Which of the following is the capital expenditure of the government ........

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

Interest Payment

Purchase of House

Expenses on Machinery

All of the above

- Option 1: Interest Payment

This is a revenue expenditure, not a capital expenditure. It is a recurring expense for servicing government loans, not related to asset creation.

- Option 2: Purchase of House

This is a capital expenditure. Government spends money to buy an asset that will provide benefits over time.

- Option 3: Expenses on Machinery

This also counts as capital expenditure. Buying machinery creates or adds to government assets.

- Option 4: All of the above

This would be correct only if all listed items were capital expenditures, which is not the case here.

Correct Answer: Option 2 and 3 (Purchase of House, Expenses on Machinery) are capital expenditures, but Option 1 is not.

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