Government borrowings from the Reserve Bank of India are listed as a .

capital expenditure

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capital receipt

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revenue receipt

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revenue expenditure

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Solution

The correct option is B capital receipt
Borrowing leads to cash inflow, which implies that it is a receipt. Since borrowing increases the liability of the government, it is listed as a capital receipt.

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Similar questions

Q. The rate at which the Reserve Bank of India borrows money from commercial banks is known as

Q. Listed companies prefer the debenture route for raising long-term capital than borrowing from banks as ______________________.

The government budget of a hypothetical economy presents the following information, which of the following value represents Budgetary Deficit? (all fig. in crores of Rupees).

A. Revenue Expenditure = 25,000

B. Capital Receipts = 30,000

C. Capital Expenditure = 35,000

D. Revenue Receipts = 20,000

E. Interest Payments = 10,000

F. Borrowings = 20,000

Q. Reserve Bank of India was established as per the Indian Government Act of which year?

Q. What is the rate of interest at which the Reserve Bank of India borrows money from commercial banks called?

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Government borrowings from the Reserve Bank of India are listed as a .

The correct option is B capital receiptBorrowing leads to cash inflow, which implies that it is a receipt. Since borrowing increases the liability of the government, it is listed as a capital receipt.

The correct option is B capital receipt
Borrowing leads to cash inflow, which implies that it is a receipt. Since borrowing increases the liability of the government, it is listed as a capital receipt.