GyanGramQuestion
Which one of the following is likely to be the most inflationary in its effect?
PRELIMS 2013 · INDIAN ECONOMY
Which one of the following is likely to be the most inflationary in its effect?
Attempt this previous-year question. The correct option stays hidden until you choose.
Pick an option to check yourself.
• Correct Answer: D
• Creating new money (deficit monetization) is the most inflationary as it expands the monetary base without matching output.
• Public borrowing reallocates existing money; bank borrowing is constrained by reserves.
Keep going in GyanGram.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.