(QUIZ) Economy MCQs : Fiscal System



(QUIZ) Economy MCQs : Fiscal System



1. Consider the following statements.

  1. A depression is an economic down turn that is less severe.
  2. A recession is any economic down turn where real GDP declines by more than 10 percent.

Which of the above statements is / are true.

  1. Both 1 & 2
  2. 1 only
  3. Neither 1 nor 2
  4. 2 only

2. Consider the following statements.

  1. Difference between fiscal deficit & the interest payments are called primary deficit.
  2. Revenue deficit is the difference between the Revenue receipts on tax & non tax sides & the revenue expenditure.

Which of the above statements is / are true.

  1. Both 1 & 2
  2. 2 only
  3. 1 only
  4. Neither 1 nor 2

3. Consider the following statements.

  1. Difference between what the government earns & its total expenditure is called Budget deficit.
  2. Peter O Pier is known as the father of Zero Based Budget.
  3. Borrowings made from the RBI through printing fresh currency is called monetised deficit.

Which of the above statements is / are true.

  1. 1, 2, & 3
  2. 2 & 3 only
  3. 1 & 2 only
  4. 3 only

4. Consider the following statements.

  1. Revenue account expenditure essentially the non-plan expenditure that does not create assets.
  2. Capital account receipts are recoveries of loans made by the union government to states, UTs & PSUs fresh borrowings from inside the country & from abroad.

Which of the above statements is / are true.

  1. 1 only
  2. 2 only
  3. Neither 1 nor 2
  4. Both 1 & 2

5. Consider the following statements.

  1. The money printed by the RBI is called high powered money or reserve money.
  2. Australia was the first country to enact a fiscal responsibility Act in 1994.
  3. FRBM Act (India) was notified in 2004.
  4. Fiscal deficits may causes macro economic instability.

Which of the above statements is / are true.

  1. 1 & 2 only
  2. 2, 3, 4 only
  3. 1, 3 & 4 only
  4. 1, 2, 3 & 4
     

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