Tag: public finance and budget

Quizzes (7) Questions (140)

Questions Related to public finance and budget

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Deficit financing involves ________.

  1. borrowings from India

  2. printing of more currency

  3. none of the above

  4. both (a) & (b) above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Deficit financing involves both borrowing from domestic sources including the RBI and printing additional currency to meet government expenditure when revenue falls short. Both methods increase money supply in the economy.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Fiscal responsibility and budget management Act aims at reducing gross fiscal deficit by _______ $\%$ of GDP in each financial year.

  1. $0.5\%$

  2. $1\%$

  3. $1.5\%$

  4. $2\%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The FRBM Act, 2003, mandates that the central government reduce the fiscal deficit by at least 0.5% of GDP annually to ensure long-term fiscal stability.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Who among the following never hold the office of chairman of finance commission?

  1. Pranab Mukherjee

  2. Mahaveer Tyagi

  3. K.C. Pant

  4. C. Rangarajan
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Pranab Mukherjee served as Finance Minister but never held the position of Chairman of the Finance Commission. The other individuals listed have served as Chairmen of various Finance Commissions.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Services are  _______ and ___________.

  1. visible, tangible

  2. invisible, intangible

  3. visible, intangible

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

In economics, services are characterized as invisible because they are not physical goods, and intangible because they cannot be touched or stored like physical inventory.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

India met huge deficit in current account through _________.

  1. withdrawals and borrowings from IMF

  2. utilization of foreign exchange reserves

  3. both above

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

India has historically managed current account deficits by utilizing foreign exchange reserves and accessing international credit facilities like those provided by the IMF.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Current account deficit as a % of GDP _______ from___ % during pre crisis period to ______% during post crisis period

  1. declined, 1.9, 1

  2. declined, 2.9, 1.9

  3. increased, 1, 1.9

  4. increased, 2.9, 3.9
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Historical economic data indicates that India's current account deficit as a percentage of GDP declined from approximately 1.9% in the pre-crisis period to 1% in the post-crisis period.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

The share of net invisible earnings in financing trade deficit ___ from ____ n sixth plan to ___ in seventh plan.

  1. declined, 6396, 29.5%

  2. increased, 29.5%, 63%

  3. declined 67%, 63%

  4. increased 63%, 85%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statistical analysis of India's trade accounts during the sixth and seventh plans shows a decline in the share of net invisible earnings relative to the trade deficit.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

Balance of payment on current account covers all receipts on account of earnings, borrowings and all payments on account of spending and lending. (true/false)

  1. True

  2. False

  3. Cant say

  4. None of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The current account specifically covers trade in goods, services, and unilateral transfers. Borrowings and lending are recorded in the capital account, not the current account.

Multiple choice economics meaning and scope of public finance public finance, budget and fiscal policy government budget and economy public finance and budget

In 1990-91, BOP position worsened because of ________.

  1. Gulf war

  2. deterioration in invisible remittances

  3. both above

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

The 1990-91 BOP crisis was exacerbated by the Gulf War, which caused oil prices to spike and reduced remittances from Indian workers in the Middle East.