Question

When the government raises funds either by incurring a liability or by reducing assets is called _____________.

• A. capital receipts
• B. revenue receipts
• C. interest receipts
• D. none of the above

Answer 1

Answer: (A)

capital receipts

Capital receipts are all those money receipts of the government that either creates a liability for the government or reduce an asset of the government.

Capital receipts include small savings, market loans and provident funds.