Indian-Economy
General Knowledge

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Q.

What does deficit financing mean?

 A.

public revenue in excess of public expenditure

 B.

printing new currency notes

 C.

public expenditure in excess of public revenue

 D.

replacing new currency with worn out currency

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Solution:
Option(C) is correct

Deficit financing, practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds.

This is also called deficit spending.


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