Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    ECO TEST - Government Budget and the Economy

    Uploaded by

    abhaypandey48502

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    ECO TEST - Government Budget and the Economy

    Uploaded by

    abhaypandey48502
    5 views2 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views2 pages

    ECO TEST - Government Budget and the Economy

    Uploaded by

    abhaypandey48502

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    No. 1 COMMERCE INSTITUTE – XI-XII, CA, CMA, CS, B.

    COM, GD, PI, PUBLIC SPEAKING

    DR. SANTOSH RAI INSTITUTE (PC)


    196, ZONAL MARKET, SECTOR -10, BHILAI PH. 0788-4012438
    CLASS – XII – ECONOMICS – GOVERNMENT BUDGET AND FOREIGN EXCHANGE
    Q.1. Multiple Choice Questions: Choose the Correct Answer [8]
    1. Subsidies as an example of:
    a. Revenue Expenditure
    b. Capital Expenditure
    c. Plan Expenditure
    d. None of them
    2. Repayment of loans is an example of:
    a. Capital expenditure
    b. Non-plan expenditure
    c. Revenue expenditure
    d. Plan expenditure
    3. Interest payments are subtracted from which deficit to arrive at Primary Deficit:
    a. Revenue Deficit
    b. Capital Deficit
    c. Fiscal deficit
    d. None of these
    4. Which of the following statement is true?
    a. Loans from IMF is a revenue Receipt.
    b. Higher revenue deficit necessarily leads to higher fiscal deficit
    c. Borrowing by a government represents a situation of fiscal deficit
    d. Revenue deficit is the excess of capital receipts over the revenue receipts
    5. Balance of trade refers to balance of export and imports of?
    a. Visible items
    b. Invisible items
    c. Both
    d. None
    6. If the price of 1 US$ has fallen from Rs. 56 to 52, the indian currency has:
    a. Depreciated
    b. Appreciated
    c. Devalued
    d. None
    7. The exchnage rate determined by the free play of the forces of demand and supply of foregin exhnage is:
    a. Flexible Exchanged Rate
    b. Fixed Exchange Rate
    c. Managed Floating
    d. None
    8. Other things remaining the same, when foregin currency becomes cheaper, the effect on national income is
    likely to be:
    a. Positive
    b. Negative
    c. Positive and negative both
    d. No effect

    No. 1 COMMERCE INSTITUTE – XI-XII, CA, CMA, CS, B.COM, GD, PI, PUBLIC SPEAKING
    No. 1 COMMERCE INSTITUTE – XI-XII, CA, CMA, CS, B.COM, GD, PI, PUBLIC SPEAKING
    Q.2. What is a revenue budget? [2]
    Q.3. Define direct tax. Give two examples of direct taxes. [2]
    Q.4. Define capital receipts in a government budget [2]
    Q.5. Define capital account of BoP? . [2]
    Q.6. What is foreign exchange rate? [2]
    Q.7. What is menat by flexible exchange rate? [2]
    Q.8. Distinguish between revenue receipts and capital receipts in a government budget. Give two examples of each.
    [3]
    Q.9. Explain the meaning of the following [3]
    a. Revenue deficit b. Fiscal deficit c. Primary deficit
    Q.10. From the following data about a government budget, find out (a) revenue revenue, (b) fiscal deficit, and (c) primary
    deficit [3]
    (Rs.)
    (i) Capital receipt net of borrowings 95
    (ii) Revenue expenditure 100
    (iii) Interest payments 10
    (iv) Revenue reciepts 80
    (v) Capital expenditure 110

    Q.11. How is foreign exchange rate determined in the market? [4]


    Q.12. Giving reasons, state whether the following statements are true or false: [4]
    a. A fall in the price of 1 US dollar from Rs. 50 to Rs. 40 means depreciation of the Indian Currency.
    b. Both depreciation and devaluation of domestic currency have the same meaning.
    c. Depreciation of domestic currency encourages exports.
    d. Appreciation of domestic currency discourages imports.
    Q.13. Which of the following transactions items is a debit/ credit in the current account of balance of payment? Give
    resons reasons for your answer. [4]
    a. Exports of merchandise
    b. Imports of services
    c. Lending to the rest of the world
    d. A gift from foreigners
    Q.14. Which of the following is/are included in the capital budget of the government? Give resons for your Answer
    a. Borrowings from the public [4]
    b. Loans received from foregin government
    c. Expenditure on acquisition of assets like roads, buildings, machinery etc.
    d. Loans and advances granted to the States government.

    No. 1 COMMERCE INSTITUTE – XI-XII, CA, CMA, CS, B.COM, GD, PI, PUBLIC SPEAKING

    You might also like