MPSC PYQ

MPSC Rajyaseva 2013 GS Paper 1 — Question 39

The correct answer with a full explanation. Practice Banking, Inflation & Public Finance questions as a quiz →

आर्थिक प्रगतीसाठी वित्त उभे करण्याच्या खालीलपैकी कोणत्या पद्धतीमुळे भाववाढ निर्माण होऊ शकते ?

1)अंतर्गत आणि बहिर्गत कर्ज / Internal and External Borrowings
2)क्रमवर्धी करपद्धती / Progressive Taxation
3)तुटीची वित्तव्यवस्था / Deficit Financing✓ Correct
4)सरकारी कर्जरोखे / Government Bonds

Deficit financing (printing new currency or borrowing from the central bank to cover budget shortfalls) injects unbacked money into the economy, increasing money supply and directly triggering inflation.

MPSC has asked 19 Banking, Inflation & Public Finance questions.

Try them as a quick quiz, instant answers and explanations, no signup.

Want a high-yield PYQ explained daily?Free on our Telegram channel — one real MPSC question, fully explained, every morning.Join →
Didn't find what you were looking for?