Economics · Macroeconomics

The term 'Debt Monetization' (or monetizing the deficit) refers to:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Restructuring the maturity profiles of public debt
2Selling public sector enterprises to settle national debt
3The Central Bank purchasing government securities directly to finance fiscal deficits✓
4Converting external debt obligations into national currency liabilities

Correct answer

The Central Bank purchasing government securities directly to finance fiscal deficits

Download Single Question PDF

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Share with Friends & Study Groups

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Preparing for Economics?

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Start Free Mock Test →

Chapter Practice

Want more practice questions on Macroeconomics?

Solve complete topic-wise tests with detailed solutions on GkGet.

Practice Macroeconomics MCQs →

Recommended practice questions in Economics · Macroeconomics

Browse More Economics →

Which of the following events is considered a major turning point that fueled Indian nationalism during British rule due to its brutal nature and widespread condemnation?

Solve Question→

Which of the following events is considered the first major peasant uprising against the British in India?

Solve Question→

The term 'Debt Monetization' (or monetizing the deficit) refers to:

Download Single Question PDF

Share with Friends & Study Groups

Preparing for Economics?

Practice by Subject

Practice by Exam

Topic-Wise Solved Questions

The term 'Debt Monetization' (or monetizing the deficit) refers to:

Download Single Question PDF

Share with Friends & Study Groups

Preparing for Economics?

Related Practice Questions

Practice by Subject

Practice by Exam

Topic-Wise Solved Questions