From a macroeconomic point of view, which is not an example of a source for funds when governments are borrowers?

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11-08-2022
Business

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From a macroeconomic point of view, which is not an example of a source for funds when governments are borrowers?

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choprayogita110 choprayogita110 · Answer 1 · 2022-08-16T14:22:03+02:00

The correct option is (A) central bank prints more money.

Indian nationalised banks include Central Bank of India. One of India's oldest and biggest nationalised commercial banks, it is owned by the Ministry of Finance, the country's government. Its headquarters are in Mumbai, the financial and administrative centre of the Indian state of Maharashtra.

The health of the financial system, as well as economic and monetary policy, are all under the control of central banks. These organisations regulate a nation's money supply and set interest rates. One of the most potent central banks in the world is the U.S. Federal Reserve.

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When governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view?

A. central bank prints more money

B. increase in household savings

C. decrease in borrowing by private firms

D. foreign financial investors

Learn more about central banks here

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