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question_answer1)
Budget is a statement of actual annual receipts and expenditures of the government.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer2)
Government budget has ...... broad components.
A)
two done
clear
B)
three done
clear
C)
four done
clear
D)
many done
clear
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question_answer3)
Central Budget is presented in India on ............ every year by the Finance Minister.
A)
1st January done
clear
B)
1st February done
clear
C)
1st March done
clear
D)
1st April done
clear
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question_answer4)
Street light is an example of ...... good.
A)
private done
clear
B)
government done
clear
C)
public done
clear
D)
None of these done
clear
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question_answer5)
In India ............type of taxes are generally of no or little significance due to their very low revenue yield to government?
A)
paper taxes done
clear
B)
specific taxes done
clear
C)
regressive taxes done
clear
D)
indirect taxes done
clear
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question_answer6)
Economic stability and equitable distribution of income and wealth can be achieved by the budgetary policy of the government.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer7)
Production of goods which are socially harmful are discouraged by......... .
A)
reducing subsidy done
clear
B)
imposing taxes done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer8)
...... is not an example of non-tax revenue from below.
A)
Fees done
clear
B)
Panelties done
clear
C)
Excise duty done
clear
D)
Both [a] and [b] done
clear
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question_answer9)
Surplus budget is when actual receipts exceeds estimated expenditures.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer10)
Developing countries generally prepares a balanced budget.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer11)
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | | Column II |
A. | Gift Tax | (i) | Regressive tax |
B. | Goods and Services Tax | (ii) | Direct tax |
C. | Income Tax | (iii) | Paper tax |
Codes
A)
A-(ii) B-(i) C-(iii) done
clear
B)
A-(iii) B-(i) C-(ii) done
clear
C)
A-(ii) B-(iii) C-(i) done
clear
D)
A-(i) B-(iii) C-(ii) done
clear
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question_answer12)
Write the correct pair.
| Column I | | Column II |
A. | Progressive Tax | (i) | Tax rate rises with rise in income |
B. | Regressive Tax | (ii) | It causes more burden on the Rich |
C. | Proportional Tax | (iii) | Rate of taxation is constantly changing |
D. | Indirect Tax | (iv) | Burden of tax cannot be shifted |
Codes
A)
A - (i) done
clear
B)
B - (ii) done
clear
C)
C - (iii) done
clear
D)
D - (iv) done
clear
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question_answer13)
Which of the following is not an objective of government budget?
A)
Reducing inequality of income and wealth done
clear
B)
Reallocation of resources done
clear
C)
Economic growth done
clear
D)
Full employment done
clear
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question_answer14)
Recently the union government introduced Ujjawala Yojna, which provides free LPG commission to the women in rural area. Which of the following objective of government budget is fulfilled in this case?
A)
Reducing inequality of income and wealth done
clear
B)
Reallocation of resources done
clear
C)
Economic growth done
clear
D)
None of the above done
clear
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question_answer15)
In 2017 government of India brought an important reform in the tax system of the country by introducing GST. |
Which of the following type of tax is GST? |
A)
Direct Tax done
clear
B)
Indirect Tax done
clear
C)
Gift Tax done
clear
D)
Both [a] and [c] done
clear
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question_answer16)
SEZ are created by the government to achieve the objective of -
A)
Balanced regional development done
clear
B)
Reallocation of resources done
clear
C)
Economic stability done
clear
D)
Redistribution of income done
clear
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question_answer17)
Identify the tax whose burden can be shifted
A)
GST done
clear
B)
Sales tax done
clear
C)
VAT done
clear
D)
All of the above done
clear
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question_answer18)
Defence expenditures are examples of
A)
revenue expenditure done
clear
B)
capital expenditure done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer19)
Rahul dies without a legal heir. His property stands transferred to the government. The income under this head will be referred to as 'Special assessment'.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer20)
Dis-investment in a capital receipt.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer21)
Why gift tax is considered as a paper tax?
A)
It is an indirect tax done
clear
B)
It yields very low revenue done
clear
C)
It is a direct tax done
clear
D)
Both [b] and [c] done
clear
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question_answer22)
There are two types of deficit in a government budget.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer23)
Write the correct pair.
| Column I | | Column II |
A. | Dividend received from public enterprises | (i) | Revenue expenditure |
B. | Grants from foreign government | (ii) | Capital expenditure |
C. | Sale of public sector undertakings | (iii) | Capital receipt |
D. | Expenditure on purchasing computer | (iv) | Revenue receipt |
Codes
A)
A - (i) done
clear
B)
B - (ii) done
clear
C)
C - (iii) done
clear
D)
D - (iv) done
clear
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question_answer24)
Write the correct sequence of options in Column II by matching them with options of Column I.
| Column I | | Column II |
A. | Recovery of loans | (i) | Capital receipt |
B. | Payment of interest | (ii) | Revenue receipt |
C. | Collection of tax | (iii) | Capital expenditure |
D. | Repayment of loans | (iv) | Revenue expenditure |
Codes
A)
A-(i) B-(ii) C-(iii) D-(iv) done
clear
B)
A-(ii) B-(iii) C-(iv) D-(i) done
clear
C)
A-(iii) B-(iv) C-(ii) D-(i) done
clear
D)
A-(i) B-(iv) C-(ii) D-(iii) done
clear
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question_answer25)
The formula to calculate primary deficit is ............
A)
Equal to borrowings done
clear
B)
Borrowings - Interest Payments done
clear
C)
Borrowings + Interest Payments done
clear
D)
Interest Payment-Borrowings done
clear
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question_answer26)
Government budget is an important monetary policy instrument.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer27)
Expenditure on relief of earthquake victims is
A)
plan expenditure done
clear
B)
non-plan expenditure done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer28)
Expenditure on maintenance of hospital by government already constructed sometime ago is a part of
A)
plan expenditure done
clear
B)
non-plan expenditure done
clear
C)
can't be determined done
clear
D)
None of the above done
clear
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question_answer29)
Choose the incorrect statement from given below
A)
Government budget is an annual statement of income and expenditure of government for current fiscal year. done
clear
B)
Budget is prepared by all levels of government. done
clear
C)
Government, through its budget tries to minimise income inequalities done
clear
D)
Fiscal policy of government includes tax and expenditure policy of the government. done
clear
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question_answer30)
The estimated income receipts of the government in the budget of 2019-20 is Rs. 25,000 crore and its estimated expenditure is Rs. 27,500 crore. The budget of the government is
A)
balanced done
clear
B)
deficit done
clear
C)
surplus done
clear
D)
None of these done
clear
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question_answer31)
Dis-investment by the government refers to
A)
selling of fixed capital assets by government done
clear
B)
selling of share of PSUs done
clear
C)
selling of plants of government done
clear
D)
selling of buildings and shares of government done
clear
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question_answer32)
Loans to state government are a part of
A)
Revenue receipts done
clear
B)
Capital receipts done
clear
C)
Capital expenditure done
clear
D)
Plan revenue expenditure done
clear
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question_answer33)
Identify revenue expenditure from the given below
A)
Purchase of shares of PSUs done
clear
B)
Loan and advancement done
clear
C)
Subsidies given to the public done
clear
D)
Expenditure on acquisition of land done
clear
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question_answer34)
Which of the following is not a tool of fiscal instrument of the government?
A)
Taxes done
clear
B)
Subsidies done
clear
C)
Deficit financing done
clear
D)
Margin requirement done
clear
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question_answer35)
During the second outbreak of covid-19 in the country, India received medical equipment from many countries. This is an example of
A)
Capital receipt done
clear
B)
Revenue receipt done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer36)
As an agreement with WHO conventions, India distributed free covid-19 vaccines to many third world countries. Which of the following type of expenditure is this?
A)
Revenue expenditure done
clear
B)
Capital expenditure done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer37)
Which of the following is/are type(s) of capital receipts?
A)
Dis-investment done
clear
B)
Recovery of loan done
clear
C)
Borrowings done
clear
D)
All of these done
clear
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question_answer38)
In a situation of Hyper-inflation, the government should adopt for
A)
Balanced budget done
clear
B)
Deficit budget done
clear
C)
Capital budget done
clear
D)
Surplus budget done
clear
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question_answer39)
......... deficit includes interest payment by the government on the past loans.
A)
Revenue done
clear
B)
Capital done
clear
C)
Both [a] and [b] done
clear
D)
Neither [a] nor [b] done
clear
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question_answer40)
Revenue deficit is always equal to
A)
dis-investment done
clear
B)
borrowings done
clear
C)
primary deficit done
clear
D)
None of these done
clear
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question_answer41)
Primary deficit in a government budget will be zero, when ..........
