Economics · Fiscal Policy
Which of the following is a key characteristic or method of deficit financing in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The government relies completely on external commercial borrowings
- 2The government reduces the money supply in the economy
- 3The government decreases direct and indirect tax rates
- 4The government borrows money from the Reserve Bank of India (RBI)✓
Correct answer
The government borrows money from the Reserve Bank of India (RBI)
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 Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Fiscal Policy MCQs →Want more practice questions on Fiscal Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Fiscal Policy