Macroeconomics: Government Budget and the Economy · Class 12 · CBSE · Commerce Economics
Which one of the following is a capital receipt of the government?
Practice question from Macroeconomics: Government Budget and the Economy (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-B4CA0D
Which one of the following is a capital receipt of the government?
- A.Recovery of loans granted by the governmentCorrect answer
- B.Income tax collected from households
- C.Fees received for government services
- D.Dividends received from public sector enterprises
Solution
Recovery of loans reduces the government's financial assets and is therefore a capital receipt. Tax revenue, fees and dividends are revenue receipts.
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