In the context of public expenditure, 'Revenue Expenditure' is characterised by: MCQ with Answer and Explanation

In the context of public expenditure, 'Revenue Expenditure' is characterised by:
A. Long-term capital formation
B. No creation of assets or reduction of liability
C. Reduction of liabilities only
D. Creation of assets
Answer: Option B
Solution (By JKSSB Mock Tests)
Revenue expenditure is incurred for the normal running of government departments and does not result in the creation of assets or reduction of liabilities.

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Practice More Economy Set 1 Questions

Question #1
The 'Cheque Truncation System' processes cheques by:
A. transmitting electronic image of the cheque
B. converting cheques into cash immediately
C. destroying all cheques
D. physically moving cheques to the paying bank

Correct Answer: Option A


Explanation:
CTS processes cheques by transmitting electronic images rather than moving physical cheques.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Constitution (101st Amendment) Act, 2016' inserted which article for GST?
A. Article 246A
B. Article 280
C. Article 356
D. Article 324

Correct Answer: Option A


Explanation:
Article 246A was inserted by the 101st Amendment for GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Safeguard duty' is imposed under WTO rules to:
A. permanently ban imports
B. promote free trade
C. temporarily protect domestic industry from a sudden surge in imports
D. tax all exports

Correct Answer: Option C


Explanation:
Safeguard duty is a temporary measure to protect domestic industry from an import surge.

This question belongs to: Economy GK Economy Set 1