Question

The term "Capital Expenditure" refers to spending on:

• A. Day-to-day operational costs of government departments
• B. Short-term welfare programs for citizens
• C. Interest payments on government debt
• D. Creation of long-term assets like roads and hospitals

Answer 1

Answer:

D. Creation of long-term assets like roads and hospitals

• Capital expenditure is money spent by the government on creating assets or reducing liabilities, such as building infrastructure or repaying loans.