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Question

Act of selling a part or the whole of shares of selected public sector undertakings (PSU) held by the government to generate capital receipts is called _______.


A
investment
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B
disinvestment
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C
savings
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D
none of the above
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Solution

The correct option is A disinvestment

  • Act of selling a part or the whole of shares of selected public sector undertakings (PSU) held by the government to generate capital receipts is called disinvestment.
  • It is also referred to as 'divestment' or 'divestiture.' In most contexts it refers to government selling partly or fully government owned enterprise.


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