The Government: Budget and the Economy Test

Result

The Government: Budget and the Economy Test - 8

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Weekly Quiz Competition

Question 1
1 / -0

Budgetary policies relate to

A
Taxes and public expenditures

B
Public expenditures only

C
Taxes only

D
Direct Taxes

Solution

Budgetary policy is an annual exercise relating to the revenue and expenditure policy of the government. The government frames its budgetary policy with a view to achieveing a set of objectives like balanced regional growth, redistribution of income and wealth etc.
Question 2
1 / -0

Budgetary policies are implemented by the

A
Private sector

B
Government

C
Finance Ministry

D
Foreign sector

Solution

The government frames its budgetary policy with a view to achieving a set of objectives.
Question 3
1 / -0

If borrowing and other liabilities are added to the budget deficits we get ____:

A
Primary Deficit

B
Revenue Deficit

C
Fiscal Deficit

D
Capital Deficit

Solution

Fiscal Deficit
Question 4
1 / -0

The FRBM Act aims at reducing gross fiscal deficit by:

A
1%

B
2%

C
0.5%

D
3%

Solution

0.5%
Question 5
1 / -0

Disinvestment is a

A
Capital Expenditure

B
Revenue Receipts

C
Capital Receipts

D
Revenue Expenditure

Solution

Disinvestment is a capital receipt since it causes reduction in the assets of the govt. For eg. the money received by the govt by selling its shares (say of Maruti Udyog) causes reduction in the assets of the govt.
Question 6
1 / -0

Borrowings by govt.

A
Revenue Expenditure

B
Revenue Receipts

C
Capital Expenditure

D
Capital Receipts

Solution

The borrowings by the govt creates liability . So borrowing by the govt comes under capital receipts.
Question 7
1 / -0

The most important sources of plan finance to cover up gap between intended expenditure and available resource is in:

A
Deficit financing

B
Direct taxes

C
Indirect taxes

D
Foreign aid

Solution

Deficit financing
Question 8
1 / -0

Fiscal Policy refers to a policy of :

A
Money lenders

B
Monetary authority

C
Government Finance

D
Commercial banks

Solution

Government Finance
Question 9
1 / -0

transfer payment is a

A
Revenue Receipts

B
Capital Receipts

C
Revenue Expenditure

D
Capital Expenditure

Solution

Transfer payment is a revenue expenditure since it neither creates any assets for the govt nor reduces any liability.
Question 10
1 / -0

Repayment of loan by the govt.

A
Revenue Expenditure

B
Capital Expenditure

C
Capital Receipts

D
Revenue Receipts

Solution

When the govt repays its loans, it reduces the liability of the govt. So, repayment of loan is a capital expenditure.

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Re-Attempt Weekly Quiz Competition

The Government: Budget and the Economy Test - 8

Result

The Government: Budget and the Economy Test - 8

Score

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Rank

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SHARING IS CARING

Question 1

Taxes and public expenditures

Public expenditures only

Taxes only

Direct Taxes

Solution

Question 2

Private sector

Government

Finance Ministry

Foreign sector

Solution

Question 3

Primary Deficit

Revenue Deficit

Fiscal Deficit

Capital Deficit

Solution

Question 4

1%

2%

0.5%

3%

Solution

Question 5

Capital Expenditure

Revenue Receipts

Capital Receipts

Revenue Expenditure

Solution

Question 6

Revenue Expenditure

Revenue Receipts

Capital Expenditure

Capital Receipts

Solution

Question 7

Deficit financing

Direct taxes

Indirect taxes

Foreign aid

Solution

Question 8

Money lenders

Monetary authority

Government Finance

Commercial banks

Solution

Question 9

Revenue Receipts

Capital Receipts

Revenue Expenditure

Capital Expenditure

Solution

Question 10

Revenue Expenditure

Capital Expenditure

Capital Receipts

Revenue Receipts

Solution

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Question Analysis

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