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Question 1 of 1
1. Question
1 points
With reference to government financing, the Net borrowing at home includes
1. Small savings schemes
2. Statutory Liquidity Ratio
3. Money received through the disinvestment of PSU.
Select the correct answer using the code given below:
Correct
Ans) C
Net borrowing at home includes that directly borrowed from the public through debt instruments (for example, the various small savings schemes) and indirectly from commercial banks through Statutory Liquidity Ratio (SLR). The gross fiscal deficit is a key variable in judging the financial health of the public sector and the stability of the economy.Hence, options 1 and 2 are correct.
Disinvestment of Public Sector Undertakings means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets. Unlike borrowings, it does not create liabilities for the government but reduces the financial capital of the government. Hence, option 3 is incorrect.
Incorrect
Ans) C
Net borrowing at home includes that directly borrowed from the public through debt instruments (for example, the various small savings schemes) and indirectly from commercial banks through Statutory Liquidity Ratio (SLR). The gross fiscal deficit is a key variable in judging the financial health of the public sector and the stability of the economy.Hence, options 1 and 2 are correct.
Disinvestment of Public Sector Undertakings means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets. Unlike borrowings, it does not create liabilities for the government but reduces the financial capital of the government. Hence, option 3 is incorrect.