Capital Budget

Q.

Which of the following are capital receipts of the government?

1. Borrowings

2. Recovery of loans

3. Disinvestment

4. All of the these

Q.

Which of the following creates liability for the government?

1. Capital Receipt

2. All of the above

3. Revenue Receipt

4. Revenue Expenditure

Q.

What is disinvestment? Does it refer to revenue receipt or capital receipt of the government? Give an example.

Q.

English comprehension 1) economists are a difficult lot to please and are _____ impressed by either an increase in government expenditure or a cut in taxes

1. always

2. often

3. seldom

4. scarcely

5. easily

Q. Disinvestment is a .

1. capital receipt
2. capital expenditure
3. revenue receipt
4. revenue expenditure

Q.

Capital expenditure is that estimated expenditure of the government by which:

1. Liability is decreased

2. Assets are increased

3. Assets and liabilities remain unchanged

4. Depends on the budget value

Q.

Which of the following is a source of capital receipt?

1. Foreign donations

2. Dividends

3. Disinvestment

4. Indirect taxes

Q.

Budgetary deficit of a Government is Rs. 50, 000 crores, the borrowings, and other liabilities are Rs. 7, 000 crores, What is the amount of fiscal deficit?

Q.

Which of the following statement is true?

1. Loans from IMF is a revenue receipt

2. A higher revenue deficit necessarily leads to a higher fiscal deficit

3. Borrowing by a government represents a situation of fiscal deficit

4. Revenue deficit is the excess of capital receipt over the revenue receipts

Q.

Which of the following sources of receipts in government budget increases liabilities?

1. Borrowings

2. Direct taxes

3. Recovery of loans

4. Dividend from public sector undertakings.

Q.

What is High Powered Money?

Q.

Government borrowings from the Reserve Bank of India are listed as:

1. Revenue receipt

2. Capital expenditure

3. Capital receipt

4. Revenue expenditure

Q. Which of the following are included in broad money $\left(M_3\right)$ in India?
$1$. Currency with the public.
$2$. Demand deposits with banks.
$3$. Time deposits with banks.
$4$. 'Other' deposits with RBI.
Select the correct answer using the code given.

1. $1,2$ and $3$
2. $1$ and $2$
3. $3$ and $4$
4. $1,2,3$ and $4$

Q.

The capital receipt is that receipt of the government which

1. Reduces the assets

2. Neither A nor B

3. Creates a liability

4. Both A and B

Q.

If the government borrows money from the World Bank to meet its future expenditures, it falls in the ___ budget.

Q.

What happens when the fiscal deficit increases?

Q.

What is the cash flow formula?

Q. Short answer type questions:
Giving reasons, categorise the following into revenue receipts and capital receipts: (i) Recovery of loans; (ii) Corporation tax; (Ili) Dividends on investments made by government; (iv) Sale of a public sector undertaking.

Q. Explain the function of Central Bank as a "Banker to the Government".

Q. Which is the neighboring country that has a less per capita income?

1. Myanmar
2. Sri Lanka
3. Nepal
4. Pakistan

Q. Write the basic problems faced by an economy. Explain any three in detail.

Q. Lack of scarcity implies lack of economic problem.

1. true
2. false

Q.

If the government of India takes a loan from another country to fund its deficit, this loan will NOT be considered in the capital budget. State true or false.

1. False

2. True

Q.

Dividends and profits earned by the government from PSUs belong to the capital budget. State true or false.

1. True

2. False

Q.

Disinvestment is a

1. Capital Receipt

2. Capital Expenditure

3. Revenue Expenditure

4. Revenue Receipt

Q. $M_3$ measure of money supply does not include ____________.

1. demand deposits with post offices
2. demand deposits with banks
3. cash with public
4. time deposits with banks

Q. __________ receipts are those monetary receipts which either creates a liability or leads to a reduction in the assets of the government.

1. Revenue
2. Capital
3. Non-tax
4. Tax

Q.

Which of the following lead(s) to a reduction in assets?

1. Recovery of loans

2. Disinvestment

3. Interest payments

4. Indirect taxes

Q. Grants, a part of the revenue expenditure of the government, refers to all the grants given by the state government to the central government.

1. True
2. False

Q. Per Capita income is obtained by dividing National Income by _________________.

1. Total population of the country
2. Total working population
3. Area of the country
4. Volume of the capital used