1. Which of the following does not measure income in equality?

2. Consider the following items included in a Balance Sheet
1. Demand deposits
2. Borrowings from the other banks
3. Cash kept with other banks
4. Endorsement of bills of exchange. Which of these are shown in the liability column of the Balance Sheet of a commercial bank?

3. Loans to public enterprises is a part of

4. Which one of the following is not a liability of a Commercial Bank?

5. Indirect tax are objectionable because they

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

7. Taxable capacity is a function of

8. Wh o am ong the followin g su ggested tax on expenditure?

9. 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

10. The Union Government does NOT issue one of the following

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

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

13. Which one of the following is the most important source of revenue of state governments in India?

14. Assertion (A) : More reliance should be placed on progressive income taxes.
Reason (R) : It is in accordance with the principles of equity.

15. 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)

16. Assertion (A) : Customs duties primarily influence commodity prices.
Reason (R) : Quantitative restrictions are designed to determine the amount of goods imported or exported.

17. Agricultural taxation in India is difficult because of

18. Which of the following is not a direct tax?

19. Capital gains mean

20. 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

21. Who appoints the Finance Commission?

22. Which one of the following taxes belongs exclusively to the state governments of India?

23. Which among the following is a pure public good?

24. Consider the following statements :
1. In the context of the classical model loan finance may be a means of transferring the burden to the future generation.
2. Foreign borrowing permits financing public programmes without placing a burden on the present generation.
3. Foreign borrowing is not burdensome to the future generations even if the funds are used unproductively. Of the above statements

25. Assuming a declining marginal utility of money schedule, which one of the following principles will call for 'maximum progression'?