Q.1 Which of the following does not comes under Planned Expenditure?

1) Defence

2) Subsidies

3) Agriculture

4) Rural development

5) Interest Payments

Codes:

A) 1,3,4,5

B) Only 1 & 2

C) Only 3 & 5

D) all of above comes under Planned Expenditure

Ans. B

Q.2  Consider the statements relating to Indira  Gandhi Matritva Sahyag Yojana:

1) It is a centrally sponsored scheme.

2) It has been launched by National Rural health mission

3) It addresses wage loss.

Codes;

A) 1 & 3

B) 2 & 3

C) All are correct

D) All are incorrect

Ans.  C

Q. 3 Consider statements relating about Janani Suraksha Yojna:

1) It Addresses wage loss.

2) It has been launched by Min. of Health & Family welfare.

3) It provide cash incentives

Codes:

A) 2 & 3

B) 1 & 3

C) All are correct

D) all are incorrect

Ans. A

NOTE: IGMSY provides wage loss while JSY don’t provide wage loss & both of them provide cash incentives.

Q.4 In context with Rashtriya Arogya Nidhi yojna , consider the following;

1) It is a centrally sponsored scheme

2) Financial assistance is given to patients whether in Govt hospitals or in private hospitals.

3) Assistance is given for all diseases.

Codes:

A) Only 1

B) 2 & 3

C) Only 3

D) 1,2,3

Ans. A

Assistance is given only for life threatening diseases & for Govt hospitals only

Q.5 A ‘Letter of Credit’ is produced by

A)An exporter

B)An importer

C)Both by exporter & importer

D) None of the above

Ans. C

Q.6 Treasury bills are sold in India by

A)RBI

B)State Govts.

C)Commercial banks

D)SEBI

Ans. A

Q.7 Which organisation is involved in providing the insurance against various risks to the exporters?

A)RBI

B)State trading Corporation of India

C)EXIM Bank

D)Export Credit & Guarantee Corporation

Ans. D

Q.8  consider the statements relating to public funds:

1) It is the Money that is generated by the government to provide goods and services to the general public.

2)  It refers to acquisition of goods and services.

3) Transfer is made without any exchange of goods or services

Options:

A) 1 & 2

B) 2 & 3

C) 1 & 3

D) All are correct

Ans. C

Government expenditures that are not acquisition of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments. These payments are considered to be exhaustive because they do not directly absorb resources or create output. In other words, the transfer is made without any exchange of goods or services.Examples of certain transfer payments include welfare (financial aid), social security, and government making subsidies for certain businesses

*Government spending (or government expenditure) includes all government consumption and investment but excludes transfer payments made by a state. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (gross fixed capital formation). Government expenditures that are not acquisition of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments

Q.9  Consider the statements relating to Gender Budgeting :

1) It is the process of dividing the Govt money on the basis of Gender.

2) The main purpose is to assess quantum & adequacy of allocation of resources for women.

Codes:

A) Only 1

B) only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.10 Consider statements relating to revenue expenditure:

1) It is considered helpful in budgetting process.

2) It generally produces assets.

Codes:

A) only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans.D

Revenue Expenditure is considered dangerous as it does not produces any assets.

Q.11 statements:

1) When Govt. spends more than the revenue receipts is known as Surplus Budget.

2) When Govt. spends less than its receipts is known as Deficit Budget.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) both are incorrect

Ans. D

* When Govt. spends more than the revenue receipts is known as Deficit Budget.

* When Govt. spends less than the revenue receipts is known as Surplus Budget.

Q.12 ‘Principle of Indemnity’ does not apply to

A)Life Insurance

B)marine Insurance

C)Fire Insurance

D)All of the above

Ans. A