{"id":21427,"date":"2024-04-15T06:06:03","date_gmt":"2024-04-15T06:06:03","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=21427"},"modified":"2024-04-15T06:06:03","modified_gmt":"2024-04-15T06:06:03","slug":"deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/","title":{"rendered":"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97515cdb767\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    printing new currency notes                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    replacing new currency with worn out currency                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    public expenditure in excess of public revenue                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    public revenue in excess of public expenditure                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is C. public expenditure in excess of public revenue.<\/p>\n<p>Deficit financing is a situation in which a <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> government spends more money than it receives in revenue. This can be done by borrowing money, printing new money, or using other methods. Deficit financing can be used to stimulate the economy during a recession, but it can also lead to inflation.<\/p>\n<p>Option A is incorrect because printing new currency notes does not necessarily mean that there is a deficit. For example, a government might print new currency notes to replace worn out or damaged notes.<\/p>\n<p>Option B is incorrect because replacing new currency with worn out currency does not necessarily mean that <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> there is a deficit. For example, a government might replace new currency with worn out currency to keep the money supply stable.<\/p>\n<p>Option D is incorrect because public revenue in excess of public expenditure is called a surplus. A surplus can be used to pay down debt, invest in infrastructure, or provide tax breaks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[207],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure\" \/>\n<meta property=\"og:description\" content=\"Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T06:06:03+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/","og_locale":"en_US","og_type":"article","og_title":"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure","og_description":"Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T06:06:03+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/","url":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/","name":"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T06:06:03+00:00","dateModified":"2024-04-15T06:06:03+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/deficit-financing-implies-a-printing-new-currency-notes-b-replacing-new-currency-with-worn-out-currency-c-public-expenditure-in-excess-of-public-revenue-d-public-revenue-in-excess-of-public-expend\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Indian Economy","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/indian-economy\/"},{"@type":"ListItem","position":4,"name":"Deficit financing implies A. printing new currency notes B. replacing new currency with worn out currency C. public expenditure in excess of public revenue D. public revenue in excess of public expenditure"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/21427"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=21427"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/21427\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=21427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=21427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=21427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}