In the financial transaction of the Government, we often
hear a term ?Deficit Financing?. Deficit Financing isA)
Practised whenever Government expenditure exceeds the
receipts from the public.B) That part of the Government
expenditure which is met by drawing down the cash balance of
the Government held in RBI or in State treasuries.C) That
part of the Government expenditure which is required to be
compensated by printing new notes/supply of fresh currency
notes in the market.Which of these statements is/are correct?
(1) Only A
(2) Only A & B
(3) Only C
(4) Only B
(5) None of these
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3 Answers National Insurance Company Limited, NIC,
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