22 + Interview Questions in GOVERNMENT-BUDGET IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Identify which of the following statements is true ?A. Fiscal deficit is difference between planned revenue expenditure and planned revenue receiptsB. Fiscal deficit is difference between total planned expenditure and total planned receiptsC. Primary deficit is the difference between total planned receipt and interest paymentsD. Fiscal deficit is the sum of primary deficit and interest payment
Answer» Correct Answer - D

Discussion

2.	Which one of these is a revenue expenditure ?A. Purchase of sharesB. Loans advancedC. SubsidiesD. Expenditure on acquistion of land
Answer» Correct Answer - C

Discussion

3.	`"_________"` (choose the correct alternative) is a revenue receipt of the governmentA. Funds raised by the government by issuing National Saving CertificatesB. Sale of `40 %` shares of a public sector undertaking to a private enterpriseC. Profits of LIC , a public enterpriseD. Amount borrowed from Japan for construction of Bullet Train
Answer» Correct Answer - C

Discussion

4.	Fees of the government college is a revenue receipt because :A. It creates liability of the governmentB. It neither creates any liability nor reduces any asset of the government.C. It neither creates any asset nor reduces any liability of the government .D. It increases asset of the government .
Answer» Correct Answer - B

Discussion

5.	Which of the following is a source of capital receipt ?A. Foreign DonationsB. DividendsC. DisinvestmentD. Indirect Taxes
Answer» Correct Answer - C

Discussion

6.	Which of the following statements is true ?A. Fiscal deficit is the difference between total expenditure and total receipts .B. Primary deficit is the difference between total receipt and interest payments .C. Fiscal deficit is the sum of primary deficit and interest payment.
Answer» Correct Answer - C

Discussion

7.	Borrowings is a capital receipt because.A. It creates a liabilityB. It creates an assetC. It reduces a liabilityD. All of the above
Answer» Correct Answer - A

Discussion

8.	Primary Deficit is borrowing requirements of government for making `"___________"` : (Choose the correct alternative )A. Interest paymentsB. Other than interest paymentsC. All types of paymentsD. some specific payments
Answer» Correct Answer - B

Discussion

9.	Which of the following statement is not true for fiscal deficit ? A fiscal deficit :A. represents the borrowing of the government .B. is the difference between total expenditure and total receipts of the governmentC. is the difference between total expenditure and total receipts other than borrowing.D. increases the future liability of the government.
Answer» Correct Answer - B

Discussion

10.	Which of the following is not a revenue receipt ?A. Recovery of loansB. Foreign grantsC. Profits of public enterprisesD. Corporate Tax
Answer» Correct Answer - A

Discussion

11.	Fiscal deficit equals :A. Interest paymentsB. BorrowingsC. Interest payments less borrowingD. Borrowing less interest payments
Answer» Correct Answer - B

Discussion

12.	Identify the missing item in the following expression : …………… = Fiscal Deficit - Interest PaymentsA. Revenue deficitB. Primary DeficitC. Both (a) and (b)D. Neither (a) nor (b)
Answer» Correct Answer - B

Discussion

13.	Policies of surplus budget during inflation is a part of which objective of government budget ?A. Economic GrowthB. Economic StabilityC. Reducing Regional DisparitiesD. Reallocation of Resources
Answer» Correct Answer - B

Discussion

14.	Which of the following are the components of a budget ?A. Capital BudgetB. Revenue BudgetC. Both (a) and (b)D. Neither (a) nor (b)
Answer» Correct Answer - C

Discussion

15.	The incidence of tax refers to :A. Level and rate of taxationB. Who ultimately bears the money burden of the taxC. Growth of taxationD. Way in which a tax is collected
Answer» Correct Answer - B

Discussion

16.	Identify the non-tax revenue from the following statement : "It refers to claim of the government on the property of a person who dies without leaving behind any legal heir or a will ".A. Special AssessmentB. EscheatsC. ForfeituresD. Fees
Answer» Correct Answer - B

Discussion

17.	Identify the indirect tax from the following options :A. Corporate taxB. Income TaxC. Goods and Services Tax (GST)D. Capital Gains Tax
Answer» Correct Answer - C

