Past-paper MCQs · IV · 2024–2026 (3 questions)

Syllabus home: IV. Budgeting and Financial Management

3 questions · 1 mark each. Extracted from the supplied 2024–2026 papers. These are reasoned study answers, not an official FPSC key. Where wording or options are defective, the likely intended answer and the precise concept are distinguished.

2024 · Q1(18)

Source: PUBLIC ADMINISTRATION 2024.pdf, PDF page 1–2

Monetary policy involving use of different financial instruments to influence interest rates and money supply is prepared and implemented by:

• (A) State owned stock exchanges
• (B) Consortium of commercial banks
• (C) Central or state bank of the country
• (D) None of these

Answer: C

Monetary policy is the responsibility of the central bank; in Pakistan this is the State Bank of Pakistan. It is distinct from fiscal policy.

2025 · Q1(9)

Source: PUBLIC ADMINISTRATION 2025.pdf, PDF page 1

Line-Item Budging includes:

• (A) Only inputs
• (B) Only outputs
• (C) Both (A) & (B)
• (D) None of these

Answer: A

Line-item budgeting classifies expenditure by inputs or objects, such as salaries and supplies, rather than primarily by outputs.

2025 · Q1(10)

Source: PUBLIC ADMINISTRATION 2025.pdf, PDF page 1

Rationalizing expenditure for economy can reduce:

• (A) Fiscal Deficit in government budget
• (B) Recreational activities
• (C) Expensive projects
• (D) None of these

Answer: A

Reducing wasteful expenditure can lower the deficit, other things equal. The effect depends on revenue, growth and the composition of spending.