Multiple choice

Increase in net RBI credit for central government happens in case of

  1. Budgetary deficit

  2. Revenue deficit

  3. Monetised deficit

  4. Fiscal deficit

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Monetised deficit refers to the situation where the government covers its fiscal deficit by borrowing from the central bank (RBI), which leads to an increase in net RBI credit to the government.

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