In India which of the following is are a mechanism of deficit financing 1 borrowing f...........

Economic Affairs Public Finance and Debt Management

In India, which of the following is/are a mechanism of deficit financing?

1. borrowing from RBI.

2. borrowing from commercial banks.

3. issuing fresh currency notes.

Select the correct answer using the codes given below.

1 and 2 only

1 and 3 only

2 and 3 only

1, 2 and 3

Borrowing from commercial banks is not the mechanism of deficit financing.

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