WBCS.LIVE practice question

Read the following about Capital receipts: A) All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. B) The main items of capital receipts are loans raised by the government from the public which are called market borrowings, borrowings by the government from the Reserve Bank and commercial banks and other financial institutions through the sale of treasury bills, loans received from foreign governments and international organizations and recoveries of loans granted by the central government. Identify the CORRECT statement / statements.

Solve this multiple-choice question and check the correct answer with its explanation below.