A
Clearing short-term foreign debt obligations of commercial public sector undertakings
B
Creating long-term physical or financial assets to generate a multiplier effect on the economy
C
Subsidizing daily consumer goods and food grains for urban households
D
Covering the regular administrative salary arrears of state government employees
Correct answer: (b) Creating long-term physical or financial assets to generate a multiplier effect on the economy
Explanation
Option B is correct as Capex is directed toward creating long-term physical or financial assets, creating a multiplier effect. Options A, C, and D refer to revenue expenditure or unrelated financial operations.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2016 · Q20 · General Studies · 2 marks
With reference to 'Organisation for the Prohibition of Chemical Weapons (OPCW)', consider the following statements: 1. It is an organization of European Union in working relation with NATO and WHO. 2. It monitors chemical industry to prevent new weapons from emerging. 3. It provides assistance and protection to States (Parties) against chemical weapons threats. Which of the statements given above is/are correct? -
2015 · Q62 · General Studies · 2 marks
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2015 · Q74 · General Studies · 2 marks
With reference to 'Forest Carbon Partnership Facility', which of the following statements is/are correct? 1. It is a global partnership of governments, businesses, civil society and indigenous peoples. 2. It provides financial aid to universities, individual scientists and institutions involved in scientific forestry research to develop eco-friendly and climate adaptation technologies for sustainable forest management. 3. It assists the countries in their 'REDD+ (Reducing Emissions from Deforestation +)' efforts by providing them financial and technical assistance. Select the correct answer using the code given below -
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2025 · Q17 · GS I · 15 marks
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