Economics · Fiscal Deficit and Deficit Financing
Monetized Deficit is best defined as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total accumulated loss of public sector undertakings
- 2Total transfer payments made by the government
- 3That portion of the government deficit financed by borrowings from the central bank through creation of new money✓
- 4That portion of the deficit covered through PSU disinvestment
Correct answer
That portion of the government deficit financed by borrowings from the central bank through creation of new money
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