Tag: public finance, budget and fiscal policy

Quizzes (0) Questions (113)

Questions Related to public finance, budget and fiscal policy

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 unrequited transfers includes all gifts, donations, grants and reparation, receipts and payments to foreign countries (true/false)

  1. True

  2. False

  3. Cant say

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

Unrequited transfers (also known as unilateral transfers) in the balance of payments include gifts, donations, and grants where no good or service is received in return.

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

The Planning Commission was set up in _______ by a Resolution of the Government of India.

  1. $March, 1949$

  2. $March, 1950$

  3. $March, 1947$

  4. $March, 1957$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Planning Commission of India was established in March 1950 by a resolution of the Government of India to oversee the country's five-year plans.

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 capital account deals with the borrowings or lending of the country in question (true/false)

  1. True

  2. False

  3. Cant say

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

The capital account in the balance of payments records all international transactions involving the purchase or sale of assets, including foreign borrowing and lending.

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

Over the period of planning Indias BOP has remained _________.

  1. favourable

  2. unfavourable

  3. in equilibrium

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

India has historically faced a persistent current account deficit due to high import costs, particularly for oil and capital goods. This structural imbalance means the Balance of Payments (BOP) has generally remained unfavourable throughout the planning period.

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

During the ________ plan, India experienced surplus in BOP.

  1. fifth

  2. sixth

  3. seventh

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

During the Fifth Five-Year Plan (1974-1979), India experienced a surplus in its Balance of Payments, largely due to a significant increase in remittances from Indian workers in the Gulf and a temporary improvement in trade conditions.

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

The large and sustained current account deficit in BOP had to be financed by ______.

  1. loans from various sources

  2. commercial borrowings

  3. inflow of funds from NRIs

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

To finance a sustained current account deficit, a country must rely on external sources of capital. India has utilized a combination of official loans, commercial borrowings, and NRI deposits to bridge this gap.

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

Measures introduced to correct BOP position in 1992-93 were ______.

  1. exchange rate management

  2. liberalization of import licensing

  3. tariff reductions

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

The 1991 economic reforms included comprehensive measures to stabilize the BOP, including currency devaluation (exchange rate management), the removal of restrictive import licensing, and the lowering of customs tariffs.

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

At present only . industries are reserved for the Public Sector.

  1. 5

  2. 7

  3. 8

  4. 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Only 3 industries are currently reserved for the Public Sector: Atomic Energy, Railway Operations, and substances specified in the schedule to the Department of Atomic Energy notification. This is a significant reduction from earlier periods when many more industries were exclusively reserved for public sector.

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

The term mixed economy denotes.

  1. Co-existence of consumer and producer's goods Industries in the economy

  2. Co existence of private & public sectors in the economy

  3. Co existence of urban & rural sectors in the economy

  4. Co existence of large & small industries sectors in the economy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A mixed economy is defined by the coexistence of both private enterprise and government-owned public sector entities. This structure allows for market mechanisms alongside state intervention.

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

Which of the following industries are not reserved for Public Sector presently?

  1. Atomic Energy

  2. Rail Transport

  3. Substances specified in the schedule to the Notification of the Government of India in the Department of Atomic Energy

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

Atomic energy and railway transport are reserved for the public sector. Defence production has been opened up to private sector participation, meaning it is no longer exclusively reserved for the public sector.