BUDGET

A budget is used to allocate resources from one sector of the economy to another.

• true

• false

Which is a budget with equal revenues and expenditure?

• balanced

• surplus

• deficit

• unbalanced

Which is a budget with excess revenues over expenditure?

• balanced

• surplus

• deficit

• unbalanced

Which is not a reason for balanced budget?

• It prevents financial insecurity

• It prevents foreign control of local economy

• It prevents government overspending

• It prevents dominance of Multinational Companies

Which of the following statements is not true?

• balanced budget are health for economies

• budget deficit encourages importation

• national debt is the total amount owned by a country

• revenues are considered as inflows while expenditure are outflows

Budget deficit often leads to the depreciation of a country's currency?

• true

• false

What does a fiscal deficit in a government budget indicate?

• excess government spending

• excess government revenue

• balanced budget

• no impact on the economy

In the context of government budgets, what does the term "discretionary spending" refer to?

• Spending on essential services

• Mandatory spending

• Spending that can be adjusted by policymaker

• Spending that can be adjusted by policymaker

What is the purpose of a capital budget in government finance?

• Allocating funds for day-to-day operations

• Managing short-term expenditures

• Funding long-term infrastructure projects

• Controlling inflation

How does a trade surplus impact a country's budget?

• Increases government spending

• Reduces government revenue

• Increases government revenue

• Has no impact on the budget