Multiple Choice Questions on Which of the following statements is correct in context of fiscal deficit ........ for UPSC Civil Services Examination (General Studies) Preparation

Back to Main Page

Multiple Choice Questions

Which of the following statements is correct in context of fiscal deficit ........

Economic Affairs Public Finance and Debt Management
    Download Solution PDF

    Which of the following statements is correct in context of fiscal deficit?

    It is the difference between the government's total receipts (including borrowing) and total expenditure

    Incorrect Answer

    Fiscal deficit are not recommended for developing economies

    Incorrect Answer

    Main source for funding fiscal deficit in India is external borrowings

    Incorrect Answer

    Fiscal deficits have tendency to cause inflationary trends in economy

    Correct Answer
    छोटे Courses बड़े Results
    Master Public Finance and Debt Management
    Prepare through Micro-courses
    Try Now
    Explanation:

    4th statement is correct.
    A fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings. Deficit differs from debt, which is an accumulation of yearly deficits.

    By: Abhipedia
    ProfileResources

    Let's Discuss

    Sahil rana

    please explain relation between fiscal deficit and how it impacts inflation

    0 0 reply

    Sarthak Hans

    Fiscal deficit means borrowing and that tends to increase the liquidity which cause inflation in the economy and which is not goos for the economy

     0 0 reply
    Master
    Public Finance and Debt Management
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free