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Deficit financing means that the government borrows money 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

In India, deficit financing traditionally describes the practice where the government borrows funds from the country's central bank—the Reserve Bank of India—by issuing treasury bills, leading to the creation of new currency to bridge the fiscal gap between government expenditures and receipts.

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

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