Public Finance

JKSSB Panchayat Account Assistant · Accountancy & Finance · 8 practice questions with answers and explanations: 1 Easy, 4 Medium, 3 Hard.

Sample questions

Sample Easy question 1

Which of the following is an example of government capital expenditure?

  1. Construction of a new highway
  2. Payment of employee salaries
  3. Payment of pensions
  4. Interest payment on loans
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Answer: A. Capital expenditure creates long-term assets, such as infrastructure; salaries and interest are revenue expenditure.

Sample Medium question 2

What is 'public debt'?

  1. The total amount of money owed by the government to lenders
  2. The total tax collected by the government
  3. The government's annual budget surplus
  4. Private company debt
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Answer: A. Public debt refers to the total borrowings owed by the government, both domestic and external.

Sample Hard question 3

Which of the following best defines 'primary deficit'?

  1. Fiscal deficit minus interest payments
  2. Fiscal deficit plus interest payments
  3. Revenue deficit minus capital deficit
  4. Total expenditure minus total tax revenue
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Answer: A. Primary deficit excludes interest payments on past borrowings from the fiscal deficit, isolating the current year's borrowing need.

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