2 responses to “10th June 2020 | Prelims Daily with Previous Year Questions”
geeta nalla
80%
Birju Rajak
Monetization of debt term that refers to the purchase of government bonds by the central bank to finance the spending needs of the government. Since the central bank creates fresh money to purchase these bonds in the open market, debt monetisation leads to an increase in total money supply.
Comments
2 responses to “10th June 2020 | Prelims Daily with Previous Year Questions”
80%
Monetization of debt term that refers to the purchase of government bonds by the central bank to finance the spending needs of the government. Since the central bank creates fresh money to purchase these bonds in the open market, debt monetisation leads to an increase in total money supply.