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. Deficit financing means that the government borrows money from
(1) The local bodies
(2) The Reserve Bank
(3) The neighbouring countries
(4) All the above
- 7 Answers
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Answer / gaura agrawal
The Reserve Bank
Deficit financing is needed when government expenditures
are more than government incomes. Then to overcome the gap
the government borrows the money from The Reserve Bank....
| Is This Answer Correct ? | 71 Yes | 4 No |
Answer / raju kumar singh
In india deficit financing means to take currency from RBI
by printing currency.
| Is This Answer Correct ? | 57 Yes | 15 No |
Answer / jyothsna surapureddy
deficit financing also known as budget financing is the
financing process when there is deficit to sustain its
budget i.e., when expenditure is more than revenue. the
government utilises various means to finance the deficit.
those include.., external aids, external borrowing,
internal borrowing, printing currency...
| Is This Answer Correct ? | 11 Yes | 2 No |
Answer / harman kaur
Deficit financing means when government borrow from central bank of county to cover its deficit in the budget . Deficit financing also means currency creates extra purchasing power and as a result the total circulation of currency increases, demand inceases and which results in prices rise .
This problem can be avoid by over valuation of money.
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / chaitrali katkar
Deficit Financing means increasing the amount of money in
circulation at a given time by printing and pumping in more
paper currency by the Government of a country.
| Is This Answer Correct ? | 9 Yes | 4 No |
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