Read the two statements and choose the correct option.
I. Revenue deficit shows that the government's own earnings fall short of its day-to-day spending.
II. Revenue deficit includes capital expenditure.

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

RD = revenue expenditure − revenue receipts. I is true.
Capital expenditure is in the capital account, not in the revenue deficit. 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. Revenue deficit shows that the government's own earnings fall short of its day-to-day spending.II. Revenue deficit includes capital expenditure.