MCQs: Monetary & Fiscal Policy | National Income | Union Budget

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Expanded MCQs: Monetary & Fiscal Policy | National Income | Union Budget

Monetary Policy and Tools

1. Which of the following is NOT a tool of monetary policy?

  1. Repo Rate
  2. Reverse Repo Rate
  3. Public Debt
  4. CRR

Answer: c) Public Debt

2. During the Global Financial Crisis (2008), RBI mainly:

  1. Increased interest rates
  2. Reduced CRR and SLR
  3. Cut down budget deficit
  4. Privatized banks

Answer: b) Reduced CRR and SLR

3. Who formulates the monetary policy in India?

  1. Finance Ministry
  2. Prime Minister's Office
  3. RBI
  4. NITI Aayog

Answer: c) RBI

4. SLR refers to:

  1. Statutory Lending Rate
  2. Statutory Liquidity Ratio
  3. Standard Lending Rate
  4. Special Liquidity Reserve

Answer: b) Statutory Liquidity Ratio

Fiscal Policy & FRBM Act

5. Fiscal policy deals with:

  1. Money supply
  2. Interest rates
  3. Government revenue and expenditure
  4. Credit control

Answer: c) Government revenue and expenditure

6. The FRBM Act was enacted to:

  1. Control inflation
  2. Ensure independence of RBI
  3. Maintain fiscal discipline
  4. Fund infrastructure

Answer: c) Maintain fiscal discipline

7. Which of the following is a capital receipt?

  1. Tax revenue
  2. Interest income
  3. Disinvestment proceeds
  4. Customs duty

Answer: c) Disinvestment proceeds

8. Expansionary fiscal policy leads to:

  1. Decrease in aggregate demand
  2. Increase in tax rates
  3. Reduction in government spending
  4. Increase in government expenditure

Answer: d) Increase in government expenditure

National Income and GDP

9. GDP at market prices includes:

  1. Subsidies only
  2. Indirect taxes only
  3. Indirect taxes minus subsidies
  4. Direct taxes

Answer: c) Indirect taxes minus subsidies

10. Which is NOT a method to compute national income?

  1. Income method
  2. Expenditure method
  3. Investment method
  4. Production method

Answer: c) Investment method

11. Personal income is derived from:

  1. National income + direct taxes
  2. National income - undistributed profits + transfer payments
  3. Gross income - subsidies
  4. None of the above

Answer: b) National income - undistributed profits + transfer payments

12. GNP differs from GDP by including:

  1. Foreign investments
  2. Depreciation
  3. Net income from abroad
  4. Indirect taxes

Answer: c) Net income from abroad

Union Budget and Deficit Concepts

13. Plan expenditure includes:

  1. Interest payments
  2. Defence spending
  3. Government schemes and development projects
  4. Subsidy payments

Answer: c) Government schemes and development projects

14. Fiscal deficit is:

  1. Total expenditure minus total revenue
  2. Total revenue minus borrowing
  3. Revenue deficit plus interest payments
  4. Total expenditure minus total receipts excluding borrowings

Answer: d) Total expenditure minus total receipts excluding borrowings

15. Revenue deficit means:

  1. Capital receipts less capital expenditure
  2. Revenue receipts less revenue expenditure
  3. Fiscal deficit plus borrowings
  4. None of the above

Answer: b) Revenue receipts less revenue expenditure

16. Which of the following is a non-tax revenue?

  1. Excise duty
  2. Corporate tax
  3. Customs duty
  4. Dividends from PSUs

Answer: d) Dividends from PSUs

Chapter NumberPAPER I – INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM
MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING
1. MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING
Fundamentals of Economics, Microeconomics, Macroeconomics, Types of Economies, and Supply & Demand
2. Money Supply and Inflation
3. Theories of Interest - Explained with Examples
4. Business Cycles and Economic Policies - Explained with Examples
5. National Income, GDP and Union Budget - Explained with Examples
QandAs/MCQs 8 MCQs: Economics Fundamentals, Micro and Macro Concepts
QandAs/MCQs 9MCQs on Money, Money Supply, and Inflation
QandAs/MCQs 10 MCQs on Theories of Interest - IS-LM, Classical & Keynesian Theory
QandAs/MCQs 11 MCQs: Business Cycle, Policies, National Income
QandAs/MCQs 12MCQs: Monetary & Fiscal Policy | National Income | Union Budget
MODULE C: INDIAN FINANCIAL ARCHITECTURE
MODULE D: FINANCIAL PRODUCTS AND SERVICES
MODULE A: INDIAN ECONOMIC ARCHITECTURE

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