Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
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(1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to save but because the goods they seek are not available or because goods are too expensive. In a free economy, this situation would normally result in increase in prices and inflow of more goods.
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Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer :  Reduction of consumption consequent to a rise in prices

Which of the following is not viewed as national debt? (1) Life Insurance Policies (2) Long-term Government Bonds (3) National Savings Certificates (4) Provident Fund

Description : Which of the following is not viewed as national debt? (1) Life Insurance Policies (2) Long-term Government Bonds (3) National Savings Certificates (4) Provident Fund

Last Answer : (1) Life Insurance Policies Explanation: Government debt (also known as public debt, national debt) is the debt owed by a central government. Government debt is one method of financing ... directly from a supranational organization (e.g. the World Bank) or international financial institutions.

Which of the following is not considered as National Debt? (1) National Savings Certificates (2) Long-term Government Bonds (3) Insurance Policies (4) Provident Fund

Description : Which of the following is not considered as National Debt? (1) National Savings Certificates (2) Long-term Government Bonds (3) Insurance Policies (4) Provident Fund

Last Answer : (3) Insurance Policies Explanation: Government debt is the debt owed by a central government. Governments usually borrow by issuing securities, government bonds and bills. Government Bonds are often ... as the policyholder, which determines the claims which the insurer is legally required to pay.

Which of the following is not considered as National Debt ? (1) National Savings Certificates (2) Long-term Government Bonds (3) Insurance Policies (4) Provident Fund

Description : Which of the following is not considered as National Debt ? (1) National Savings Certificates (2) Long-term Government Bonds (3) Insurance Policies (4) Provident Fund

Last Answer :  Insurance Policies

Which of the following is not viewed as national debt ? (1) Life Insurance Policies (2) Long-term Government Bonds (3) National Savings Certificates (4) Provident Fund

Description : Which of the following is not viewed as national debt ? (1) Life Insurance Policies (2) Long-term Government Bonds (3) National Savings Certificates (4) Provident Fund

Last Answer : Life Insurance Policies

Personal Income' equals - (1) The household sector's in-come (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above

Description : Personal Income' equals - (1) The household sector's in-come (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above

Last Answer : (3) Personal disposable income plus miscellaneous receipts of the Goverment Explanation: Disposable income is total personal income minus personal current taxes (or plus receipts of the government). ... category of personal (or, private) consumption expenditure) yields personal (or, private) savings

‘Personal Income’ equals (1) The household sector’s income (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above

Description : ‘Personal Income’ equals (1) The household sector’s income (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above

Last Answer : Personal disposable income plus miscellaneous receipts of the Goverment

What is Value Added Tax (VAT)? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Description : What is Value Added Tax (VAT)? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Last Answer : (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. Explanation: A value added tax (VAT) is a form of consumption tax. A VAT is like a sales tax in that ... under the single tax system based primarily or exclusively on one tax, typically chosen for its special properties.

What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Description : What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods 

Last Answer : A single tax that replaces State taxes like, surcharge, turnover tax, etc. 

Which one of following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Description : Which one of following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Last Answer : (3) Undistributed profits Explanation: For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as its Net Saving. Retained profits are those ... commitments to depreciation provision for various fixed assets, debts, government and to shareholders.

Which one of the following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Description : Which one of the following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure

Last Answer : Undistributed profits

A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Description : A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Last Answer : (1) proportional to the income of tax payers Explanation: The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual's ability-to-pay. The idea of ... equity suggests it is fair for people of equal ability to pay the same amount in taxes.

A tax is characterised by horizontal equity if its liability is (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Description : A tax is characterised by horizontal equity if its liability is (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Last Answer : proportional to the income of tax payers 

Which of the following taxes is such which does not cause rise in price ? (1) Import duty (2) Income tax (3) Octoroi (4) Sales tax

Description : Which of the following taxes is such which does not cause rise in price ? (1) Import duty (2) Income tax (3) Octoroi (4) Sales tax 

Last Answer :  Income tax

Corporation tax is a tax imposed on - (1) the net incomes of the companies (2) the corporate properties (3) the utilities provided by the corporation (4) tax imposed by the corporation on individual properties

Description : Corporation tax is a tax imposed on - (1) the net incomes of the companies (2) the corporate properties (3) the utilities provided by the corporation (4) tax imposed by the corporation on individual properties

Last Answer : (1) the net incomes of the companies Explanation: Corporate Tax is a levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are ... taxable period. Most countries tax all corporations doing business in the country on income from that country.

