This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The government manages public finance through A) Fiscal finance. B) Trade finance. C) Public finance. D) Monetary policy. Show Answer Correct Answer: A) Fiscal finance. 2. Which of these is not an example of recurrent expenditure? A) Salaries. B) Maintenance of railways. C) Wages. D) Bridge construction. Show Answer Correct Answer: D) Bridge construction. 3. It is the process that requires clearly defined city priorities and goals, an understanding of performance measurement, and dedicated staff and city resources. A) Implementing performance-based budgeting. B) Budgeting. Show Answer Correct Answer: A) Implementing performance-based budgeting. 4. To take money out of the bank to use A) Withdrawal. B) Spending. C) Deposit. D) Cost. Show Answer Correct Answer: A) Withdrawal. 5. Which is not a benefit from the strong baht? A) Importers reduce the cost of importing products because the prices of foreign products are lower. B) People can buy goods and services from abroad more cheaply. C) Investors can import capital goods more cheaply, such as machinery and various equipment. D) People working abroad Bring income in foreign currency to exchange for more baht. Show Answer Correct Answer: D) People working abroad Bring income in foreign currency to exchange for more baht. 6. Surcharge taxes correspond to which of the following? A) Income shared by the government. B) Local income collected by itself. C) Tax revenue collected by the government. D) Special subsidy. Show Answer Correct Answer: C) Tax revenue collected by the government. 7. MV = PQ corresponds to which of the following names? A) Equation of market. B) Equation of price. C) Equation of money supply. D) Equation of exchange. Show Answer Correct Answer: D) Equation of exchange. 8. Monetary Policy is a regulatory policy by which the ..... or monetary authority of a country controls the supply of money, availability of bank credit and cost of money that is the rate of interest: A) Central Bank (RBI). B) SBI. C) IBA. D) None of These. Show Answer Correct Answer: A) Central Bank (RBI). 9. The federal debt is the sum of the debt held by the public plus ..... A) The debt held by Federal Reserve. B) The debt held by domestic investors. C) The debt held by federal accounts. D) The debt held by foreign investors. Show Answer Correct Answer: C) The debt held by federal accounts. 10. Budget for internet quota subsidies for students and teachers/lecturers A) IDR 7.2 trillion. B) IDR 72 trillion. C) IDR 2.7 trillion. D) IDR 27 trillion. Show Answer Correct Answer: A) IDR 7.2 trillion. 11. Which of the following is an example of a government-owned corporation in the Philippines? A) Ayala Corporation. B) PhilHealth. C) SM Investments. D) San Miguel Corporation Corporation. Show Answer Correct Answer: B) PhilHealth. 12. The relation between debtor and creditor A) Maturity. B) Consoles. C) Obligation. D) Floating debt. Show Answer Correct Answer: C) Obligation. 13. Ability to pay (taxes) principle ..... A) People are motivated to pay taxes when they perceive that the money they pay to government is actually being used. B) It is a fair way to levy taxes since it does not result in one person receiving benefits at the expense of other person. C) Both are correct. D) Neither are correct. Show Answer Correct Answer: C) Both are correct. 14. What is deficit financing? A) Current revenue excess government expenditure. B) Government expenditure excess of its current revenue. Show Answer Correct Answer: B) Government expenditure excess of its current revenue. 15. In an economy, total income must equal total spending. A) True. B) False. Show Answer Correct Answer: A) True. 16. Which of the following descriptions is most accurate? "The interest rate that the central bank charges commercial banks. The central bank acts as the banker of commercial banks. In addition to accepting deposits of commercial banks, The central bank also acts as a lender of last resort to commercial banks." A) Central Bank Securities Trading. B) Increasing/decreasing the policy interest rate. C) Increasing/decreasing the legal cash reserve rate. D) Changes in the discount rate. Show Answer Correct Answer: B) Increasing/decreasing the policy interest rate. 17. Which of the following is an example of local public finance? A) Funding for national defense. B) Building a new airport. C) Developing a national healthcare system. D) None of the above. Show Answer Correct Answer: B) Building a new airport. 18. Refer to all cash inflows of the national government treasury which are collected to support government expenditures but do not increase the liability of the national government. A) Expenditures. B) Consumption. C) Revenues. D) Grants and Donations. Show Answer Correct Answer: C) Revenues. 19. Public Finance Cycle includes all, except A) Formulation of Fiscal Policy. B) Public Auction. C) Accountability. D) Public Borrowings. Show Answer Correct Answer: B) Public Auction. 20. A bucket of flour is being used in making bread. Which aspect of utility is represented in this activity? A) Time. B) Place. C) Form. D) None of the above. Show Answer Correct Answer: C) Form. 21. What is the problem with the following example? "The price of gas used to be 14 baht per liter. Suppose Mr. A used to fill up 10 liters of gas, he would spend 140 baht. But now the price of oil has become 30 baht per liter. If Mr. A used the same amount of money, 140 baht, he would be able to fill up only 14 baht per liter. 4.66 liters, not 10 liters. If he wants to fill up the same 10 liters of gas, Mr. A must spend an additional 300 baht." A) Inflation problem. B) Consumer Price Index Problem. C) Inflation problem. D) Deflation problem. Show Answer Correct Answer: A) Inflation problem. 22. Fiscal deficit is widely used a ..... for macroeconomic effect of the budget in many industrialized countries. A) Inflation indicator. B) Inequality indicator. C) Growth indicator. D) Summary indicator. Show Answer Correct Answer: D) Summary indicator. 23. As per FRBM Act, the central government should reduce revenue deficit to zero by ..... ? A) 2010-11. B) 2007-08. C) 2008-09. D) 2003-04. Show Answer Correct Answer: C) 2008-09. 24. Who pays personal income tax ..... A) Single person. B) Married person. C) All of the choice. D) Divorced person. Show Answer Correct Answer: C) All of the choice. 25. Which of the following is an example of a direct tax? A) Income tax. B) Excise tax. C) Value-added tax. D) Sales tax. Show Answer Correct Answer: A) Income tax. 26. Which item is consistent with the word state mechanism? A) Visible hand. B) Competition mechanism. C) Adam Smith. D) Invisible hand. Show Answer Correct Answer: A) Visible hand. 27. " True or False" Public debt is the total amount, including total liabilities, borrowed by the government to meet its development budget A) True. B) False. Show Answer Correct Answer: A) True. 28. The products purchased directly absorb (require use of) resources and are part of the domestic output. For example, the purchase of a missile absorbs the labor of physicists and engineers along with steel, explosives, and a host of other inputs. A) Nonexhaustive. B) Exhaustive. C) Both are correct. D) Neither is correct. Show Answer Correct Answer: B) Exhaustive. 29. Budget for MSME credit stimulus A) IDR 51.34 trillion. B) IDR 43.51 trillion. C) IDR 15.34 trillion. D) IDR 34.15 trillion. Show Answer Correct Answer: D) IDR 34.15 trillion. 30. What does a government need to do to maintain a balanced budget? A) Allow automatic stabilisers to work. B) Keep tax rates and benefit rates unchanged. C) Raise taxes in a slump and lower taxes in a boom. D) Aim to keep output close to the full employment level. Show Answer Correct Answer: C) Raise taxes in a slump and lower taxes in a boom. ← PreviousNext →Related QuizzesFinance QuizzesPublic Finance Quiz 1Public Finance Quiz 2Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 8Public Finance Quiz 9Public Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books