NextMockಪರೀಕ್ಷೆಗಳನ್ನು ಹುಡುಕಿ, ಉದಾ. SSC CGL, UPPSC, Lekhpal
UPSC PYQPrelims 2021

Civil Services Examination · ಪ್ರಶ್ನೆ 10

Which one of the following is likely to be the most inflationary in its effects?

  1. Repayment of public debt
  2. Borrowing from the public to finance a budget deficit
  3. Borrowing from the banks to finance a budget deficit
  4. Creation of new money to finance a budget deficit
ಉತ್ತರ ತೋರಿಸು ಮತ್ತು ವಿವರಣೆ

ಉತ್ತರ: (D) Creation of new money to finance a budget deficit

ವಿವರಣೆ

Monetising the deficit (printing money) directly expands money supply and is the most inflationary option.