A)
revenue deficit is zero done
clear
B)
net interest payments are zero done
clear
C)
fiscal deficit is zero done
clear
D)
fiscal deficit is equal to interest payment done
clear
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question_answer42)
Fiscal deficit and borrowings are one or the same thing.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Incomplete statement done
clear
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question_answer43)
Budget deficit is equal to total expenditure minus total receipts.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer44)
Primary deficit includes interest payment on previous borrowings.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't say done
clear
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question_answer45)
Write the correct pair.
| Column I | | Column II |
A. | Revenue Deficit | (i) | Revenue expenditure- Revenue receipts |
B. | Fiscal Deficit | (ii) | Total expenditure -Total receipts other than borrowings + Capital receipts other than borrowings |
C. | Primary Deficit | (iii) | Total deficit-Interest payments |
Codes
A)
A-(i) done
clear
B)
B-(ii) done
clear
C)
C-(iii) done
clear
D)
None of these done
clear
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question_answer46)
Write the correct pair.
| Column I | | Column II |
A. | Revenue Budget | (i) | It is an account of assets and liabilities of the government |
B. | Capital Budget | (ii) | It shows the current receipts and expenditure of the government |
C. | Deficit Budget | (iii) | It is a budget in which expenditure exceeds the revenues of the government |
D. | Balanced Budget | (iv) | It is a budget in which capital receipts are equal to capital expenditure |
Codes
A)
A - (i) done
clear
B)
B - (ii) done
clear
C)
C - (iii) done
clear
D)
D - (iv) done
clear
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question_answer47)
Which of the following measures of meeting deficit in budget, leads to an increase in money supply in the economy?
A)
Dis-investment done
clear
B)
Loan from World Bank done
clear
C)
Deficit financing done
clear
D)
All of the above done
clear
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question_answer48)
Choose the correct statement from given below about demonetisation announced on 8th November, 2016.
A)
Government removed legal tender status of the existing currency notes. done
clear
B)
Central government made existing currency notes a limited legal tender. done
clear
C)
It reduced the purchasing power of existing currency notes done
clear
D)
All of the above done
clear
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question_answer49)
Choose the correct option from given below
A)
Non-tax revenues of the government are non-recurring in nature. done
clear
B)
Borrowings from rest of the world are revenue receipts. done
clear
C)
During inflationary gap, government prepares deficit budget. done
clear
D)
Recovery of loans from rest of the world is revenue receipt. done
clear
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question_answer50)
Choose the correct statement from given below
A)
Budget deficit is equal to fiscal deficit if interest payments are zero. done
clear
B)
Zero primary deficit represent a fiscal discipline. done
clear
C)
Fiscal deficit is equal to the borrowing requirement of government. done
clear
D)
Revenue deficit is need not to be inflationary. done
clear
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question_answer51)
If borrowings and other liabilities are reduced to the budget deficit, we get
A)
fiscal deficit done
clear
B)
primary deficit done
clear
C)
capital deficit done
clear
D)
revenue deficit done
clear
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question_answer52)
If total expenditure is Rs. 2,000 and total receipts is Rs. 1,500. Fiscal deficit will be equal to
A)
Rs. 2,000 done
clear
B)
Rs. 1,500 done
clear
C)
Rs. 500 done
clear
D)
Can the determined done
clear
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question_answer53)
If primary deficit is Rs. 3,000 and interest payment is Rs. 500, the fiscal deficit is
A)
Rs. 3,500 done
clear
B)
Rs. 4,000 done
clear
C)
Rs. 4,100 done
clear
D)
Rs. 4,200 done
clear
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question_answer54)
In a government budget, if revenue receipts are Rs. 100, capital receipts are Rs. 50 and revenue deficit is Rs. 25, how much is the revenue expenditure?
A)
Rs. 100 done
clear
B)
Rs. 125 done
clear
C)
Rs. 50 done
clear
D)
Rs. 75 done
clear
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question_answer55)
In a government budget, non-debt creating capital receipts is Rs. 200, revenue receipts are Rs. 1,500, borrowings are Rs. 150 while capital receipts and revenue receipts are respectively Rs. 250 and Rs. 300. What will be the fiscal deficit in this case?
A)
Rs. 150 done
clear
B)
Rs. 300 done
clear
C)
Rs. 500 done
clear
D)
Cant be determined done
clear
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question_answer56)
If the government establishes a new university, this expenditure incurred in the government budget will be a type of...... expenditure.
A)
revenue done
clear
B)
capital done
clear
C)
non-planned done
clear
D)
None of these. done
clear
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question_answer57)
......... deficit includes interest payment by the government on the past loans. (CBSE 2020, Modified)
A)
Revenue deficit done
clear
B)
Fiscal deficit done
clear
C)
Primary deficit done
clear
D)
Both [a] and [b] done
clear
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