PUBLIC FINANCE EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Public finance refers to:
A. Household spending only
B. Management of government revenue and expenditure
C. Sports finance
D. Cooking finance
Answer: B
Concerned with government finances.
2. The main objective of public finance is to:
A. Create waste
B. Promote economic stability and public welfare
C. Reduce accountability
D. Eliminate taxation
Answer: B
Supports national development.
3. Government revenue mainly comes from:
A. Personal savings
B. Taxes and public income sources
C. Sports tickets
D. Household sales
Answer: B
Funds public services.
4. Taxation refers to:
,A. Voluntary donation
B. Mandatory government levy
C. Employee salary
D. Sports fines
Answer: B
Major public revenue source.
5. Direct taxes are imposed on:
A. Goods only
B. Income and wealth directly
C. Transport only
D. Imports only
Answer: B
Paid directly by taxpayers.
6. Indirect taxes are imposed on:
A. Personal salaries only
B. Goods and services
C. Government loans
D. Public wages
Answer: B
Collected through transactions.
7. Value Added Tax (VAT) is a:
A. Direct tax
B. Indirect tax
C. Property tax
D. Corporate loan
Answer: B
Charged on goods and services.
8. Public expenditure refers to:
, A. Household expenses
B. Government spending
C. Sports spending
D. Cooking spending
Answer: B
Funds public activities.
9. Recurrent expenditure includes:
A. Long-term infrastructure only
B. Daily operational expenses
C. Import taxes only
D. Foreign exchange only
Answer: B
Regular government costs.
10. Capital expenditure is spending on:
A. Employee refreshments
B. Long-term investments and infrastructure
C. Utility bills only
D. Office cleaning only
Answer: B
Creates lasting assets.
11. A budget is:
A. Random spending
B. Financial plan of income and expenditure
C. Sports policy
D. Cooking schedule
Answer: B
Guides government finance.
12. Budget deficit occurs when:
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Public finance refers to:
A. Household spending only
B. Management of government revenue and expenditure
C. Sports finance
D. Cooking finance
Answer: B
Concerned with government finances.
2. The main objective of public finance is to:
A. Create waste
B. Promote economic stability and public welfare
C. Reduce accountability
D. Eliminate taxation
Answer: B
Supports national development.
3. Government revenue mainly comes from:
A. Personal savings
B. Taxes and public income sources
C. Sports tickets
D. Household sales
Answer: B
Funds public services.
4. Taxation refers to:
,A. Voluntary donation
B. Mandatory government levy
C. Employee salary
D. Sports fines
Answer: B
Major public revenue source.
5. Direct taxes are imposed on:
A. Goods only
B. Income and wealth directly
C. Transport only
D. Imports only
Answer: B
Paid directly by taxpayers.
6. Indirect taxes are imposed on:
A. Personal salaries only
B. Goods and services
C. Government loans
D. Public wages
Answer: B
Collected through transactions.
7. Value Added Tax (VAT) is a:
A. Direct tax
B. Indirect tax
C. Property tax
D. Corporate loan
Answer: B
Charged on goods and services.
8. Public expenditure refers to:
, A. Household expenses
B. Government spending
C. Sports spending
D. Cooking spending
Answer: B
Funds public activities.
9. Recurrent expenditure includes:
A. Long-term infrastructure only
B. Daily operational expenses
C. Import taxes only
D. Foreign exchange only
Answer: B
Regular government costs.
10. Capital expenditure is spending on:
A. Employee refreshments
B. Long-term investments and infrastructure
C. Utility bills only
D. Office cleaning only
Answer: B
Creates lasting assets.
11. A budget is:
A. Random spending
B. Financial plan of income and expenditure
C. Sports policy
D. Cooking schedule
Answer: B
Guides government finance.
12. Budget deficit occurs when:
