GOVERNMENT BUDGET AND THE ECONOMY
MULTIPLE CHOICE QUESTIONS MCQ's
1. Essential shortfall in an administration spending plan will be zero, when.
(A) Revenue deficiency is zero
(B) Net interest installment is zero
(C) Fiscal deficiency is zero
(D) Fiscal deficiency is equivalent to intrigue installment.
Ans. (D) Fiscal deficiency is equivalent to intrigue installment.
2. Which one of coming up next is certifiably not a capital consumption?
(A) Loans progressed by World Bank
(B) Construction of school building
(C)Repayment of credits
(D) Tax receipts.
Ans. (D) Tax receipts.
3. Disinvestment by government implies
(A) Selling of its decent capital resources
(B) Selling of portions of Public undertakings held by it
(C) Selling of its structure
(D) All of above.
Ans. (D) All of above.
4. Essential Deficit approaches:
(A) Borrowings
(B) Interest installments
(C) Borrowing less interest installments
(D) Borrowing and Interest installments both
Ans. (C) Borrowing less interest installments
5. 'Appropriation got from World Bank' is a receipt of _________________
(A) Revenue nature
(B) Capital nature
(C) Development charges
(D) None of these.
Ans. (A) Revenue nature
6. What is the idea of annual expense in India?
(A) Regressive
(B) Proportional
(C) Progressive
(D) None of these.
Ans.(C) Progressive
7. 'Recuperation of credits' is a receipt of which of the accompanying nature ___________________
(A) Revenue
(B) Capital
(C) Either of the two
(D) Neither of two.
Ans. (B) Capital
8. Which of following is a non-charge income receipt?
(A) GST
(B) Export obligation
(C) Development charges
(D) Corporate assessment.
Ans. (C) Development charges
CASE STUDY:1 Read the accompanying article and answer the inquiries given underneath India has downsized use, remembering for useful resources that help financial development, as the public authority is faced with the danger of its spending plan shortfall extinguishing. Capital consumption – the Money spent on making, keeping up with, or further developing fixed resources like streets and production lines remained at 40% of the planned sum in the a half year to September, down from 55.5% in the year-prior Period, information from the public authority's Controller General of Accounts show. The general spending during the period was 49% of the financial plan point contrasted with 53% last year. That is in spite of PM Narendra Modï's administration laying out measures worth in excess of 21 trillion rupees ($ 281 billion) to counter the monetary and social aftermath of the Covid-19 episode. A more intensive glance at the numbers show the heft of the spending was coordinated toward poor people and the ranchers, with vital areas like coal, force, delivery and steel getting not exactly 33% of their yearly financial plan assignment. Spending on capital resources has so far followed the supposed income use that incorporates revenue installments and overheads like compensations, the information delivered last week showed. Modi's administration put spending controls on certain services from April through December to deal with its income.
9. A decrease in capital use i.e., the cash spent on making keeping up with or further developing fixed resources is done to lessen the danger of _________deficit (income/spending plan). (Pick the right other option)
Ans. spending plan
10. Distribution of assets in the spending plan in the a half year to September 2020 is coordinated towards _____________
(a) financial upliftment of the economy
(b) social upliftment of the economy
(c)the poor and the ranchers
(d) All of these
Ans. (d) All of these
11. Capital use alludes to the assessed use of the public authority in a monetary year which ____________ (decreases/expands) liabilities of the public authority.
