Attempt this previous-year question. The correct option stays hidden until you choose.
Consider the following statements:
I. Capital receipts create a liability or cause a reduction in the assets of the Government.
II. Borrowings and disinvestment are capital receipts.
III. Interest received on loans creates a liability of the Government.
Which of the statements given above are correct?
Pick an option to check yourself.
• Correct Answer: A
• Statements I and II are correct: capital receipts create liabilities or reduce assets; borrowings and disinvestment both qualify.
• Statement III is incorrect: interest received on loans is a revenue receipt, not a capital receipt.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
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