Q: 18 (IAS/2013)
question_subject:
Economics
question_exam:
IAS
stats:
0,283,60,19,20,21,283
keywords:
{'bank rate': [0, 1, 1, 2], 'central bank': [0, 0, 1, 2], 'market rate': [0, 0, 0, 1], 'commercial banks': [0, 0, 1, 1], 'tight money policy': [0, 0, 0, 1], 'easy money policy': [0, 0, 0, 1], 'loans': [1, 1, 4, 14], 'increase': [3, 1, 10, 35], 'interest': [1, 3, 3, 15]}
In India, deficit financing is primarily used for raising resources for economic development.
Deficit financing refers to the practice of financing a budget deficit, which occurs when government expenditures exceed its revenues. The government may resort to deficit financing to fund various development programs, infrastructure projects, social welfare schemes, and other initiatives aimed at promoting economic growth and development.
While deficit financing can also be used for other purposes such as redeeming public debt, adjusting the balance of payments, or reducing foreign debt, its primary objective in India is to raise resources for economic development.
Therefore, the most appropriate answer is "Economic development."