Discussion

18.	Direct tax is called direct because it is collected directly from :A. The producers on goods producedB. The sellers on goods soldC. The buyers of goodsD. The income earners
Answer» Correct Answer - D

Discussion

19.	Construction of a school building is a :A. Captial ReceiptB. Revenue ExpenditureC. Capital ExpenditureD. Revenue Receipt
Answer» Correct Answer - C

Discussion

20.	Escheats is an example of :A. Capital ReceiptsB. Revenue ReceiptsC. Capital ExpenditureD. Revenue Expenditure
Answer» Correct Answer - B

Discussion

21.	Which of the following statement is true ?A. Loans from IMF is a Revenue Receipt.B. Higher revenue deficit necessarily leads to higher fiscal deficit .C. Borrowing by a government represents a situation of fiscal deficit .D. Revenue deficit is the excess of capital receipts over the revenue receipts.
Answer» Correct Answer - C

Discussion

22.	In a government budget , revenue deficit is ₹ 50 , 000 crores and borrowings are ₹ 75 , 000 crores . The fiscal deficit will be :A. ₹ 25 , 000 croresB. ₹ 75 , 000C. ₹ 1, 25 , 000 croresD. ₹ 50 , 000
Answer» Correct Answer - B

Discussion

Explore topic-wise InterviewSolutions in .

Which one of these is a revenue expenditure ?A. Purchase of sharesB. Loans advancedC. SubsidiesD. Expenditure on acquistion of land

Fees of the government college is a revenue receipt because :A. It creates liability of the governmentB. It neither creates any liability nor reduces any asset of the government.C. It neither creates any asset nor reduces any liability of the government .D. It increases asset of the government .

Which of the following is a source of capital receipt ?A. Foreign DonationsB. DividendsC. DisinvestmentD. Indirect Taxes

Which of the following statements is true ?A. Fiscal deficit is the difference between total expenditure and total receipts .B. Primary deficit is the difference between total receipt and interest payments .C. Fiscal deficit is the sum of primary deficit and interest payment.

Borrowings is a capital receipt because.A. It creates a liabilityB. It creates an assetC. It reduces a liabilityD. All of the above

Primary Deficit is borrowing requirements of government for making `"___________"` : (Choose the correct alternative )A. Interest paymentsB. Other than interest paymentsC. All types of paymentsD. some specific payments

Which of the following is not a revenue receipt ?A. Recovery of loansB. Foreign grantsC. Profits of public enterprisesD. Corporate Tax

Fiscal deficit equals :A. Interest paymentsB. BorrowingsC. Interest payments less borrowingD. Borrowing less interest payments

Identify the missing item in the following expression : …………… = Fiscal Deficit - Interest PaymentsA. Revenue deficitB. Primary DeficitC. Both (a) and (b)D. Neither (a) nor (b)

Policies of surplus budget during inflation is a part of which objective of government budget ?A. Economic GrowthB. Economic StabilityC. Reducing Regional DisparitiesD. Reallocation of Resources

Which of the following are the components of a budget ?A. Capital BudgetB. Revenue BudgetC. Both (a) and (b)D. Neither (a) nor (b)

The incidence of tax refers to :A. Level and rate of taxationB. Who ultimately bears the money burden of the taxC. Growth of taxationD. Way in which a tax is collected

Identify the non-tax revenue from the following statement : "It refers to claim of the government on the property of a person who dies without leaving behind any legal heir or a will ".A. Special AssessmentB. EscheatsC. ForfeituresD. Fees

Identify the indirect tax from the following options :A. Corporate taxB. Income TaxC. Goods and Services Tax (GST)D. Capital Gains Tax

Direct tax is called direct because it is collected directly from :A. The producers on goods producedB. The sellers on goods soldC. The buyers of goodsD. The income earners

Construction of a school building is a :A. Captial ReceiptB. Revenue ExpenditureC. Capital ExpenditureD. Revenue Receipt

Escheats is an example of :A. Capital ReceiptsB. Revenue ReceiptsC. Capital ExpenditureD. Revenue Expenditure

In a government budget , revenue deficit is ₹ 50 , 000 crores and borrowings are ₹ 75 , 000 crores . The fiscal deficit will be :A. ₹ 25 , 000 croresB. ₹ 75 , 000C. ₹ 1, 25 , 000 croresD. ₹ 50 , 000