Correct Answer:
B. Government borrowing raising interest rates and reducing private investment
Heavy government borrowing competes with private borrowers for funds.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
The crowding-out effect refers to:
Related MCQs
When NPV and IRR give conflicting rankings for mutually exclusive projects, the preferred criterion is generally:
A.
NPV
B.
IRR
C.
Payback period
D.
Accounting rate of return
Correct answer is:
A. NPV
Do you agree with this answer?
Tax-to-GDP ratio is calculated as:
A.
GDP divided by tax revenue
B.
Total revenue divided by total expenditure
C.
Tax revenue divided by GDP, expressed as a percentage
D.
Public debt divided by GDP
Correct answer is:
C. Tax revenue divided by GDP, expressed as a percentage
Do you agree with this answer?
Audit working papers generally belong to:
A.
The client
B.
The auditor
C.
The shareholders
D.
The regulator in every case
Correct answer is:
B. The auditor
Do you agree with this answer?
Under absorption costing, fixed manufacturing overhead is treated as:
A.
A period cost charged fully to the current period
B.
A selling expense
C.
A product cost included in inventory valuation
D.
An abnormal loss
Correct answer is:
C. A product cost included in inventory valuation
Do you agree with this answer?
The main objective of government accounting is to:
A.
Maximize profit for the government
B.
Reduce the number of audits
C.
Provide accountability and stewardship over public resources
D.
Help private firms prepare tax returns
Correct answer is:
C. Provide accountability and stewardship over public resources
Do you agree with this answer?
PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
Do you agree with this answer?
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