Which of the following transactions is not included in national income?
Which of the following transactions is not included in national income?
(a) Payment of interest by a firm
(b) Interest on finance provided by banks to individuals
(c) Payment of interest by banks to individuals
(d) Interest paid by an individual on a car loan taken from bank
Anurag Pathak Changed status to publish December 14, 2023
Ans – (d)
Explanation:-
A loan taken from a bank by an individual for a car is for consumption purposes. The car is used for personal purposes and is not used for any productive purposes.
Thus, the interest paid on loan taken for consumption purposes is not included in the national income
Anurag Pathak Changed status to publish December 14, 2023