Corporation tax is a tax imposed on (1) the net incomes of the companies (2) the corporate properties (3) the utilities provided by the corporation (4) tax imposed by the corporation on individual properties

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Last Answer : the net incomes of the companies

What does the acronym FMCG refer to ? 1. Functional, mid-riced, or compulsory goods 2. Famous, manufacturer's clothing goods (i.e., designer labels) 3. Fast Moving Consumer Goods 4. Frequent Market Consumption Goods 5. None of thes

Description : What does the acronym FMCG refer to ? 1. Functional, mid-riced, or compulsory goods 2. Famous, manufacturer's clothing goods (i.e., designer labels) 3. Fast Moving Consumer Goods 4. Frequent Market Consumption Goods 5. None of thes

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Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security

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Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security

Description : Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security 

Last Answer : Employee's contribution to social security 

Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Description : Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

Indirect tax means : (1) there is not direct relationship between the tax payer and the government. (2) direct relationship between tax payer and the government. (3) tax base is income (4) the incidence and impact are on the same person on whom tax is imposed.

Description : Indirect tax means : (1) there is not direct relationship between the tax payer and the government. (2) direct relationship between tax payer and the government. (3) tax base is income (4) the incidence and impact are on the same person on whom tax is imposed.

Last Answer : (1) there is not direct relationship between the tax payer and the government. Explanation: The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax (such as ... which is collected directly by government from the persons (legal or natural) on which it is imposed.

Indirect tax means : (1) there is not direct relationship between the tax payer and the government. (2) direct relationship between tax payer and the government. (3) tax base is income (4) the incidence and impact are on the same person on whom tax is imposed.

Description : Indirect tax means : (1) there is not direct relationship between the tax payer and the government. (2) direct relationship between tax payer and the government. (3) tax base is income (4) the incidence and impact are on the same person on whom tax is imposed.

Last Answer : there is not direct relationship between the tax payer and the government.

Raman & Co., a Partnership firm, received Rs.5 lakh from Insurance Company under Keyman Insurance Policy consequent to demise of Partner Pramod. The amount of premium of Rs.230000 paid earlier was claimed as deduction u/s 37 by the firm. a) Tax-free u/s 10(10D) b) Fully taxable as Income c) Rs.270000 is taxable d) Rs.230000 is taxable

Description : Raman & Co., a Partnership firm, received Rs.5 lakh from Insurance Company under Keyman Insurance Policy consequent to demise of Partner Pramod. The amount of premium of Rs.230000 paid earlier was claimed as ... ) b) Fully taxable as Income c) Rs.270000 is taxable d) Rs.230000 is taxable

Last Answer : d) Rs.230000 is taxable

Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Description : Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

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Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Last Answer : (3) Income Explanation: Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income

Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : (1) Consumption Explanation: Desired savings are kept equal to desired investment by responses to interest rate changes. Savings identity or the savings investment identity is a concept in ... brings savings and investment into balance without any intention by business to increase investment.

Consumption function expresses the relationship between consumption and - (1) savings (2) income (3) investment (4) price

Description : Consumption function expresses the relationship between consumption and - (1) savings (2) income (3) investment (4) price

Last Answer : (2) income Explanation: The consumption function is a mathematical formula laid out by famed economist John Maynard Keynes. The formula was designed to show the relationship between real disposable ... being what Keynes considered the most important determinant of short-term demand in an economy.

