Fiscal Policy

MCQ
The difference between Revenue Receipts
plus Non-debt Capital Receipts (NDCR) and
total expenditure is called______.
राज$व &ाि(तय+ और गैर-ऋण पंज ू ीगत
&ाि(तय+ (NDCR) और कुल ;यय के बीच के
अंतर को ______ कहा जाता है ।
a) Revenue Deficit
b) Fiscal Deficit
c) Effective Revenue Deficit
d) Primary Deficit

2
Which of the following statements is NOT
true?
DनFनGलHखत कथन+ मL से कौनसा सOय नहPं
है ?
a) Fiscal policy deals with the supply of
money in the economy and the rate of
interest.
b) Fiscal policy includes tax policy,
expenditure policy, investment or
disinvestment Strategies and debt or surplus
management.
c) Fiscal policy is linked with general
economic policy strategy of the country.
d) The government deals with fiscal policy.

3
The fiscal policy helps the government of a
country to control the flow of.
राजकोषीय नीDत Sकसी दे श कV सरकार को
&वाह को DनयंWXत करने मL मदद करती है ।
a) equity market
b) angel investment
c) personal expenditure
d) tax revenues

4
A government budget is an annual financial
statement that outlines estimated
government expenditures and expected
government receipts or revenues for the
forthcoming fiscal year. Depending on the
feasibility of these estimates, which of the
following is NOT the budget type?
एक सरकारP बजट एक वा[ष\क [व]ीय [ववरण
है जो आगामी [व]ीय वष\ के Gलए अनम ु ाDनत
सरकारP ;यय और अपे_`त सरकारP &ाि(तय+
या राज$व कV aपरे खा तैयार करता है । इन
अनम ु ान+ कV ;यवहाय\ता के आधार पर, DनFन
मL से कौन सा बजट &कार नहPं है ?
a) Deficit budget b) Balanced
budget
c) Economy budget d) Surplus budget
5
The concept of fiscal policy is based
fundamentally on the ideas of _____.
राजकोषीय नीDत कV अवधारणा मौGलक aप से
_____ के [वचार+ पर आधाeरत है ।
a) Warren Buffett b) Elinor Ostrom
c) JM Keynes d) Milton Friedman

6
A situation where the expenditure of the
government exceeds its revenue is Known as:
ऐसी ि$थDत जहां सरकार का ;यय उसके
राज$व से अhधक हो जाता है , कहलाती है :
a) Default b) Devaluation
c) Deficit Budget d) Morbidity

7
Fiscal Policy is formulated by ______ in India.
भारत मL राजकोषीय नीDत ______ kवारा
तैयार कV जाती है ।
a) NITI Ayog b) Finance Ministry
c) RBI Ayog d) Different Banks

8
A ______ occurs when a government’s total
expenditures exceed the revenue that is
generated, excluding money from
borrowings.
एक ______ तब होता है जब सरकार का
कुल ;यय उOपlन होने वाले राज$व से अhधक
हो जाता है , िजसमL उधार से पैसा शाGमल नहPं
होता है ।
a) Current Account Deficit
b) Budgetary Deficit
c) Revenue Deficit
d) Fiscal Deficit

9
A substantial increase in capital expenditure
or revenue deficit leads to ______.
पंज
ू ीगत ;यय या राज$व घाटे मL पया\(त
वk ृ hध ______ कV ओर ले जाती है ।
a) Budgetary Deficit b) Fiscal Deficit
c) Primary Deficit d) Revenue
Deficit

10
When the fiscal deficit is high, what happens
to prices?
जब घाटा अhधक होता है , तो कVमत+ का pया
होता है ?
a) Prices decrease
b) there is no direct impact on prices
c) Prices remain stable
d) Prices increase

11
One of the most significant fiscal policy objectives in India is to bring
the revenue expenditures and receipts to the same level. Which of
the following steps will help to achieve that objective?

1. The efforts to raise the total profits for public sector units
2. The efforts to improve the revenues from tax collection
3. The efforts to slow the growth rate for expenditures in the
country
4. All of the above
1.Which of the following items is classified as a
Capital Receipt in the budget for the Government
of India?
1. The receipts from the collection of income
tax
2. The borrowings made by the government
from the public
3. The dividends and profits received from the
public sector units
4. The interest receipts for loans given by the
government to its debtors
1.The importance of fiscal policy in a country like India is that
___________.
1. It plays a major role in increasing the rate of formation of capital
both for public and private sector units
2. It aims to reduce the imbalance in the distribution of income and
wealth
3. It helps to generate sufficient resources, through direct and
indirect taxes, to finance the government projects
4. All of the above
Which of the following is not a part of the revenue receipts for
the Government of India?
1. The receipts from the collection of interest amount from its
debtors
2. The receipts from the collection of corporate taxes
3. The dividends and profits received from the public sector
units
4. The receipts from disinvestment of public sector
undertakings
Which of the following is the definition of a budget
deficit?
1. Excess of the total expenditure over the total
receipts minus interest payments and
borrowings
2. Excess of the total expenditure over the total
receipts minus borrowings
3. Excess of the revenue expenditure over the
revenue receipts
4. Excess of the total expenditure over the total
receipts
Which of the following is a development that can
occur as a result of deficit financing?
1. The rise in inflation within the Indian
economy
2. The improvement in money supply in the
Indian economy
3. The increase in government debt
4. All of the above
Which of the following is the best explanation for ‘Capital Gains Tax’ in India?
1. It is a tax levied on the profits from the selling of shares that were held for
more than 12 months
2. It is a tax levied on the interest that was received from bank fixed deposits
3. It is a tax levied on the profits from the sale of a capital asset during the
financial year
4. It is the tax levied on dividends received from corporate bonds
Which of the following is true about the annual
budget prepared by the Government of India?
1. It is a part of the money-saving policy of the
government
2. It is a part of the fiscal policy of the
government
3. It is a part of the monetary policy of the
government
4. It is a part of the commercial policy of the
government
Which of the following describes the correct scenario if the
Government of India fails to pass the budget?
1. The entire council of ministers have resigned and the
government falls down
2. The Finance Minister requests the speaker of the house for extra
time to pass the budget
3. The budget from the last year continues
4. None of the above