Tag: government budget and economy

Quizzes (6) Questions (228)

Questions Related to government budget and economy

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Which among the following is a component of revenue expenditure of the government?

  1. Expenditure on general services

  2. Expenditure on economic services

  3. Grants

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. These expenditures are mainly conducted to provide smooth functioning of government activities and related services. These expenditure includes expenditure on general services, economic services and grants provided to states or member countries. 
Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Which type of expenditure is incurred by the government for the economic and social development of the country?

  1. Non-development expenditure

  2. Non-plan expenditure

  3. Development expenditure

  4. Revenue expenditure
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The government expenditures incurred on activities that are directly related to or results in some economic and social development of the country such as infrastructural improvement are called developmental expenditures.
Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Capital expenditure is majorly of developmental nature.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Capital expenditure are all those expenditure of the government that either creates an asset for the government or reduce the liability of the government. For example - Expenditure on land and building, purchase of shares etc. Therefore, these expenditure are usually development as it contributes to the social and economic welfare of the country. 

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Grants, a part of the revenue expenditure of the government, refers to all the grants given by the state government to the central government.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Revenue expenditure are all such types of government expenditure that does not create any assets for the government or does not cause any reduction in the liability of the government. Therefore, grants as a part of revenue expenditure is a unilateral payment or transfer payment from central government to the state government in case of uncertainties.
Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Which of the following is/ are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below.

  1. $1$ only

  2. $2$ and $3$ only

  3. $1$ and $3$ only

  4. $1, 2$ and $3$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The capital budget includes capital receipts (like loans) and capital expenditure (like infrastructure development and loans given to states). All three items listed fall under these categories.

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

Trade liberalization and a shift to market determined exchange rate regime had _______ impact on BOP.

  1. positive

  2. negative

  3. unfavourable

  4. no
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Trade liberalization and market-determined exchange rates are generally intended to increase efficiency and competitiveness, which typically has a positive impact on the Balance of Payments (BOP) over time.

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

The improvement in current account deficit in 2000-01 was due to ______.

  1. dynamism in export performance

  2. sustained buoyancy in invisible receipts

  3. subdued non-oil import demand

  4. all of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The improvement in the current account deficit during that period was driven by a combination of export growth, strong invisible receipts (like remittances and services), and controlled import demand.

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

The BOP position remained ________ in 1995-96, 96-97 and 1997-98.

  1. unfavourable

  2. adverse

  3. uncomfortable

  4. comfortable
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

During the mid-to-late 1990s, India experienced a relatively stable and comfortable Balance of Payments position due to capital inflows and managed trade.

Multiple choice economics government budget and economy trade deficits, savings and investment public finance and budget public finance, taxes and budget

Adverse balance of payment can be corrected through _________.

  1. more export

  2. import ban

  3. devaluation of currency

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An adverse balance of payment can be addressed by increasing exports, restricting imports, or devaluing currency to make exports cheaper and imports more expensive.