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Fiscal Policy - Banking Awareness Quiz

Published on Monday, August 31, 2015
Banking Awareness Quiz for today :-

Q1. Fiscal Policy deals with the ______and ______decisions of the government:
a) Incomes and Expenditures
b) Taxation and Expenditures
c) Trading and Expenditures
d) None of These

Q2. In most modern economies, the government deals with fiscal policy while the ________is responsible for monetary policy:
a) Government
c) Central Bank
d) None of These

Q3. Fiscal Policy is composed of several parts which includes:
a) Tax Policy and Expenditure Policy
b) Investment or Disinvestment Strategies
c) Debt or Surplus Management
d) All of the Above
e) None of These

Q4. Find out the incorrect among following:
a) When the government receives more than it spends, it has a surplus
b) If the government spends more than it receives it runs a deficit
c) On a broad generalization, excessive printing of money leads to inflation
d) All of the above
e) None of These

Q5. Which among the following is incorrect:
a) The Gross Fiscal Deficit (GFD) of government is the excess of its total expenditure, current and capital including loans net of recovery, over revenue receipts (including external grants) and non - debt capital receipts
b) The Net Fiscal Deficit is the Gross Fiscal Deficit reduced by net lending by government
c) The Gross primary deficit is the GFD less interest payments 
d) Primary Revenue Deficit is the revenue deficit less interest payments
e) All of the Above
f) None of These

Q6. If budget constraint stands in present value terms, then fiscal policy may be considered as____:
a) Stagnant 
b) Sustainable
c) Escaped
d) None of These

Q7. Fiscal Sustainability is essential to:
a) Motivate both public and private sector to grow
b) Allows governments to be autonomous to witness excellent economic growth in the long run.
c) Consider both revenue collections and potential variation in expenditure patterns so that demand may be fulfilled in the long run.
d) All of the Above
e) None of These

Q8. DTC stands for:
a) Direct Tax Code
b) Direct Tax Control
c) Direct Tax Centre
d) None of These

Q9. FRBM stands for:
a) Fiscal Revenue Budget Management
b) Fiscal Responsibility and Budget Management
c) Fiscal Reforms and Budget Management 
d) None of These

Q10. Fiscal Policy comprises of three positions - Neutral Position, Expansionary Position, Contractionary Position. Find out the wrong definition among the following:
a) Neutral Position - It applies when the budget outcome has neutral effect on the level of economic activity where the government spending is fully funded by the revenue collected from the tax.
b) Expansionary Position - It is position when there is  a higher budget deficit where the government spending is higher than the revenue collected from the tax.
c) Contractionary Position - It s a position when there is a lower budget deficit where the government spending is lower than the revenue collected from the tax
d) All of the Above
e) None of These

Q11. Which of the following definitions are wrong about Revenue Receipts:
a) Revenue Receipts consists of revenue from regular sources like Taxation revenues e.g. receipts from corporate tax, income tax, excise tax, excise duty, custom duty, service tax etc.
b) Non tax revenue which include interest on loans, dividends from public sector units, Fees and Stamp Duties
c) Both of Above
d) None of These

Q12. Which of the following definitions are correct about Capital Receipts:
a) Capital receipts refers to those inflows to government that are not in the nature of regular income.
b) Other receipts like Disinvestment (selling some shares of a PSU) comes under capital receipt
c) Both of Above
d) None of These

Q13. _______are on going expenditure not covered under the 5 - year plans:
a) Plan Expenditure 
b) Non Plan Expenditure
c) Both of Above
d) None of These

Q14. For stepping up the rate of economic development ______plans have been formulated:
a) 3 Years
b) 5 years
c) 10 Years 
d) None of These

Q15. The objectives of fiscal policy such as economic development, price stability, social justice etc. can be achieved only if the which of following tools of policy are effectively used:
a) Public Expenditure and Taxation
c) Borrowing and Deficit Financing
d) All of the Above
e) None of These

Take previous Banking quiz :-

1235 , 6 789101112 , 1314, 15161718 ,19 ,20212223 and 24. Take RBI quizSEBI quizSBI quiz and Monetary policy quiz.

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