Subject: “Budget, Fiscal Policy”

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

A “closed economy” is an economy in which

Consider the following action which the Government can take:
1. Devaluing the domestic currency.
2. Reduction in export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the following action/actions can help in reducing the Current Account Deficit?

In the context of the Indian economy, what does the term “deficit financing” refer to?

Which one of the following statements appropriately describes the “fiscal stimulus”?

In India, deficit financing is used for raising resources for

Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment
Select the correct answer using the codes given below.

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below:

There has been a persistent deficit budget year after year. Which of the following actions can be
taken by the government to reduce the deficit?
(1) Reducing revenue expenditure
(2) Introducing new welfare schemes
(3) Rationalizing subsidies
(4) Expanding industries
Select the correct answer using the code given below.

Convertability of rupee implies