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What is Monetised Deficit?

14. What is Monetised Deficit?

1. The shortfall in a government's income compared with its spending
2. Difference between the current year's fiscal deficit and interest payment on previous borrowings
3. Difference between revenue deficit and grants for creation of capital assets
4. Purchase of government bonds by the central bank to finance the spending needs of the government

Answer: D) Purchase of government bonds by the central bank to finance the spending needs of the government

Explanation:

Monetised Deficit is the money-related help the Reserve Bank of India (RBI) reaches out to the Center as a feature of the public authority's acquiring program. At the end of the day, the term alludes to the acquisition of government bonds by the national bank to fund the spending needs of the public authority.