This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the problem when commercial banks have money in the system but are unwilling to lend it to the private sector for fear of bad debt? A) Liquidity Trap. B) Problems predicting the future. C) Cutting off spending opportunities. D) The money supply is stuck. Show Answer Correct Answer: A) Liquidity Trap. 2. Which level of government is responsible for local public finance? A) State government. B) International government. C) Federal government. D) Local government. Show Answer Correct Answer: D) Local government. 3. What is the type of fiscal policy? A) Expansionary fiscal policy. B) Tight fiscal policy. C) Dilutive fiscal policy. D) Concentrated fiscal policy. Show Answer Correct Answer: A) Expansionary fiscal policy. 4. Means a feeling of belonging together. A) Locality. B) Community . C) Community Sentiment. D) Society. Show Answer Correct Answer: C) Community Sentiment. 5. Apart from taxes the government gets revenue from other sources. This is called as A) Public revenue. B) Revenue tax. C) Non-Tax revenue. D) Net revenue. Show Answer Correct Answer: C) Non-Tax revenue. 6. Businesses and enterprises look forward to the government budget as resources being allocated to various sectors are revealed. The government can encourage business owners to revise their policies accordingly and contribute to the country's economic prosperity. A) Proper resource pool allocation. B) Ensuring economic growth. C) Growth of business and trading. D) Mitigating economic divide. Show Answer Correct Answer: C) Growth of business and trading. 7. If trader transfer the burden to the consumer it is a feature ofa) Direct taxb) Tax revenuec) State taxd) Indirect taxAnswer:d) Indirect tax A) Direct tax. B) Tax revenue. C) Indirect tax. D) State tax. Show Answer Correct Answer: C) Indirect tax. 8. Which of the following is NOT a part of the public sector in the Philippines? A) Jollibee Foods Corporation. B) Department of Education. C) Department of Health. D) Bureau of Internal Revenue. Show Answer Correct Answer: A) Jollibee Foods Corporation. 9. Which of the following is an example of national public finance? A) Funding for a city park. B) Building a new school in a rural area. C) Developing a national transportation system. D) None of the above. Show Answer Correct Answer: C) Developing a national transportation system. 10. It is the study of how and under what conditions savings are allocated between lenders and borrowers A) FINANCE. B) PUBLIC FINANCE. Show Answer Correct Answer: A) FINANCE. 11. There are several types of non-tax income. But which one is not? A) Income outside the budget. B) Income from the sale of goods and services. C) State commercial income. D) Aid from abroad. Show Answer Correct Answer: A) Income outside the budget. 12. Which of the following statements is true about closed leagues? A) They restrict entry, creating a monopoly or oligopoly. B) They restrict entry creating a monopoly or Oligopoly. C) They increase the number of teams and enhance competition among them. D) They are uncommon outside the United States and are not found in European soccer leagues. Show Answer Correct Answer: A) They restrict entry, creating a monopoly or oligopoly. 13. In which budget scenario will the government moved to borrow? A) Deficit. B) Balanced. C) Surplus. D) Zero. Show Answer Correct Answer: A) Deficit. 14. Public finance is more elastic than private finance. A) Disagree. B) Agree. Show Answer Correct Answer: B) Agree. 15. Which of the following is a characteristic of the public sector in the Philippines? A) It is profit-driven. B) It is market-oriented. C) It is government-controlled. D) It is tax-exempt. Show Answer Correct Answer: C) It is government-controlled. 16. Which is not a principle regarding public spending (Cannon of Expenditure)? A) Principles of saving (Cannon of Economy). B) Canon of Benefit. C) Principles of Incremental Creation (Connon of Incremental). D) Principles of Moderation (Canon of Sanction). Show Answer Correct Answer: C) Principles of Incremental Creation (Connon of Incremental). 17. When the FRBMA was passed? A) 2013. B) 2003. C) 2002. D) 2012. Show Answer Correct Answer: B) 2003. 18. Monitor the budget through a defined performance framework. A) True. B) False. Show Answer Correct Answer: A) True. 19. The Chairman of the Public Accounts Committee of the Parliament is appointed by A) President of India. B) Chairman of Rajya Sabha. C) Speaker of Lok Sabha. D) Prime Minister of India. Show Answer Correct Answer: C) Speaker of Lok Sabha. 20. Monetized deficit or ....., is the difference between the face value of money and the cost to produce it. A) Fiscal deficit. B) Revenue deficit. C) Seigniorage. D) Budget deficit. Show Answer Correct Answer: C) Seigniorage. 21. If the expenditure is more than the revenue, it is called as A) Surplus budget. B) Financial budget. C) Balanced budget. D) Deficit budget. Show Answer Correct Answer: D) Deficit budget. 22. The law specifies that from fiscal year 2007 onwards, local administrative organizations shall have income calculated as net government income of not less than what percentage? A) 35 percent. B) 25 percent. C) 20 percent. D) 30 percent. Show Answer Correct Answer: B) 25 percent. 23. All of the following are criticisms against the FRBM Act except: A) Unfulfilled targets. B) Defective assumptions. C) High levels of capital expenditure. D) Neglect of equity and economic growth. Show Answer Correct Answer: C) High levels of capital expenditure. 24. Which thinker has proposed a concrete solution to the problems of economic downturn and unemployment? A) John Menard Keynes. B) Adam Smith. C) John Stewart Mill. D) Alfred Marshall. Show Answer Correct Answer: A) John Menard Keynes. 25. How does Treasury borrow money A) Issuing bonds. B) Selling Treasury security. C) Borrowing money directly. D) All answers. Show Answer Correct Answer: D) All answers. 26. The condition for consumer equilibrium is A) Marginal utility is = Average utility. B) Total utility = unit price. C) Marginal utility = unit price. D) None of the above. Show Answer Correct Answer: C) Marginal utility = unit price. 27. Which state enterprises generated the most profits in 2019? A) PTT. B) Provincial Electricity Authority. C) Krung Thai Bank. D) Thai airport. Show Answer Correct Answer: A) PTT. 28. Which of the following is a component of tax policy? A) Public goods. B) Tax rates. C) Transfer payments. D) Monetary policy. Show Answer Correct Answer: B) Tax rates. 29. 5-in fiscal policy..... A) Side effect on government budget. B) Set by central bank. C) Target inflation. D) Change in money supply. Show Answer Correct Answer: A) Side effect on government budget. 30. Public finance is "concerned with the income and expenditure of public authorities and with the adjustment of one to the other" said by A) Marshal. B) Damon. C) Dante. D) Dalton. Show Answer Correct Answer: D) Dalton. ← 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