Assertion (A): Disinvestment is a revenue receipt.
Reason (R): Disinvestment reduces the government's assets.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

R is true: selling shares gives up an asset.
Any receipt that reduces assets is a capital receipt, so A is false.

Concept: Disinvestment is a capital receipt
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue receipts: tax and non-tax

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Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

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Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

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Assertion (A): Disinvestment is a revenue receipt.Reason (R): Disinvestment reduces the government's assets.

Explanation

Assertion (A): Disinvestment is a revenue receipt.
Reason (R): Disinvestment reduces the government's assets.