C4: Public Finance for CPD2

  1. Scope of public finance includes:
    1. Public revenue
    2. Public debt
    3. Public expenditure
    4. All of these
  2. Public Authorities Include:
    1. Central Government
    2. State Government
    3. Local Government
    4. All of these
  3. Who is the father of Public Finance:
    1. Dalton
    2. Pigou
    3. Smith
    4. Musgrave 
  4. Which is the main point on the basis of which public finance can be separated from private finance:
    1. Price policy
    2. Borrowings
    3. Secrecy
    4. Elasticity in income
  5. . In the following which is the characteristic of a tax
    1. Compulsory
    2. Optional
    3. Forced
    4. Nationality 
  6. Which is the main objective of a tax:
    1. Increase in consumption
    2. Increase in production
    3. Raising public revenue
    4. Reduction in capital formation
  7. Among the following canons of taxation which one has been given by Adam Smith:
    1. Canon of Uniformity
    2. Canon of productivity
    3. Canon of diversity
    4. Canon of equity
  8. The Indian tax system is:
    1. Proportional
    2. Progressive
    3. Regressive
    4. Degressive
  9. The burden of direct taxes is borne by:
    1. Rich person
    2. Poor person
    3. On whom it is levied
    4. None of these
  10. Indirect taxes have an element of:
    1. Equitable
    2. Certainty
    3. Economical
    4. Encourage honesty
  11. Direct taxes have the element of:
    1. Evasion
    2. Convenient
    3. Progressive
    4. Economy
  12.  In proportional tax system, the rates of tax remain:
    1. Constant
    2. Increasing
    3. Decreasing
    4. Zero
  13. Expenditure Tax for India was recommended by:
    1. Kaldor
    2. Colin Clarke
    3. Adam Smith
    4. Adolph Wagner
  14. Adolph Wagner was a ____________________ Economist:
    1. French
    2. German
    3. Indian
    4. American
  15. Who is the exponent of Law of Increasing State Activities?
    1. Dalton
    2. Pigou
    3. Smith
    4. Wagner
  16. Corporate Income tax is the tax levied on:
    1. Corporations
    2. Municipalities
    3. Co-operative societies
    4. Companies 
  17. Which of the following is the major source of revenue in India:
    1. Direct tax
    2. Capital Levy
    3. Grants in aid
    4. Indirect tax
  18. Which of the following is not a Commodity Tax:
    1. Excise duty
    2. Customs Duty
    3. Corporation Tax
    4. Octroi
  19. A duty levied on goods when they entering a town
    1. Income tax
    2. Octroi
    3. Agricultural tax
    4. Professional tax
  20. Special Assessment means:
    1. A tax on special benefits
    2. General tax on all people
    3. A periodical tax
    4. Gift tax
  21. Non‐rivalry and non‐excludability are the characteristics of:
    1. Normal goods
    2. Demerit goods
    3. Inferior goods
    4. Public goods
  22. Public goods are non‐rival if
    1. Some people cannot be prevented from consuming it
    2. Consumption by one person reduces consumption of other individuals
    3. Some people are excluded from consuming it
    4. all the above
  23. Free rider problem is one of the characteristics of
    1. Private good
    2. Public good
    3. Merit good
    4. Mixed good
  24. Private goods are characterized by
    1. Application of exclusion principle
    2. Rivalry in consumption
    3. Payment of prices
    4. All the above
  25.  Education is an example of:
    1. Public good
    2. Merit good
    3. Social good
    4. Club good
  26. Merit goods means:
    1. Public good
    2. Free good
    3. Rare good
    4. White good
  27.  Those goods whose consumption and use are to be encouraged are called
    1. Private good
    2. Public good
    3. Merit good
    4. Mixed good
  28. The concept of Merit good was introduced by
    1. Dalton
    2. Keynes
    3. R A Musgrave
    4. None of these
  29. The concept of merit good was introduced in the year
    1. 1959
    2. 1960
    3. 1961
    4. 1962
  30. Incidence of tax means:
    1. Direct money burden
    2. Indirect money burden
    3. Actual tax burden
    4. None of these
  31. Which is the tax shifting?
    1. To bear the tax burden himself
    2. To shift the tax burden on others
    3. To bear some part of the tax himself and shift the rest on others
    4. None of these
  32. Incidence of a tax refers to the ________________ burden of tax:
    1. Initial
    2. Ultimate
    3. Intermediate
    4. None
  33. Which tax cannot be shifted to others?
    1. Excise duty
    2. Sales tax
    3. Entertainment tax
    4. Wealth tax
  34. A tax that can be shifted is called:
    1. Direct tax
    2. Progressive tax
    3. Indirect tax
    4. None
  35. The final resting place of the burden of tax is called:
    1. Tax avoidance
    2. Tax evasion
    3. Impact
    4. Incidence
  36. In the case of direct tax, impact and incidence are on:
    1. Different person
    2. Same person
    3. Sellers
    4. None of these
  37. The Concentration theory of tax shifting and incidence was developed by
    1. Mercantilist
    2. Physiocrats
    3. Australian School
    4. Keynesians
  38. The modern theory of tax incidence was developed by
    1. Dalton
    2. Keynes
    3. R A Musgrave
    4. None of these
  39. When Ed = ∞ or Es = 0, the whole incidence is on
    1. Buyers
    2. Sellers
    3. Government
    4. None of these
  40. When Es = ∞ or Ed = 0, the whole incidence is on
    1. Buyers
    2. Sellers
    3. Government
    4. None of these
  41. When Ed = Es, the incidence is divided between
    1. Buyers
    2. Sellers
    3. Both A & B
    4. Government
  42. When Es > Ed, more incidence is on
    1. Buyers
    2. Sellers
    3. Government
    4. None of these
  43. When Ed > Es, more incidence is on
    1. Buyers
    2. Sellers
    3. Government
    4. None of these
  44. “The government which taxes the least is the best”, is the belief of:
    1. Mercantilists
    2. Physiocrats
    3. Modern
    4. Classical 
  45. According to Laffer, when the tax rate is 100 percent , the tax revenue will be:
