Question : When a government borrows money to finance its expenditures, it is known as:
Option 1: Deficit financing

Option 2: Balanced budget financing

Option 3: Surplus financing

Option 4: None of the above

Question

Question : When a government borrows money to finance its expenditures, it is known as:

Option 1: Deficit financing

Option 2: Balanced budget financing

Option 3: Surplus financing

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: Deficit financing

Solution : The correct answer is (a) Deficit financing.

When a government borrows money to finance its expenditures, it is referred to as deficit financing. Deficit financing occurs when the government's total expenditures exceed its total revenues, leading to a budget deficit. To cover this deficit, the government borrows money from various sources such as issuing bonds, obtaining loans from domestic or foreign entities, or utilizing other forms of debt.

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Question : When a government borrows money to finance its expenditures, it is known as:Option 1: Deficit financing Option 2: Balanced budget financing Option 3: Surplus financing Option 4: None of the above

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Question : When a government borrows money to finance its expenditures, it is known as:
Option 1: Deficit financing

Option 2: Balanced budget financing

Option 3: Surplus financing

Option 4: None of the above

Question : Case Study 22:

DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.

Question :

To finance its acquisition plans, DEF Ltd. is evaluating short-term financing

Question : Case Study 22:

DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.

Question :

To finance its acquisition plans, DEF Ltd. is evaluating short-term financing

Question : Case Study 22:

DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.

Question :

To finance its acquisition plans, DEF Ltd. is evaluating short-term financing