Public Expenditure MCQ Questions and Answers for Practice

1. According to HC Adams public expenditure has to perform the

1. Commercial Function
2. Developmental Function
3. All of the above
4. Protective Function

2. An empirical law to the effect of growing public expenditure was propounded by

1. Peacock
2. Wiseman
3. None of these
4. Wagner

3. Bharat Nirman, MGNREGA are examples of

1. Non-Plan Expenditure
2. Capital Expenditure
3. None of the above
4. Plan Expenditure

4. Debts that are repaid at some specific future date are known as

1. Irredeemable debts
2. Treasury Bill
3. None of the above
4. Redeemable debts

5. Debts which have to be paid at some specific future date are known as

1. Irredeemable Debts
2. Treasury
3. None of the above
4. Redeemable Debts

6. External debts can be raised from

1. RBI
2. Commercial Banks
3. World Bank
4. Individuals

7. External loans are raised from

1. ICICI
2. RBI
3. WTO
4. IDBI

8. Fiscal federalism deals with

1. Financial relations among levels of government
2. Proper allocation of Resources
3. All of the above
4. The division of governmental functions

9. Interest payments are a part of

1. Non-Development Expenditure
2. Capital Expenditure
3. All of the above
4. Development Expenditure

10. Loans taken by the government for purpose of war, earthquakes for covering budget deficit are

1. Unproductive
2. Voluntary Debts
3. None of the above
4. Productive Debts

11. Pick out the factor which is not a part of revenue budget

1. Current consumption expenditure on services
2. Transfer payments
3. Expenditure on machinery
4. Current consumption expenditure on commodities

12. Pick out the feature which is not applicable to a good budget

1. Clarity
2. Objectivity
3. Lengthy
4. Comprehensiveness

13. Pick out the feature which is not true in the case of repudiation of debt

1. It will increase the credibility of the government
2. Debtors may face loss
3. It is discriminating
4. Simplest method of liquidating a debt

14. Pick out the feature which is not true of a capital levy

1. It is paid by those who earn huge profits
2. It does not follow the principle of equity
3. It helps to fight inflation
4. For paying off unproductive debt

15. Pick out the item which is not a part of capital budget

1. Sale of Treasury Bulls
2. Revenue from Industry
3. Net Small Savings
4. Market Borrowings