    1. 100%
    2. 50%
    3. Zero
    4. 10%
  46. Elastic revenue response to marginal tax rate reductions is called:
    1. Marginal tax curve
    2. Functional curve
    3. Laffer curve
    4. None of these
  47. Laffer curve suggest that the
    1. Relationship between tax revenue and tax rates is U‐shaped
    2. Relationship between GDP growth rate and tax rates is U‐shaped
    3. Relationship between tax revenue and tax rates is inverted U‐shaped
    4. Relationship between savings rate and tax rate is inverted U‐shaped
  48. There is a view that reduced rates on income tax would lead to a significant rise in income tax revenue. This view has been attributed to
    1. Herbert Simon
    2. Arthur Laffer
    3. Robert Lucas
    4. J.B. Say
  49. In the case of regressive tax, the rate of tax ________ as income increases:
    1. increases
    2. remains constant
    3. decreases
    4. None
  50.  Ad Valorem duties are levied on:
    1. Length
    2. Weight
    3. Utilities
    4. Value
  51.  Tax avoidance is:
    1. Illegitimate
    2. Legitimate
    3. Punishable
    4. None
  52. The VAT was first introduced in:
    1. India
    2. Britain
    3. USA
    4. France
  53. The first state to introduce VAT was
    1. Bihar
    2. Orissa
    3. Haryana
    4. Kerala
  54. The VAT was first introduced in the year
    1. 2003
    2. 2004
    3. 2005
    4. 2006
  55. Customs duties are imposed on commodities as they cross:
    1. State boundaries
    2. District boundaries
    3. National boundaries
    4. Municipal boundaries
  56. Contra-cyclical fiscal policy was popularised by:
    1. Adam Smith
    2. Dalton
    3. J.B. Say
    4. Keynes
  57. Deficit financing as a tool of fiscal policy was suggested by:
    1. Keynes
    2. Dalton
    3. J.B. Say
    4. Marshall
  58. Keynes popularised:
    1. Monetary policy
    2. Fiscal Policy
    3. Income policy
    4. Price policy
  59. The practice by Governments in which a government spends more money than it receives as revenue is referred to as:
    1. Piggy backing
    2. Direct Funding
    3. Deficit financing
    4. Pump Priming
  60. Deficit financing may lead to:
    1. Poverty
    2. Unemployment
    3. Inflation
    4. Deflation
  61. Deficit financing includes
    1. Borrowing from the Central Bank
    2. Issues of new currency by the Government
    3. Withdrawal of past accumulated cash balance by the government
    4. All the above
  62. The balanced budget principle was advocated by:
    1. Keynesians
    2. Mercantilists
    3. Classical school
    4. Neo-Classical school
  63. The item or economic activity on which tax is imposed is known as
    1. Tax buoyancy
    2. Tax rate
    3. Excess burden
    4. Tax base
  64. Which one of the following is not a tax base?
    1. Income
    2. Wealth
    3. Utility
    4. Consumption
  65. Which one of the following is a tax base
    1. Income
    2. Utility
    3. Intelligence
    4. None of these 
  66. Equals treated equally in taxation leads to:
    1. Vertical equity
    2. Real equity
    3. Horizontal equity
    4. None
  67. The largest component of revenue expenditure in India is:
    1. Pension
    2. Interest payments
    3. Education
    4. Health
  68. Expenditures incurred on civil administration, defence forces is in the nature of
    1. Capital Expenditure
    2. Revenue Expenditure
    3. Transfer Expenditure
    4. Productive Expenditure
  69. The Classical economists asserted that public expenditure is:
    1. Unproductive
    2. Productive
    3. Stagnant
    4. All of these
  70. The fiscal deficit excluding the interest liabilities for a year is called as
    1. Revenue deficit
    2. Capital deficit
    3. Budget deficit
    4. Primary deficit
  71. The FRBM Act was passed in:
    1. 1991
    2. 2001
    3. 2003
    4. 2011
  72. The Zero-based budgeting was first adopted in:
    1. India
    2. France
    3. Germany
    4. USA
  73. Who proposed the Zero-based budgeting for the first time:
    1. David Ricardo
    2. Alfred marshall
    3. Adam Smith
    4. Peter Phyrr
  74. Gender budgeting started in India with the Union budget of:
    1. 1991-92
    2. 2001-02
    3. 2006-07
    4. 2010-11
  75. Which of the following is a Statutory Body?
    1. Finance Commission
    2. Planning Commission
    3. State Planning Board
    4. None of these
  76. The Finance Commission in India is appointed by:
    1. President
    2. Prime Minister
    3. Chief Minister
    4. Finance Minister
  77. The First Finance Commission was appointed in the year:
    1. 1949
    2. 1950
    3. 1951
    4. 1952
  78. Chairman of the first Finance Commission:
    1. Chadha
    2. K.C. Neogi
    3. Santhanam
    4. Y.V. Chavan
  79. Grants recommended by the Finance Commission are known as:
    1. Plan Grants
    2. Conditional Grants
    3. Statutory Grants
    4. Conditional Grants
  80. The Finance Commission does all the following functions except one, which is that?
    1. Works out allocation of taxes in the divisible pool
    2. Looks into financial relations between the Centre and the States
    3. Allocates grants‐in-aid to the States and Union Territories
    4. Assist the Planning Commission in making 5 year plans.
  81. Finance Commission determines
    1. The finances of Government of India
    2. The resources transfer to the State
    3. The resources transfer to the various departments
    4. None of the above
  82. Public Debt means
    1. Borrowing by a Government from abroad and does not include borrowing from within the country
    2. Borrowing by general public, private individuals or association of individuals from the Government which they need to repay to Government under the prescribed terms and conditions
    3. Borrowing by General Public in the form of loans or advances from the Government, Local Bodies, Government owned financial institutions
    4. Borrowing by a Government from within the country or from abroad, from private individuals or association of individuals or from banking and non-banking institutions
