Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following receipts do not affect the asset or liability status of the government?

Options:

Revenue receipts 

Fiscal receipts

Capital receipts 

None of the above

Correct Answer:

Revenue receipts 

Explanation:

Revenue receipts are those receipts that do not lead to a claim on the government. They neither create liability nor reduces the assets of the government. Capital receipts like money received in the form of loans or by selling of assets result in creation of liabilities of reduction in assets.