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shruti bhardwaj
22 Aug 2022 10:40 AM study24x7 study24x7

Deficit financing implies

A

printing new currency notes

B

replacing new currency with worn out currency

C

public expenditure in excess of public revenue

D

public revenue in excess of public expenditure

SSC Defence Railways
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  • Harshit

    • Public spending exceeds public revenue is the right response. Deficit financing is the process of raising money to cover the deficit, which is caused by a surplus of spending over income. The shortfall is filled by selling bonds to the public or by creating new money.

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    Reply 22 Aug 2022 12:52 PM
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