  83. Public Debt Management refers to
    1. Terms of new bonds
    2. Proportion of different components of public debt
    3. Maturity
    4. All the above
  84. Which of the following factors contribute to public debt of a country?
    1. To undertake public welfare
    2. Urge for economic growth
    3. Inefficiencies of public organisations and corruption
    4. All of the above
  85. Which of the following could be a reason for raising public loans by a country?
    1. Bringing gap between revenue and expenditure through temporary loans from central bank.
    2. To reduce depression in the economy and financing public works programme.
    3. Financing the public sector for expanding and strengthening the public enterprises
    4. All of the above
  86. Which of the following are the causes of public debt of a country?
    1. War or war-preparedness, including nuclear programmes
    2. To cover the budget deficits on current account
    3. To undertake public welfare schemes
    4. All of the above
  87. Shortcoming of public debt is:
    1. Political slavery
    2. Danger of insolvency
    3. Danger to country's freedom
    4. All of the above
  88. The burden of long term public debt is on:
    1. Present generation
    2. Past generation
    3. Future generation
    4. None of these
  89. Which one of the following is not a method for redeeming public debt?
    1. Sinking fund
    2. Capital levy
    3. Terminal annuities
    4. Grants in aid
  90. The debts which the government promises to pay off at a specified date are called
    1. Irredeemable debts
    2. Funded debts
    3. Redeemable debts
    4. Unfunded debts
  91. Short-period debts are called as:
    1. Unfunded debts
    2. Funded debts
    3. Redeemable debts
    4. None
  92. Unfunded debts are also known as
    1. Funded debts
    2. Floating debts
    3. Irredeemable debts
    4. None
  93. Treasury bills issued by the Government are in the nature of:
    1. Funded debts
    2. Floating debts
    3. Irredeemable debts
    4. None
  94. Converting or altering a public debt from a higher to a lower rate of interest is referred to as:
    1. Conversion
    2. Sinking Fund
    3. Repudiation
    4. Terminable Annuities
  95. Deadweight debt refers to which of the following form of Public Debt?
    1. Internal Debt
    2. External Debt
    3. Unproductive Debt
    4. Productive Debt
  96. Which of the following statement is INCORRECT with regard to the burden of public debt of a country?
    1. If the public debt is taken for productive purposes it will not be a burden on the economy.
    2. If the public debt is taken for unproductive purposes, it will impose both money burden and real burden on the economy.
    3. In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community
    4. In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community
  97. Debt obligations of the government that have maturities of one year or less is normally called
    1. Commercial Papers
    2. Commercial Deposits
    3. Treasury Bills
    4. Certificate of Deposits
  98. Redeemable debt is also called
    1. Perpetual loans
    2. Terminable loans
    3. Flexible loans
    4. Rigid Loans
  99. Irredeemable debts are also called:
    1. Perpetual debt
    2. Terminable debt
    3. Flexible debt
    4. Unproductive debt
  100. A Funded Debt refers to a
    1. A Short term loan
    2. A Short term Deposit
    3. A Long Term Loan
    4. Ways and Means Advances
  101. The Ways and Means advances (WMA) from central bank is an example of
    1. Unproductive Debt
    2. Productive Debt
    3. Short-term Debt
    4. External Debt
  102. ______________ refers to refusal to repay the debt.
    1. Repudiation
    2. Capital levy
    3. Sinking fund
    4. None of the above
  103. Which of the following is NOT an accepted method of redemption of public debt?
    1. Repudiation of Public Debt
    2. Refunding
    3. Conversion
    4. Sinking Fund Method
  104. Which of the following method of public debt redemption is most UNLIKELY to be resorted to by the Government?
    1. Conversion
    2. Sinking Fund
    3. Repudiation
    4. Terminable Annuities
  105. Public burden on account of public debt is generally classified as:
    1. Productive Burden and Unproductive Burden
    2. Money burden and Real Burden
    3. Consumption burden and Distribution burden
    4. Debt burden and Finance Burden
  106. A fund created by the government and gradually accumulated every year by setting aside a part of current public revenue in such a way that it would be sufficient to pay off the funded debt at the time of maturity is called
    1. Consolidated Fund
    2. Equity Fund
    3. Credit Fund
    4. Sinking Fund
  107. Which of the following are the purposes for raising public loans?
    1. Bringing gap between revenue and expenditure through temporary loans from central bank.
    2. To reduce depression in the economy and financing public works programme.
    3. To curb inflation by withdrawing the purchasing power from the public
    4. All of the Above
  108. Which of the following is NOT a method of debt redemption by the Government?
    1. Repudiation of Debt
    2. Buyback of Government bonds
    3. Payment of Terminable Annuities
    4. Issue of Treasury Bills
  109. When the government raises revenue by borrowing from within the country is known as
    1. Voluntary debt
    2. Compulsory Debt
    3. Internal debt
    4. External debt
  110. In which of the following situations, any direct money burden on the society is least likely?
    1. Raising and repayment of internal debt
    2. Raising and repayment of external debt
    3. Raising and repayment of internal debt taken for unproductive purposes
    4. Raising and repayment of long term debt from external agencies
  111. Which of the following would refer to the self-liquidating form of public debt?
    1. Internal Debt
    2. External Debt
    3. Productive Debt
    4. Short-Term Loan
  112. Dalton has divided debt redemption fund into:
    1. Two parts
    2. Three parts
    3. Four parts
    4. Five parts
  113. Which of the following is NOT TRUE with reference to public finance?
    1. According to Classical Economics Public Financing is highly unproductive on the assumption that full employment, inelasticity of money supplies and unproductive nature of public expenditure
    2. Voluntary Public Borrowing has a disincentive effect whereas taxation does not have a disincentive effect and as such taxation is preferable to voluntary public borrowing
    3. In modern times public borrowing is most extensive and intensive meaning that almost all countries resort to public borrowing and public borrowing in each country is deepening
    4. Public Debt has become a powerful tool of developmental monetary policy as management of public debt is used as a method to influence the structure of interest rates.
  114. Which of the following statement is INCORRECT with reference to the burden of public debt?
    1. An internal debt has no direct money burden since the interest payment on debt and the imposition of taxation to pay interest to the lenders is simply a transfer of purchasing power from one to another
    2. Internal debt involves direct real burden to the community as it involves redistribution of aggregate income leading to inequalities in the distribution of income and wealth.
