Types of Deficits and Fiscal Indicators CDS Questions

Types of Deficits and Fiscal Indicators MCQ Questions

13.
What is the main component of capital receipts?
A.
Taxes
B.
Borrowings
C.
Grants
D.
Subsidies
ANSWER :
B. Borrowings
14.
The difference between Gross Fiscal Deficit and Net Fiscal Deficit is:
A.
External borrowings
B.
Total revenue
C.
Disinvestment proceeds
D.
Interest payments
ANSWER :
C. Disinvestment proceeds
15.
Which of the following is a fiscal indicator used to compare government debt across countries?
A.
GDP growth rate
B.
Fiscal deficit as a percentage of GDP
C.
Revenue surplus
D.
Tax-to-GDP ratio
ANSWER :
B. Fiscal deficit as a percentage of GDP
16.
Which of these deficits reflects actual borrowings for financing developmental and non-developmental activities?
A.
Effective Revenue Deficit
B.
Primary Deficit
C.
Budget Deficit
D.
Fiscal Deficit
ANSWER :
D. Fiscal Deficit
17.
Revenue receipts include:
A.
Dividends and profits
B.
Sale of government assets
C.
Loans
D.
Public borrowings
ANSWER :
A. Dividends and profits
18.
Primary Deficit is positive when:
A.
Government has no debt.
B.
Interest payments are higher than borrowings.
C.
Fiscal deficit is lower than interest payments.
D.
Borrowings are made for developmental activities.
ANSWER :
C. Fiscal deficit is lower than interest payments.