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What is Deficit Financing?
8. What is Deficit Financing?
- When government spends more money than it receives as revenue
- When expenses exceed revenue and indicate the financial health of a country
- Shortage of funds with the government to maintain its day-to-day affairs
- The shortfall in a government's income compared with its spending
Answer: A) When government spends more money than it receives as revenue
Explanation:
Deficit financing is the training where an administration spends more cash than it gets as income, the distinction being made up by acquiring or printing new assets. Even though financial plan shortfalls might happen for a considerable length of time, the term, as a rule, alludes to a cognizant endeavor to invigorate the economy by bringing down charge rates or expanding government uses.