What is "mpc"• or the 'marginal propensity to consume'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional planned savings c) the fraction of total additional income that is used for consumption d) none of the above

Description : What is "mpc" or the 'marginal propensity to consume'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional ... c) the fraction of total additional income that is used for consumption d) none of the above

Last Answer : : c) the fraction of total additional income that is used for consumption

What is "mps"• or the 'marginal propensity to save'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional planned savings c) the fraction of total additional income that is used for consumption d) none of the above

Description : What is "mps" or the 'marginal propensity to save'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional ... c) the fraction of total additional income that is used for consumption d) none of the above

Last Answer : a) the proportion of total additional planned savings to total additional incom

Investment Multiplier is a (a) ratio between income and investment. (b) ratio between investment and savings (c) ratio between consumption and investment (d) None of the abov

Description : Investment Multiplier is a (a) ratio between income and investment. (b) ratio between investment and savings (c) ratio between consumption and investment (d) None of the abov

Last Answer : (b) ratio between investment and savings

The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Last Answer : © Change in consumption/ Change in income

Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Last Answer : Income

Consumption function expresses the relationship between consumption and (1) savings (2) income (3) investment (4) price

Description : Consumption function expresses the relationship between consumption and (1) savings (2) income (3) investment (4) price

Last Answer : income

Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Description :  Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Last Answer : relationship between income and consumption

Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : Consumption

The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Last Answer : (1) Growth in Percapita Real Income from year to year. Explanation: Per capita Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a ... its world development report 1998, classified the countries in the world on the bases of per capita GNP.

The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.

Last Answer : Growth in Percapita Real Income from year to year.

The Public Provident Fund(PPF) has the interest rate of _____________ A. 7.1% B. 7.2% C. 8.1% D. 8.2%

Description : The Public Provident Fund(PPF) has the interest rate of _____________ A. 7.1% B. 7.2% C. 8.1% D. 8.2%

Last Answer : C. 8.1% Explanation: The Public Provident Fund is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968.The aim of the scheme ... . The current interest rate effective from 1 April 2016 is 8.1% Per Annum (compounded annually).

What is the duration of Public Provident Fund (PPF) account? A. 3 years B. 5 years C. 9 years D. 15 years E. 18 years

Description : What is the duration of Public Provident Fund (PPF) account? A. 3 years B. 5 years C. 9 years D. 15 years E. 18 years

Last Answer : D. 15 years Explanation: A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity. The balance continues to earn interest at the normal rate. The minimum investment of Rs 500 has to be maintained even for accounts extended beyond 15 years.

Any sum due to an employee out of provident fund is an example of : a) Unsecured creditors b) Preferential creditors c) Secured creditors d) Partly secured creditor

Description : Any sum due to an employee out of provident fund is an example of : a) Unsecured creditors b) Preferential creditors c) Secured creditors d) Partly secured creditor

Last Answer : b) Preferential creditors

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy

According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer :  a fall in prices of output and resources

When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Description : When tariff is imposed on imports which of the following will increase? (a) Domestic output. (b) Domestic demand. © Domestic price. (d) Domestic consumption.

Last Answer : © Domestic price.

Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Description : Commercial banks create credit - (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Last Answer : (4) on the basis of their deposits Explanation: Commercial banks create credit on the basis of their deposits. Credit creation is the multiple expansions of banks demand deposits. Whenever, ... will depend on the primary deposits and also on the amounts of minimum legal resource requirement.

Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Description : Commercial banks create credit (1) on the basis of their securities (2) on the basis of their assets (3) on the basis of their reserve fund (4) on the basis of their deposits

Last Answer :  on the basis of their deposits

Which one of the following taxes is collected and utilized by the State Governments? (1) Personal income tax (2) Corporation tax (3) Land revenue (4) Custom duties

Description : Which one of the following taxes is collected and utilized by the State Governments? (1) Personal income tax (2) Corporation tax (3) Land revenue (4) Custom duties

Last Answer : (3) Land revenue Explanation: The Constitution allocates the taxation of agricultural income to states. Lan revenue is a major source of revenue for states in India. For purpose of ... Commissioner, also known as Collector indicating his responsibility for the realization of all Government revenues.

Which of the following taxes is not collected by the Central Government? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Description : Which of the following taxes is not collected by the Central Government? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Last Answer : (3) Professional tax Explanation: A professional tax, also known as an occupation tax or a professional privilege lax, is a tax that a professional must pay to receive the right to practice a ... and a professional who has clients in more than one state may owe professional taxes in several states.

Which of the following taxes is regressive? a. the federal income tax b. the state income tax c. the sales tax d. the Medicare tax

Description : Which of the following taxes is regressive? a. the federal income tax b. the state income tax c. the sales tax d. the Medicare tax

Last Answer : c. the sales tax