Question : ____________________ leads to inflationary trends in the economy due to more money supply.
Option 1: Borrowings
Option 2: Deficit financing
Option 3: Fiscal deficit
Option 4: Primary deficit.
Correct Answer: Deficit financing
Solution : Borrowings are considered a better source as they do not increase the money supply. Deficit financing increases inflation in the economy due to more money supply. Hence, Option B is correct.
Question : It indicates the total borrowings requirement of the government including interest.
Question : It indicates the total borrowings requirement of the government excluding interest.
Question : Which of the following is correct.
Question : It refers to difference between fiscal deficit of the current year and the interest payment on the previous borrowings.
Question : It refers to excess of revenue expenditure over revenue receipt during the given fiscal year.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile