Tag: government budget and economy

Quizzes (6) Questions (228)

Questions Related to government budget and economy

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

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

  1. trade deficit

  2. trade inflow

  3. income deficit

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a country's imports are higher than its exports, the value of goods coming in exceeds the value of goods going out, resulting in a trade deficit.

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

Trade deficit is a situation where:

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A trade deficit is defined as the situation where the value of a country's imports exceeds the value of its exports.

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

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

  1. True

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

If a trade deficit is driven by capital goods imports that increase future productive capacity, it is generally considered sustainable or beneficial for long-term growth.

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

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

  1. Only1

  2. 1 and 2

  3. 2 and 4

  4. 2.3 and 4
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

"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?

  1. Promoters of Companies

  2. Individuals

  3. Foreign Institutional Investors

  4. Mutual Funds
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

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

Expand the term FLCC.

  1. Financial Literacy and Credit Counselling

  2. Financial Literacy Communication Centre

  3. Financial Literacy Call Centre

  4. Fiscal Literacy and Credit Counselling
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

FLCC stands for Financial Literacy and Credit Counselling centres, which help individuals manage debt and financial planning.