Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy
Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.
Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy
Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.
Description : Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities
Last Answer : A. To increase liquidity in economy
Description : Governments policy towards industries is called as ________. A. economic policy. B. industrial policy. C. monetary policy. D. work policy.
Last Answer : B. industrial policy.
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.
Description : Agricultural income tax is a source of revenue to - (1) Central Government (2) State Government (3) Local Administration (4) Centre and State Governments
Last Answer : (2) State Government Explanation: The Constitution of India allocates the taxation of agricultural income to states. Land revenue is a major source of revenue for states in India
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 : Land revenue
Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.
Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.
Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : makes the monetary policies less effective
Description : Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank
Last Answer : (3) Controlling government spending Explanation: A central bank, reserve bank, or monetary authority is a public institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.
Description : Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank
Last Answer : Controlling government spending
Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy
Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.
Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.
Last Answer : Monetary policy
Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : fiscal policy
Description : The main objective of International Monetary Fund (IMF) was to A. Promote International trade B. Help economically backward countries C. Maintain stable exchange rates D. Promote international liquidity
Last Answer : Help economically backward countries
Description : If the main objective of the government is to raise revenue, it should tax commodities with (1) high elasticity of demand (2) low elasticity of supply (3) low elasticity of demand (4) high income elasticity of demand
Last Answer : (3) low elasticity of demand Explanation: The Ramsey rule states that commodities with low elasticities of demand should be taxed at higher rates than commodities with high elasticities of demand. ... the Ramsey rule may result in a regressive taxation scheme society may view as inequitable.
Last Answer : low elasticity of demand
Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy
Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.
Description : Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy
Last Answer : Fiscal policy
Description : Which of the following explains the term economic growth? a. Increase in per capita production b. Increase in per capita real income c. structural change in the economy d. all the above are right
Last Answer : d. all the above are right There is no single definition that can define the term economic growth. However, there are various indicators that explain the term
Description : Open Society Foundations was started in 1993 by George Soros and aimed to shape public policy to promote democratic governance, human rights, and economic, legal, and social reform. Which philosopher influenced its name and philosophy?
Last Answer : Karl Popper.
Description : Okun’s law shows the relationship between the following : (a) Unemployment and Growth (b) Employment and Growth (c) Tax rate and Tax revenue (d) Inflation and Employment
Last Answer : (a) Unemployment and Growth
Description : Development means economic growth plus (1) Inflation (2) Deflation (3) Price stability (4) Social change
Last Answer : (4) Social change
Description : Development means economic growth with: A. Price Stability B. Social Change C. Inflation D. Deflation
Last Answer : B. Social Change
Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above
Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness
Description : Agricultural income tax is a source of revenue to— a. Central Government b. State Government c. Local Administration d. Centre and State Governments e. None of the above
Last Answer : b. State Government
Description : Which of the following is a revenue receipt? a) Loan from the International Monetary Fund b) Grant from the World Bank c) Borrowing from the Public d) Public Issue of shares
Last Answer : b) Grant from the World Bank
Description : Buoyancy of a tax is defined as - (1) percentage increase in tax revenue/ percentage increase in tax base (2) increase in tax revenue/ percentage increase in tax coverage (3) increase in tax revenue/increase in tax base (4) percentage increase in tax revenue/ increase in tax coverage
Last Answer : (3) increase in tax revenue/increase in tax base Explanation: Buoyancy means the growth/increase in tax collections. This is in line with the GDP growth within the economy, the industry profile and the tax ... rate and in the tax base in relation to the GDP is termed the buoyancy of the tax system.
Description : Buoyancy of a tax is defined as (1) percentage increase in tax revenue/percentage increase in tax base (2) increase in tax revenue/ percentage increase in tax coverage (3) increase in tax revenue/increase in tax base (4) percentage increase in tax revenue/ increase in tax coverage
Last Answer : increase in tax revenue/increase in tax base
Description : Which of the following is not a system under which classification of Agro-forestry System is done? a. Ecological Basis b. Socio-economic Basis c. Functional Basis d. Monetary Basis
Last Answer : d. Monetary Basis
Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy
Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy
Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.
Description : The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India
Last Answer : (3) Reserve Bank of India Explanation: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.
Description : The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control
Last Answer : (2) Monetary Policy Explanation: Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the ... . Monetary authorities in different nations have differing levels of control of economy-wide interest rates.
Description : The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India
Last Answer : Reserve Bank of India
Description : Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy
Last Answer : Foreign Trade Policy
Description : The ‘Interest Rate Policy’ is a component of (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control
Last Answer : Monetary Policy
Description : Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.
Last Answer : B. budgetary.
Description : Economic growth in India will happen necessarily if there is a. Population growth b. Capital formation c. Technical progress in the global economy d. All the above
Last Answer : b. Capital formation Capital formation refers to investment in tools, machinery, buildings etc.
Description : "Closed Economy" means : (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports
Last Answer : (4) a country having no imports and exports Explanation: Closed economy is an economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no ... The goal is to provide consumers with everything that they need from within the economy's borders.
Description : “Closed Economy” means: (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports
Last Answer : a country having no imports and exports
Description : What is governments policy to allow the economy to operate with no government intervention?
Last Answer : Need answer
Description : The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy
Last Answer : (2) Fiscal Policy Explanation: In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The ... are government taxation and changes in the level and composition of taxation and government spending.
Description : Which is the parameter for the economic development? (1) Per capita monetary income (2) National income (3) Per capita rural income (4) Population
Last Answer : (1) Per capita monetary income Explanation: A majority of economists such as Simon Kuznets, Meter and Baldwin, Hicks D. Samuelson, Pigeon and others consider national income as the most suitable ... economic growth is meaningless if it does not improve the standard of living of the common masses.
Description : Which is the parameter for the economic development ? (1) Per capita monetary income (2) National income (3) Per capita rural income (4) Population
Last Answer : Per capita monetary income
Description : The idea that government's fiscal policy can be used to stabilize the level of output and employment can be attributed to which of the following economists: a) Frederich Hayek b) Ludwig von Mises c) Frederic Bastiat d) John Maynard Keynes
Last Answer : d) John Maynard Keynes John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics