Indian Economy·MCQ Practice

Budget Deficits Types — MCQ Practice

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Version 1Updated 5 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1hard

Consider the following statements about budget deficits in India: 1. Primary deficit can be negative even when fiscal deficit is positive 2. Effective revenue deficit is always less than revenue deficit 3. FRBM Act mandates elimination of primary deficit by 2025-26. Which of the statements given above is/are correct?

Q2medium

Which of the following best explains why revenue deficit is considered more problematic than fiscal deficit of the same magnitude?

Q3medium

The concept of 'Effective Revenue Deficit' was introduced to:

Q4hard

If a country has a primary surplus but fiscal deficit, it indicates that:

Q5medium

Under the FRBM Act framework, which of the following provides flexibility during economic crises?

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