Economics (Part – IV) - Mock Test 365

Total Questions: 50

41. Which of the following given options is not the type of Fiscal bill presented by the Government of India? [S.S.C. Online MTS (T-I) 21.08.2019 (Shift-III)]

(a) 728 days
(b) 91 days
(c) 182 days
(d) 364 days

Correct Answer: (a) 728 days

Solution:Treasury bills are issued when the government needs money for a short period. Treasury bills have a maximum tenure of 364 days. At present, treasury bills are issued in three maturities-91-day, 182-day and 364-day.

42. What is meant by fiscal deficit? [S.S.C. Online MIS (T-I) 2.08.2019 (Shift-II)]

(a) the total revenue collected by the government
(b) the difference between the total revenue and total expenditure of the government
(c) the total expenditure of the government
(d) the total amount borrowed by the government

Correct Answer: (b) the difference between the total revenue and total expenditure of the government

Solution:

The difference between the total revenue and total expenditure of the government is called fiscal deficit.

43. Which of the following expression is correct? [S.S.C. Online CPO S.I. (T-I) 11.11.2022 (Shift-III)]

(a) Gross primary deficit = Gross fiscal deficit + Net interest liabilities
(b) Gross primary deficit - Gross fiscal deficit - Net interest liabilities
(c) Gross primary deficit = Gross fiscal deficit + Net interest liabilities
(d) Gross primary deficit = Gross fiscal deficit x Net interest liabilities

Correct Answer: (b) Gross primary deficit - Gross fiscal deficit - Net interest liabilities

Solution:The purpose of measuring the primary deficit is to draw attention to current fiscal imbalances. The pri-mary deficit is calculated to obtain an estimate of the amount of borrowing required due to current expen-ditures exceeding revenues.

Gross primary deficit = Gross fiscal deficit - Net interest liabilities.

Therefore, option (b) is correct.

44. If monetary policy is related to the management of interest rates and money supply, then fiscal policy is related to [S.S.C. Online Constable GD 2.03.2019 (Shift-II)]

(a) Taxation and Government expenditure
(b) Import and Export
(c) Banking
(d) foreign trade

Correct Answer: (a) Taxation and Government expenditure

Solution:If monetary policy is concerned with the management of interest rates and the money supply, then fiscal policy is concerned with taxation and government spending. Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.

45. While trying to promote growth by tax cuts as the fiscal policy, which type of policy is the government trying to follow? [S.S.C. Online Constable GD 1.03.2019 (Shift-II)]

(a) Easy money
(b) Contractionary
(c) Expansionary
(d) Tight money

Correct Answer: (c) Expansionary

Solution:The expansionary policy aims to stimulate the economy by boosting demand through monetary and fiscal stimulus. Expansionary policy is intended to prevent or moderate economic downturns and recessions. The Expansionary fiscal policy involves reducing taxes or increasing government spending to increase aggregate demand and production output.

46. What is the annual account of all receipts and expenditure of the government in a fiscal year called? [S.S.C. Online Constable GD 19.02.2019 (Shift-I)]

(a) Revenue
(b) capital
(c) tax
(d) Budget

Correct Answer: (d) Budget

Solution:Budget is the annual accounting of all receipts and expenditures of the government in a fiscal year. The budget of the government is presented by the finance minister on an appointed date, passed by the legislature and approved by the chief executive or the president. The budget contains the details of the expected income (revenue) and proposed expenditure to the government for the financial year starting.

47. Indian Economic Survey is published by_______ . [S.S.C. Online C.P.O.S.I. (T-I) 7.07.2017 (Shift-I)]

(a) Government of India
(b) Ministry of Finance
(c) NITI Aayog
(d) Prime Minister of India

Correct Answer: (b) Ministry of Finance

Solution:The Economic Survey of India is published by the Ministry of Finance. It incorporates estimates of figures for the year before the budget period.

48. Who among the following publishes the Economic Survey of India? [S.S.C. Online C.G.L. (T-I) 3.03.2020 (Shift-III)]

(a) National Development Council
(b) Institute of Finance
(c) Indian Statistical Institute
(d) Ministry of Finance

Correct Answer: (d) Ministry of Finance

Solution:The Ministry of Finance publishes The Economic Survey of India.

49. A situation where the expenditure of the government exceeds its revenue is known as________ . [S.S.C. Online C.G.L. (T-I) 7.03.2020 (Shift-II)]

(a) Morbidity
(b) Devaluation
(c) Default
(d) Deficit Financing

Correct Answer: (d) Deficit Financing

Solution:A situation where the expenditure of the government exceeds its revenue is known as Deficit Financing.

50. Custom duty is an instrument of which one of the following government policies? [S.S.C. Online CHSL (T-I) 31.01.2017 (Shift-II)]

(a) Fiscal
(b) monetary
(c) sales
(d) production

Correct Answer: (a) Fiscal

Solution:Custom duty is a type of indirect tax, which is levied on goods imported into India and exported from India. It is an instrument of fiscal policy of the government.

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Economics (Part – IV)