Receipts

Q.

Distinguish between revenue expenditure and capital expenditure.

Q.

State any three points of distinction between the Central Bank and Commercial Banks.

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

1. Gift tax
2. Wealth Tax
3. Sales tax
4. Estate duty

Q. Salary paid to an Army Officer and interest paid on the national debt is an example of:

[0.80 marks]

1. Capital expenditure
2. Revenue expenditure
3. Budget expenditure
4. Non-budget expenditure

Q.

Which of the following is/are correctly matched?

$\begin{array}{cc}\text{1. Borrowings by the government}& \text{a. Capital Receipt}\\ \text{2. Recovery of loans}& \text{b. Revenue Receipt}\\ \text{3. Customs duty}& \text{c. Capital Expenditure}\\ \text{4. Construction of roads}& \text{d. Revenue Expenditure}\end{array}$

1. 1 - a, 2 - a, 3 - b, 4 - a

2. 1 - a, 2 - a, 3 - b, 4 - c

3. 1 - d, 2 - c, 3 - b, 4 - d

4. 1 - b, 2 - c, 3 - b, 4 - c

Q. State two differences between tax on income and tax on a commodity.

Q. Which of the following is/are the possible effects of deficit financing?
$1$. Increase in money supply with the public
$2$. The rise in the level of incomes
$3$. The fall in the general price level
Select the correct answer using the code given.

1. $1$ only
2. $1$ and $2$
3. $2$ only
4. $1,2$ and $3$

Q. Which one of the following is a capital receipt in government budget?

1. Interest receipts on loans given by the Government to other parties
2. Borrowing of the Government from public
3. Property tax receipts
4. Dividends and profits from public sector undertakings

Q. Representative money has $100\%$ backing of gold and silver.

1. true
2. false

Q. Which of the following are the components of foreign capital?
$1$. Grants and loans.
$2$. External commercial borrowings.
$3$. Foreign direct investment.
$4$. Deposits from non-residents.
Select the correct answer using the code given.

1. $1$ and $2$
2. $3$ and $4$
3. $1,2,3$ and $4$
4. $1,2$ and $4$

Q. Consider the following statement:
1. According to the provisions of FEMA, $1999$, cash in the form of coins and bank notes are included in 'Currency Notes'
2. According to the FEMA's provisions, ATM cards are not included in currency.
3. All 'money orders' can be treated as 'currency'.
Which of the above statement/s is/ are not true?

1. Only $1$
2. Only $2$
3. Only $3$
4. $1$ and $3$

Q. Capital expenditure is majorly of developmental nature.

1. True
2. False

Q. Which one of the following is a part of capital expenditure?

1. Salary paid to army officers
2. Expenditure on construction of Metro
3. Pension paid to retired government employees
4. Interest paid on national debt