The Government: Budget and the Economy Test

Result

The Government: Budget and the Economy Test - 15

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Revision of budget is _________.

A
Unnecessary

B
Can't determine

C
Necessary

D
Inadequate data

Solution

A company requires a particular budget that details categories of revenue and expenditures relevant to the particular business enterprise. Although most companies create budgets for a one-year period, ongoing evaluations regularly give the business more leeway in making adjustments as needed. Businesses utilize a budget revision process to trim excess spending, re-allocate revenues and make allowances for unexpected or uncommon expenses.
Question 2
1 / -0

Indirect taxes are not favoured because they are ___________.

A
a severe burden on the wealthy

B
not helpful in mobilising enough financial resources

C
regressive

D
not easy to collect

Solution

Indirect tax is that tax which is levied on goods or services produced or purchased.
Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense of another.
It is that tax where the burden can be shifted to another person. Indirect taxes are not favoured because they are regressive as a large amount is taken from those who have lower incomes.
Question 3
1 / -0

When Union Govt takes the approval of the parliament regarding expected expenditure for a short period not more than six months, instead of presenting full budget, it is known as _________________.

A
Consolidated Fund Budget

B
Extra Ordinary Budget

C
Partial Budget

D
None of these
Question 4
1 / -0

The operating leverage takes place when _______________________.

A
A change in revenue produces a small change in EBIT

B
A change in revenue produces a greater change in EBIT

C
A change in cost produces a small change in EBIT

D
A change in cost produces a greater change in EBIT

Solution

Operating leverage occurs when a company has fixed costs that must be met regardless of sales volume. When the firm has fixed costs, the percentage change in profits due to changes in sales volume is greater than the percentage change in sales.This indicates the expected response in profits if sales volumes change.
Question 5
1 / -0

Which of the following is the use of a currency swap?

A
Currency risk

B
Interest rate risk

C
Currency and interest rate risk

D
Cash flows in different currencies

Solution

Currency swap is defined as an agreement where two parties exchange the principal amount of a loan and interest in one currency for the principal and interest in another currency. Hence, the use of a currency swap is the cash flows in different currencies.
Question 6
1 / -0

What is a fiscal deficit?

A
It is a gap between the values of exports and imports.

B
It is a gap between exports and imports minus external borrowings.

C
It is a gap between total expenditure and total receipts of the govt.

D
None of these

Solution

It is the difference between the total expenditure and total revenue excluding borrowings.
Question 7
1 / -0

Which of the following is/are included in "Deficit Financing" in India? (The term is used frequently in economic planning)
A. Borrowing from the Reserve Bank of India
B. Issue of new currency notes
C. Withdrawal of past balances/surpluses etc

A
Only (A)

B
Only (B)

C
Only (C)

D
Only (A) and (B)

Solution

Deficit financing is defined as a situation in which the government spends more than the revenue, the difference being made by borrowing or minting new funds. Hence, funds are borrowed from the Reserve Bank of India. Deficit financing is also used in economic planning. Thus, deficit financing includes borrowing from the Reserve Bank Of India or the withdrawal of past balances/surpluses.
Question 8
1 / -0

In general, the duration of a budget is _______ months.

A
twelve

B
six

C
nine

D
fifteen

Solution

In general, the duration of a budget is twelve months.
Union budget keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March.
Question 9
1 / -0

The amount of which of the following reflects the overall budgetary position of the Govt of India at a given time?

A
Revenue deficit

B
Total amount of income tax collected

C
Capital deficit

D
Fiscal deficit

Solution

The overall budgetary position of the government is measured by Fiscal Deficit. It is the difference between total expenditure and total revenue which shows the borrowing power of a country.
Question 10
1 / -0

As we all know, Govt of India pays special emphasis on the management of Fiscal Deficit. What is Fiscal Deficit?

A
The gap between projected or estimated GDP and actual GDP

B
The gap between the total number and value of the currency notes issued by the RBI uptill now over the number and value of those which are in actual circulation

C
The gap between the actual borrowings of the Govt of India and the expected expenditure for which provision is made in the budget

D
Excess of Govt's disbursement comprising current and capital expenditures over its current receipts (Tax/non-tax receipts)

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 15

Result

The Government: Budget and the Economy Test - 15

Score

-

Rank

-

SHARING IS CARING

Question 1

Unnecessary

Can't determine

Necessary

Inadequate data

Solution

Question 2

a severe burden on the wealthy

not helpful in mobilising enough financial resources

regressive

not easy to collect

Solution

Question 3

Consolidated Fund Budget

Extra Ordinary Budget

Partial Budget

None of these

Question 4

A change in revenue produces a small change in EBIT

A change in revenue produces a greater change in EBIT

A change in cost produces a small change in EBIT

A change in cost produces a greater change in EBIT

Solution

Question 5

Currency risk

Interest rate risk

Currency and interest rate risk

Cash flows in different currencies

Solution

Question 6

It is a gap between the values of exports and imports.

It is a gap between exports and imports minus external borrowings.

It is a gap between total expenditure and total receipts of the govt.

None of these

Solution

Question 7

Only (A)

Only (B)

Only (C)

Only (A) and (B)

Solution

Question 8

twelve

six

nine

fifteen

Solution

Question 9

Revenue deficit

Total amount of income tax collected

Capital deficit

Fiscal deficit

Solution

Question 10

The gap between projected or estimated GDP and actual GDP

The gap between the total number and value of the currency notes issued by the RBI uptill now over the number and value of those which are in actual circulation

The gap between the actual borrowings of the Govt of India and the expected expenditure for which provision is made in the budget

Excess of Govt's disbursement comprising current and capital expenditures over its current receipts (Tax/non-tax receipts)

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.