SSC CGL Finance – Finance Commission – Level 1 · Warm-up

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SSC CGL Finance – Finance Commission – Level 1 · Warm-up – 12 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Under Article 280(1), the Finance Commission consists of:

Correct Answer: A [a Chairman and four other members]

Explanation:

Answer: a Chairman and four other members. Art. 280(1).

2.  
The Finance Commission is constituted by:

Correct Answer: B [the President, by order]

Explanation:

Answer: the President, by order. Art. 280(1).

3.  
Article 280 requires a Finance Commission to be constituted:

Correct Answer: D [at the expiration of every fifth year or earlier]

Explanation:

Every fifth year or at such earlier time as the President considers necessary.

4.  
Under the 1951 Act, the Chairman of the Finance Commission is selected from persons who have had:

Correct Answer: C [experience in public affairs]

Explanation:

s. 3 of the FC (Miscellaneous Provisions) Act, 1951.

5.  
Fill in the blankUnder Art. 281, every recommendation of the Finance Commission is laid before Parliament with an explanatory ______ on the action taken.

Correct Answer: B [memorandum]

Explanation:

Answer: memorandum. Art. 281.

6.  
Which of these is kept out of the divisible pool of Union taxes?

Correct Answer: D [Surcharges levied for the purposes of the Union]

Explanation:

Art. 271 surcharges (and cesses) are not shared.

7.  
'Vertical devolution' means:

Correct Answer: C [the share of all States together in the divisible pool]

Explanation:

Answer: the share of all States together in the divisible pool. Union ↔ States as a group.

8.  
'Horizontal devolution' means:

Correct Answer: A [the division of the States' total share among the individual States]

Explanation:

Answer: the division of the States' total share among the individual States. Among States, by a formula.

9.  
Grants-in-aid under Article 275 are:

Correct Answer: C [charged on the Consolidated Fund of India]

Explanation:

Answer: charged on the Consolidated Fund of India. Art. 275(1).

10.  
The First Finance Commission was chaired by:

Correct Answer: B [K. C. Neogy]

Explanation:

Constituted 1951; report 1952.

11.  
The State Finance Commission for Panchayats is provided for in Article:

Correct Answer: A [243-I]

Explanation:

243-I (Panchayats); 243Y (Municipalities).

12.  
Odd one outOdd one out (by being a body named in the Constitution):

Correct Answer: D [NITI Aayog]

Explanation:

NITI Aayog was set up by an executive resolution.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
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