Public Expenditure MCQ Quiz - Multiple Choice Questions & Answers Page 4

31. The term fiscal federalism was introduced by

1. Dalton
2. Seligman
3. Musgrave
4. None of the above

32. The term Fiscal Federalism was introduced by

1. Musgrave
2. Oates
3. Dalton
4. None of the above

33. The theory of fiscal federalism assumes

1. A federal system of government can be efficient and effective in solving problems
2. A federal government will be able to bring about economic stability allocation of resources
3. Since states and localities are not equal in their income, federalism is helpful
4. All of the above

34. The treasury bills are issued by RBI on behalf of the government

1. Short-term public debt
2. Medium-term public debt
3. Long-term public
4. None of the above

35. Transfer payments include

1. Old age pension
2. Subsidies
3. Interest on public debt
4. All of the above

36. Under Article 246 and Seventh Schedule, List I invest the Union with functions of

1. National Importance
2. State Importance
3. Local Importance
4. All of the above

37. Under Article 246 and Seventh Schedule, List II invest the State with functions of

1. National Importance
2. Defence
3. External Affairs
4. Public Health

38. When budget revenue equals expenditure the budget shows

1. Balance
2. Deficit
3. Surplus
4. None of the above

39. Which is / are the advantages of redemption of debt

1. Saves the government from bankruptcy
2. Reduces Cost
3. Saves future generation from the pressure of public debt
4. All of the above

40. Which of the following is not an objective of public debt management

1. Loans at low cost
2. Repayment over a long period
3. Stabilisation of the level of economic activity
4. Economic growth