Ans. decreases
12. Distinguish which of the accompanying assertions is bogus:
a) The public authority can fund its monetary deficiency through borrowings, disinvestment and shortfall financing
b) Fiscal shortage rises to borrowings
c) Recovery of credits is an income receipt
d) Interest on advances is a non-charge income receipt
Ans: c) Recovery of credits is an income receipt
ASSERTION AND REASONING QUESTIONS
11. Assertion: Dividends on Investments made by government is income receipt, Reason: Capital receipt adds to the resources of the public authorityRead the accompanying assertions Assertion (A) and Reason (R) .Choose one of the right
elective given underneath:
1. Assertion: The public authority utilizes monetary instruments to work on the dispersion of pay
Reason: Lower assessments can be forced on rich individuals and higher duties can be forced on poor
individuals.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: C
2. Assertion: Equitable dissemination of pay is an approach to civil rights
Reason: Monetary arrangement utilizes the instruments of charges and sponsorship to build up fair
Dispersion
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: C
3. Assertion: Budget is utilized as an instrument to battle flattening and swelling
Reason: Budget assumes an indispensable part in setting up monetary security
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus however R is valid.
Ans.: A
4. Assertion: Budget is utilized as an instrument a financial steadiness
Reason : Budget controls the degree of total interest
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: C
5. Assertion : Government drive to build the degree of total of interest by expanding cash supply in the economy Reason : Government increment the tax assessment and diminished the public consumption during the pandemic
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: C
6. Assertion: International costs of raw petroleum are persistently falling Reason : India finances homegrown buyers of oil based commodities
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus however R is valid.
Ans: A
7. Affirmation: Continuation of Coronavirus - 19 pandemic will influence association spending plan, Reason: The Revenue use of government increments
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: B
8. Assertion: during the time spent turn of events , development of dams ,new schools new plants,
also, reimbursement of advances is fundamental, Reason: Capital consumption makes the resources of the public authority and causes decrease in the liabilities of the public authority
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: A
9. Assertion: High Fiscal shortfall tosses a country into the obligation trap and upgrades unfamiliar reliance. Reason: Fiscal discipline of any nation builds up the believability of nation's financial soundness.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: A
10. Assertion: Budget is introduced each year in lok sabha by finance priest of India, Reason: Monetary approach of India is arranged each quarter by the RBI
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: B
11. Assertion: Dividends on Investments made by government is revenue receipt
Reason: Capital receipt adds to the assets of the government
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: A
12. Assertion: Taxes changes helped Indian economy to meet the monetary objective. Reason: The public authority designs a huge cut in its consumption and focusing on better expense Consistence.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus however R is valid.
Ans: A
13. Assertion: Borrowing from the remainder of the world is a capital receipt, Reason: Revenue receipt either makes responsibility or diminishes the resources
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus yet R is valid.
Ans: C
14. Assertion: Fines and punishments are a wellspring of nontax income for the public authority, Reason: A fine of Rs 500 was forced on not wearing a cover.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus however R is valid.
Ans: A
15. Assertion: Highway and street works are reported in Kerala ,Tamilnadu and West Bengal in financial plan 2021. Reason: Such declaration will build the income use of the government
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus however R is valid.
Ans: C
16. Assertion: Income charge is extraordinary wellspring of the income of the public authority, Reason: Income charge is an immediate duty and the weight can be moved.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus however R is valid.
Ans: C
17. Assertion: Fiscal shortfall shows a superior situation of the public authority use in Correlation with spending plan shortage, Reason: Fiscal shortfall implies borrowings of the public authority.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid however R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus however R is valid.
Ans: A
18. Assertion: Strategic offer of Air India and IDBI to be finished in the financial year Reason: Strategic deal prompts loss of Revenue to the public authority.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: C
19. Assertion: The Government might get from RBI against its protections to meet the financial shortage Reason: Borrowing from public is superior to deficiency financing since it doesn't expand the cash supply.
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid yet R is bogus.
D.) An is bogus yet R is valid.
Ans: A
20. Assertion: Fiscal shortage might rise yet essential shortfall could conceivably rise Reason: No connection between financial shortage and essential deficiency
A.) Both An and R are valid and R is the right clarification of A.
B.) Both An and R are valid yet R isn't the right clarification of A.
C.) An is valid however R is bogus.
D.) An is bogus however R is valid.
Ans: C
0 Comments