Public Expenditure MCQ Questions and Answers for Practice

1. According to HC Adams public expenditure has to perform the

1. Protective Function
2. Commercial Function
3. Developmental Function
4. All of the above

2. An empirical law to the effect of growing public expenditure was propounded by

1. Wagner
2. Peacock
3. Wiseman
4. None of these

3. Bharat Nirman, MGNREGA are examples of

1. Plan Expenditure
2. Non-Plan Expenditure
3. Capital Expenditure
4. None of the above

4. Debts that are repaid at some specific future date are known as

1. Redeemable debts
2. Irredeemable debts
3. Treasury Bill
4. None of the above

5. Debts which have to be paid at some specific future date are known as

1. Redeemable Debts
2. Irredeemable Debts
3. Treasury
4. None of the above

6. External debts can be raised from

1. Individuals
2. RBI
3. Commercial Banks
4. World Bank

7. External loans are raised from

1. IDBI
2. ICICI
3. RBI
4. WTO

8. Fiscal federalism deals with

1. The division of governmental functions
2. Financial relations among levels of government
3. Proper allocation of Resources
4. All of the above

9. Interest payments are a part of

1. Development Expenditure
2. Non-Development Expenditure
3. Capital Expenditure
4. All of the above

10. Loans taken by the government for purpose of war, earthquakes for covering budget deficit are

1. Productive Debts
2. Unproductive
3. Voluntary Debts
4. None of the above

11. Pick out the factor which is not a part of revenue budget

1. Current consumption expenditure on commodities
2. Current consumption expenditure on services
3. Transfer payments
4. Expenditure on machinery

12. Pick out the feature which is not applicable to a good budget

1. Comprehensiveness
2. Clarity
3. Objectivity
4. Lengthy

13. Pick out the feature which is not true in the case of repudiation of debt

1. Simplest method of liquidating a debt
2. It will increase the credibility of the government
3. Debtors may face loss
4. It is discriminating

14. Pick out the feature which is not true of a capital levy

1. For paying off unproductive debt
2. It is paid by those who earn huge profits
3. It does not follow the principle of equity
4. It helps to fight inflation

15. Pick out the item which is not a part of capital budget

1. Market Borrowings
2. Sale of Treasury Bulls
3. Revenue from Industry
4. Net Small Savings