UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Fiscal and Monetary Policy

  • question_answer
    DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists.
    Match columns A and B wherein Column B defines Column A
      Column A   Column B
    I. Capital expenditure A. Includes interest payments, subsidies, defence expenditure
    II. Plan expenditure B. Includes loans to PSUs, states, foreign governments
    III. Revenue expenditure C. Includes expenditure on central plans such as agriculture, rural development, irrigation, transport, communications, environment and welfare schemes
     

    A) I-C, II-A, III-B      

    B) I-B, II-C, III-A

    C) I-A, II-D, III-B      

    D) I-B, II-A, III-C

    Correct Answer: B

    Solution :

    All asset creating and productive expenditure is part of plan expenditure, and all non- productive, consumptive and non- asset building expenditure is part of non- plan expenditure. Non-plan expenditure is further divided into revenue expenditure and capital expenditure.


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