public finance fiscal & monetary policy section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

In the context of the stock market, IPO stands for

a) International Payment Obligation

b) Internal Policy Obligation

c) Immediate Payment Order

d) Initial Public Offer

Question : 2

Which one of the following statements appropriately describes the ‘fiscal stimulus’?

a) It is an extreme affirmative action by the government to pursue its policy of financial inclusion

b) It is government’s intensive action of financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation

c) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth

d) It is an intense affirmative action of the government to boost economic activity in the country

Question : 3

The sale proceeds of Government Bonds come under the budget head of

a) Capital Receipts

b) Current Expenditure

c) Revenue Receipts

d) Capital Outlay

Question : 4

Choose the correct one from the following.

1. Revenue deficit = Revenue expenditure – Revenue receipts
2. Revenue deficit = Revenue receipts – Revenue expenditure
3. Revenue deficit = Revenue receipts – Total expenditure
4. Revenue deficit = Revenue expenditure – Total receipts

a) 1 only

b) 3 only

c) 1 and 2

d) 1, 2, 3 and 4

Question : 5

Value-added tax is

a) ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale

b) special tax levied by states on products from other states

c) ad valorem tax on final consumption collected at manufacturing level

d) tax on final consumption collected at the consumption stage

Question : 6

What is referred to as ‘Depository Services’ ?

a) An advisory service to investors

b) A method for regulating stock exchanges

c) A new scheme of fixed deposits

d) An agency for safe-keeping of securities