional Structure
C Establishment of more Microfinance Organizations
D Protection to Investors

Answer: Option [C]

Chapters

Please Like Us
Brand

Recommended Books for Competitive Exams

VIEW ALL