Economic and Social Development | Fiscal Policy

Economic and Social Development | Fiscal Policy

Dec 19, 2024 - 14:14
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1. Fiscal Policy is concerned with

the volume of currency that banks should put in the economy
the policy regarding taxation and expenditure
policy for regulating stock
the policy for dealing with IMF

2. Which one of the following is part of fiscal policy?

Production policy
Tax policy
Foreign policy
Interest rate policy

3. Fiscal policy means

policy relating to money and banking in a country
policy relating to non-banking financial institutions
policy relating to government spending, taxation and borrowing
policy relating to financial matters of international trade

4. Which one of the following is NOT the objective of fiscal policy of government of India?

Full employment
Price stability
Regulation of inter-state trade
Economic growth

5. In India, which one among the following formulates the fiscal policy?

Planning Commission
Finance Commission
Finance Ministry
Reserve Bank of India

6. Which of the following economists, introduced fiscal policy as a tool to rectify the Great Depression of 1929- 30?

Prof. Keynes
Prof. Pigou
Prof. Marshall
Prof. Crowther

7. A change in fiscal policy affects the balance of payments through

Only the current account
Only the capital account
Both the current account and capital account
Neither current account nor capital account

8. Which one of the following was not stipulated in the Fisca Responsibility and Budget Management Act 2003?

Elimination of revenue deficit by the end of the fiscal year 2007-08
Non-borrowing by the Central Government from Reserve Bank of India except - under certain circumstances
Elimination of primary deficit by the end of the fiscal year 2008-09
Fixing government guarantees in any financial year as a percentage of GDP

9. Fiscal responsibility and Budget Management Act was enacted in India in the year

2007
2005
2002
2003

10. Which one of the following statements appropriately describes the 'fiscal stimulus'?

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
It is an intense affirmative action of the government to boost economic activity in the country
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
It is an extreme affirmative action by the government to pursue its policy of financial inclusion

11. Globalisation does not include

reduction in import duties
abolition of import licensing
free flow of FDI
disinvestment of Public Sector Equity