Exercise 2

Question 6 :

Non Tax revenues can be increased by improving the working of the


A). State Road Transport Corporations
B). electricity boards
C). commercial irrigation projects
D). All of the above
Answer : Option C

Question 7 :

Which of the following is not viewed as a national debt?


A). Provident Fund
B). Life Insurance Policies
C). National Saving Certificate
D). Long-term Government Bonds
Answer : Option C

Question 8 :

The condition of indirect taxes in the country's revenue is approximately


A). 70 percent
B). 75 percent
C). 80 percent
D). 86 percent
Answer : Option D

Question 9 :

Deficit financing means that the government borrows money from the


A). RBI
B). local bodies
C). big businessmen
D). IMF
Answer : Option A

Question 10 :

Revenue of the state governments are raised from the following sources, except


A). entertainment tax
B). expenditure tax
C). agricultural income tax
D). land revenue
Answer : Option C