Question

When the total income of the family is equal to the total expenditure then it is called _______.

• A. Surplus Budget
• B. Deficit Budget
• C. Balanced Budget
• D. All of the above

Answer 1

Answer: (C)

Balanced Budget

A balanced budget (particularly that of a family) refers to a budget in which income is equal to its expenditures. Thus, neither a budget deficit nor a budget surplus exists (it accounts "balance"). More generally, it refers to a budget that has no budget deficit, but could possibly have a budget surplus.