Question : Which of the following is a revenue receipts?
Option 1: Financial help from a multinational company for victims of flood affected.
Option 2: Loan take it from Japan for construction of Metro.
Option 3: Funds taken from public in the form of national savings certificates.
Option 4: Sale of 40% of shares of public sector undertakings.
Correct Answer: Financial help from a multinational company for victims of flood affected.
Solution : Financial help from a multinational company for victims of flood affected is a revenue receipts as it neither creates liability nor reduces any assets of the government. Rest all three are capital receipt. Hence Option A is correct.
Question : Case Study 8:
JKL Ltd. is a real estate company planning to raise funds for a large-scale construction project.
Question :
To fund its construction project, JKL Ltd. is considering issuing long-term debt. What type of financial instrument might it use?
Option 1: Commercial paper
Option 2: Equity share
Option 3: Treasury bill
Option 4: Debenture
JKL Ltd. wants to raise capital for its construction project. Which market should it consider for issuing new securities?
Option 1: Primary market
Option 2: Secondary market
Option 3: Money market
Option 4: Capital market
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