This quiz works best with JavaScript enabled. Home > Public Finance > Public Finance – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The loan obtained from citizens of the country, banks, financial institutions and industries is calleda) External debtb) Foreign debtc) Internal debtd) None of the aboveAnswer:c) Internal debt A) External debt. B) Foreign debt. C) Internal debt. D) None of the above. Show Answer Correct Answer: C) Internal debt. 2. Which statement is wrong? A) Fees is the reward collected for the government'sservices. B) Fines and penalties are punishments for violating thelaws. C) Grants are the financial aid provided by onegovernment or organisations for meeting a specificobjective. D) Individual receive interest for loans given tovarious enterprises, agencies and countries. Show Answer Correct Answer: D) Individual receive interest for loans given tovarious enterprises, agencies and countries. 3. 1-The roles of government are ..... A) *to correct market failure. B) Solving economic problems. C) *to raise funds and provide basic public goods. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. This concept indicates that money increases in value with the passing of time. A) MAXIMIZING NET PRESENT WORTH. B) TIME VALUE OF MONEY. Show Answer Correct Answer: B) TIME VALUE OF MONEY. 5. The vast majority of trust fund revenues pay for? A) Food and Agriculture. B) Social Security and Medicare. C) Education. D) Energy and Environment. Show Answer Correct Answer: B) Social Security and Medicare. 6. Which of the following types of income is exempt from tax? A) Salary. B) Interest earned on deposit from the bank. C) Dividends received from capital contribution to purchase shares. D) Income from operating activities. Show Answer Correct Answer: B) Interest earned on deposit from the bank. 7. Decreasing tax on locally made goods is a way of A) Increasing consumption of foreign goods. B) Increasing the cost of local goods. C) Encouraging local consumption. D) None of the above. Show Answer Correct Answer: C) Encouraging local consumption. 8. ..... is any lawful economic activity concerned with the production and/or distribution of goods or services for profit. A) BUSINESS. B) FINANCE. Show Answer Correct Answer: A) BUSINESS. 9. Which word of the following description most closely matches? "Government policy including government revenue public expenditure and public debt that must be processed to achieve economic goals." A) Monetary Policy. B) Tax Policy. C) Economic Policy. D) Fiscal Policy. Show Answer Correct Answer: D) Fiscal Policy. 10. The benefits received principle dictates that taxes ..... A) Should be spread throughout all citizens. B) Should support those who pay them. C) Be as small as possible. D) None of above. Show Answer Correct Answer: B) Should support those who pay them. 11. Aggregate collection of income with the government through various sources. A) Public expenditure. B) Public revenue. C) Public cost. D) None of above. Show Answer Correct Answer: B) Public revenue. 12. The government's decision based on the power of supply meets which of the following indicators? A) Production decisions. B) Control of factors of production. C) Product pricing. D) Distribution decisions. Show Answer Correct Answer: A) Production decisions. 13. The Obligatory function of the Government: A) Provision of employment. B) Maintaining internal law and order. C) Exporting goods and services. D) Welfare measures. Show Answer Correct Answer: B) Maintaining internal law and order. 14. Obligatory function is the only function of the government. A) Agree. B) Disagree. Show Answer Correct Answer: B) Disagree. 15. 4-monetary policy means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. A) True. B) False. Show Answer Correct Answer: B) False. 16. Expansionary fiscal policies lead to ..... spending. A) Deficit. B) Debt. C) Bad. D) Decreased. Show Answer Correct Answer: A) Deficit. 17. G.S.T is a comprehensive ..... tax on manufacture A) Indirect tax. B) Direct tax. C) Consumer tax. D) State tax. Show Answer Correct Answer: A) Indirect tax. 18. I'm short of money, can you ..... me some? A) Lend. B) Borrow. Show Answer Correct Answer: A) Lend. 19. Money owed, usually as a result of borrowing. A) Dept. B) Expense. C) Income. D) Interest. Show Answer Correct Answer: A) Dept. 20. If burden of the tax is not transferable to consumer it is known as A) Direct tax. B) Tax revenue. C) State tax. D) Indirect tax. Show Answer Correct Answer: A) Direct tax. ← 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