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  • Indian General Knowledge - Governance & Economics
  • Deficit financing is spending
Multiple choice

Deficit financing is spending

  1. Getting foreign aid

  2. Less than what is needed

  3. In excess of revenue

  4. Increasing external borrowings

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Deficit financing occurs when government expenditure exceeds its revenue, necessitating borrowing or printing money to cover the gap.

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