Tag: public finance and budget

Questions Related to public finance and budget

Deficit financing involves ________.

  1. borrowings from India

  2. printing of more currency

  3. none of the above

  4. both (a) & (b) above


Correct Option: D

Fiscal responsibility and budget management Act aims at reducing gross fiscal deficit by _______ $\%$ of GDP in each financial year.

  1. $0.5\%$

  2. $1\%$

  3. $1.5\%$

  4. $2\%$


Correct Option: A

Who among the following never hold the office of chairman of finance commission?

  1. Pranab Mukherjee

  2. Mahaveer Tyagi

  3. K.C. Pant

  4. C. Rangarajan


Correct Option: A

Services are  _______ and ___________.

  1. visible, tangible

  2. invisible, intangible

  3. visible, intangible

  4. none of the above


Correct Option: B

India met huge deficit in current account through _________.

  1. withdrawals and borrowings from IMF

  2. utilization of foreign exchange reserves

  3. both above

  4. none of the above


Correct Option: C

Current account deficit as a % of GDP _______ from___ % during pre crisis period to ______% during post crisis period

  1. declined, 1.9, 1

  2. declined, 2.9, 1.9

  3. increased, 1, 1.9

  4. increased, 2.9, 3.9


Correct Option: A

The share of net invisible earnings in financing trade deficit ___ from ____ n sixth plan to ___ in seventh plan.

  1. declined, 6396, 29.5%

  2. increased, 29.5%, 63%

  3. declined 67%, 63%

  4. increased 63%, 85%


Correct Option: A

From ________ onwards, India experienced adverse BOP.

  1. 1979-80

  2. 1980-81

  3. 1978-79

  4. 1985-86


Correct Option: A

Balance of payment on current account covers all receipts on account of earnings, borrowings and all payments on account of spending and lending. (true/false)

  1. True

  2. False

  3. Cant say

  4. None of above


Correct Option: B

In 1990-91, BOP position worsened because of ________.

  1. Gulf war

  2. deterioration in invisible remittances

  3. both above

  4. none of above


Correct Option: C