    3. The direct money burden of external debt is the interest payment as well as the principal repayment (i.e., debt servicing) to external creditors
    4. An external debt has no direct money burden since interest payment on debt and the imposition of taxation to pay interest to the foreign country accelerates export earnings
  115. Which of the following could be a purpose for raising public loans?
    1. Financing economic development esp. in under-developed countries.
    2. Financing the public sector for expanding and strengthening the public enterprises.
    3. War, arms and ammunition financing
    4. All of the above
  116. Which of the following statement is INCORRECT with reference to the classification of public debt?
    1.  Internal debt refers to the public loans floated within the country, while external debt refers to the obligations of a country to foreign governments, foreign nationals or international institutions
    2. Public debt raised and used to finance a war is unproductive because it does not create an asset, it is a dead weight debt or a useless burden on the community
    3. Redeemable debt refers to a debt which may not be redeemed at all but on which the government promises to pay the interest regularly
    4. A funded debt is short term debt undertaken for creating a temporary asset and the government normally makes arrangements for repayments through current revenue
  117. Treasury Bills fall under the category of
    1. Funded Debt
    2. Unfunded Debt
    3. External Debt
    4. Productive Debt
  118. ___________ is the debt which is paid any legal enforcement.
    1. Voluntary debt
    2. Compulsory Debt
    3. Internal debt
    4. External debt
  119. Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?
    1. Increase trend in Financing of Public works programmes
    2. Increasing trend in Financing for Economic Development
    3. Undertaking of Welfare Schemes by the Government
    4. All of the above
  120. Which of the following refers to market borrowing by Government?
    1. Sales to the public of government bonds, treasury bills in the capital market
    2. Issue of national savings certificates
    3. Issue of National Plan Bonds
    4. Collection of deposits at State owned Post Offices
  121. A one-time tax on all wealth holders with the goal of retiring public debt is generally referred to as
    1. Indirect Tax
    2. Capital Levy
    3. Orthodox Tax
    4. Socialist Tax
  122. _________________ is a special type of “once for all” tax on capital imposed to repay war debts.
    1. Repudiation
    2. Refunding
    3. Conversion
    4. Capital levy
  123. Capital Levy method has been advocated by
    1. Keynes
    2. Musgrave
    3. Ricardo
    4. None of these
  124.  ____________ is the process of replacing maturing securities with new securities.
    1. Repudiation
    2. Refunding
    3. Conversion
    4. Capital levy
  125. Public debt leads to extravagance, encouraged resort to war and induced bad economic conditions. This statement is of:
    1. Dalton
    2. Adam Smith
    3. J.K. Mehta
    4. Findley Shirras
  126. Author of ‘General Theory of Employment, Interest and Money’:
    1. Dalton
    2. Marshal
    3. Keynes
    4. Musgrave
  127. Functional Finance concept was introduced by:
    1. Marx and Angels
    2. Keynes and Lerner
    3. Dalton and Pigou
    4. J.S. Mill
  128. Modified Value Added Tax was introduced in India in:
    1. 1951
    2. 1986
    3. 1991
    4. 1976 
  129. Agricultural Holding Tax was recommended by:
    1. Adam Smith
    2. K.N. Raj
    3. Chelliah
    4. Marshall
  130. The Great Depression occurred during:
    1. 1919-23
    2. 1929-33
    3. 1949-53
    4. 1901-05
  131. The action taken to stimulate an economy, usually during a recessionary period, through government spending, and interest rate and tax reduction is called:
    1. Force Funding
    2. Piggy backing
    3. Direct Funding
    4. Pump Priming
  132. Pump Priming is related with:
    1. Monetary policy
    2. Income policy
    3. Price policy
    4. Fiscal policy
  133. The basic principle of public finance is:
    1. Maximum Social Advantage
    2. Welfare of the Government
    3. Welfare of the Individual
    4. All of the above
  134. “The best system of public finance is that which secures the maximum social advantage from the operations which it conducts” is the dictum of
    1. Adam Smith
    2. Dalton
    3. J.B. Say
    4. Marshall
  135. The 'Principle of Maximum Social Advantage' was introduced by
    1. Hugh Dalton
    2. Adam Smith
    3. Franco Modigliani
    4. Sir Arthur Lewis
  136. Maximum Social Advantage is achieved,
    1. at the point where the marginal social benefit of public expenditure and the marginal social sacrifice of taxation are equated
    2. at the point where the marginal social benefit of public expenditure is higher than the marginal social sacrifice of taxation
    3. at the point where the marginal social benefit of public expenditure is lower than the marginal social sacrifice of taxation
    4. at the point where the marginal social benefit of public expenditure and the marginal social sacrifice of taxation are zero
