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Government budget

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following are objectives of budget?

a)

Reallocation of resources

b)

Redistribution of income

c)

Economic stability

d)

All of these

2.

Which of the following is not non tax revenue receipts of government?

a)

Excise duty

b)

Escheat

c)

Special assessment

d)

Fees and fines

3.

Recovery of loan is:

a)

Revenue receipt

b)

Capital receipt

c)

Revenue expenditure

d)

Capital expenditure

4.

Payment of loan is:

a)

Revenue expenditure

b)

Capital expenditure

c)

Revenue receipts

d)

Capital receipts

5.

When incidence and burden of tax falls on different persons that type of tax is called:

a)

Direct tax

b)

Indirect tax

c)

Regressive tax

d)

None of these

6.

Fiscal deficit is equal to

a)

Direct tax

b)

Interest

c)

Borrowings

d)

All of these

7.

Primary deficit=fiscal deficit_

a)

Loan

b)

Interest payments

c)

Borrowings

d)

None of these

8.

When budget receipts are greater than budget expenditure such type of budget is called:

a)

Balanced budget

b)

Deficit budget

c)

Surplus budget

d)

None of these

9.

Construction of school building is:

a)

Capital expenditure

b)

Revenue receipts

c)

Revenue expenditure

d)

Capital receipts

10.

When revenue expenditure is greater than revenue receipts it is called

a)

Fiscal deficit

b)

Primary deficit

c)

Revenue deficit

d)

None of these

11.

Which bank has sole right of issuing notes

a)

ADB

b)

SBI

c)

RBI

d)

UBI

12.

When money value is equal to commodity value it is called

a)

Fiat money

b)

Credit money

c)

Fiduciary money

d)

Full bodied money

13.

Money supply is

a)

Currency with public

b)

Demand deposits

c)

Other deposits

d)

All of these

14.

Money multiplier is equal to

a)

LRR

b)

CRR

c)

1/LRR

d)

None of these

15.

when any commercial bank is unable to meet financial obligation then it approaches Central Bank for financial accommodation this function of Central Bank is called

a)

Banker of bank

b)

Lander of last resort

c)

Bank of Government

d)

Controller of credit

16.

If LRR is .25, what will be money multiplier

a)

4

b)

1

c)

5

d)

2

17.

If exports are to be increased then the currency of a country should be

a)

Appreciated

b)

No change

c)

Depreciated

d)

Appreciated or depreciated

18.

Previously one dollar was equal to 69 rupees, now the value of one dollar is equal to 85 rupees. What happens to value of rupee

a)

Depreciated

b)

Appreciated

c)

Remained same

d)

None of the above

19.

What is is the deliberate attempt by RBI to keep foreign exchange rate in a desired limit is called

a)

Depreciation of currency

b)

Appreciation of currency

c)

Adjustable peg

d)

Managed float

20.

Which of the following is not the source of supply of foreign exchange

a)

Exports

b)

Investment by foreign countries

c)

Imports

d)

Remittances from abroad