This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) Increasing/decreasing the legal cash reserve rate. B) Increasing/decreasing the policy interest rate. C) Central Bank Securities Trading. D) Changes in the discount rate. Show Answer Correct Answer: B) Increasing/decreasing the policy interest rate. 2. 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. 3. 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. 4. Public Finance Cycle includes all, except A) Formulation of Fiscal Policy. B) Accountability. C) Public Borrowings. D) Public Auction. Show Answer Correct Answer: D) Public Auction. 5. 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. 6. 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) Deflation problem. C) Inflation problem. D) Consumer Price Index Problem. Show Answer Correct Answer: A) Inflation problem. 7. Fiscal deficit is widely used a ..... for macroeconomic effect of the budget in many industrialized countries. A) Inflation indicator. B) Summary indicator. C) Growth indicator. D) Inequality indicator. Show Answer Correct Answer: B) Summary indicator. 8. As per FRBM Act, the central government should reduce revenue deficit to zero by ..... ? A) 2003-04. B) 2008-09. C) 2007-08. D) 2010-11. Show Answer Correct Answer: B) 2008-09. 9. 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. 10. Which of the following is an example of a direct tax? A) Sales tax. B) Excise tax. C) Income tax. D) Value-added tax. Show Answer Correct Answer: C) Income tax. 11. 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. 12. " 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. 13. 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. 14. 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. 15. 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. 16. Which of the following is a potential challenge facing public finance in today's global economy? A) Decreasing government debt. B) Decreasing income inequality. C) The rising cost of healthcare. D) The elimination of taxes. Show Answer Correct Answer: A) Decreasing government debt. 17. ..... is a new technique for the preparation of budget. A) Budget. B) Public Debt. C) Federal Finance. D) Zero Base Budgeting. Show Answer Correct Answer: D) Zero Base Budgeting. 18. The government's activities of mobilizing revenue, incurring expenditure and raising loans are called A) Trade policy. B) Public policy. C) Fiscal policy. D) Monetary policy. Show Answer Correct Answer: C) Fiscal policy. 19. What caused the birth of the first global sovereign bond markets? A) The Hundred Years War. B) Independence of Latin American states. C) The First World War. D) The birth of the USA. Show Answer Correct Answer: B) Independence of Latin American states. 20. What is the role of international financial institutions such as the IMF and World Bank in public finance? A) To regulate government expenditures in developed countries. B) To provide loans to governments in developing countries. C) To regulate interest rates in developed countries. D) To provide tax breaks to multinational corporations. Show Answer Correct Answer: B) To provide loans to governments in developing countries. ← PreviousNext →Related 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 9Public Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books