  137. Which of the following is not a fiscal instrument?
    1. Open market operations
    2. Public expenditure
    3. Taxation
    4. Budget
  138. Which of the following is a measure of fiscal policy?
    1. Public expenditure
    2. C.R.R.
    3. S.L.R.
    4. Bank rate
  139. Modern Canons of taxation are propounded by:
    1. Bastable
    2. Adam Smith
    3. Seligmon
    4. Pigou
  140. Sound tax policy is devised mainly on the basis of:
    1. Maximum tax revenue
    2. Elastic tax base
    3. High income elasticity
    4. High price elasticity
  141. The Kelkar Proposals are concerned with:
    1. Recommendations for reforms in the power sector
    2. Recommendations for tax reforms
    3. Guidelines for the privatization of public sector undertakings
    4. None of the above
  142. The direct violation of Tax law is called:
    1. Tax evasion
    2. Tax avoidance
    3. Tax Rebate
    4. None of these
  143. Fiscal policy is the policy of:
    1. RBI
    2. NABARD
    3. Government
    4. All the above
  144. The principle of judging fiscal measures by the way they work is called:
    1. Personal Finance
    2. Public Finance
    3. Functional Finance
    4. Local Finance
  145. When individuals with unequal tax paying ability should be taxed unequally in order to equal sacrifice is called:
    1. Horizontal equity
    2. Vertical Equity
    3. Tax paying ability
    4. None of these
  146. The neo‐Keynesian approach to public finance is called
    1. Functional finance
    2. Aggregate demand
    3. Global finance
    4. Federal finance
  147. Which is the method of financial adjustment between Centre and States?
    1. Tax sharing
    2. Grant‐in‐aid
    3. Public debt
    4. Federal Finance
  148. Which one of the following taxes is levied by the State Government only?
    1. Entertainment tax
    2. Corporation tax
    3. Wealth tax
    4. Income tax
  149. The methods of restoring resource balance between different governments in a federal set‐up is based on
    1. Tax sharing
    2. Grants-in‐Aid
    3. Loans
    4. All the above
  150. Federal Finance deals with
    1. State finances
    2. Finances of railways
    3. Local bodies
    4. Centre‐State financial relations
  151. The principle of federal finance which envisages that the resources should be distributed among the different states of the federation so that each state receives a fair share of revenue is referred to as
    1. Principle of Equity
    2. Principle of Uniformity
    3. Principle of Fiscal Access
    4. Principle of Independence
  152. Existence of Centre State economic inequalities is known as
    1. Vertical imbalance
    2. Horizontal Imbalance
    3. Parallel imbalance
    4. None of these
  153. A multilevel decentralized fiscal system involving sharing of fiscal responsibilities between central, state and local governments is referred to as:
    1. Fiscal Union
    2. Fiscal Federalism
    3. Fiscal Equalisation
    4. Fiscal Generalism
  154. The system of assigning the source of revenue to the Central as well as State Governments is generally referred to as
    1. Public Finance
    2. Distributive Finance
    3. Unitary Finance
    4. Federal Finance
  155. The modern state is:
    1. Laissez–faire state
    2. Welfare state
    3. Aristocratic state
    4. Police state
  156. According to Musgrave the major functions of public finance is:
    1. Allocative function
    2. Distributive function
    3. Stabilisation function
    4. All the above
  157. Who is the author of the book “The Theory of Public Finance”?
    1. Dalton
    2. R A Musgrave
    3. A.R. Prest
    4. Harvey Rosen
  158. The controlling authority of Government expenditure is:
    1. RBI
    2. Planning Commission
    3. Ministry of Finance
    4. Finance Commission
  159. The idea of ‘Democratic Decentralization’ in India was popularized by:
    1. A.D. Gorwala Committee, 1951
    2. B.R. Mehta Committee, 1957
    3. Ashok Mehta Committee, 1978
    4. None of these
  160. Which one of the following is the most acceptable theory of taxation:
    1. Benefit theory
    2. Cost of service theory
    3. Ability to pay theory
    4. None of these
  161. The Indian income tax is:
    1. Direct and proportional
    2. Indirect and proportional
    3. Indirect and progressive
    4. Direct and progressive
  162. The main objective of budgeting is:
    1. Planning
    2. Co‐ordination
    3. Control
    4. All of these
  163. Wiseman‐Peacock hypothesis supports in a much stronger manner the possibility of:
    1. An upward trend in public expenditure
    2. A downward trend in public expenditure
    3. A constancy of public expenditure
    4. A mixed trend in public expenditure
  164. The increase in public expenditure doesn't follow any smooth and continuous trend but the increase in public expenditure occurred in step like manner. This hypothesis is called
    1. Caldor’s model
    2. Peacock and Wiseman Hypothesis
    3. Wagner’s Law of Public Expenditure
    4. Keynes Law of Public Expenditure
  165. Peacock and Wiseman Hypothesis on public expenditure consists of three concepts which are:
    1. Subscription Effect, Tax Effect, Expenditure Effect
    2. Tax Effect, Expenditure Effect, Consumption Effect
    3. Displacement Effect, Concentration Effect, Inspection Effect
    4. Consumption Effect, Labour Effect, Income Effect
  166. According to Peackock Wiseman hypothesis, A discontinuity in the growth pattern which produces expenditure peak during social disturbances is referred to as:
    1. Displacement Effect
    2. Concentration Effect
    3. Inspection Effect
    4. Substitution Effect
  167. The theory of fiscal policy derives from
    1. Principle of sound finance
    2. N.I. analysis
    3. Welfare economics
    4. None of these
  168. Fiscal Federalism refers to
    1. Sharing of political power between centre and states
    2. Organising and implementing economic plans
    3. Division of economic functions and resources among different layers of Government
    4. None of these
  169. Which one of the following is an optional function of Government?
    1. Defense
    2. Old Age Security
    3. Law and Order
    4. None of these
  170. Principle of sound finance refers to
    1. Maximum Government spending
    2. Minimum Government spending
    3. Revenue expenditure balanced at the minimum level
    4. Balance between Tax and spending
  171. The most important aim of fiscal policy in a developing country is
    1. Economic stability
    2. Economic development
    3. Regional balance
    4. None of these
  172. Market failure refers to a situation when
    1. Market does not function
    2. Market solution occurs if government intervenes
    3. Social efficiency is not achieved
    4. Perfectly competitive firm experiences P > MC
  173. The Wanchoo Committee (1971) probed into
    1. Direct taxes
    2. Indirect taxes
    3. Agricultural holding tax
    4. Non‐tax revenue
  174.  Non‐Plan Grants are determined by
    1. Planning Commission
    2. Finance Commission
    3. Central Government
    4. State Government
  175. Central Assistance for State and UT plan is a part of
    1. Plan Expenditure
    2. Revenue Expenditure
    3. Non‐Plan Expenditure
    4. None of the above
  176. Public Expenditure increases
    1. Interest rate
    2. Employment
    3. Exports
    4. Imports
  177. Functional Finance functions through
    1. Buying and selling
    2. giving and taking
    3. Lending and borrowing
    4. All the above
  178. The ideal system of public Finance is one where the net benefit is
    1. Maximum
    2. Minimum
    3. Zero
    4. Infinity
  179. The main objective of taking private loan is:
    1. To achieve public objectives
    2. To achieve personal objectives
    3. To achieve long term objectives
    4. None of these
  180. Marginal cost of providing the public goods to additional consumers is:
    1. 0
    2. 1
    3. 2
    4. 3
  181. Mixed goods are those goods having benefits which are:
    1. Rival
    2. Non-rival
    3. Both A & B
    4. None of these
  182.  Critical Limit Hypothesis was associated with the name of
    1. Dalton
    2. Colin Clarke
    3. J.M. Keynes
    4. Musgrave
  183. Escheat is an example of
    1. Direct tax
    2. Indirect tax
    3. Both A & B
    4. None of these
  184. Gift tax was introduced in the year
    1. 1958
    2. 1959
    3. 1960
    4. 1961
  185. _________ is a broad based and a single comprehensive tax levied on goods and services consumed in an economy
    1. VAT
    2. CENVAT
    3. GST
    4. None of these
  186. In India GST was introduced in the year
    1. 2016
    2. 2017
    3. 2018
    4. 2019
  187. ______________________ is the first country to implement GST
    1. USA
    2. U K
    3. Canada
    4. France
  188. In which year GST was first introduced
    1. 1952
    2. 1953
    3. 1954
    4. 1955
  189. The movement from older level of expenditure and taxation to a new and higher level is called
    1. Concentration effect
    2. Inspection effect
    3. Displacement effect
    4. None of these
  190. According to Colin Clark maximum limit of the tolerance level is _________ of GNP
    1. 24%
    2. 25%
    3. 26%
    4. 27%
  191. The diffusion theory was associated with the name of
    1. Dalton
    2. Keynes
    3. R A Musgrave
    4. Mansfield
  192. Securities Transactions Tax (STT) was introduced in the year
    1. 2004-05
    2. 2005-06
    3. 2006-07
    4. 2007-08
  193. The Current financial transactions of the government which are of recurring in nature is known as
    1. Revenue budget
    2. Capital budget
    3. Surplus Budget
    4. Deficit budget
  194. ___________ is a statement of estimated capital receipts and payments of the government over fiscal year.
