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    Question

    What is meant by 'Deficit

    Monetization'? 
    A Borrowing by the government from international organizations Correct Answer Incorrect Answer
    B Issuance of government bonds to the public Correct Answer Incorrect Answer
    C Printing new money to finance the government deficit Correct Answer Incorrect Answer
    D Increasing taxes to cover the fiscal deficit Correct Answer Incorrect Answer
    E Selling government assets to fund expenditures Correct Answer Incorrect Answer

    Solution

    Deficit monetization occurs when a government prints money to finance its budget deficit instead of borrowing or raising taxes. 

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