Tag: economics

Questions Related to economics

What are official reserve transaction balance?

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. International reserves owned by Government or other Government agencies.

  2. International reserves owned by star trading houses

  3. GDR of blue chip companies

  4. Balance held in Swiss Bank A/c

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Correct Option: A

Rajiv Gandhi Equity Saving scheme was announced in ____.

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. 2011

  2. 2012

  3. 2013

  4. 2010

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Correct Option: B
Explanation:

Rajiv Gandhi Equity Saving scheme was announced in 2012 as a part of the Union budget and aimed at retail investors. 

Micro Enterprise in Manufacturing Sector means an enterprise having original investment in Plant and Machinery not exceeding _______.

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. Rs.25 Lakh

  2. Rs. 5 crore

  3. Rs. 10 crore

  4. Rs. 1 crore

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Correct Option: A

Full convertibility of Rupee on Trade A/c was declared in _______.

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. 1992-93

  2. 1989-90

  3. 1999-2000

  4. 1993-94

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Correct Option: D

The National income is identified as?

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. Y=C+I

  2. X-M = Y+I+K

  3. I=s

  4. Y = C + I + G + X M

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Correct Option: D

 Three sources of demand for domestic goods include?

economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

  1. Y=s+I+M

  2. Y=c+I+G

  3. Y=G+I+K

  4. Y=X+M-G

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Correct Option: B

Consider the following statements related to the tax litigations in the country and select the correct ones using the code given below:
1. The tax department of the country is the largest litigant at every level of the judicial hierarchy. 
2. The tax department of the country loses around $65$ per cent of the cases. 
3. There is serious need of enhancing the tax administration and pushing for legal sector reforms in the country. 

economics tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

  1. 1 and 2

  2. 2 and 3

  3. 1 and 3

  4. 1, 2 and 3

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Correct Option: D
Explanation:

India needs to simplify and enhance the effectiveness of her tax administration together with pushing in favour of needful kinds of legal sector reforms ( as was promised in the second generation of economic reforms in 1999−20001999−2000.)

Chairman of Tax Reform Committee was ________.

economics tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

  1. Pranab Mukherjee

  2. KP. Narsimham

  3. S. Janakiraman

  4. Raja Chelliah

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Correct Option: D
Explanation:

The Government appointed a Tax Reforms Committee under Prof Raja Chelliah to lay out agenda for reforming India’s tax system. This TRC came up with three reports in 1991, 1992 and 1993 with several measures.

Kelkar Committee report is related to _______.

economics tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

  1. tax reforms

  2. financial sector reforms

  3. trade reforms

  4. administrative reforms

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Correct Option: A
Explanation:

Impetus to direct tax reforms in India came with the recommendations of the Task Force on Direct & Indirect Taxes under the chairmanship of Vijay Kelkar in 2002. The main recommendations of this task force related to the direct taxes related to increasing the income tax exemption limit, rationalization of exemptions, abolition of long term capital gains tax, abolition of wealth tax etc.

Which of the following add to governments non tax revenue?

economics tax and its importance taxation : need, principles and importance main feature of tax public revenue and taxation

  1. Administrative revenue

  2. Profit from state enterprises

  3. Gifts and grants

  4. All the above

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Correct Option: D
Explanation:

Administrative revenue, profit from state enterprises, revenue from gifts and grants come under non-tax revenue of government.