    1. Revenue budget
    2. Capital budget
    3. Surplus Budget
    4. Deficit budget
  195. Keynes has suggested compensatory fiscal policy to counter
    1. Recession
    2. Boom
    3. Inflation
    4. None of these
  196. Unemployment insurance is an example of
    1. Built-in flexibility
    2. Formula Flexibility
    3. Discretionary Action
    4. None of these
  197. Integration of discretion and automation into a hybrid form of fiscal policy called
    1. Built-in flexibility
    2. Formula Flexibility
    3. Discretionary Action
    4. None of these
  198. The existence of economic inequalities among the states is known as
    1. Vertical imbalance
    2. Horizontal Imbalance
    3. Parallel imbalance
    4. None of these
  199. When expenditure exceeds total tax revenue, it is called:
    1. Surplus budget
    2. Balanced budget
    3. Deficit budget
    4. None of these
  200. A tax levied at 5 percent on the first Rs. 10,000 of income, 10 percent on the next Rs 20,000 and 12 percent on the next Rs 30,000 would be:
    1. Progressive
    2. Degressive
    3. Regressive
    4. Proportional
  201. Which of the following taxes is the most likely to be regressive?
    1. Sales tax on mobile phone
    2. Excise duties on Kerosene
    3. Import duties on electronic goods
    4. Entrainment tax
  202. The Benefit Principle of taxation states that tax should be paid in proportion to:
    1. Income
    2. Expenditure
    3. Benefit
    4. Utility
  203. The most accepted theory of taxation in modern times:
    1. Benefit theory
    2. Cost of service
    3. Financial Theory
    4. Ability theory
  204. In which of the following type of economy, the revenue from taxation is likely to be the least?
    1. Free market economy
    2. Keynesian Economy
    3. Mixed Economy
    4. Socialist Economy
  205. The net proceeds of any tax or duty or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final. The power of the CAG with regard to the certification of the net proceeds is derived from which of the following?
    1. Section 16 of the CAGs DPC Act
    2. Article 279 of the Constitution of India
    3. Article 150 of the Constitution of India
    4. Regulations of Audit and Accounts 2007
    1. The Indian Government Accounting Standards are formulated and recommended by the
      1. Institute of Chartered Accountants of India
      2. Institute of Cost Accountants of India
      3. Government Accounting Standards Advisory Board
      4. Indian Financial Accounting Board
    2. Which of the following is NOT a type of economic system followed by the countries?
      1. Free Market Economy
      2. Command Economy
      3. Mixed Economy
      4. Macro Economy
    3. Which of the following statement would describe the term "Public Finance"?
      1. It is a study of economic efficiency, distribution of resources and government policies and its effects
      2. It is a study of the public sector banking system in a country
      3. It is a study of the finances of the general public and their pattern of spending
      4. It is a study of the direct and indirect taxes in an economy
    4. The organization of society under the two central tenets of private ownership rights and voluntary trade is the hallmark of:
      1. Mixed Economic System
      2. Capitalist System
      3. Socialist System
      4. Fascist System
    5. Which one of the following would best describe the study of “Public Finance”?
      1. It is the social science that describes the factors that determine the production, distribution and consumption of goods and services
      2. It is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones.
      3. It is the application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends
      4. It is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.
    6. A form of political association in which two or more states constitute a political unity with a common government, but in which the member states retain a measures of internal autonomy is generally referred to as:
      1. A Union
      2. A Federation
      3. A Democracy
      4. An Autonomous Region
    7. According to Prof. Seligman, Which of the following are the three main principles on the basis of which revenue sources (such as taxes) should be divided between the different layers of government?
      1. Principles of Efficiency, Effectiveness and Economy
      2. Principles of Economy, Decentralisation and Necessity
      3. Principles of Autonomy, Necessity and Surplus
      4. Principles of Efficiency, Suitability, and Adequacy
      1. An economic system where the state owns the means of production and attempts to direct economic activity towards politically identified goals are generally referred to as:
        1. Capitalist Economy
        2. Federal Economy
        3. Socialist Economy
        4. Free Economy
      2. The horizontal fiscal imbalance that arises in a fiscal federation is also called:
        1. Problem of Equalisation
        2. Problem of Efficiency
        3. Problem of Effectiveness
        4. Problem of Economy
        1. Tax revenue sharing between the federal and sub-national governments is aimed at correcting which of the following type of imbalances?
          1. Vertical imbalances
          2. Horizontal imbalances
          3. Diagonal imbalances
          4. Criss-cross imbalances
        2. In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:
          1. Invisible hand
          2. Direct Intervention
          3. Collective Spirit
          4. Private Spirit
          1. Which of the following is an imprest placed at the disposal of the President of India to facilitate Government to meet urgent unforeseen expenditure pending authorization from Parliament?
            1. Consolidated Fund
            2. Public Funds
            3. Prime Ministers Relief Fund
            4. Contingency Fund
          2. Which of the following articles of the Indian Constitution provides for the creation of the Consolidated Fund of India?
