Tag: main feature of tax

Questions Related to main feature of tax

What is correct about a concessional loan in India in the cases of external borrowing ?

economics macro economic analysis public debt public debt main feature of tax

  1. An external loan which carries a grant element of 25 per cent or more.

  2. When the interest component on an external loan is not more then 50 per cent of the prevailing interest on the external commercial loans.

  3. When the loan is long-term and has at least 75 per cent grant component in it.

  4. None of the above.

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Correct Option: A
Explanation:

All the external loans which constitue at least 25 per cent (or more) grant (relaxation/subsidy) on its interest rates are considered 'concessional loans' by the government.

In the budget, when the government's revenue is more than its expenditure it is called __________.

economics macro economic analysis public debt public debt main feature of tax

  1. deficit budget

  2. surplus budget

  3. balanced budget

  4. imbalanced budget

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Correct Option: B
Explanation:

A budget surplus is a period when income or receipts exceed outlays or expenditures. A budget surplus often refers to the financial states of governments; individuals prefer to use the term 'savings' instead of the term 'budget surplus.' A surplus is an indication that the government is being effectively managed.

The government can force the people to lend to it, but no private individual can compel another individual to give loans to him.

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. True

  2. False

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Correct Option: A

Public debt produces a deep impact on production of wealth in the country. As against this, private debt produces no such impact.

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. True

  2. False

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Correct Option: A

External debt represents a claim of __________ against the real income (GNP) of the country.

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. countrymen

  2. foreigners

  3. both A and B

  4. none of the above

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Correct Option: B
Explanation:

Public borrowings from other countries, are referred to as External Debt. External debt permits import of real resources. It enables the country to consume more than it produces. The sources of external debts are loans from foreign government, IMF, World Bank etc.

Which of the followings is/are the source/s of external debt?

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. Loans and advances from foreign government

  2. From IMF, World Bank and International Financial Institutions

  3. From foreigners

  4. All of the above

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Correct Option: D

When is the public debt said to be unproductive?

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. When government borrows for developmental expenditure so that it generates revenue

  2. When the public borrow for expenditure so that it generates revenue

  3. When government borrows for non-developmental expenditure such as war finance or extravagance in public administration

  4. When public borrow for expenditure such as extravagance

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Correct Option: C

What are the limitations of the public debt?

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. Possibility of excessive borrowing

  2. Taxation for repayment

  3. Burden on future generation

  4. All of the above

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Correct Option: D
Explanation:

Unless public debt is not used on developmental procedures which generate revenue, the above will be a problem. 

Which of the following may be source/s of internal debt due to the nature of their operations?

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. Reserve Bank of India

  2. Commercial and General Banks

  3. Through selling of Government Securities

  4. All of the above

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Correct Option: D

In Private banking .. percent FDI is allowed now _____________.

economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

  1. 100

  2. 49

  3. 74

  4. 26

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Correct Option: C