Q240. Consider the following actions by the Government: 1. Cutting the tax rates 2. Increasing the government spending 3. Abolishing the subsidies in the context of economic recession Which of the above actions can be considered a part of the “fiscal stimulus” package?

Which one of the following statements appropriately describes the “fiscal stimulus”?

There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit? 1. Reducing rev

Which of the following steps is most likely to be taken at the time of an economic recession?

Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? 1. Reduc

With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. I

In the context of Indian economy, consider the following pairs: | Term | Most Appropriate Description | | :--- | :--- | | 1. Melt Down | Fall in Stock Prices |

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Do

A rise in the general level of prices may be caused by: 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

Consider the following statements: The effect of the devaluation of a currency is that it necessarily: 1. Improves the competitiveness of domestic exports in th

Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following? 1. Lending to trade and industry bodies when they

Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? 1. A design for the Goods and Services

What is/are the recent policy initiative(s) of Government of India to promote the growth of the manufacturing sector? 1. Setting up of National Investment and M

Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machiner

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

The SEZ Act, 2005 which came, into effect in February 2006 has certain objectives. In this context, consider the following: 1. Development of infrastructure fac

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earni

Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in

Which of the following factors/policies were affecting the price of rice in India in the recent past? 1. Minimum Support Price 2. Government’s trading 3. Govern

Consider the following: 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are components(s) of internal debt?

A decrease in tax to GDP ratio of a country indicates which of the following? 1. Slowing economic growth rate 2. Less equitable distribution of national income

With reference to the Union Government, consider the following statements: 1. The Department of Revenue is responsible for the preparation of the Unio

Which one of the following is responsible for the preparation and presentation of Union Budget to the Parliament?

Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns:

With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on hist

Match List-I with List-II and select the correct answer using the codes given below the lists: | List-I (Term) | List-II (Explanation) | | :--- | :--

Assertion (A) : Fiscal deficit is greater than budgetary deficit. Reason (R) : Fiscal deficit is the borrowing from the Reserve Bank of India plus oth

Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked

With reference to the sectors of the Indian economy, consider the following pairs: | Economic activity | Sector | | :--- | :--- | | 1. Storage of agr