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Deficit financing implies that the government borrows money predominantly from the:

  1. A
    Revenue Department
  2. B
    World Bank
  3. C
    Reserve Bank of India
  4. D
    State Bank of India

Solution & Step-by-step Explanation

Deficit financing occurs when the government spends more than its structural revenues. To bridge this fiscal gap, the government can borrow money from the country's central bank, the Reserve Bank of India (RBI), which prints new currency or creates credit against government securities.

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Deficit financing implies that the government borrows money predominantly from the:
A
Revenue Department
B
World Bank
C
Reserve Bank of India
D
State Bank of India

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