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  • Question
  • Deficit financing implies


  • Options
  • 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

  • Correct Answer
  • public expenditure in excess of public revenue 


  • Indian Economy problems


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    • 1. Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to


    • Options
    • A. ARDC
    • B. SBI
    • C. NABARD
    • D. PACs
    • Discuss
    • 2. Reserve Bank of India was nationalized in the year


    • Options
    • A. 1935
    • B. 1945
    • C. 1949
    • D. 1969
    • Discuss
    • 3. In India, which one among the following formulates the fiscal policy?


    • Options
    • A. Planning Commission
    • B. Ministry of Finance
    • C. Finance Commission
    • D. The Reserve Bank of India
    • Discuss
    • 4. Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to


    • Options
    • A. 80 percent
    • B. 83 percent
    • C. 90 percent
    • D. 100 percent
    • Discuss
    • 5. The banks are required to maintain a certain ratio between their cash in the hand and totals assets. This is called


    • Options
    • A. Statutory Bank Ratio (SBR)
    • B. Statutory Liquid Ratio (SLR)
    • C. Central Bank Reserve (CBR)
    • D. Central Liquid Reserve (CLR)
    • Discuss
    • 6. Which of the following is the most appropriate cause of exports surplus?


    • Options
    • A. Country's exports promotion value
    • B. Country's stringent import policy
    • C. Developments in national and international markets
    • D. None of the above
    • Discuss
    • 7. If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be


    • Options
    • A. zero
    • B. equal to government income
    • C. larger than government income
    • D. negative
    • Discuss
    • 8. Subsidies mean


    • Options
    • A. payment by government for purchase of goods and services
    • B. payment made by business enterprises to factors of production
    • C. payment made by companies to shareholders
    • D. payment made by the government to business enterprises, without buying any goods and services
    • Discuss
    • 9. The co-operative credit societies have a


    • Options
    • A. two-tier structure
    • B. three-tier structure
    • C. four-tier structure
    • D. five-tier structure
    • Discuss
    • 10. Devaluation of currency leads to


    • Options
    • A. fall in domestic prices
    • B. increase in domestic prices
    • C. no impact on domestic prices
    • D. erratic fluctuations in domestic prices
    • Discuss


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