Practicing Success
Government of India was short of fund so, it decided to fulfill the gap generated with the help of "Deficit financing", According to you, whom will the government approach to? |
State bank of India Finance secretory Reserve bank of India Finance minister |
Reserve bank of India |
Central government borrows money from RBI i.e. the central bank of India. When the expenditure of the government is exceeded from its revenue, it issues securities to the RBI and in return raise money. |