Government Budget And Economy CBSE Questions & Answers

Government Budget And Economy

This is Economics Class 12 Government Budget and Economy CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Capital expenditure is incurred on normal functioning of the govt. Administration. It is
  • A
    TRUE
  • B
    Insufficient information
  • C
    Can’t say
  • D
    0
    Correct
2
A Balanced budget is one where
  • A
    All of them
  • B
    Estimated revenues= estimated expenditure
    Correct
  • C
    Estimated revenues< estimated expenditure
  • D
    Estimated revenues> estimated expenditure
3
An Unbalanced budget is one where
  • A
    All of them
  • B
    Estimated revenues< estimated Receipts of the govt.
  • C
    Estimated revenues> estimated expenditure
    Correct
  • D
    Estimated revenues= estimated expenditure
4
A surplus budget is one where
  • A
    Estimated revenues= estimated expenditure
  • B
    Estimated revenues< estimated Receipts of the govt.
  • C
    All of them
  • D
    Estimated revenues> estimated expenditure
    Correct
5
A deficit budget is one where
  • A
    Estimated revenues= estimated expenditure
  • B
    Estimated revenues< estimated expenditure
    Correct
  • C
    Estimated revenues> estimated expenditure
  • D
    Estimated revenues< estimated Receipts of the govt.
6
Deficit financing is
  • A
    Printing more currency notes
    Correct
  • B
    None of them
  • C
    Not paying interest on loans
  • D
    Taking loans
7
Financing the deficit is
  • A
    None of them
  • B
    Printing more currency notes
  • C
    Taking loans
    Correct
  • D
    Not paying interest on loans
8
Primary deficit is
  • A
    Fiscal deficit including interest payments
  • B
    Fiscal deficit less interest payments
    Correct
  • C
    Fiscal deficit including interest payments
  • D
    Interest payments less Fiscal deficit
9
One of the source to finance the budget deficit is
  • A
    Foreign exchange expansion
  • B
    Monetary expansion
    Correct
  • C
    Fiscal expansion
  • D
    Trade expansion
10
Another source to finance the budget deficit is
  • A
    Trade expansion
  • B
    Foreign exchange expansion
  • C
    Borrowings
    Correct
  • D
    Fiscal expansion
11
Revenue deficit occurs when the
  • A
    None of them
  • B
    Estimated revenues< estimated Receipts of the govt.
  • C
    Estimated revenues= estimated expenditure
  • D
    Revenue expenditure exceeds revenue receipts
    Correct
12
Zero primary deficit means that the govt borrows to
  • A
    Make loan payments
  • B
    Make interest payments
    Correct
  • C
    Make trade payments
  • D
    Make salary payments
13
A source to finance the govt. Deficit is
  • A
    Borrowing from banks
  • B
    Borrowing from public
    Correct
  • C
    Borrowing from private sector
  • D
    Borrowing from govt.
14
The govt borrows from RBI to
  • A
    finance the revenue. deficit
  • B
    finance the primary. deficit
  • C
    Finance the budget deficit
    Correct
  • D
    finance the fiscal deficit
15
Tax is a capital receipt as it creates assets for the govt. It is
  • A
    Insufficient information
  • B
    Can’t say
  • C
    TRUE
  • D
    0
    Correct