Question is ⇒ Deficit financing implies, Options are ⇒ (A) printing new currency notes, (B) replacing new currency with worn out currency, (C) public expenditure in excess of public revenue, (D) public revenue in excess of public expenditure, (E) , Leave your comments or Download question paper.

Question is ⇒ Deficit financing implies, Options are ⇒ (A) printing new currency notes, (B) replacing new currency with worn out currency, (C) public expenditure in excess of public revenue, (D) public revenue in excess of public expenditure, (E) , Leave your comments or Download question paper. Previous question Next question


Q1.	Deficit financing implies
A.	printing new currency notes [Wrong Answer]
B.	replacing new currency with worn out currency [Wrong Answer]
C.	public expenditure in excess of public revenue [Correct Answer]
D.	public revenue in excess of public expenditure [Wrong Answer]
View Answer 7 -5 Explanation:- Answer : C Discuss it below : !! OOPS Login [Click here] is required to post your answer/result Help other students, write article, leave your comments

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⇒ Percentage of Re 1 coins in total currency of India is
1.2 per cent
2.2 per cent
2.0 per cent
2.3 per cent

⇒ Deficit financing implies
printing new currency notes
replacing new currency with worn out currency
public expenditure in excess of public revenue
public revenue in excess of public expenditure

⇒ Paper currency first started in India in
1861
1542
1601
1880

⇒ Fiscal deficit in the Union Budget means
the difference between current expenditure and current revenue
net increase in Union Governments borrowings from the Reserve Bank of India
the sum of budgetary deficit and net increase in internal and external borrowings
the sum of monetized deficit and budgetary deficit

⇒ If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
zero
equal to government income
larger than government income
negative

⇒ Devaluation of currency will be more beneficial if
prices of domestic goods remain constant
prices of exports remain constant
prices of imports remains constant
prices of exports rise proportionately

⇒ Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to
80 percent
83 percent
90 percent
100 percent

⇒ The annual yield from which of the following Union Government taxes is the highest?
Custom duties
Corporation tax and income tax
Inheritance tax, wealth tax, interest tax and gift tax
Excise duties

⇒ Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to
ARDC
SBI
NABARD
PACs

⇒ The central co-operative banks are in direct touch with
farmers
state co-operative banks
land development banks
central government

⇒ Which of the following is a direct tax?
Excise
Sales tax
Income tax
None

⇒ Which of the following committees is related with capital market reforms?
Malegam Committee
Kelkar Committee
Naresh Chandra Committee
Swaminathan Committee

⇒ The condition of indirect taxes in the country's revenue is approximately
70 percent
75 percent
80 percent
86 percent

⇒ Which of following factors contribute to inflation?
20 per cent increase in prices of agricultural commodities
20 per cent increase in money supply
20 per cent fall in the production of industrial products
None of the above

⇒ Reserve Bank of India was nationalized in the year
1935
1945
1949
1969

⇒ Debenture holders of a company are its
shareholders
creditors
debtors
directors

⇒ On July 12, 1982, the ARDC was merged into
RBI
NABARD
EXIM Bank
None of the above

⇒ Deficit financing means that the government borrows money from the
RBI
local bodies
big businessmen
IMF

⇒ In India, the first bank of limited liability manages by Indians and founded in 1881 was
Hindustan Commercial Bank
Oudh Commercial Bank
Punjab National Bank
Punjab and Sind Bank

⇒ Which of the following commodities earns maximum foreign exchange for India?
Jute
Iron and steel
Tea
Sugar

⇒ The central banking functions in India are performed by the
I. Central Bank of India
II. Reserve Bank of India
III. State Bank of India
IV. Punjab National Bank
I, II
II
I
II, III

⇒ How many PSU's are included in the category of 'Navaratna'
8
9
11
14

⇒ Gilt-edged market means
bullion market
market of government securities
market of guns
market of pure metals

⇒ Deficit financing leads to inflation in general, but it can be checked if
government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
only aggregate demand is increased
all the expenditure is denoted national debt payment only
All of the above

⇒ If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?
Rs. 50,000 crores
Rs. 25,000 crores
Rs. 1,00,000 crores
Rs. 1,25,000 crores

⇒ Which of the follow ing is not a direct tax?
Income tax
Wealth tax
Sales tax
Estate duty

⇒ States earn maximum revenue through
land revenue
custom revenue
commercial taxes
excise duties on intoxicants

⇒ Depreciation means
closure of a plant due to lock out
closure of a plant due to labour trouble
loss of equipment over time due to wear and tear
destruction of a plant in a fire accident

⇒ The Indian Financial Year begins on
1 January.
1 April.
1 July.
None of these

⇒ Gross domestic capital formation is defined as
flow of expenditure devoted to increased or maintaining of the capital stock
expenditure incurred on physical assets only
production exceeding demand
net addition to stock after depreciation