This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which school of economics holds that interest rates have an inverse relationship to the money supply? A) Marxist office. B) Neoclassical school. C) Keynesian School. D) Classical school. Show Answer Correct Answer: C) Keynesian School. 2. "Definition-Public finance is one of those subjects which are on the borderline between economics and politics." is given by A) Adam Smith. B) Alfred Marshall. C) Prof. Hugh Dalton. D) Prof. Findlay Shirras. Show Answer Correct Answer: C) Prof. Hugh Dalton. 3. Which of the following is a component of public goods? A) Non-excludability. B) Non-rivalry. C) Rivalry. D) Excludability. Show Answer Correct Answer: D) Excludability. 4. Financial year in India is from A) 1st jan to 31st dec. B) 1st april to 31st march. C) 1st july to 30th june. D) None of above. Show Answer Correct Answer: B) 1st april to 31st march. 5. ..... are those that present financial information to various interested parties. A) FINANCIAL REPORTS. B) FINANCIAL STATEMENTS. Show Answer Correct Answer: B) FINANCIAL STATEMENTS. 6. For how long is the issuance of a promissory note used for incurring debt? A) Used for medium-term debt creation not exceeding 10 years. B) Used for long-term debt creation. C) Used for incurring debts with foreign governments. D) Used for short-term loans of no more than 1 year. Show Answer Correct Answer: A) Used for medium-term debt creation not exceeding 10 years. 7. Which is not included in the Keynesian aggregate demand equation? A) G. B) K. C) C. D) I. Show Answer Correct Answer: B) K. 8. Public finance is divided into ..... branches A) 2. B) 1. C) 4. D) 3. Show Answer Correct Answer: A) 2. 9. The word budget comes from ..... A) The Flemish bourse. B) The French bag. C) The French baguette. D) The Italian borsa. Show Answer Correct Answer: B) The French bag. 10. Which of the following is an example of an indirect tax? A) Property tax. B) Excise tax. C) Corporate income tax. D) Estate tax. Show Answer Correct Answer: B) Excise tax. 11. Which of the following are capital receipts of the Government? A) Recovery of loan. B) Borrowings. C) Disinvestment. D) All of these. Show Answer Correct Answer: D) All of these. 12. The Fiscal Responsibility and Budget Management (FRBM) Act aimed for1. eliminating both revenue deficit and fiscal deficit2. giving flexibility to RBI for inflation management A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: B) 2 only. 13. It is refers to an annual financial statement which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year A) Provincial Budget. B) Local Budget. C) National Budget. D) Private Budget. Show Answer Correct Answer: C) National Budget. 14. The FRBM Act 2003 (as amended) became effective from A) July 5, 2004. B) July 8, 2004. C) July 6, 2004. D) July 7, 2004. Show Answer Correct Answer: A) July 5, 2004. 15. ..... deals with how a government raises revenues to meet its expenditure. A) Personal finance. B) Corporate policy. C) Private policy. D) Public policy. Show Answer Correct Answer: D) Public policy. 16. Which of these is not an objective of public finance? A) Price stability. B) Fair income distribution. C) Compulsory salary payments to citizens of an economy. D) Equity in the allocation of resources. Show Answer Correct Answer: C) Compulsory salary payments to citizens of an economy. 17. Which department-level government agency has the authority to collect sales tax only on commodity products such as liquor, tobacco, and beer? A) Customs Department. B) Comptroller General's Department. C) Revenue Department. D) Excise Department. Show Answer Correct Answer: D) Excise Department. 18. The division of power between a central government and state governments is called A) The United States. B) The Supremacy Clause. C) The Necessary and Proper Clause. D) Federalism. Show Answer Correct Answer: D) Federalism. 19. Trends shown by Public expenditure of any Government shows following trend. A) Fluctuating. B) Increasing. C) Constant. D) Decreasing. Show Answer Correct Answer: B) Increasing. 20. The medieval form which becomes the the model of government bonds later: A) Tithe. B) Juros. C) Assignata. D) Rente. Show Answer Correct Answer: D) Rente. 21. Public debit is formed when: A) A-Public income exceeds public expenditures. B) Both public expenditures and public income decrease. C) Both public expenditures and public income decrease. D) Public expenditures exceeds public income. Show Answer Correct Answer: D) Public expenditures exceeds public income. 22. An integrated group of activities that contribute to a particular continuing objective of a department/agency A) Project. B) Outcome. C) Program. D) Activity. Show Answer Correct Answer: C) Program. 23. Public expenditure is subject to- A) Increasing marginal social sacrifice. B) Diminishing marginal social sacrifice. C) Increasing marginal social Benefit. D) Diminishing marginal social Benefit. Show Answer Correct Answer: D) Diminishing marginal social Benefit. 24. Performance-based budgeting is the allocation of funds based on programmatic results that contribute to organizational goals. A) False. B) True. Show Answer Correct Answer: B) True. 25. PENSION or PENSION in English is: A) Unemployment benefit. B) Social security. C) Student grants. D) Disability allowances. E) Pension. Show Answer Correct Answer: E) Pension. 26. Keynes' equation "Y = C + I + G + (X-M)" means government spending. A) C. B) X. C) G. D) I. Show Answer Correct Answer: C) G. 27. Which of the following is an element of monetary policy? A) Public debt. B) Taxes. C) Interest rates. D) Transfer payments. Show Answer Correct Answer: C) Interest rates. 28. Which government agency is responsible for overseeing the public sector in the Philippines? A) Department of Finance. B) Department of Budget and Management. C) Bureau of Treasury. D) Securities and Exchange Commission. Show Answer Correct Answer: B) Department of Budget and Management. 29. Means companionship and friendship. A) Sociology. B) Society. C) Socious. D) Socialization. Show Answer Correct Answer: C) Socious. 30. It is presently understood as one of the dynamic concepts of the modern age which is influencing social as well as economic policy. It is the state furnishes against the risks which as an individual of small means cannot stand up by himself or even in private combination with his fellows. A) Social Insurance. B) Social protection. C) Social security. D) Social assistance. Show Answer Correct Answer: C) Social security. ← 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