The government buys shares of a public sector bank to raise its capital. This is

capital expenditureCorrect answerYour answerrevenue expenditureCorrect answerYour answera revenue receiptCorrect answerYour answera transfer paymentCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

The shares are a financial asset for the government, so buying them is capital expenditure.

Concept: Buying shares
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRevenue and capital expenditure

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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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The government buys shares of a public sector bank to raise its capital. This is

Explanation