SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    Consider the following statements about Sinking Fund
    1. It is a method of repayment of public debt.
    2. It is created by the government out of budgetary revenues every year.
    Which of the statements given above is/are correct?

    A)  Only 1 

    B)  Only 2

    C)  Both 1 and 2    

    D)  None of these

    Correct Answer: A

    Solution :

    [a] A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense, or repayment of a long-term debt.

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