Prelims Marathon -Economy (Fiscal Policy)- June-29-2022

Which of the following statements is/are correct with respect to Monetized Deficit?
1. It leads to an increment in the net holdings of treasury bills by the Central Bank.
2. It leads to an increment in the money supply in the economy.
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Which of the following is/are the typical consequences of the Revenue Deficit?
1. The government borrows to finance its investment and consumption requirements.
2. A higher revenue deficit creates a higher repayment burden on the government.
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Which of the following statement related to Effective Revenue Deficit is correct?

On which of the following factors does economic growth is directly dependent?

Which of the following is/are the effects of a budget deficit?
1. Rise in the National Debt
2. Rise in value of the currency
3. Increase in currency circulation
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Which one of the following is a capital receipt in the government budget?

Fiscal Responsibility and Budget Management Act (FRBMA) was passed to keep a check on which of the following?
1. Fiscal deficit
2. Revenue deficit
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Consider the following pairs:
Policy Statement ——Aim
1. Medium-term Fiscal Policy Statement —–It sets the priorities of the government in the fiscal area
2. Fiscal Policy Strategy Statement —–It assesses the prospects of the economy with respect to the fiscal balance of the central government
3. Macroeconomic Framework Statement ——It sets a three-year rolling target for specific fiscal indicators
Which of the above given pairs is/are correctly matched?

Which of the following is/are the main objectives of Fiscal Policy in India?
1. To maintain and achieve full employment
2. To maintain equilibrium in the Balance of Payments
3. To regulate magnitude of interest rates
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