The Government: Budget and the Economy Test

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The Government: Budget and the Economy Test - 13

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Weekly Quiz Competition

Question 1
1 / -0

Bad Debt Recovered is _________________.

A
Capital Receipt

B
Revenue Receipt

C
Advance Receipt

D
None of these
Question 2
1 / -0

Scrap Value of Machinery is _____________.

A
Capital Receipt

B
Revenue Receipt

C
Advance Receipt

D
None of these
Question 3
1 / -0

Sale of Plant & Machinery is ______________.

A
Capital Receipt

B
Revenue Receipt

C
Advance Receipt

D
None of these

Solution

Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Examples of capital receipts are funds received from issue of shares or debentures, cash from sale of fixed assets, borrowings such as loans, insurance claims, disinvestments, additional capital introduced by the proprietor(s), etc.
Therefore, A is the correct answer.
Question 4
1 / -0

Gross fiscal deficit is calculated by subtracting which of the following from total expenditure ________.

A
revenue receipts

B
non-debt capital receipts

C
both A and B

D
none of the above
Question 5
1 / -0

Which of the following is the most comprehensive measure of budgetary imbalances?

A
Fiscal deficit

B
Revenue deficit

C
Primary deficit

D
All of the above

Solution

The extent of fiscal deficit is an indication of how far the government is spending beyond its means.
Question 6
1 / -0

The fiscal deficit of central government according to 2012-2013 as percent of GDP was _______.

A
4.9%

B
4.8%

C
4.7%

D
4.5%
Question 7
1 / -0

The difference between total expenditure and total receipts except loans and other liabilities is called ______.

A
fiscal deficit

B
budget deficit

C
primary deficit

D
revenue deficit

Solution

Fiscal deficit refers to the excess of total expenditure over total receipts (excluding borrowings) during the given fiscal year. Fiscal Deficit = Total Expenditure – Total Receipts excluding borrowings. The extent of fiscal deficit is an indication of how far the government is spending beyond its means.
Question 8
1 / -0

The full form of FRBM Act 2003 is _______.

A
Fiscal Regulation and Budget Management Act

B
Fiscal Regulation and Banking Management Act

C
Fiscal Responsibility and Budget Management Act

D
Financial Responsibility and Budget Management Act

Solution

The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.
Question 9
1 / -0

In comparison to revenue deficit, the size of fiscal deficit is always _____.

A
higher

B
smaller

C
similar

D
uncertain

Solution

The fiscal deficit is the difference between the total revenue and total expenditure of the government. Revenue deficit hence arises when the government's actual net receipts is lower than the projected receipts. So, the size of fiscal deficit is always higher than revenue deficit.
Question 10
1 / -0

The term fiscal federalism was introduced by _______.

A
Dalton

B
Seligman

C
Musgrave

D
None of the above

Solution

Fiscal federalism, financial relations between units of governments in a federal government system. Fiscal federalism is part of broader public finance discipline. The term was introduced by the German-born American economist Richard Musgrave in 1959.

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Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 13

Result

The Government: Budget and the Economy Test - 13

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Rank

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SHARING IS CARING

Question 1

Capital Receipt

Revenue Receipt

Advance Receipt

None of these

Question 2

Capital Receipt

Revenue Receipt

Advance Receipt

None of these

Question 3

Capital Receipt

Revenue Receipt

Advance Receipt

None of these

Solution

Question 4

revenue receipts

non-debt capital receipts

both A and B

none of the above

Question 5

Fiscal deficit

Revenue deficit

Primary deficit

All of the above

Solution

Question 6

4.9%

4.8%

4.7%

4.5%

Question 7

fiscal deficit

budget deficit

primary deficit

revenue deficit

Solution

Question 8

Fiscal Regulation and Budget Management Act

Fiscal Regulation and Banking Management Act

Fiscal Responsibility and Budget Management Act

Financial Responsibility and Budget Management Act

Solution

Question 9

higher

smaller

similar

uncertain

Solution

Question 10

Dalton

Seligman

Musgrave

None of the above

Solution

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