Tag: government budget and economy

Questions Related to government budget and economy

Trade deficit occurs when a country's exports exceeds its imports.

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

  1. True

  2. False

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Correct Option: B

When a country's imports are higher than its exports, the balance is termed as ___________.

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

  1. trade deficit

  2. trade inflow

  3. income deficit

  4. none of the above

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Correct Option: A

Trade deficit is a situation where:

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

  1. a country's exports exceeds its imports.

  2. a country's imports exceeds its exports.

  3. there is depreciation of the currency

  4. the government fails

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Correct Option: B

Trade deficit occurs when a country's ________ exceeds its ________.

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

  1. exports, imports

  2. imports, exports

  3. demand, supply

  4. none of the above

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Correct Option: B

Trade deficits are not alarming if it reflects a rise in investment, which will build the capital stock more quickly and increase future output.

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

  1. True

  2. False

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Correct Option: A

Which of the following action/actions can be taken by the government to reduce the persistent challenge of budget deficit?
1. Reducing the duties on imports
2. Rationalising subsidies
3. Cutting the expenditure of revenue
4. Merging the existing welfare schemes

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

  1. Only1

  2. 1 and 2

  3. 2 and 4

  4. 2.3 and 4

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Correct Option: B
Explanation:

By reducing import duties government revenue receipts will come down. On the other hand only merging welfare schemes will not give guarantee of expenditures on this count.

"Retail investors made Rs 1.9 lakh cr in market rally", was the news in some major financial newspapers. The term "retail investors", as used in this headline, means which of the following types of stock market investors?

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

  1. Promoters of Companies

  2. Individuals

  3. Foreign Institutional Investors

  4. Mutual Funds

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Correct Option: B
Explanation:

A retail investor is an individual who purchases securities for his/her own personal account rather than for an organisation . Retail investors typically trade in much smaller amounts than institutional investors such as mutual funds, pension funds etc, and trade less frequently.  

Hence the term "retail investors" in the newspaper headline means Individuals in stock market investors. 

NRE deposit is _________________.

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

  1. Non Resident External deposit

  2. Non Resident Extra deposit

  3. Non Resident Exchange deposit

  4. Non Refundable External deposit

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Correct Option: A

Expand the term FLCC.

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

  1. Financial Literacy and Credit Counselling

  2. Financial Literacy Communication Centre

  3. Financial Literacy Call Centre

  4. Fiscal Literacy and Credit Counselling

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Correct Option: A

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

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

  1. twelve

  2. six

  3. nine

  4. fifteen

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Correct Option: A