5 Views

Question : Which of the following expressions is correct?

Option 1: Gross Primary Deficit = Gross Fiscal Deficit + Net Interest Liabilities

Option 2: Gross Primary Deficit = Gross Fiscal Deficit – Net Interest Liabilities

Option 3: Gross Primary Deficit = Gross Fiscal Deficit ÷ Net Interest Liabilities

Option 4: Gross Primary Deficit = Gross Fiscal Deficit × Net Interest Liabilities


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Gross Primary Deficit = Gross Fiscal Deficit – Net Interest Liabilities


Solution : The correct answer is Gross Primary Deficit = Gross Fiscal Deficit – Net Interest Liabilities.

The Gross Fiscal Deficit less interest payments is the Gross Primary Deficit. Net Fiscal Deficit less Net Interest Payments equals Net Primary Deficit. While the primary deficit shows the total amount borrowed by the government without interest payments, the fiscal deficit shows the total amount borrowed by the government with interest included.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books