Which of the following is a capital expenditure of the government? MCQ with Answer and Explanation

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Which of the following is a capital expenditure of the government?

A. Payment of salaries

B. Interest payments

C. Subsidies

D. Construction of a new highway

Answer: Option D

Solution (By JKSSB Mock Tests)

Capital expenditure creates assets or reduces liabilities. Construction of a highway creates a durable asset and is therefore capital expenditure.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'National Commission for Minorities' is a:

A. constitutional body

B. judicial body

C. executive body

D. statutory body

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Correct Answer: Option D

Explanation:
The National Commission for Minorities is a statutory body.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Transparency International' publishes which index?

A. Corruption Perceptions Index

B. Logistics Performance Index

C. Human Development Index

D. Ease of Doing Business Index

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Correct Answer: Option A

Explanation:
Transparency International publishes Corruption Perceptions Index.

This question belongs to: Economy GK Economy Set 1

Question #3

Real Time Gross Settlement is a payment system that:

A. does not require a bank account

B. settles transactions in batches

C. settles only retail transactions

D. settles high-value transactions individually in real time

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Correct Answer: Option D

Explanation:
RTGS settles high-value transactions individually and in real time.

This question belongs to: Economy GK Economy Set 1

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