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GS Paper IUPSC Prelims 2013
Industry & Infrastructure
Question No. 362Interactive Test Mode
00:00
+2-0.66

Q362. In India, deficit financing is used for raising resources for:

In India, deficit financing is used for raising resources for:

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2013 • Indian Economy

Correct Answer: Option (A) — economic development

Concept & Option Breakdown

Standard Reference Verified

In developing countries like India, revenue from taxes and regular sources is often inadequate to finance massive public capital investments required for infrastructure, industrial projects, and social overhead capital. Deficit financing (borrowing from the central bank/market or monetization of deficit) has historically been utilized as a primary tool to mobilize additional domestic resources for economic development.

Elimination Heuristic & Exam Approach

Deficit financing in developing economics is primarily undertaken to bridge resource gaps in planned capital expenditure for economic development.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2013 (Q362)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Industry & Infrastructure
Official Answer KeyOption (A) — economic development

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Frequently Asked Questions — UPSC Prelims 2013 Q362

What is the official answer for UPSC Prelims 2013 GS Paper I Question 362 (Indian Economy)?

The official UPSC answer key for this 2013 Indian Economy (Industry & Infrastructure) question is Option (A): "economic development". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2013 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Industry & Infrastructure". You can explore all repeated questions from Industry & Infrastructure in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Industry & Infrastructure UPSC Prelims question using option elimination?

Deficit financing in developing economics is primarily undertaken to bridge resource gaps in planned capital expenditure for economic development.

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