Which of the following is the formula for calculating fiscal deficit? MCQ with Answer and Explanation

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Which of the following is the formula for calculating fiscal deficit?

A. Total expenditure − Total receipts including borrowings

B. Revenue expenditure − Revenue receipts

C. Capital expenditure − Capital receipts

D. Total expenditure − Total receipts excluding borrowings

Answer: Option D

Solution (By JKSSB Mock Tests)

Fiscal deficit = Total expenditure − (Revenue receipts + Non-debt capital receipts). It indicates the total borrowing requirement of the government.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is a feature of the Indian money market?

A. Presence of call money, treasury bills, commercial paper and certificates of deposit

B. Dominance of long-term instruments only

C. Absence of short-term instruments

D. No role for the Reserve Bank of India

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Correct Answer: Option A

Explanation:
The Indian money market comprises various short-term instruments including the call/notice money market, treasury bills, commercial paper, certificates of deposit and collateralised instruments.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on food in restaurants is generally:

A. 18%

B. 12%

C. 28%

D. 5%

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Correct Answer: Option D

Explanation:
Restaurant services generally attract 5% GST without input tax credit, but some categories differ.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of international economics, 'Dumping' refers to:

A. Selling goods abroad at a price lower than in the domestic market

B. Selling goods abroad at a higher price

C. Exporting goods with subsidies only

D. Importing goods without tariffs

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Correct Answer: Option A

Explanation:
Dumping is the practice of selling a product in a foreign market at a price lower than the domestic price or below the cost of production, often considered an unfair trade practice.

This question belongs to: Economy GK Economy Set 1

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