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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Match List-I with List-II

List-I

List-II

(A) Capital receipts

(I) Excess of total expenditure over and above all total receipts of the government

(B) Corporate saving

(II) Borrowings of the government

(C) Budget deficit

(III) Retained earnings of firm

(D) Fiscal deficit

(IV) Create a liability for the government

Choose the correct answer from the options given below:

Options:

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

Correct Answer:

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

Explanation:

The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(A) Capital receipts → (IV) Create a liability for the government. Capital receipts include borrowings, recovery of loans, etc., which create future obligations.

(B) Corporate saving → (III) Retained earnings of firm. Corporate savings refer to profits retained by companies rather than distributed as dividends.

(C) Budget deficit → (I) Excess of total expenditure over and above all total receipts of the government. It includes both revenue and capital account deficits, excluding borrowings.

(D) Fiscal deficit → (II) Borrowings of the government. Fiscal deficit reflects the total borrowing requirement of the government.

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