Read the two statements and choose the correct option.
I. If there is no borrowing, the fiscal deficit is zero.
II. If the fiscal deficit is zero, the revenue deficit must also be zero.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Borrowing equals the fiscal deficit. I is true.
A revenue deficit can be covered by non-debt capital receipts, such as disinvestment, with no borrowing. II is false.

Ten questions from Budget Deficits, at your own pace.

Ten questions from Budget Deficits, at your own pace.

Read the two statements and choose the correct option.I. If there is no borrowing, the fiscal deficit is zero.II. If the fiscal deficit is zero, the revenue deficit must also be zero.