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State PSC Taxation — practice questions

Explore 32 free Taxation questions in State PSC Economy. Open each question or exercise to read its content, reference answers and available explanation.

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Taxation questions and exercises with answers

Showing questions 1–30 of 32.

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :Read the answer and worked solution →UPSC · Direct vs Indirect TaxesRead the answer and worked solution →In 1991 India's foreign exchange reserves fell to a level not enough to pay for imports for even a:Read the answer and worked solution →To manage the 1991 crisis India received a loan of how much from the World Bank and IMF?Read the answer and worked solution →The World Bank is formally known as the:Read the answer and worked solution →The reforms announced in 1991 are collectively called the:Read the answer and worked solution →Long-term measures to improve efficiency and competitiveness are called:Read the answer and worked solution →Putting an end to restrictions and opening sectors of the economy is called:Read the answer and worked solution →After 1991, industrial licensing was abolished for almost all industries except a few like alcohol, cigarettes and:Read the answer and worked solution →Which industries remain reserved for the public sector?Read the answer and worked solution →The financial sector in India is regulated by the:Read the answer and worked solution →Financial sector reforms aim to change the RBI's role from regulator to:Read the answer and worked solution →The foreign investment limit in banks was raised to around:Read the answer and worked solution →The government's taxation and public expenditure policies together are called its:Read the answer and worked solution →Taxes on the incomes of individuals and profits of firms are:Read the answer and worked solution →Why were income tax rates reduced after 1991?Read the answer and worked solution →Moderate income tax rates are believed to encourage savings and:Read the answer and worked solution →Taxes levied on commodities are called:Read the answer and worked solution →The Goods and Services Tax Act was passed by Parliament in:Read the answer and worked solution →GST came into effect from:Read the answer and worked solution →GST is meant to create one nation, one tax and one:Read the answer and worked solution →As an immediate step in 1991, the rupee was:Read the answer and worked solution →Before reforms, India protected industry through tight import controls and:Read the answer and worked solution →Selling part of the equity of public sector enterprises to the public is called:Read the answer and worked solution →Catch the tax reformsRead the answer and worked solution →Pop the reform headsRead the answer and worked solution →Find the real termRead the answer and worked solution →Slice the reform wordsRead the answer and worked solution →Direct or indirectRead the answer and worked solution →Which reformRead the answer and worked solution →

Worked practice questions

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of :

  1. Bond market
  2. Forex market
  3. Money market
  4. Stock market
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Correct answer: C. Money market

Answer: C. Collateralized Borrowing and Lending Obligation (CBLO) is a MONEY MARKET instrument. CBLO is a money-market product introduced by Clearing Corporation of India Ltd (CCIL) in 2003 for short-term funds. It allows borrowing and lending against eligible collateral (mainly G-Secs) with maturities ranging from one day to one year. Discontinued in 2018 and replaced by the Tri-party Repo (TREPS). CBLO/TREPS are short-tenor instruments serving banks, mutual funds, insurance companies and other institutions for liquidity management. The money market deals with such short-term debt instruments (typically less than one year), as opposed to bond market (long-term debt), forex (currency), or stock market (equities). Source: RBI Money Market documentation / CCIL website.

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UPSC · Direct vs Indirect Taxes

Read exercise and reference answers
Items
  1. Item
    Income Tax
    Answer
    left
  2. Item
    Goods and Services Tax
    Answer
    right
  3. Item
    Corporate Tax
    Answer
    left
  4. Item
    Customs Duty
    Answer
    right
  5. Item
    Capital Gains Tax
    Answer
    left
  6. Item
    Excise Duty
    Answer
    right
Categories
Left
Direct tax
Right
Indirect tax
Instructions
Sort each tax: directly paid or collected from a third party?

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In 1991 India's foreign exchange reserves fell to a level not enough to pay for imports for even a:

  1. Fortnight
  2. Full year
  3. Half decade
  4. Single day
Show answer and solution

Correct answer: A. Fortnight

1. Petroleum and essentials are bought with dollars. 2. The reserves nearly ran out. 3. They could not cover even a fortnight. _Source: syllabus Economics, Indian Economic Development, Chapter 3, Liberalisation, Privatisation and Globalisation._

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