This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the budget shows excess revenue as compared to expenditure, it is called as A) Deficit budget. B) Balanced budget. C) Surplus budget. D) Financial budget. Show Answer Correct Answer: C) Surplus budget. 2. Government expenditures may be classified according to functional use into five broad categories except for: A) Economic and Social Development. B) National Defense. C) General Public Services. D) Debt Services. E) None of the above. Show Answer Correct Answer: E) None of the above. 3. ..... is a plan of financial operation composed of estimated or proposed expenditure for a given period or purposed and the proposed means of financing them. A) Forecasts. B) Debt. C) Budget. D) Options. Show Answer Correct Answer: C) Budget. 4. The government imposes lower rate of taxes on A) High income group. B) Low income group. C) Medium income group. D) All of these. Show Answer Correct Answer: B) Low income group. 5. Tax imposed on locally made goods are called A) Direct tax. B) Import duties. C) Progressive tax. D) Excise duties. Show Answer Correct Answer: D) Excise duties. 6. Zero base budgeting was adopted in india in A) 1987-88. B) 1977-78. C) 1957-58. D) 1967-68. Show Answer Correct Answer: A) 1987-88. 7. Which of the following is a component of government revenue? A) Public debt. B) Taxes. C) Transfer payments. D) Public goods. Show Answer Correct Answer: B) Taxes. 8. "Monetary wages have slowed-at constant price levels. Real wages fall-Business profits per unit increase-Business expands production-Employment increases" This process most closely involves which of the following mechanisms? A) Price mechanism. B) Employment mechanism. C) Automatic stabilization mechanism. D) Competition mechanism. Show Answer Correct Answer: C) Automatic stabilization mechanism. 9. Which is not a component of debt that appears on the website of the Public Debt Management Office? A) State enterprise debt. B) Debt from the Recovery Fund. C) Debt of local government organizations. D) Debt borrowed directly by the government. Show Answer Correct Answer: C) Debt of local government organizations. 10. A state mechanism that intervenes in the entire economic system like in the case of the Soviet Union in the past before its collapse. There are several important characteristics of an economic system. But which one is not? A) Using a state-directed economic system (Centralized Planning). B) Allocate goods and services by centralizing power. C) There are often problems of overproduction and underproduction. D) Use a market economy mixed with state control and supervision. Show Answer Correct Answer: D) Use a market economy mixed with state control and supervision. 11. It is defined as the study of the acquisition and investment of cash for the purpose of enhancing value and wealth. A) Finance. B) Business Finance. Show Answer Correct Answer: A) Finance. 12. Governments generally impose higher taxes on the rich, moderate taxes on the not-so-rich and exempt the poor from paying taxes. This principle of taxation is called ..... A) Progressive taxation policy. B) Direct taxation policy. C) Heavy taxation policy. D) Protective taxation policy. Show Answer Correct Answer: A) Progressive taxation policy. 13. ..... is the conventional concept of deficit on which the Indian government focused till the mid 1980s. A) Monetized deficit or Seigniorage. B) Budget deficit or Deficit Financing. C) Fiscal deficit or Overall Deficit. D) Revenue Deficit. Show Answer Correct Answer: B) Budget deficit or Deficit Financing. 14. The distribution of income and wealth cannot be influenced by government and made more equitable through tax-transfer scheme. A) True. B) False. Show Answer Correct Answer: B) False. 15. The receipts from sale of shares of public enterprises leads to reduction in assets of the government is example for A) Revenue receipts. B) Capital receipts. C) Public debit. D) Public revenue. Show Answer Correct Answer: B) Capital receipts. 16. Cash Reserve Ratio increases the cash for ..... : A) Lending. B) Borrowing. C) Mortgaging. D) None of These. Show Answer Correct Answer: A) Lending. 17. Universal Healthcare act is implemented in what year and month? A) December, 2018. B) February, 2019. C) November, 2017. D) January, 2019. Show Answer Correct Answer: B) February, 2019. 18. The receipts which either create a liability or cause a reduction in the assets of the government is called A) Capital Revenue. B) Revenue Receipts. C) Revenue expenditure. D) Capital expenditure. Show Answer Correct Answer: A) Capital Revenue. 19. Fisher's Equation of money is MV = PT A) False. B) True. Show Answer Correct Answer: B) True. 20. The bank provides loans for deficit financing countries A) Foreign Banks. B) Reserve Bank of India. C) Postal Bank of India. D) Co-operative Banks. Show Answer Correct Answer: B) Reserve Bank of India. 21. Which is the key word of the lesson? A) Economics. B) Fiscal policy. C) Public finance. D) Demand. Show Answer Correct Answer: C) Public finance. 22. Any change, effects or results brought about by an agency's programs or strategies upon individuals, social structures. or physical environment is? A) Outcome. B) Activities. C) Program. D) Impact. Show Answer Correct Answer: A) Outcome. 23. Who is proposing a model to explain the cycle of poverty? A) Adam Smith. B) John Menard Keynes. C) Alfred Marshall. D) Ragnar Nurse. Show Answer Correct Answer: D) Ragnar Nurse. 24. Deficit financing is always inflationary A) True. B) False. Show Answer Correct Answer: A) True. 25. How many members of the Surat Thani Provincial Administrative Organization Council are there at present? A) 50 people. B) 48 people. C) 42 people. D) 36 people. Show Answer Correct Answer: D) 36 people. 26. Dollars, pounds, rubles are examples of: A) Curry. B) Current. C) Currency. D) Currencies. Show Answer Correct Answer: D) Currencies. 27. Which of the following has an inverse relationship? A) Money supply and interest rates. B) Money supply and investment. C) Investment and consumption. D) Investment and growth. Show Answer Correct Answer: A) Money supply and interest rates. 28. Contractionary fiscal policy corresponds to which of the following in English? A) Expansionary Fiscal Policy. B) Restrictive Fiscal Policy. C) Expansionary Monetary Policy. D) Restrictive Monetary Policy. Show Answer Correct Answer: B) Restrictive Fiscal Policy. 29. Difference between fiscal deficit and intrest payment is called- A) Revenue deficit. B) Fiscal deficit. C) Primary deficit. D) None of the above. Show Answer Correct Answer: C) Primary deficit. 30. Since WWII, the circular flow has greatly included ..... A) The government. B) Individuals. C) Businesses. D) None of above. Show Answer Correct Answer: A) The government. ← PreviousNext →Related QuizzesFinance QuizzesPublic Finance Quiz 1Public Finance Quiz 2Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 7Public Finance Quiz 8Public Finance Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books