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Deficit Financing

When a govern...

Question

When a government borrows from the RBI or prints money to fill the gap between its income and expenditure, it is called deficit financing.

A

True

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B

False

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Solution

The correct option is A True

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Q. Deficit financing means that the government borrows money from the ______.

Q. The term "Deficit Financing" means the Government borrows money from the ____________.

Q. Deficit financing aims to put more money into the economy by creating additional paper currency to fill the gap between expenditure and revenue. The device aims at economic development but if it fails, it generates _____.

Q. Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development. But if it fails, it generates ______________.

Q. _________ means financing of a budget deficit by borrowing from the central bank or printing more money.

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Deficit Financing

Standard X Economics

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