Learntube Finance- Financial Accounting Quiz Competition 12/1/23

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Which of the following agencies is responsible for formulating the Fiscal Policy in India?

• Securities and Exchange Board of India (SEBI)

• Reserve Bank of India (RBI)

• Ministry of Finance, Government of India

• National Bank for Agricultural and Rural Development (NABARD)

Which of the following items is classified as a Capital Receipt in the budget for the Government of India?

• The receipts from the collection of income tax
• The borrowings made by the government from the public
• The dividends and profits received from the public sector units
• The interest receipts for loans given by the government to its debtors

The importance of fiscal policy in a country like India is that ___________.

• It plays a major role in increasing the rate of formation of capital both for public and private sector units
• It aims to reduce the imbalance in the distribution of income and wealth
• It helps to generate sufficient resources, through direct and indirect taxes, to finance the government projects
• All of the above

Which of the following is the definition of a budget deficit?

• Excess of the total expenditure over the total receipts minus interest payments and borrowings
• Excess of the total expenditure over the total receipts minus borrowings
• Excess of the revenue expenditure over the revenue receipts
• Excess of the total expenditure over the total receipts

Which of the following is a development that can occur as a result of deficit financing?

• The rise in inflation within the Indian economy
• The improvement in money supply in the Indian economy
• The increase in government debt
• All of the above

Which of the following steps under the fiscal policy is an example for stabilising the economy?

• Making payments towards unemployment insurance benefits
• Making payments towards pensions for retired military personnel
• Allocating more capital for spending on construction of national highways
• Decreasing the supply of money within the economy

Which of the following is true about the annual budget prepared by the Government of India?

• It is a part of the money-saving policy of the government
• It is a part of the fiscal policy of the government
• It is a part of the monetary policy of the government
• It is a part of the commercial policy of the government