Daily Quiz: UPSC Prelims Marathon – June 5, 2018

Direct tax is a tax directly payed by an individual or organistion to the imposing entity. Example of direct tax are-

1. Corporation
2. Tax
3. Securities transaction  
4. Banking cash transaction  
5. Fringe benefits tax
6. Wealth tax
7. Interest tax.

Fringe benefit tax is applied to employees, for the expense made for providing services to the employees, which cannot otherwise accounted individually

Interest tax is direct tax imposed on interest accrued in specific cases. However, it was abolished im March 2000

Securities transaction tax is a tax applied in the transaction of stock market, during a transaction. It’s applied both on buyers as well as seller.

Indirect taxes are levied on entity such as seller and paid by another such as tax paid by the buyer in a retail setting. Examples of Indirect tax – 1. Union Excise duty 2. Custom duty 3. Service tax

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to section of disadvantage and low- income segment of society , in contrast to financial exclusion where those service are not available or affordable.

In this particular question all the steps are targeted financial inclusion in one way or the other nationalization targeted expansion of bank branches in rural areas and also a control on concentration of economic powers in hands of few. RRBs were planned to cater the needs of rural areas.

Food price inflation has remained persistently elevated for over a year now, reflecting in a part the structural demand supply mismatches in a several commodities as well as the changing consumption patterns.

Current account deficit means the excess of imports over exports. The current Account Deficit can be reduced by adopting suitable policies favouring FDI and FII. It is domestic currency is devalued, export would become cheaper which will create additional demand for product in the world market.

Any reduction in the export subsidy is dangerous as the countries goods will become costlier and exports would fall

An economy in which no activity is conducted with outside economics. A closed economy is self-sufficient , meaning that no imports are brought in and no exportsare sent out. The goal is to provide consumers with everything that they need from within the economy’s borders. A  closed economy is the opposite of an open economy, in which a country will conduct trade with outside regions.

Dialectical materialism is a philosophy of science and nature, based on the writings of Karl Marx and Friedrich Engels, and developed largely in Russia and the Soviet Union. The sketch of dialectical materialism given by Karl Marx explains that Dialectical principle is of universal application and all the development is struggle of opposites” or “ conflict of opposities”

The idea that an increased in economic growth reduces inflation. Here’s why Inflation , as the old saying goes, is caused by too much money “ chasing” too few goods. Just as means higher prices , fewer goods also means higher price the connection between the level of production and level of prices also holds for the rate of change and production (that is, the rate of economic growth) and the rate of change of prices(that is, the inflation rate). During deflation there is no demand and no growth.