Explain four ways that a government can use to finance a budget deficit

      

Explain four ways that a government can use to finance a budget deficit

  

Answers


Davis
i) (Inflationary financing) Borrowing from the central bank through
overdrafts / short term loans / accept use of examples to
explain.
ii) Borrowing from international money markets / agencies / financial
institutions / non- banking financial institutions such as IBRD / IMF
/World Bank / PBR / provides funds / revenue for government /
accept use of examples.
iii) Borrowing from capital markets such as ICDC / insurance
companies / AFC / NPCK / procedure by selling bonds.
iv) Borrowing from domestic money markets such as commercial banks
/ selling treasury bills and / bonds / promissory notes / I.O.U.
v) Borrowing from other countries / multilateral / Bilateral borrowing
through loans / buying goods / services on credit.
Githiari answered the question on September 22, 2017 at 21:10


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