This isn’t a previous year question.But what should be the answer to this question?
Which of the following correctly defines Fiscal Deficit?
(a)Excess of total expenditure over revenue receipts and non-debt creating capital receipts
(b)Borrowings from RBI, abroad as well as net borrowing at home
(c)Excess of government’s total expenditure over total receipts
(d)Both (a) and (b)
In my opinion, the answer should be (a). But the answer key says (d).
Q) If the rupee is devalued against foreign currencies, it may lead to
1. A higher Cash Reserve Ratio (CRR) in the banking system
2. Increase in the inflow of foreign exchange
3. Greater exports and lesser imports
Select the correct answer code:
a) 1, 2
b) 2, 3
c) 1 only
d) 1, 2, 3
Can someone please explain this?
