Prelims 2020 Test Series-Indian Economy Test -15

  • a.) 
    Interest payments
  • b.) 
    Salaries
  • c.) 
    Subsidies         
  • d.) 
    Defence expenditure
  • a.) 
    Revenues from fees and penalties
  • b.) 
    Recoveries of loans
  • c.) 
    Disinvestment proceeds
  • d.) 
    Borrowings
  • a.) 
    Higher liquidity for government securities
  • b.) 
    Lower fiscal deficit
  • c.) 
    Higher marketability for the government securities
  • d.) 
    Higher interest costs for the government
  • a.) 
    Tax buoyancy    
  • b.) 
    Tax elasticity
  • c.) 
    Taxable capacity    
  • d.) 
    Tax rigidity
  • a.) 
    Excess government subsidies distorting resource allocation
  • b.) 
    Excess private expenditure producing inflation
  • c.) 
    Market exploitation by the private sector due to reckless government expenditure.
  • d.) 
    Excess government expenditure, raising interest rate and depressing the availability of funds.
  • a.) 
    Fiscal Deficit – stands for borrowings by the government
  • b.) 
    Revenue Deficit – Higher current expenditure
  • c.) 
    Budget Deficit – Printing of Currency
  • d.) 
    Primary Deficit – Borrowings from the RBI
  • a.) 
    the cut-off price for G-Secs
  • b.) 
    the cut-off yield for G-Secs
  • c.) 
    the crowding out effect
  • d.) 
    the overall interest payments
  • a.) 
    BIS to curtail capital erosion of banks
  • b.) 
    OECD to fight tax avoidance
  • c.) 
    IMF to promote international liquidity
  • d.) 
    FSB to promote financial stability
  • a.) 
    Capital gains tax    
  • b.) 
    Minimum alternative tax
  • c.) 
    Wealth tax    
  • d.) 
    Corporate income tax
  • a.) 
    Progressive tax    
  • b.) 
    Indirect tax
  • c.) 
    Direct tax    
  • d.) 
    Capital gains tax
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