Monetization of deficit refers to: MCQ with Answer and Explanation

Question

Share Report Error

Monetization of deficit refers to:

A. increasing foreign aid

B. reducing fiscal deficit

C. government selling securities to banks and public

D. RBI directly purchasing government securities, increasing money supply

Answer: Option D

Solution (By JKSSB Mock Tests)

Monetization of deficit occurs when the central bank directly purchases government securities, creating money.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'poverty line' in India was historically based on a minimum calorie requirement of:

A. 1200 kcal per person per day

B. 2400 kcal rural and 2100 kcal urban per person per day

C. 3000 kcal per person per day

D. 1800 kcal per person per day

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
The poverty line used calorie norms of 2400 kcal rural and 2100 kcal urban.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Inclusive Growth' emphasises:

A. Only growth in the formal sector

B. Growth that is broad-based, creates productive employment and reduces poverty and inequality

C. Only the maximisation of GDP growth regardless of distribution

D. Only growth in urban areas

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Inclusive growth is economic growth that generates productive employment opportunities for a large part of the labour force and ensures that the benefits of growth are widely shared.

This question belongs to: Economy GK Economy Set 1

Question #3

PM-KISAN provides income support to farmer families of how much per year?

A. Rs 10,000

B. Rs 6,000

C. Rs 12,000

D. Rs 2,000

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
PM-KISAN provides Rs 6,000 per year in three equal instalments to eligible farmer families.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs