Consider the following statements 1 The government revenue from dividends is included in the Revenue...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements:

1.The government revenue from dividends is included in the Revenue Account of the budget

2.The government revenue from interest receipts is included in the Capital Account of the budget

Which of these is/are correct?

1 only

2 only

Both 1 & 2

Neither 1 nor 2

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Explanation:

2nd statement is incorrect.
A capital account shows the net change in physical or financial asset ownership for a nation and, together with the current account, constitutes a nation's balance of payments. The capital account includes foreign direct investment (FDI), portfolio and other investments, plus changes in the reserve account.