            1. Article 371
            2. Article 366
            3. Article 266
            4. Article 271
          3. The role of Government would be highest in which of the following type of economy:
            1. Free market economy
            2. Keynesian Economy
            3. Mixed Economy
            4. Socialist Economy
          4. Under the system of federal finance, a Government should be autonomous and free about the internal financial matters concerned. This principle is referred to as:
            1. Principle of Equity
            2. Principle of Uniformity
            3. Principle of Fiscal Access
            4. Principle of Independence
            1. Taxes are levied to
              1. Provide general benefits to the People
              2. Encourage people on unnecessary spending
              3. Accumulate funds for the Government for future use
              4. All of the above
            2. In a federation differences exist in the per capita distribution of income and wealth and the volume of trade among different states. Such an imbalance existing among different subnational governments are referred to as
              1. Vertical imbalances
              2. Horizontal imbalances
              3. Diagonal imbalances
              4. Criss-cross imbalances
              1. A country’s repayment obligations of principal and interest for a particular year on its external debt as a percentage of its exports of goods and services (i.e., its current receipt) in that year is generally referred to as:
                1. Real burden
                2. Money burden
                3. Debt-service ratio
                4. Export Earnings Ratio
                1. Compulsory loans are superior to voluntary public borrowing in which of the following contexts?
                  1. In the context of an inflationary situation
                  2. In the cases of deflationary situation
                  3. When the interest rates are very low
                  4. When the Government has a huge fiscal deficit
                2. Which of the following scheme provided for compulsory deposits by certain class of tax payers?
                  1. Compulsory deposit scheme (income-tax payers) act, 1974
                  2. Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016
                  3. Both A and B
                  4. None of these
                3. Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of
                  1. Capital Expenditure
                  2. Revenue Expenditure
                  3. Transfer Expenditure
                  4. Unproductive Expenditure
                4. Which of the following describes the situation where revenues and expenditures are equal during a given period?
                  1. Public Debt
                  2. Budget Surplus
                  3. Balanced Budget
                  4. Budget Deficit
                5. During the process of economic development, the share of public expenditure to Gross Domestic Product tends to expand. This is called:
                  1. Wagner’s law
                  2. Keynes Law
                  3. Adam Smith’s Theory
                  4. Brettonwoods Law
                6. Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.
                  1. Non-Transfer Expenditure
                  2. Transfer Expenditure
                  3. Capital Expenditure
                  4. Non-Distributive Expenditure
                7. With increase in urbanization and industrialization, the role of Government started:
                  1. Declining
                  2. Increasing
                  3. Stagnant
                  4. Unstable
                8. A heterodox macroeconomic theory developed by Abba Lerner during World War II that seeks to eliminate economic insecurity through government intervention in the economy is generally referred to as:
                  1. Micro Finance
                  2. Heterodox Finance
                  3. Public Finance
                  4. Functional Finance
                9. The principle of public expenditure that requires that Government should avoid shortfall of revenue in comparison with its expenditure is termed as
                  1. Canon of Deficit
                  2. Canon of Surplus
                  3. Canon of Elasticity
                  4. Canon of Sanction
                10. The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:
                  1. Fiscal Multiplier
                  2. Spending Ratio
                  3. Expenditure Ratio
                  4. Cost Multiplier
                  1. The canon of neutrality in public expenditure refers to which one of the following?
                    1. The principle of public expenditure which requires that public expenditure before it is incurred should be sanctioned by a competent authority and should not be incurred for the benefit of only one section of the people
                    2. The principle of public expenditure which requires that it should be possible for public authorities to vary the expenditure according to the need and circumstances and not on the basis of any political or bureaucratic influence
                    3. The principle of public expenditure which requires that public expenditure should have no adverse affect on production and consumption instead it should lend a helping hand to the production process and bring about equality of income and wealth distribution
                    4. The principle of public expenditure which requires that every government must try to keep its budgets well balanced. There should be neither ever recurring surpluses nor deficits in the budgets.
                    1. The principle of public expenditure which requires that public expenditure before it is incurred should be sanctioned by a competent authority is
                      1. Canon of Economy
                      2. Canon of Sanction
                      3. Canon of Elasticity
                      4. Canon of Maximum Social Benefit
                    2. Deepening of Government activities refers to:
                      1. Increase in the existing activities of the Government
                      2. Taking up additional activities by the Government
                      3. Privatization of the activities of the Government
                      4. Dilution of Government Share in the Public Sector Enterprises
                      1. Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:
                        1. Productive Expenditure
                        2. Unproductive Expenditure
                        3. Growth-oriented Expenditure
                        4. Progressive Expenditure
                      2. Developmental expenditure refers to
                        1. Revenue Expenditure incurred for meeting current expenses of the Government
                        2. Capital Expenditure incurred for creating long-term assets of the Government
                        3. Expenditure which is incurred on activities directly related to economic development
                        4. Expenditure which is incurred on running the normal government administration
                      3. The multiplier effect is best described as:
                        1. the increase in final income arising from any new injection of spending
                        2. the increase in the expenditure of a country
                        3. the increase in the public debt of a country
                        4. the increase in investment of a country
                      4. Multiplier in Macro economics refers to which of the following:
                        1. A factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable
                        2. A factor of proportionality that measures the increase in exports in a given period
                        3. A factor proportionality that measures the increase in public debt in a given period of time
                        4. A factor of proportionality that measures the increase in investments in a given period of time.
                      5. Which of the following principles of public expenditure propounded by Prof. Findlay Shirras is considered irrelevant in a modern government?
