GOVT2036 Lect 1&2

1. Which of the following is not a major objective of public financial management

• Procurement

• Profit maximization

• Cash management

• Auditing

Musgrave's three expectations of public finance were

• Stabilization, maximization, and redistribution

• Stabilization, maximization, and allocation

• Allocation, redistribution, flexibility

• Allocation, redistribution and stabilization

Which of the following is NOT true

• A budget provides information on the exact revenue and expenditure for the upcoming year

• A budget provides information on planned revenue and expenditure for the upcoming year

• A budget provides information on weaknesses in the management of public finances

• A budget provides information on the strategic allocation of resources

1. Which of the following is not included government’s revenues

• Taxes

• Loans

• Remittances

• Interest

A country’s fiscal policy could affect which of the following

• National savings, exchange rates, interest rates

• National savings, inflation rates, public trust

• Investment, interest rate, trade balance

• All of the above

Accountability requires answers and explanations about

• Actions, politics, results

• Actions, resources, results

• Politics, resources, results

• Resources, actions, politics

Accountability contributes to

• Democratic process, openness, responsiveness

• Transparency, effectiveness, efficiency

• Responsiveness, responsibility, equity

• All of the above

In the accountability chain, a minister of government is accountable to

• Permanent Secretary

• Parliament

• Financial Secretary

• Auditor General