Money Bill Practice Questions
19 free Money Bill practice questions for the Indian Polity. Tap an option to answer — you get instant feedback, the correct answer, and a detailed explanation for every question.
Which Article of the Indian Constitution defines a 'Money Bill'?
- A Article 108
- B Article 109
- C Article 110
- D Article 112
Correct answer: Article 110
Article 110 of the Constitution provides the specific definition of a Money Bill, listing matters such as taxation and government borrowing. Article 109, on the other hand, describes the special procedure in respect of Money Bills.
A Money Bill can be introduced in which House of Parliament?
- A Only in the Lok Sabha
- B Only in Rajya Sabha
- C In either House of Parliament
- D In a Joint Sitting of both Houses
Correct answer: Only in the Lok Sabha
According to the Constitution, a Money Bill can only be introduced in the Lok Sabha (the Lower House). It cannot be introduced in the Rajya Sabha because the Lok Sabha has primary authority over financial matters.
Whose prior recommendation is mandatory for the introduction of a Money Bill in the Lok Sabha?
- A The Speaker of Lok Sabha
- B The Prime Minister
- C The President of India
- D The Finance Minister
Correct answer: The President of India
A Money Bill can be introduced only on the recommendation of the President. This is a key safeguard ensuring that financial legislation has the formal approval of the executive head before being tabled.
Within how many days must the Rajya Sabha return a Money Bill to the Lok Sabha with its recommendations?
- A 14 days
- B 7 days
- C 21 days
- D 30 days
Correct answer: 14 days
The Rajya Sabha is given a maximum of 14 days to consider a Money Bill and return it to the Lok Sabha. If it fails to return the bill within this period, the bill is deemed to have been passed by both Houses in the form it was passed by the Lok Sabha.
What happens if the Lok Sabha rejects all the recommendations made by the Rajya Sabha on a Money Bill?
- A The Bill is dropped entirely and must be reintroduced afresh.
- B A Joint Sitting of both Houses is called to resolve the deadlock.
- C The Bill is deemed passed in its original Lok Sabha form.
- D The Bill is sent to the President for final arbitration.
Correct answer: The Bill is deemed passed in its original Lok Sabha form.
If the Lok Sabha does not accept any of the recommendations made by the Rajya Sabha, the Money Bill is considered passed by both Houses in the form it was originally passed by the Lok Sabha. This highlights the Lok Sabha's supremacy in financial matters.
Which of the following matters is NOT included in the definition of a Money Bill under Article 110?
- A Imposition or abolition of any tax
- B Regulation of borrowing of money by the Government
- C Imposition of fines or pecuniary penalties
- D Appropriation of money out of the Consolidated Fund of India
Correct answer: Imposition of fines or pecuniary penalties
Article 110(2) explicitly states that a bill is not a Money Bill by reason only that it provides for the imposition of fines or fees for licenses. Such matters fall under regular or financial bills but not specifically Money Bills.
In the case of a deadlock over a Money Bill, which provision applies?
- A A Joint Sitting under Article 108 is convened
- B The Bill is formally referred to the Supreme Court
- C The Bill is sent back to the President for review
- D No Joint Sitting provision exists for a Money Bill
Correct answer: No Joint Sitting provision exists for a Money Bill
There is no provision for a joint sitting of both Houses of Parliament for a Money Bill. Since the Lok Sabha has overriding powers, a deadlock is effectively impossible as the bill passes regardless of Rajya Sabha's rejection or delay.
When a Money Bill is presented to the President, which of the following actions can he NOT take?
- A Give his formal and unconditional assent to the Bill
- B Withhold his assent to the Bill indefinitely
- C Return the Bill for reconsideration of the Houses
- D Sign and approve the Bill without any delay
Correct answer: Return the Bill for reconsideration of the Houses
The President cannot return a Money Bill for reconsideration by the Parliament. This is because the bill is usually introduced with his prior permission, so he is expected to either give his assent or withhold it.
Which official's endorsement is required when a Money Bill is transmitted to the Rajya Sabha and presented for Presidential assent?
- A The Secretary-General of Lok Sabha
- B The Finance Minister
- C The Prime Minister
- D The Speaker of Lok Sabha
Correct answer: The Speaker of Lok Sabha
When a Money Bill is sent to the Rajya Sabha and when it is presented to the President for assent, the Speaker of the Lok Sabha must endorse the bill with a certificate that it is a Money Bill. This certificate is the definitive legal proof of the bill's status.
Can a Money Bill be introduced as a 'Private Member's Bill'?
