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Question
The primary purpose of deficit financing is ______.
Options
Economic development
Economic stability
Economic equality
Employment generation
Solution
The primary purpose of deficit financing is Economic development.
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RELATED QUESTIONS
Government borrows from its citizens, banks, central bank etc. is known as ______.
Assertion (A): Raising debt is the most common activity of any government.
Reasoning (R): Government expenditure generally exceeds government revenue.
Identify & explain the concept from the given illustration
Reserve Bank of India helps to raise loans for both the Central and State Governments by selling government bonds, securities etc.
What do you mean by public debt?
Mention any three methods of redemption of public debt.
Explain the methods of debt redemption.
Distinguish between internal debt and external debt.
- Assertion (A): Debt raised by the government from borrowings from the International Monetary Fund is an external debt.
- Reasoning (R): The Government of India may take loans from International Monetary Fund for Mumbai Metro Train.
Give an economic term:
Debt is raised by the government from borrowings from its citizens.
