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Introduction — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsIntroduction3 Marks
Question
Differentiate between Current transfers and Capital Transfers.
✓

Answer

S. no. Basis
Current Transfers
Capital Transfers
1. Made out of
Transfers made from the current income of the payer and added to the current income of the recipient the current income of the recipient expenditure are called current transfers.
Capital transfers are defined as transfers in cash and in kind for the purpose of investment wealth or saving of the donor.
2. Concept
Recurring or regular in nature.
Non-recurring or irregular in nature.
3. Example
Scholarships, gifts, old age pension, etc.
Investment grant, capital gains, tax, war damages, etc.

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