Assertion (A): Receipts of Post office Savings Accounts, National Savings Certificates, etc. are capital receipts.
Reason (R): Small savings of people (Post office Savings Accounts, National Savings Certificates, etc) are capital receipts for the government because these receipts create a liability of repayment on government.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Reason (R): Small savings of people (Post office Savings Accounts, National Savings Certificates, etc) are capital receipts for the government because these receipts create a liability of repayment on government.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.
Download our app for free and get started
a)
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionAssertion (A): “Borrowings is an example of a capital receipt.
Reason (R): It neither leads to an increase in liability of repayment on government nor reduction of assets.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 2View SolutionAssertion (A): Defence services expenditure is a revenue expenditure.
Reason (R): Defence services expenditure is a revenue expenditure because it neither creates any asset nor reduces any liability of the government.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 3View SolutionAssertion (A): Tax is the main source of government revenue that is used to provide subsidies to the poor at concessional prices, therefore those who pay tax should not use government services.
Reason (R): Public goods are non-exclusive and non-rival in consumption.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 4View SolutionAssertion (A): Revenue deficit is bad for the growth of an economy.
Reason (R): Revenue deficit means revenue receipts are used for unproductive activities.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 5View SolutionAssertion (A): Direct taxes have limited reach
Reason (R): Direct taxes do not reach all the sections of the economy.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 6View SolutionAssertion (A): Personal income tax and corporation tax are indirect taxes.
Reason (R): The liability to pay and burden of an indirect tax lie on different persons/entities.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 7View SolutionAssertion (A): Increase in revenue deficit will always lead to a higher fiscal deficit.
Reason (R):Fiscal deficit = Revenue deficit + Capital expenditure – Non debt creating capital receipts.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 8View SolutionAssertion (A): A custom duty on cotton raised from 0 percent to 10 percent in the Budget 2021.
Reason (R): Custom Duty is not subsumed in GST.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 9View SolutionAssertion (A): Dividend received on investment is the revenue receipt of government.
Reason (R): Revenue receipts neither reduce/increase liabilities nor create/reduce assets.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true. - 10View SolutionAssertion (A): Fiscal deficit indicates the total borrowing requirements of the government from all sources.
Reason (R): Fiscal deficit is financed through borrowings. From the financing side: Fiscal deficit = Net borrowing at home + Borrowing from RBI + Borrowing from abroad.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is False but Reason (R) is true.