GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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IMF
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Ministry of Finance
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RBI
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WTO
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Detailed explanation-1: -When a government borrows from the RBI or prints money to fill the gap between its income and expenditure, it is called deficit financing. Q. means financing of a budget deficit by borrowing from the central bank or printing more money.
Detailed explanation-2: -Monetised deficit is the monetary support the Reserve Bank of India (RBI) extends to the Centre as part of the government’s borrowing programme. In other words, the term refers to the purchase of government bonds by the central bank to finance the spending needs of the government.
Detailed explanation-3: -A deficit in the budget can be financed by using savings or existing assets, or by incurring debt. Incurring debt includes borrowing from the RBI and the public.