- A No, it can only be introduced by a Minister
- B Yes, if the Speaker allows
- C Yes, with the recommendation of the Chairman of Rajya Sabha
- D Only during a financial emergency
Correct answer: No, it can only be introduced by a Minister
A Money Bill is considered a Government Bill because it can only be introduced by a Minister. It cannot be introduced by a private member (any MP who is not a minister).
Which fund is primarily associated with the definition of a Money Bill for the 'custody of money'?
- A The Public Account of India alone
- B The Contingency Fund of India alone
- C The Consolidated Fund of India alone
- D Consolidated and Contingency Funds
Correct answer: Consolidated and Contingency Funds
Under Article 110, a bill is a Money Bill if it deals with the custody of the Consolidated Fund of India or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such fund.
The Rajya Sabha has which of the following powers regarding a Money Bill?
- A Power to reject the bill
- B Power to amend the bill
- C Power to vote on demands for grants
- D Power to make recommendations
Correct answer: Power to make recommendations
The Rajya Sabha cannot reject or amend a Money Bill. It can only make recommendations, which the Lok Sabha may or may not accept.
If a Bill contains only provisions for the 'imposition, abolition, remission, alteration or regulation of any tax', it is strictly a:
- A Financial Bill (Type I)
- B Financial Bill (Type II)
- C Ordinary Bill
- D Simply a Money Bill
Correct answer: Simply a Money Bill
According to Article 110, if a bill contains *only* provisions related to the listed financial matters, it is a Money Bill. If it contains other legislative matters alongside these, it might be classified as a Financial Bill.
What is the primary reason the Rajya Sabha is given limited powers over Money Bills?
- A To prevent delays in the passage of financial legislation
- B To ensure the executive is responsible to the Upper House
- C Because Rajya Sabha represents the States, not the people
- D To follow the British tradition of the House of Lords
Correct answer: To prevent delays in the passage of financial legislation
The limitation prevents the Rajya Sabha from stalling the government's financial agenda. It ensures that the government, which is responsible to the Lok Sabha, has the necessary funds to function without obstruction from the non-directly elected House.
Which of the following bills was famously certified as a Money Bill leading to a major constitutional debate in recent years?
- A Aadhaar Bill
- B GST Bill
- C Farm Laws Bill
- D Triple Talaq Bill
Correct answer: Aadhaar Bill
The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 was certified as a Money Bill by the Speaker. This was challenged in the Supreme Court, which eventually upheld the certification but emphasized the scope of Article 110.
A Money Bill is deemed to have been passed by both Houses if the Rajya Sabha takes no action within 14 days. This 'deeming' provision is found in:
- A Article 107
- B Article 109
- C Article 111
- D Article 114
Correct answer: Article 109
Article 109(5) specifically mentions that if a Money Bill is not returned to the Lok Sabha within the allotted 14 days, it shall be deemed to have been passed by both Houses at the expiration of that period.
Does the Speaker of the Lok Sabha have to consult the Chairman of the Rajya Sabha before certifying a Money Bill?
- A Yes, always
- B Only if the Bill originated in the Rajya Sabha
- C No, the Speaker's decision is final
- D Only if the President requests a consultation
Correct answer: No, the Speaker's decision is final
The Speaker of the Lok Sabha has the sole and independent authority to certify a bill as a Money Bill. There is no constitutional requirement to consult the Chairman of the Rajya Sabha.
When a Money Bill is returned by the Rajya Sabha with recommendations, who decides whether to accept or reject them?
- A The Lok Sabha
- B The President
- C The Finance Minister
- D The Cabinet
Correct answer: The Lok Sabha
Under Article 109, if the Rajya Sabha returns the bill with recommendations, the Lok Sabha may either accept or reject all or any of those recommendations. The final decision rests entirely with the Lok Sabha.
What is the major difference between a Money Bill and a Financial Bill (Type I)?
- A Money Bills require President's recommendation, Financial Bills do not.
- B Money Bills can only be introduced in Lok Sabha, Financial Bills in either house.
- C Money Bills are certified by the Speaker, Financial Bills are not.
- D Financial Bills can be rejected by Rajya Sabha, Money Bills cannot.
Correct answer: Financial Bills can be rejected by Rajya Sabha, Money Bills cannot.
While both bills must be introduced in the Lok Sabha on the President's recommendation, a Financial Bill (Type I) can be rejected or amended by the Rajya Sabha like an ordinary bill. A Money Bill cannot be rejected or amended by the Rajya Sabha.