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      Question

      What is meant by 'Deficit

      Monetization'?ย 
      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.ย 

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