Q19 of 30 Page 1

Fiscal deficit equals : (choose the correct alternative)

(a)Interest payments


(b)Borrowings


(c)Interest payments less borrowing


(d)Borrowing less interest payments


Fiscal deficit equals (b) borrowings. Fiscal deficit is the excess of total expenditure, that is, revenue and capital expenditure over total receipts. This measure reflects total borrowings of the government during the financial year.


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17

Depreciation of fixed capital assets refers to :(choose the correct alternative)

(a)Normal wear and tear


(b)Foreseen obsolescence


(c)Normal wear and tear and foreseen obsolescence


(d)Unforeseen obsolescence


 18

What is revenue expenditure?

 20

Foreign exchange transactions dependent on other foreign exchange transaction are called: ( choose the correct alternative)

(a)Current account transactions


(b)Capital account transactions


(c)Autonomous transactions


(d)Accommodating transaction


 21

Find net value added at factor cost (Rs lakh)

(i)Fixed capital good with a life span of 5 years 15


(ii)Raw material 6


(iii)Sale 25


(iv)Net change in stock (-) 2


(v)Taxes on production 1