                        1. Canon of Economy
                        2. Canon of Sanction
                        3. Canon of Maximum Social Benefit
                        4. Canon of Surplus
                        1. Which of the following occurs when all taxes and other revenues exceed government expenditures for a year?
                          1. Public Debt
                          2. Budget Surplus
                          3. Balanced Budget
                          4. Budget Deficit
                        2. The principle of public expenditure that requires that it should be possible for public authorities to vary the expenditure according to the need and circumstances is:
                          1. Canon of Economy
                          2. Canon of Sanction
                          3. Canon of Elasticity
                          4. Canon of Maximum Social Benefit
                        3. Expenditure on Internal law and order and defence, Public administration etc. are in the nature of
                          1. Transfer Expenditure
                          2. Non-Transfer Expenditure
                          3. Capital Expenditure
                          4. Productive Expenditure
                          1. Audit of the Accounts of the Insurance Regulatory and Development Authority of India is the responsibility of the:
                            1. Comptroller and Auditor General of India
                            2. Chartered Accountants appointed by the Government of India
                            3. Chartered Accountants appointed by the Government of India from the Panel of Auditors prepared by the CAG of India
                            4. Chartered Accountants appointed by the CAG of India
                          2. According to the Securities and Exchange Board of India Act 1992 ,the head office of the Securities and Exchange Board of India shall be located at:
                            1. New Delhi
                            2. Chennai
                            3. Calcutta
                            4. Mumbai
                          3. The Forward Markets Commission (FMC) merged with which of the following regulatory bodies?
                            1. Insurance Regulatory and Development Authority of India
                            2. Reserve Bank of India
                            3. Life Insurance Corporation of India
                            4. Securities and Exchange Board of India
                          4. According to the Pension Fund Regulatory & Development Authority Act , the head office of the Pension Fund Regulatory and Development Authority shall be located at:
                            1. Hyderabad
                            2. The head office of the Authority shall be at such place as the Central Government may decide from time to time
                            3. Chennai
                            4. National Capital Region
                          5. According to the Securities and Exchange Board of India Act 1992, Chairman of the SEBI would be appointed by:
                            1. Reserve Bank of India
                            2. Central Government
                            3. Central Government in consultation with the Government of Maharashtra
                            4. Board of Members of the Securities and Exchange Board of India
                          6. According to the, INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA ACT, 1999, the head office of the Insurance Regulatory and Development Authority shall be located at:
                            1. Hyderabad
                            2. The head office of the Authority shall be at such place as the Central Government may decide from time to time
                            3. Chennai
                            4. Mumbai
                          7. Securities and Exchange Board of India (SEBI) was established under
                            1. Securities Contracts (Regulation) Act, 1956
                            2. Securities and Exchange Board of India (SEBI) Act 1994
                            3. Finance Act 1996
                            4. Finance Act 1998
                          8. The Food Safety and Standards Authority of India was established under which of the following acts?
                            1. Prevention of Food Adulteration Act,2000
                            2. Edible Oils Packaging (Regulation)Order 1988
                            3. Food Safety and Standard Act, 2006
                            4. Prevention of Food Adulteration Act,1954
                          9. The Chairperson of the Pension Fund Regulatory and Development Authority is appointed by:
                            1. Reserve Bank of India
                            2. Central Government
                            3. Board of Members of the Pension Fund Regulatory and Development Authority
                            4. Board of Members of the Securities and Exchange Board of India
                          10. According to the IRDA Act, The Chairperson of the Insurance Regulatory Authority of India is appointed by:
                            1. Central Government in consultation with Government of Telengana
                            2. Life Insurance Corporation of India
                            3. Central Government
                            4. Reserve Bank of India
                          11. The Regulatory body established under an Act of Parliament and assigned with the functions to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry is called
                            1. Life Insurance Corporation of India
                            2. Insurance Regulatory and Development Authority
                            3. Insurance and Depositories Board of India
                            4. Pension and Insurance Fund Regulatory Authority of India
                          12. The Central Office of the Reserve Bank is located in which of the following cities in India:
                            1. New Delhi
                            2. Chennai
                            3. Calcutta
                            4. Mumbai
                          13. Pension Fund Regulatory and Development Authority is established under:
                            1. General insurance business (nationalization) Act, 1972
                            2. The Pension Fund Regulatory & Development Authority Act 2013
                            3. Executive Order of the Government and Finance Act 2013
                            4. Finance Act 2015
                          14. The regulatory body established under an act of Parliament to provide for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds is called:
                            1. Insurance Regulatory and Development Authority of India
                            2. The Pension Fund Regulatory and Development Authority
                            3. Securities and Exchange Board of India
                            4. Insurance and Pension Fund Regulatory Authority of India
                          15. The Regulatory body established under an act of Parliament and assigned with the functions to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth:
                            1. Ministry of Finance
                            2. Reserve Bank of India
                            3. Securities and Exchange Board of India
                            4. Central Minting and Notes Authority
                          16. A public authority or government agency responsible for exercising autonomous authority over some area of human activity in a supervisory capacity is generally referred to as:
                            1. Statutory Bodies
                            2. Regulatory Bodies
                            3. Constitutional Bodies
                            4. Executive Authorities
                          17. Forward Markets Commission (FMC) was established under which of the following Act of the Parliament?
                            1. Forward Contracts (Regulation) Act, 1952
                            2. Forward markets commission (FMC) Act 1992
                            3. Finance Act 1992
                            4. Securities and Exchange Board of India Act 1994
                          18. The Insurance Regulatory and Development Authority of India is established under:
                            1.  Life Insurance Corporation Act, 1956
                            2. General insurance business (nationalization) Act, 1972
                            3. Insurance Act, 1938
                            4. Insurance regulatory and development authority of India Act, 1999
                          19. FORWARD MARKETS COMMISSION functioned under which of the following administrative ministries?
                            1. Ministry of Home
                            2. Ministry of Agriculture
                            3. Ministry of Statistics and Programme implementation
                            4. Ministry of Consumer Affairs, Food and Public Distribution
                          20. Audit of the Accounts of the Pension Fund Regulatory and Development Authority is the responsibility of the:
                            1. Comptroller and Auditor General of India
                            2. Chartered Accountants appointed by the Government of India
                            3. Chartered Accountants appointed by the Government of India from the Panel of Auditors prepared by the CAG of India
                            4. Chartered Accountants appointed by the CAG of India
                          21. The Regulatory body established under the Act of Parliament to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market is:
                            1. Reserve Bank of India
                            2. Securities and Exchange Board of India
                            3. National Stock Exchange of India
                            4. Insurance Regulatory and Development Authority of India
                          22. The Reserve Bank of India was established:
                            1. In 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934
                            2. In 1950 in accordance with the provisions of the Reserve Bank of India Act, 1950
                            3. In 1950 in accordance with the provisions of the Finance Act 1950
                            4. In 1945 in accordance with the provisions of the Finance Act 1944