Which of the following is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India? MCQ with Answer and Explanation

Which of the following is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India?
A. To promote deficit financing through money creation
B. To eliminate all forms of taxation
C. To increase fiscal deficit indefinitely
D. To ensure inter-generational equity and fiscal sustainability
Answer: Option D
Solution (By JKSSB Mock Tests)
The FRBM Act aims to ensure fiscal discipline, inter-generational equity in fiscal management and long-term macroeconomic stability by setting targets for deficit reduction.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on SUVs is:
A. 12%
B. 28% plus cess
C. 18%
D. 5%

Correct Answer: Option B


Explanation:
SUVs attract 28% GST plus cess.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' revenue from IGST is shared between:
A. centre only
B. local bodies
C. centre and states as per GST law
D. states only

Correct Answer: Option C


Explanation:
IGST is collected by the centre and apportioned between centre and states.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international trade, 'Most Favoured Nation' (MFN) treatment means:
A. Preferential treatment to one country only
B. Higher tariffs for all countries
C. Ban on imports from certain countries
D. Equal trade treatment to all member countries

Correct Answer: Option D


Explanation:
MFN principle under WTO requires that any advantage granted to one member country must be extended to all other members, ensuring non-discrimination.

This question belongs to: Economy GK Economy Set 1