Question : Which of the following statement are true?

Repo rate of interest is paid by the commercial bank and reverse repo rate is paid by RBI.

Fiscal policy always increases revenue for the government.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Question

Question : Which of the following statement are true?

Repo rate of interest is paid by the commercial bank and reverse repo rate is paid by RBI.
Fiscal policy always increases revenue for the government.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Statement 1 is true, statement 2 is false.

Solution : When a commercial bank get loan from RBI, it is Repo rate of interest to RBI and when commercial bank park for their surplus fund with RBI, then RBI pays reverse repo rate of interest to commercial bank.
Fiscal policy aims to ensure fiscal balance in the economy, which may require increase in revenue and expenditure by the government.
Hence, Option C is correct.

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Question : Which of the following statement are true?

Revenue receipt involves loan from world bank.

Revenue receipt involves income tax received by government.

Question : Which of the following statement are true?

Expenditure on scholarship is a capital expenditure.

Subsidies is a revenue expenditure

Question : Which of the following statement are true?

Corporate tax is revenue receipts.

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Question : Which of the following statement are true?

Foreign aid against earthquakes victim is revenue expenditure.

Dividends on investment made by government is capital receipts.

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Grants received from World Bank is the revenue receipt.

Sale of public sector undertaking is a capital receipt.