Friday, May 22, 2015

Day 35 - Questions


Day 35 - Revenue Deficit, Fiscal Deficit, Primary Deficit

( Revenue Deficit, Fiscal Deficit, Primary Deficit, FRBM Act 2003 )


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1.  Which of the following is true regarding Revenue Deficit? (Assume RHS is positive)
a.  Revenue Deficit = Predicted Net Revenue - Actual Net Revenue
b.  Revenue Deficit = Predicted Expenditure - Predicted Revenue
c.  Revenue Deficit = Actual Expenditure - Actual Revenue
d.  None of the above

2.  Suppose in a financial year, the government spends more than it actually earns. Then it refers to -
a.  Revenue Deficit
b.  Fiscal Deficit
c.  Primary Deficit
d.  Trade Deficit

3.  While Fiscal deficit means actual loss of revenue, Revenue Deficit means -
a.  actual loss
b.  actual profit
c.  Either (a) or (b)
d.  None of the above

4.  Which of the following statement is true regarding Fiscal Deficit?
a.  While calculating Fiscal deficit, borrowings of government are excluded
b.  While calculating Fiscal deficit, borrowings of government are included
c.  Government borrowings has nothing to do with Fiscal Deficit
d.  All are false

5.  Primary Deficit is -
a.  Difference between Revenue Deficit and Fiscal Deficit
b.  Revenue Deficit minus interest on borrowings
c.  Fiscal Deficit minus interest on borrowings
d.  None of the above

6.  What is the full form of FRBM?
a.  Fiscal Regulation and Budget Management
b.  Fiscal Responsibility and Budget Management
c.  Fiscal Responsibility and Budget Maintenance
d.  Fiscal Regulation and Budget Maintenance

7.  Which of the following was not a goal of FRBM Act, 2003?
a.  Eliminate Revenue Deficit
b.  Build Revenue Surplus thereafter
c.  Bring down Fiscal Deficit to a manageable 4 % of GDP, by March 2008
d.  All are the goals of FRBM Act 2003

8.  The Union Government, in Budget 2014-15, set a target for Fiscal Deficit (2014-15), which was 4.1 % of GDP. Which of the following is actually achieved at the end of that financial year?
a.  4.5 % of GDP
b.  4.2 % of GDP
c.  4.1 % of GDP
d.  4 % of GDP

9.  
Revenue Surplus occurs, when -
a.  the actual net revenue is greater than the predicted net revenue
b.  the actual net revenue is less than the predicted net revenue
c.  the actual revenue is greater than the predicted revenue
d.  revenue surplus cannot occur


10.  What is the target of fiscal deficit for financial year 2015-16, set in Union Budget 2014-15?
a.  3 % of GDP
b.  3.6 % of GDP
c.  4 % of GDP
d.  4.1 % of GDP




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