What does the term 'fiscal' refer to in the context of government finances?

"Government spending" "Government revenue" "Government debt" "Government policy"

What does a fiscal deficit indicate about a government's financial situation?

"The government has a surplus of funds." "The government is spending more than it earns." "The government is investing heavily in infrastructure." "The government is reducing its debt levels."

Which of the following is NOT a potential consequence of a prolonged fiscal deficit?

"Accumulation of debt" "Inflation" "Increased economic growth" "Reduced credit rating"

How can a government fund a fiscal deficit?

"By issuing government bonds" "By increasing taxes" "By running down foreign exchange reserves" "All of the above"

What does it mean when a government experiences a fiscal surplus?

"Government expenditure exceeds revenue" "Government revenue exceeds expenditure" "Government debt is increasing" "Government is facing an economic downturn"

Which of the following is a common reason for a government to run a fiscal deficit?

"To finance war or natural disaster relief" "To stimulate economic growth through spending" "To fund social welfare programs" "All of the above"

What is the role of the Reserve Bank of India in managing fiscal deficit?

"Setting tax rates" "Controlling government spending" "Regulating monetary policy" "Issuing government bonds"

What is a key strategy used by the Indian government to manage fiscal deficit?

"Encouraging private investment" "Reducing reliance on foreign borrowing" "Increasing taxes on luxury goods" "All of the above"

What is a potential drawback of relying heavily on borrowing to finance a fiscal deficit?

"It can lead to a debt trap" "It can reduce the government's credit rating" "It can limit future spending capacity" "All of the above"

Why is the ideal fiscal deficit for India a subject of debate?

"There is no universally agreed upon definition of 'ideal'" "Different economic theories suggest different optimal levels" "The specific circumstances of the Indian economy must be considered" "All of the above"