ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Discretionary income is the money left over after paying for essentials.
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Your take-home pay is the amount of income left after taxes and other deductions are taken out of your gross pay.
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A a surplus is extra money that can be spent or saved.
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A deficit occurs when more money is spent that is earned or received.
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Detailed explanation-1: -A budget deficit occurs when a government spends more in a given year than it collects in revenues, such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year, and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.
Detailed explanation-2: -Deficit financing means generating funds to finance the deficit which results from an excess of expenditure over revenue. The gap is covered by borrowing from the public by the sale of bonds or by printing new money.
Detailed explanation-3: -Types of Deficits in India Revenue deficit: Revenue expenditure as reduced by revenue receipts. Fiscal Deficit: Total expenditure as reduced by total receipts except borrowings. Primary Deficit: Fiscal deficit as reduced by interest payments.
Detailed explanation-4: -Increase in fiscal deficit does not affect the primary deficit.