question_answer

Which of the following statement is true regarding Deficit Financing: (1) Deficit financing is a method of meeting government deficits through the creation of new money. (2) The deficit is the gap caused by the excess of government expenditure over its receipts. (3) Deficit financing provides the government resources for the plans. (4) It has been replaces by 'Ways and Means Advances from April 1997.

A) All options except 4 is true

B) All options except [a], (2) & (3) is true

C) All options except 3 is true

D) All options except (2) is true

E) All options are true