NextMockதேர்வுகளைத் தேடுங்கள், எ.கா. SSC CGL, UPPSC, Lekhpal
UPSC PYQPrelims 2021

Civil Services Examination · வினா 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
விடையைக் காட்டு & விளக்கம்

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

விளக்கம்

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