{"id":10446,"date":"2024-07-15T11:32:55","date_gmt":"2024-07-15T10:32:55","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=10446"},"modified":"2024-07-17T12:00:04","modified_gmt":"2024-07-17T11:00:04","slug":"fiscal-policy-and-monetary-policy-set-1","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2024\/07\/15\/fiscal-policy-and-monetary-policy-set-1\/","title":{"rendered":"Fiscal Policy and Monetary Policy Set &#8211; 1"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>1. Which one of the following forms the largest share of deficit of Government of India Budget?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Primary deficit<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B.  Fiscal deficit<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Budgetary deficit<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Revenue deficit<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:B.Fiscal deficit<BR>\nSOLUTION :Fiscal deficit receives prominent place in the government of India&#8217;s budget.<\/p>\n<\/div>egin\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. <strong>Fiscal Policy is connected with<\/strong><\/strong> __________.<\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A. Policy of agriculture<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Public revenue &amp; expenditure<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Policy of population<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Policy of industry<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:B.Public revenue &#038; expenditure<BR>\nSOLUTION: \nFiscal policy is related with public revenue and public expenditure. <\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. <strong>\u00a0If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using?<\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. \u00a0Tight Money Policy<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. \u00a0Ease Money Policy<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Expansionary Fiscal Policy<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Restrictive Fiscal Policy<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER :C.Expansionary Fiscal Policy<BR>\nSOLUTION: \nWhen a government uses tax cuts to promote economic growth and stability, it&#8217;s using an expansionary fiscal policy.\n<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. <strong>Which of the following method is not used in determining National Income of a country?<\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Income Method<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Investment Method<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Output Method<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Input Method<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: B.Investment Method<BR>\nSOLUTION: \nProfit Method is not a method of measuring national income. Product Method, Income Method, Expenditure Method are methods of measuring national income. In product method, national income is measured as a flow of goods and services.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. \u00a0Most economists believe that the immediate determinant of output and employment is<\/strong> _____________.<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. A decline in the Dow Jones Industrial Average<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. An increase in the costs of production<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C.  A change in total spending<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. \u00a0The development of new technology<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: C.A change in total spending<BR>\nSOLUTION: \nMany economists believe that a change in total spending is the immediate determinant of domestic output and employment. <\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>6. \u00a0Inflation imposes the greatest burdens on<\/strong> ____________.<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A.  Lenders, when it is unanticipated<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Borrowers, when it is unanticipated<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Borrowers, when it is anticipated<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Lenders, when it is anticipated<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:A.Lenders, when it is unanticipated<BR>\nSOLUTION: \nLenders, when it is unanticipated<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>7. With reference to deficit financing, monetized deficit is the part that is financed through<\/strong> ____________.<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Borrowings from private sector<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B.  Borrowings from public sector scheduled commercial banks<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Borrowings from RBI<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. External commercial borrowings<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: C.Borrowings from RBI<BR>\nSOLUTION :\nMonetized Deficit refers to the practice of financing a government&#8217;s budget deficit by borrowing directly from the central bank, in this case, the Reserve Bank of India (RBI), through the creation of new money or by printing additional currency.\n<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>8. \u00a0Which Bill is concerned with the tax proposals of the Budget?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. State Bill<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Cash Bill<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Finance Bill<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. None of these<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:C.Finance Bill<BR>\nSOLUTION:\nFinance Bill contains provisions related to tax proposals and revenue received or expenditures made from the Consolidated Fund of India as well as some other financial matters.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>9. <strong>If we include it, national income will be over-estimated<\/strong><\/strong> __________.<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Income from abroad<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Transfer payment<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Exports<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Illegal income<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: B.Transfer payment<BR>\nSOLUTION: \nTransfer payment.\n<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>10. <strong>National Income in India is compiled by<\/strong><\/strong> __________.<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Finance Commission<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Central Statistical Organization<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Indian Statistical Institute<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. NDC<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: B.Central Statistical Organization<BR>\nSOLUTION:\nIn India the estimates of national income are prepared by central statistical organization (C.S.O).\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>1. Which one of the following forms the largest share of deficit of Government of India Budget? A. Primary deficit B. Fiscal deficit C. Budgetary deficit D. Revenue deficit ANSWER &#038; SOLUTION ANSWER:B.Fiscal deficit SOLUTION :Fiscal deficit receives prominent place in the government of India&#8217;s budget. egin 2. Fiscal Policy is connected with __________. A.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[5654,5655,5646,5610,5611,5617,5614,4029,5649,5652,5613,5618,5616,5612,5609,5615],"class_list":{"0":"post-10446","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economics","7":"tag-economics-mcqs-for-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","8":"tag-economics-mcqs-for-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-examsin-kannada","9":"tag-exam-veda","10":"tag-fiscal-policy-is-connected-with-__________","11":"tag-if-fiscal-policy-is-trying-to-promote-stability-and-economic-growth-through-tax-cuts-what-type-of-policy-is-fiscal-policy-using","12":"tag-if-we-include-it-national-income-will-be-over-estimated-__________","13":"tag-inflation-imposes-the-greatest-burdens-on-____________","14":"tag-mcqs-adda","15":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","16":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-examsin-kannada","17":"tag-most-economists-believe-that-the-immediate-determinant-of-output-and-employment-is-_____________","18":"tag-national-income-in-india-is-compiled-by-__________","19":"tag-which-bill-is-concerned-with-the-tax-proposals-of-the-budget","20":"tag-which-of-the-following-method-is-not-used-in-determining-national-income-of-a-country","21":"tag-which-one-of-the-following-forms-the-largest-share-of-deficit-of-government-of-india-budget","22":"tag-with-reference-to-deficit-financing-monetized-deficit-is-the-part-that-is-financed-through-____________"},"_links":{"self":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/comments?post=10446"}],"version-history":[{"count":1,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10446\/revisions"}],"predecessor-version":[{"id":10459,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10446\/revisions\/10459"}],"wp:attachment":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/media?parent=10446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/categories?post=10446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/tags?post=10446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}