for higher interest bonds c) Long term bonds for short term bonds d) All the above . The word budget has been derived from the French word “bougette” which means a) A small bag b) An empty box c) A box with papers d) None of the above . Which one of the following deficits does not consider borrowing as a receipt? a) Revenue deficit b) Budgetary deficit c) Fiscal deficit d) Primary deficit .
Finance Commission determines a) The finances of Government of India b) The resources transfer to the states c) The resources transfer to the various departments d) None of the above - - Fiscal Economics . Consider the following statements and identify the right ones. i. The finance commission is appointed by the President ii.
The tenure of Finance commission is five years a) i only b) ii only c) both d) none Answers c d d d b a b b c d a a a c d b a c b c Part B Two mark questions . Define public finance. . What is public revenue?
. Differentiate tax and fee. . Write a short note on zero based budget.
. Give two examples for direct tax. . What are the components of GST?
. What do you mean by public debt? Part C Three mark questions: . Describe canons of Taxation.
. Mention any three similarities between public finance and private finance. . What are the functions of a modern state?
. State any three characteristics of taxation. . Point out any three differences between direct tax and indirect tax.
. What is primary deficit? . Mention any three methods of redemption of public debt.
Part D Five mark questions: . Explain the scope of public finance. . Bring out the merits of indirect taxes over direct taxes.
. Explain the methods of debt redemption. - - Fiscal Economics . State and explain instruments of fiscal policy.