Multiple Choice Quiz Questions, which are covered in this chapter, relate to the topic, Budget and Fiscal Deficits. Multiple Choice Quiz Questions Test contains 10 questions. Answers to Multiple Choice Quiz Questions are available after clicking on the answer.
1._______ is the difference between total receipts and total expenditure:
(a) Fiscal Deficit
(b) Budget Deficit
(c) Revenue Deficit
(d) Capital Deficit
Answer
Answer: (b) Budget Deficit
2.Revenue deficit in India is:
(a) Positive
(b) Negative
(c) Zero
(d) Balanced
Answer
Answer: (b) Negative
3.If borrowing and other liabilities are added to the budget deficits we get ____:
(a) Fiscal Deficit
(b) Primary Deficit
(c) Capital Deficit
(d) Revenue Deficit
Answer
Answer: (A) Fiscal Deficit
4.The FRBM Act aims at reducing gross fiscal deficit by:
(a) 2%
(b) 1%
(c) 0.5%
(d) 3%
Answer
Answer: (c) 0.5%
5.FRBM Act was passed in ________:
(a) 1999
(b) 2000
(c) 2003
(d) 2004
Answer
Answer: (c) 2003
Multiple Choice Quiz Questions – Budget and Fiscal Deficits
6.The most important sources of plan finance to cover up gap between intended expenditure and available resource is in:
(a) Direct taxes
(b) Indirect taxes
(c) Deficit financing
(d) Foreign aid
Answer
Answer: (c) Deficit financing
7.Fiscal Policy refers to a policy of :
(a) Money lenders
(b) Government Finance
(c) Commercial banks
(d) Monetary authority
Answer
Answer: (b) Government Finance
8.Deficit Financing means :
(a) Public expenditure in excess of public revenue
(b) Public revenue in excess of public expenditure
(c) Both (a) & (b)
(d) None
Answer
Answer: (a) Public expenditure in excess of public revenue
9._______ refers to public revenue, expenditure and allied matters.
(a) Fiscal policy
(b) Monetary policy
(c) Economic policy
(d) None of these.
Answer
Answer: (A) Fiscal Policy
10.Which of these is a side effect of deflation?
(a) Decreasing unemployment
(b) Increase in demand
(c) Economic depression
(d) Increase in personal expenditure.
Answer
Answer: (c) Economic depression
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