In the context of Indian public finance, 'Effective Revenue Deficit' is defined as: MCQ with Answer and Explanation

In the context of Indian public finance, 'Effective Revenue Deficit' is defined as:
A. Primary deficit plus interest payments
B. Revenue deficit plus capital expenditure
C. Fiscal deficit minus interest payments
D. Revenue deficit minus grants for creation of capital assets
Answer: Option D
Solution (By JKSSB Mock Tests)
Effective Revenue Deficit is Revenue Deficit minus grants given by the Centre to states and union territories for the creation of capital assets.

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Practice More Economy Set 1 Questions

Question #1
In the context of banking regulation, the Capital Adequacy Ratio is prescribed to:
A. Determine the dividend payout
B. Determine the interest rate on deposits
C. Fix the CRR level
D. Ensure banks maintain sufficient capital relative to risk-weighted assets

Correct Answer: Option D


Explanation:
Capital Adequacy Ratio (CAR) requires banks to hold a minimum amount of capital in proportion to their risk-weighted assets to absorb potential losses and protect depositors.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Digital India' programme includes which of the following pillars?
A. Only defence
B. Digital infrastructure, governance and digital empowerment
C. Only agriculture
D. Only manufacturing

Correct Answer: Option B


Explanation:
Digital India rests on digital infrastructure, digital governance and digital empowerment.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on advertising services is:
A. 18%
B. 28%
C. 12%
D. 5%

Correct Answer: Option A


Explanation:
Advertising services attract 18% GST.

This question belongs to: Economy GK Economy Set 1