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Public Finance

Public finance is the study of how governments raise and spend money to provide public goods and services, and how to manage their finances effectively.

revenue

expenditure

taxation

budgeting

debt

deficit

fiscal policy

public goods

cost-benefit analysis

efficiency

equity

subsidies

grants

public choice

public sector

An increase in the value of an asset.

  • Capital Gain

The Department of Environment and Natural Resources got the biggest amount of budget for the year 2020.

  • True
  • False

. Expenditures are everything that a government actually spends money on, such as social programs, education, and __________.

  • Tariff
  • Infrastructure
  • Profit
  • Balance
  • Budget

For 2021, Philippines is aiming for 11.5 growth rate

  • True
  • False

Dubai crude oil is not included in the macroeconomic assumption in making budget.

  • True
  • False

A static budget remains unchanged over the life of the budget

  • True
  • False

Department of Budget and management was created on

  • [No Answer]

The Philippines economy grew by a modest rate of 6.2% in 2018.

  • True
  • False

DBM secretary from 2016 to 2019

  • BENJAMIN DIOKNO

The Department of Public Works and Highway got the second biggest amount of budget for the year 2020.

  • True
  • False

A budget occurs when a country

  • True
  • False

Initially, deficit spending and the resultant debt will boost economic growth

  • True
  • False

For 2020 budget, the treasury bill rate that we used is 5% to 6%.

  • True
  • False

DBM secretary from 2010-2016

  • [No Answer]

___________ is the main revenue source for governments.

  • Property Tax
  • Tax Collection
  • Estate Tax
  • Profit

Philippines got a good credit standing due to its downward trend in national government debt from 41.9% to 40.8%.

  • True
  • False

International institution that provides loans and grants to the government

  • World Bank

Specific factors affecting ____________________ expenses are addressed and monitored.

  • Deficit
  • Sales
  • Money
  • Potential
  • Budget

The decline of the useful life of a fixed asset over a determined period of time attributable to wear and tear, deterioration, action of the physical elements, inadequacy, and obsolescence.

  • Depreciation

Total borrowings that will be sourced locally to finance the FY2020 national budget

  • [No Answer]

The requirement that certain issuers of municipal obligations file annual reports concerning financial and operating data presented in an official statement.

  • Continuing Disclosure

The investment requirements in terms of pesos in 2020 is greater than 2021

  • True
  • False

Under National Health Insurance there are premiums to be shouldered by the government

  • True
  • False

The government allotted PhP 18.4 B to support farmers and fishermen.

  • True
  • False

Liberalization of rice importation eliminates price hike.

  • True
  • False

LTO target collection for FY 2020 national budget in terms of peso

  • [No Answer]

Population in the elementary enrolees is greater than the population enrolees in the secondary level

  • True
  • False

Philippine National Police approved budget for FY 2020

  • [No Answer]

Budgets are developed for all the different subsidiaries, divisions, and departments within an organization. For a manufacturer, a separate budget is often developed for direct materials, labor, and overhead

  • True
  • False

We are using Dinar foreign exchange rate in the preparation of annual budget.

  • True
  • False

Bonds that are redeemable by the issuer prior to the specified maturity date at the specified price at or above par.

  • Callable Bonds

The process in which, at the end of one fiscal year, appropriation authority for previously-approved encumbrances and un-expended grant and capital funds are carried forward to the next fiscal year.

  • Carryover

A special fund, often held by the trustee or other fiduciary, into which the net proceeds of an issue are deposited and are to be used to pay project costs.

  • Construction Fund

The debt is the accumulation of each year's deficit

  • True
  • False

BOC target collection for FY 2020 national budget in terms of peso

  • [No Answer]

Budgeting is a wonderful tool for managing your finances, but many people think it's not for them.

  • True
  • False

A long-term rental agreement that transfers substantial rights and obligations for the use of an asset to the lessee and, generally, ownership at the end of the lease.

  • Capital Lease

A type of grant that may only be used for a specific program that is usually limited to a narrowly defined activity.

  • Categorical Grants

The importance of budgeting cannot be understated.

  • True
  • False

Assets held by the county in a trustee capacity or as an agent for individual private organizations, other governmental units, and/or other funds.

  • Fiduciary Funds

Sales tax and income tax are examples of

  • Progressive Tax

Budgets are an integral part of _______________ any business efficiently and effectively.

  • Deficit
  • Flow
  • Running
  • Integral
  • Matching

GDP target for the year 2020 is 4.9%.

  • True
  • False

Cash are an integral part of running any business efficiently and effectively.

  • True
  • False

Whether the money goes to jet fighters, bridges, or education, it ramps up production and creates jobs.

  • True
  • False

A budget deficit occurs when a country

  • True
  • False

Deficit spending increases the amount of money in the economy

  • True
  • False

No budget was allotted for Bangsamoro Autonomous Region because they have their own form of government.

  • True
  • False

Business is a wonderful tool for managing your finances, but many people think it's not for them.

  • True
  • False

Department of Budget and Management was created under

  • EO NO. 25

. ________________ is a plan of what the government intends to have as expenditures in a fiscal year

  • Money
  • Billing
  • Budget
  • Tariff
  • Cash

Budgets are developed for all the different subsidiaries, divisions, and departments within an organization. For a manufacturer, a budget is often developed for direct materials, labor, and overhead

  • True
  • False

Deficit Budget means profits are anticipated.

  • True
  • False

Total borrowings from abroad to finance the FY 2020 national budget

  • [No Answer]

Build, build , build program was under Department of Health

  • True
  • False

If the government spends more than it collects, then there is

  • Deficit

A portion of bond proceeds that are set aside to pay interest on the bonds until the projects funded by those bonds are built, operating, and capable of generating revenues for making debt service payments.

  • Capitalized Interest

The actual growth rate in 2018 is greater than 2020 projection

  • True
  • False

Much of the government’s ___________ is a form of income or wealth redistribution, which is aimed at benefiting society as a whole.

  • Spending
  • Profit
  • Money
  • Balance
  • Bills

The national debt is the ____________________ of each year's deficit

  • Profit
  • accumulation
  • Money
  • Choice
  • Accurate

Public finance is the management of a country’s revenue, ___________, and debt load through various government and quasi-government institutions.

  • Profit
  • Cash
  • Expense
  • Expenditures
  • Bill

It aims at reducing the inequalities through redistribution of income and wealth

  • Distribution Function

A bond secured by the pledge of more than one source of repayment, often project revenue and taxing power.

  • Double-barreled Bond

A legal contract between the county government or an agency as employer and a certified representative of a recognized bargaining unit for specific terms and conditions of employment; e.g., hours, working conditions, salaries, or employee benefits.

  • Collective Bargaining Agreement

BIR belongs to the cabinet of the office of the President

  • True
  • False

Asia region is also expected to grow by 4.7%

  • True
  • False

President Manuel L. Quezon is a commonwealth president and not democratic president.

  • True
  • False

Social Services got the highest share in 2020 budget

  • True
  • False

Accounting entities for assets the county does not own but must use for certain purposes, such as escrow de-posits held by the county and retiree group insurance reserves.

  • Expendable Trust Funds

Detachable portions of a bond presented by its holder to bond issuer’s paying agent to document interest due

  • Coupon

A surplus budget remains unchanged over the life of the budget.

  • True
  • False

A tax levied on the purchase of a particular commodity.

  • Excise Tax

Failure by the issuer to pay the principal or interest due on a bond, or failure to fulfill other agreed upon legal and contractual obligations.

  • Default

Study of finance related to government entities.

  • Public Finance

Payment made to employees in return for services performed.

  • Compensation

Roads are examples of

  • Public goods

A funding source for the Capital Budget that is provided for annually within the Operating Budget from general, special, or enterprise revenues.

  • Current Revenue

_____________ are assessments made by investor advisory companies, also known as rating agencies, of credit quality or, conversely, the risk that the borrowing government will not make scheduled payments of principal and interest.

  • Bond ratings

Issues occur if the U.S. government lets the value of the peso.

  • True
  • False

Fill up the gap when public expenditures exceeds public income

  • Public debt

Everything that a government actually spends money

  • Expenditures

President George W. Bush's stated budget deficits totaled about $3 trillion. But he added about $5 trillion to the debt

  • True
  • False

A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.

  • True
  • False

. Issues occur if the Philippine government lets the value of the dollar.

  • True
  • False

Cash spending increases the amount of money in the economy.

  • True
  • False

The Police is not the best unemployment solution

  • True
  • False

Duties and taxes on imported goods

  • Tariff

If the government has a deficit (spending is greater than revenue), it will fund the difference by borrowing money and issuing ________________.

  • National Budget
  • Profit
  • National Issue
  • National Debt
  • National Expense

Individuals and families can have budgets

  • True
  • False

A country’s financial position can be evaluated in much the same way as a business’ ___________________.

  • Cash
  • Balance Sheet
  • Budget
  • Liquidation
  • Financial Statement

The amount by which expenditures exceed revenues during an accounting period.

  • Deficit

BIR target collection for FY 2020 national budget in terms of peso

  • [No Answer]

Charges levied for violations of laws, regulations, or codes.

  • Fines

A special taxing district created to finance the costs of infrastructure improvements necessary for the development or redevelopment of land of high priority to the county.

  • Development District

A plan of the what the government intends to have as expenditures for the whole year

  • Budget

A sale of municipal securities by an issuer to the underwriter offering the best bid (lowest net or true interest cost) in open competitive bidding.

  • Competitive Underwriting

Local Government units (LGUs) have shares from excise taxes on tobacco pursuant to RA 240.

  • True
  • False

A type of residential property tax relief in which benefits depend on income and/or wealth and property tax payments.

  • Circuit Breaker

To ensure soundness of the country’s debt portfolio, the government implemented reforms on Treasury Single Account (TSA)

  • True
  • False

The mandate of Department of Budget and Management is for effective and efficient management of government resources.

  • True
  • False

A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and on a periodic basis.

  • True
  • False

Governmental effort involving expenditures and funding for the creation, expansion, renovation, or replacement of permanent facilities and other public assets having relatively long life.

  • Capital Project

Reducing corporate income tax rate is included in the second package of Comprehensive Tax Reform

  • True
  • False

Former name of DBM

  • MINISTRY OF THE BUDGET

Insurance that guarantees the timely payment of principal and interest to bondholders.

  • Bond Insurance

The statutory or constitutional maximum debt that an issuer can legally incur.

  • Debt Limit

Peace and national security covers the judiciary in the national budget.

  • True
  • False

President George W. Bush's stated budget deficits totaled about $2 trillion. But he added about $15 trillion to the debt

  • True
  • False

Balance means profits are anticipated

  • True
  • False

Whether the money goes to jet fighters, bridges, or education, it ramps up production and creates jobs

  • True
  • False

Expenses paid by the issuer directly related to the authorization, sale, and issuance of bonds.

  • Cost of Issuance

An accounting commitment that reserves appropriated funds for a future expenditure

  • Encumbrance

They may demand higher interest rates to offset any perceived increased risks.

  • True
  • False

Initially, deficit spending and the resultant debt will boost __________________.

  • Money
  • Big Growth
  • Economic
  • Deficit
  • Economic Growth

Irrigation development is also under Peace and national security in the national budget.

  • True
  • False

A fund established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services that are wholly or partially supported by user charges/fees

  • Enterprise Fund

Goods that purchased by the high income group with higher taxes on

  • Luxury goods

This is a source of ____________ for the government.

  • Cash
  • Expense
  • Budget
  • Income
  • Profit

The importance of budgeting cannot be understated

  • Budget
  • Budgeting
  • Money
  • Profit
  • Cash

The Supreme court ruling in April 2019, local government units (LGUs) will receive an estimated 30% higher shares of the IRA starting FY 2022.

  • True
  • False

Build, build , build program is under DPWH and DOTR.

  • True
  • False

Corporate budgets are essential for operating at efficiency.

  • True
  • False

Specific factors affecting potential expenses are addressed and monitored

  • True
  • False

The U.S. Treasury must sell Treasury bonds, bills, and notes to raise the money to cover the deficit and fund regular government operations.

  • True
  • False

A form of short-term tax-exempt debt issued by state and local governments that matures within a short period (less than 365 days) from the date of Issue.

  • Commercial Paper

Inflation rate for the year 2019 as set by DBM range of 2.7 to 3.5.

  • True
  • False

The greater the percentage rate of inflation the better it is for the economy.

  • True
  • False

Income derived from lending money

  • Interest income

Total borrowings to finance the FY 2020 national budget

  • [No Answer]

Bureau of Treasury is under Department of Finance

  • True
  • False

Company budgets are essential for operating at peak efficiency

  • True
  • False

Corporate budgets are essential for operating at peak efficiency.

  • True
  • False

The process by which a stream of tax liabilities becomes incorporated into the price of an asset.

  • Capitalization

Expenditures are a use of cash, and to the extent that they are greater than __________, there is a deficit.

  • Bills
  • Debt
  • Revenue
  • Expense
  • Budget

Current acting secretary of DBM

  • WENDEL E. AVISADO

A payment of money imposed upon new property developments as a condition of approval from the county.

  • Development Impact Fee

. The U.S. Treasury must sell Treasury bonds, bills, and notes to raise the money to cover the deficit and fund regular government operations

  • True
  • False

Countries in the developing world are expected to grow at 4.7 % in 2020

  • True
  • False

Macroeconomic assumptions are important in the preparation of national budget.

  • True
  • False

It aims at eliminating the business fluctuations and its impact on the economy

  • Stabilization function

Proposed Budget for 2020 is PhP 4.100 B

  • True
  • False

The main component of public finance related to collecting

  • Revenue

A rate which, when applied to the coming year’s assessable base, exclusive of the estimated assessed value of property appearing on the tax rolls for the first time (new construction), will produce tax revenue equal to that produced in the current tax year.

  • Constant Yield Tax Rate

An effort to manage cash flows in such a way that interest and penalties paid are minimized and interest earned is maximized.Categorical Gran

  • Cash Management

Group and families can have budgets.

  • True
  • False

The annual request for capital project appropriations. Project appropriations are normally only for that amount necessary to enable the implementation of the first year of the capital program expenditure plan.

  • Capital Budget

It is the use of computer networks to facilitate transactions involving the production, distribution, and sale and delivery of goods and services in the marketplace.

  • Electronic Commerce

This includes the preparation, passing and implementation of government budget and various government policies.

  • Financial Administration

An analytical technique that compares the costs and benefits of proposed programs or policy actions.

  • Cost-Benefit Analysis

If the government has less expenditures than it collects in taxes, there is a _____________.

  • Budget
  • Tariff
  • Surplus
  • New Product
  • Profit

The date of a bond issue from which the bondholder is entitled to receive interest even though the bonds may actually be delivered at some other date.

  • Dated Date

In the 2020 budget, government allotted billions and billions of pesos for corona virus pandemic

  • True
  • False

Expenditure categories within a program area that relate to specific organizational goals or objectives.

  • Cost Center
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