Deficit financing leads to inflation in general, but it can be checked if:

Related MCQs

• Deficit financing creates additional paper currency to fill the gap between expenditure and revenue. This device aims at economic development but if it fails, it generates : [IFS 1990]
• Oil Pool Deficit is a deficit: 1. in the balance of payments 2. that the government owes to the world bank 3. in the oil pool account 4. that the government owes to the oil companies Choose your answer from:
• Deficit financing is spending:
• One of the following leads to underestimation of national income in India: 1. Inflation 2. Devaluation 3. Non-Monetary consumption 4. Large unorganized sector Choose correct answer from:
• Consider the following actions which the Government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the above action/actions can help in reducing the current account deficit? [CSAT 2011]
• The rising prices in India can be checked through: 1. Budgetary policy 2. Monetary policy 3. Increasing production 4. Increasing income levels Choose your answer from:
• Increase in Oil Pool Deficit implies:
• A budgetary deficit means:
• Fiscal deficit in the budget means: [CDS 1999]
• Fiscal deficit in the Union Budget means: [IAS 1994]