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UPSC 2013 › Indian Economy › Fiscal Policy & Budget

2 questions · 2013 · answers as per the UPSC key

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All years of Fiscal Policy & Budget · Full UPSC 2013 paper
UPSC 2013 · Q44 · Indian Economy › Fiscal Policy & Budget · Save

In India, deficit financing is used for raising resources for

(a) economic development
(b) redemption of public debt
(c) adjusting the balance of payments
(d) reducing the foreign debt
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Answer: (a) economic development
UPSC 2013 · Q84 · Indian Economy › Fiscal Policy & Budget · Save

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

(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
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Answer: (d) Creating new money to finance a budget deficit