Correct answer: (a) I and II only
Explanation
- A
I and II only
I and II only. Capital receipts create a liability or reduce assets; borrowings and disinvestment are capital receipts. Interest received is a revenue receipt, not a liability.
- B
II and III only
II and III only. III fails, and I is dropped even though it is the definition.
- C
I and III only
I and III only. III is false.
- D
I, II and III
All three. III is the trap.
Summary. Official Set A key is (a) I and II only. A capital receipt either creates a liability (borrowing) or runs down an asset (disinvestment) — that is I, and II are examples. Interest received on loans is revenue income; it does not create a government liability (III fails). So I and II.
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