Fiscal Deficit MCQ Questions and Answers for Practice

1. ............... is a statement of estimated capital receipts and payments of the government over fiscal year

1. Revenue budget
2. Capital budget
3. Surplus Budget
4. Deficit budget

2. Contra-cyclical fiscal policy was popularised by

1. Adam Smith
2. Dalton
3. J.B. Say
4. Keynes

3. Deficit financing as a tool of fiscal policy was suggested by

1. Keynes
2. Dalton
3. J.B. Say
4. Marshall

4. Fiscal Federalism refers to

1. Sharing of political power between centre and states
2. Organising and implementing economic plans
3. Division of economic functions and resources among different layers of Govt.
4. None of these

5. Fiscal policy is the policy of

1. RBI
2. NABARD
3. Government
4. All the above

6. Integration of discretion and automation into a hybrid form of fiscal policy called

1. Built in flexibility
2. Formula Flexibility
3. Discretionary Action
4. none of these

7. Keynes has suggested compensatory fiscal policy to counter

1. Recession
2. Boom
3. inflation
4. none of these

8. Keynes popularised

1. Monetary policy
2. Fiscal Policy
3. Income policy
4. Price policy

9. Primary deficit means

1. Fiscal deficit-Interest
2. Revenue deficit-interest payments
3. Fiscal deficit+ revenue deficit
4. Budgetary deficit

10. Pump Priming is related with

1. Monetary policy
2. Income policy
3. Price policy
4. Fiscal policy

11. Pump Priming is related with

1. Monetary policy
2. Income policy
3. Price policy
4. Fiscal policy

12. The fiscal deficit excluding the interest liabilities for a year is called as

1. Revenue deficit
2. Capital deficit
3. Budget deficit
4. Primary deficit

13. The most important aim of fiscal policy in a developing country is

1. economic stability
2. economic development
3. regional balance
4. None of these

14. The principle of judging fiscal measures by the way they work is called

1. Personal Finance
2. Public Finance
3. Functional Finance
4. Local Finance

15. The theory of fiscal policy derives from

1. Principle of sound finance
2. N.I. analysis
3. Welfare economics
4. None of these