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oBJECTIVE question and MCQ-on-Fiscal-System

MCQ on Fiscal System – Indian economy > GK Question Answer [PDF]


Expected Important Questions from Fiscal System

Most expected objective questions with answer on Fiscal System in Indian economy. Hello everyone, today I am trying to cover the most important questions with answers from Fiscal system of India, which is an indispensable topic mainly for UPSC, IAS SBI and other Bank PO examinations. Not only for that, but if you are preparing for other competitive examinations for seeking government jobs from India than these objective questions may be the key factor for you. I have provided all the questions which have come already in previous various exams. These questions are also important for CGL, SSC, CHSL, MTS, Railway Group-D,

Note: To view Answer of the MCQs please touch the black box on mobile device and keep the mouse cursor on same for desktop or PC.

A person pays a tax on whom the tax is incident is known as, –

A: Direct tax

B: state tax

C: Indirect tax

D: none of the above

Direct tax.

How does the rate of growth of an economy is measured?

A: In terms of per capita

B: in terms of poverty line

C: in terms of industrial development

D: in terms of national income.

In terms of National income.

How does the standard of living in a country is measured?

A: by measuring per capita income.

B: by measuring GDP

C: by measuring poverty

D: by measuring the rate of unemployment.

By measuring per capita income.

_________ is the best measurement of the economy growth of a country.

A: Gross national product (GNP)

B: Gross Domestic Product (GDP).

C: Revenue from outside.

D: Development of industry.

Gross National Product

Once the demands for grants and expenditure of different departments are passed by the Parliament, a bill to draw money from the Consolidated Funds of India for these purposes is introduced. What is the name of this bill?

A: Finance Bill

B: Money bill

C: Ordinary bill

D: appropriation bill.

Appropriation bill.

Name the bill by which the government of India collects the revenue for a year.

A: money bill

B: Ordinary bill

C: Finance bill

D: Appropriation bill

Finance Bill

How does the national income is determined?

A: revenue from state

B: Goods and service production

C: Revenue from other countries.

D: None of these.

Goods and service production.

Estimating national income is not associated with –

[I. Tax central excise 1999]

A: Income method

B: Expenditure method

C: Value-added method

D: export-import method

Export-import method.

Estimation national income is through,-

[CBI 1991]

A: Income method

B: Only production method

C: Only income method

D: expenditure method.

Production method.

How does a developed economy is measured?

A: having advance technology

B: Huge profit from Industry

C: Effective trade and export

D: By large per capita income.

By large capita income.

Read More: Mahatma Gandhi (Gandhiji) > All Important Points

How does the ad valorem duty is called tax?

[IAS 1988]

A: On the basis of commodity price

B: By value-added

C: Amount of commodities

D: Value added.

On the basis of commodity price

Which statements is/are correct regarding Statutory Liquidity Ratio?

[CDS 2010]

[i] All the commercial banks in India can use the cash to fulfill SLR

[ii] The banks can maintain SLR by themselves


[iii] Banks leverage is restricted by SLR in forwarding more money into the economy.

A: Only [i] is correct

B: only [ii] is correct

C: [i] and [ii] are correct.

D: [ii] and [iii] are correct


“Vote-on-Account” is not true for, –

[Bank PO 1991]

A: It is allowed in the Parliament to cover the deficit left by last budget.

B: The economic plan which starts from April 1 does not allow the government to set economic policy.

C: It does not allow the government to impose a new tax.

D: Govt can withdraw some amount for a period with the assent of parliament.

It is allowed in the parliament to cover the deficit left by the last budget.

Which statement is/are true –

[IAS 2007]

[i] All Banks in India borrow from Reserve Bank of India by the rate known as repo rate

[ii] Gini coefficient’s value 1 measure that everyone’s income is the same in its population.

A: Only [i]

B: Only [ii]

C: Both [i] and [ii]

D: None

A > only [i]

Read More : MCQ on International Organizations

During which Viceroyalty of India, the budget system was introduced?

[Central Excise 1994]

A: Lord Liton

B: Lord Mountbatten

C: Lord Canning

D: Lord Minto

Lord Canning

Choose the correct statements.

Fiscal responsibility and Budget Management Act concerns –

[IAS 2006]

A: Fiscal deficit

B: Revenue deficit

C: Fiscal and Revenue deficit

D: Neither Fiscal nor revenue deficit.

Both Fiscal deficit and revenue deficit.

Temporary tax levied to obtain additional revenue is known as –

A: Surcharge

B: Rate

C: Repo rate



What is the basic attribute of a formal organization?

[CPO AC 2003]

A: esteem and prestige

B: Roles and duties

C: Dominance and supremacy

D: Rules and regulations

Rules and regulations.

For falling the inferior goods falls, its demand :

[CPO SI 2003]

A: increases

B: Decreases

C: Remain Constant

D: Can be anyone.

Remain constant.

How does the parallel economy or Black Money exist?

[CPS SI 2003]

A: It creates the economy further competitive.

B: It makes the monetary policies less efficient.

C: it makes certain of a better distribution of income and wealth.

D: it ensures increasing productive investment.

It makes monetary policies less efficient.

⇒ More MCQ on Fiscal System Coming Soon >>

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Read Also: [MCQ Set] Nature of Indian Economy / Planning > GK [PDF]


Hi, I am SOM, a State Added (WB) Lecturer in Physics at a College, Part-time blogger, and founder of, started blogging since 2015 and still learning.

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