Fiscal Deficit Multiple Choice Questions and Answers

1. ............... is a statement of estimated capital receipts and payments of the government over fiscal year

1. Revenue budget
2. Capital budget
3. Surplus Budget
4. Deficit budget

2. Contra-cyclical fiscal policy was popularised by

1. Adam Smith
2. Dalton
3. J.B. Say
4. Keynes

3. Deficit financing as a tool of fiscal policy was suggested by

1. Keynes
2. Dalton
3. J.B. Say
4. Marshall

4. Fiscal Federalism refers to

1. Sharing of political power between centre and states
2. Organising and implementing economic plans
3. Division of economic functions and resources among different layers of Govt.
4. None of these

5. Fiscal policy is the policy of

1. RBI
2. NABARD
3. Government
4. All the above

6. Integration of discretion and automation into a hybrid form of fiscal policy called

1. Built in flexibility
2. Formula Flexibility
3. Discretionary Action
4. none of these

7. Keynes has suggested compensatory fiscal policy to counter

1. Recession
2. Boom
3. inflation
4. none of these

8. Keynes popularised

1. Monetary policy
2. Fiscal Policy
3. Income policy
4. Price policy

9. Primary deficit means

1. Fiscal deficit-Interest
2. Revenue deficit-interest payments
3. Fiscal deficit+ revenue deficit
4. Budgetary deficit

10. Pump Priming is related with

1. Monetary policy
2. Income policy
3. Price policy
4. Fiscal policy