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1. Expenditure, taxation and loan taking policies of government are called as-
(A) Fiscal Policy
(B) Monetary Policy
(C) Bank Policy
(D) Tax Policy
Ans. (A)

2. Fiscal policy is related to –
(A) Monetary Policy
(B) Banking System
(C) Economic Progress Planning
(D) Receiving and Expenditure of Govt.
Ans. (D)

3. Subsidy by government of India is given to–
(A) Consumer Unit
B) Productive Unit
(C) Banking Unit
(D) Government Employee
Ans. (A)

4. For wh ich fund can the unantic ipated expenditure be met without the prior approval of the parliament?
(A) Consolidated Fund of India
(B) Contingency Fund of India
(C) Vote on Account
(D) From the Treasury
Ans. (B)

5. The Economic Survey of India is published by–
(A) Statistical Department
(C) Ministry of Finance
(D) Department of Economic Affairs
Ans. (C)

6. The Maximum Part of revenue of Indian railway comes from.
(A) Coaches
(B) Transport of goods
(C) Tickets
(D) Other sources
Ans. (B)

7. Disinvestment in Public Sector is called–
(A) Liberalization
(B) Globalization
(C) Industrialization
(D) Privatization
Ans. (D)

8. Which one of the following is a development expenditure?
(A) Irrigation Expenditure
(B) Civil Administration
(C) Debt Services
(D) Grant-in-Aid
Ans. (A)

9. Disinvestements is–
(A) Offloading of shares of privates companies to government
(B) Offloading of government shares to private companies
(C) Increase in investment
(D) Closing down of business concerns
Ans. (B)

10. Which one of the following is not an objective of Fiscal Policy in India?
(A) Full Employment
(B) Price Stability
(C) Equitable distribution of wealth and incomes
(D) Regulation of international trade
Ans. (D)

11. In the budget figures of the Government of India, interest payments, subsidies, pensions, social services and the like are parts of the–
(A) Plan Expenditure
(B) State Government Expend- iture
(C) Public debt in the form of capital expenditure
(D) Non-plan Expenditure
Ans. (D)

12. In the budget figures of the Government of India the difference between total expenditure and total receipts is called–
(A) Fiscal Deficit
(B) Budget Deficit
(C) Revenue Deficit
(D) Current Deficit
Ans. (B)

13. In the budget figures of the Government of India, fiscal deficit is–
(A) Total Expenditure – Total Receipts
(B) Revenue Expenditure – Revenue Receipts
(C) Capital Expenditure – Capital Receipts + Market Borrowings
(D) Sum of budget deficit and government’s market borrowings and liabilities
Ans. (D)

14. The single largest item of expenditure of the Central Government in India in recent years is–
(A) Defence
(B) Subsidies
(C) Interest Payment
(D) General services
Ans. (C)

15. In estimating the budgetary deficit, the official approach in India is to exclude-
(A) Long term borrowing from the market
(B) Borrowings from the reserve Bank of India
(C) Drawing down of the cash balance
(D) Borrowing from reserve Bank in the form of ways and means advance
Ans. (C)
16. Fiscal policy is concerned with-
(A) Public revenue
(B) Public expenditure and debt
(C) Bank rate policy
(D) Both (1) and (2)
Ans. (D)

17. Social accounting system in India is classified into-
(A) Income, product and expenditure
(B) Enterprise households and government
(C) Assets, liabilities and debt position
(D) Public sector, Private sector and Joint sector
Ans. (A)

18. Which of the following is not viewed as national debt?
(A) Life Insurance Policies
(B) Long-term Government Bonds
(C) National Savings Certificates
(D) Provident Fund
Ans. (C)

19. Beyond a certain point deficit financing will certainly lead to-
(A) Inflation
(B) Deflation
(C) Recession
D) Economic stagnation
Ans. (A)

20. In public budgets zero base budgeting was first introduced in-
(B) Uk
(C) France
(D) Sweden
Ans. (A)

21. The sale proceeds of Government Bonds come under the budget head of-
(A) Revenue Receipts
(B) Current Expenditure
(C) Capital Outlay
(D) Capital Receipts
Ans. (D)

22. Which one of the following is not included in current revenue of the Union Government?
(A) Tax revenue

(B) Non-tax revenue
(C) Loans
D) Interest payments
Ans. (C)

23. Which one is not the main objective of fiscal policy in India?
(A) To increase liquidity in the economy
(B) To promote price stability
(C) To minimize the inequalities of income & wealth
(D) To promote employment opportunity
Ans. (A)

24. The industry having the largest investment in Indian Economy is?
(A) Tea
(B) Cement
(C) Steel
D) Jute
Ans. (C)

25. What situation would result if Government expenditure exceeds the Government revenue on Current Account?
(A) Deficit budgeting
(B) Zero-based budgeting
(C) Performance based budgeting
(D) Surplus budgeting
Ans. (A)
26. ‘Capital gains’ refers to goods which-
(A) Serve as a source of raising further capital
(B) Help in the further production of goods
(C) Directly go into the satisfaction of human wants
(D) Find multiple uses
Ans. (B)

27. As per the 2016-17 Budget, the largest source of money to the Government of India is-
(A) Income Tax
(B) Corporation Tax
(C) Non-tax revenues
(D) Borrowings and other liabilities
Ans. (D)

28. The system of Budget was introduced in India during the Viceroyalty of –
(A) Canning
(B) Dalhousie
(C) Ripon
D) Elgin
Ans. (A)

29. Who generally presents the Finance Budget in Indian Parliament?
(A) RBI Governor
(B) Budget Minister
(C) Finance Minister
(D) Finance Secretary
Ans. (C)

30. Which among the following does not count in the development expenditure of government?
(A) Expenditure on economic service
(B) Expenditure on social services
(C) Grant to states
(D) Defence expenditure
Ans. (D)

31. Calculate the economic profit for a firm if it’s total revenues are Rs. 35 crores, explicit costs are Rs. 7 crores, and implicit costs are Rs. 10 crores.
(A) Rs. 32 crores
(B) Rs. 52 crores
(C) Rs. 18 crores
(D) Rs. 38 crores
Ans. (C)

32. Which of following is true if the Government monetized part of its deficit?
(A) Money supply in the economy will increase.
(B) Interest rate will increase.
(C) Government revenue will decrease.
(D) Government expenditure will increase.
Ans. (A)

33. Which sector has the highest number working in India?
(A) Manufacturing
(B) Agriculture
(C) IT
(D) Services
Ans. (B)

34. What is difference of Revenue expenditure and Revenue receipts called as?
(A) Revenue
(B) Total expenditure
(C) Revenue Deficit
(D) Total revenue

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