1. Consider the following items :
1. Expenditure on asset formation
2. Interest payment
3. Investment on education and health
4. Expenditure on collecting loans Of the above which are included in the capital expenditure of government budgets?
Select the correct answer from the codes given below

2. In India, the states get maximum income from

3. Which tax is collected by Panchayat?

4. Which one of the following heads of expenditure of the Central Government, accounts for the largest amount of revenue expenditure?

5. What is the effect of import tax (implies by a country) on the savings of consumer?

6. Budgetary deficit of the Government of India is equal to

7. Which one of the following types of revenues is not shared by the Central Government with the State Governments?

8. Indirect tax are objectionable because they

9. Loans to foreign governments is

10. Market borrowings of the Central Government are included in

11. A Finance Bill is a bill which

12. Which one of the following sources is not considered as a source of Government revenue?

13. Consider the following statements The Reserve Bank of India
1. acts as a Banker's Bank
2. act as a controller of capital issues
3. issues currency notes of various denominations
4. acts as a lender of the last resort for the sick industrial units Which of the above statements are correct?

14. MODVAT means

15. Agricultural income tax is a source of revenue to

16. Which one of the following entails minimum expenditure by the Government of India?

17. Which one of the following taxes is levied by the central but wholly assigned to the states

18. In the Indian context deficit financing means

19. The Central Government has had to resort to substantian borrowing since the early 80s, mainly because

20. Which one of the following pairs is correctly matched?

21. In order to reduce inequalities, the government should adopt

22. In India, federal financial assistance to states is given on the basis of

23. Which one of the following is not an objective of fiscal policy?

24. Consider the following statements A government may cover up the deficit by
1. Withdrawing its cash balances from the central bank of the country.
2. borrowing from the central bank and commercial banks.
3. printing new money. Of these statements

25. Match List I with List II and select the correct answer using the codes given below the lists : List I List II (a) Revenue deficit 1. Total expenditure minus revenue receipts (b) Budget deficit 2. Net increase in holding of Treasury Bills by RBI and its contribution to market borrowings of governnment (c) Monetised deficit 3. Total expenditure minus total receipts (d) Fiscal deficit 4. Revenu e ex pen ditu re minus revenue receipts Codes: (a) (b) (c) (d)