Public Finance MCQs

Quiz | Public Finance Multiple Choice Questions (MCQs). Basic Public Finance Questions.

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1. The word “Public” in public finance can be replaced by
(A) economy
(B) people
(C) company’s
(D) government’s

2. The main government policies that can be used to pursue its economic goals are
(A) fiscal policy and debt policy
(B) fiscal policy and monetary policy
(C) fiscal policy, debt policy, and monetary policy
(D) fiscal policy, subsidies, and monetary policy

3. The government’s fiscal policy denotes the use of government’s
(A) taxes and expenditure
(B) consumption and investment
(C) taxes and revenue
(D) consumption and expenditure

4. Monetary policy of a country is managed by
(A) central bank
(B) finance ministry
(C) commercial banks
(D) board of revenue

5. A central Bank (or state bank) differs from a commercial bank in that:
I. It is the bank of the state
II. It has largest reserves
III. It oversees commercial banking system
(A) I only
(B) I and II only
(C) I and III only
(D) I, II, and III

ANSWERS: PUBLIC FINANCE MCQS
1. (D) government’s
2. (B) fiscal policy and monetary policy
3. (A) taxes and expenditure
4. (A) central bank
5. (C) I and III only