public finance fiscal & monetary policy section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 6 [SSC CGL Pre 2000]

Interest on public debt is a part of :

a) interest payments by households

b) transfer payments by the Govt.

c) transfer payments by the enterprises

d) national income

Question : 7 [SSC IT 2006]

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

Question : 8

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 : 9

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 : 10

Which of the following is the process of bridging the gap between the revenue and expenditure?

1. Multiple financing
2. Bridge financing
3. Accurate financing
4. Deficit financing

a) 1 only

b) 3 only

c) 2 only

d) 4 only