ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
can only get it by borrowing
|
|
|
can only get it by taxing their citizens
|
|
|
can print more money
|
|
|
are out of luck
|
Detailed explanation-1: -Rising prices To get richer, a country has to make and sell more things – whether goods or services. This makes it safe to print more money, so that people can buy those extra things. If a country prints more money without making more things, then prices just go up.
Detailed explanation-2: -A country may print as much currency as it needs but it has to give each note a different value which further called as denomination. If a country decides to print more currency than it is needed, then all the manufacturers and sellers will ask for more money.
Detailed explanation-3: -You might have thought, ” If we’re short of money, the government can just print more.” However, that’s not true. The government cannot just print money whenever they want. It is not possible due to Inflation.
Detailed explanation-4: -The common man is using more rupees to pay for goods and services, and the Reserve Bank of India is spending more to get paper rupees printed. Data compiled from RBI’s annual reports shows the cost of printing currency notes in 2021-22 at ₹4, 984.8 crore was almost 1.5 times the ₹2, 063.16 crore spent in 2008-09.