Which among the following is true about “deficit Financing”?
[A] public expenditure in excess of public revenue
[B] public revenue in excess of public expenditure
[C] new currency replaced by a old currency
[D] None of the above
Show Answer
Correct Answer: A [public expenditure in excess of public revenue]
Notes:When expenditures of a government are greater than its tax revenues, it creates a deficit in the government budget. So this implies in Deficit Financing.
