Government Budget NDA Questions

NDA Economics

Government Budget MCQ Questions


7.
The budgetary objective concerned with stabilising the level of prices and controlling the phases of the business cycle (inflation and deflation) through fiscal measures is known as:
A.
Redistribution of income
B.
Management of public enterprises
C.
Economic stability
D.
Reallocation of resources
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ANSWER :
C. Economic stability
8.
The budgetary objective of managing and, where necessary, running public sector enterprises for purposes such as generating employment and profits for social welfare is known as:
A.
Reduction of income inequality only
B.
Economic stability only
C.
Management of public enterprises
D.
External debt management only
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ANSWER :
C. Management of public enterprises
9.
The government budget in India is broadly divided into two main parts, namely:
A.
Union Budget and State Budget only
B.
Interim Budget and Final Budget
C.
Plan Budget and Non-Plan Budget only
D.
Revenue Budget and Capital Budget
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ANSWER :
D. Revenue Budget and Capital Budget
10.
The Revenue Budget consists mainly of:
A.
Only capital expenditure items
B.
Revenue receipts of the government and the expenditure met from those receipts (revenue expenditure)
C.
Only borrowings of the government
D.
Only foreign exchange transactions
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ANSWER :
B. Revenue receipts of the government and the expenditure met from those receipts (revenue expenditure)
11.
The Capital Budget consists mainly of:
A.
Only tax revenue collections
B.
Only interest payments
C.
Only subsidy payments
D.
Capital receipts (such as loans raised and disinvestment proceeds) and capital expenditure (such as creation of assets)
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ANSWER :
D. Capital receipts (such as loans raised and disinvestment proceeds) and capital expenditure (such as creation of assets)
12.
Revenue receipts of the government are those receipts which:
A.
Neither create any liability nor cause any reduction in the assets of the government
B.
Are always borrowed from foreign countries
C.
Must always be repaid within one year
D.
Create a corresponding liability for the government or lead to a reduction in its assets
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ANSWER :
A. Neither create any liability nor cause any reduction in the assets of the government