CA Foundation Exam > CA Foundation Videos > Business Economics for CA Foundation > Deficit financing - Money Market and Capital Market structure in India, Indian Economy
Deficit financing - Money Market and Capital Market structure in India, Indian Economy Video Lecture | Business Economics for CA Foundation
|
135 videos|190 docs|88 tests
|
FAQs on Deficit financing - Money Market and Capital Market structure in India, Indian Economy Video Lecture - Business Economics for CA Foundation
| 1. What is deficit financing? |  |
Ans. Deficit financing refers to the practice of funding government expenditures through borrowing, particularly when there is a shortfall between government revenues and expenditures. It involves borrowing from various sources such as issuing government bonds, treasury bills, or taking loans from domestic or external sources to cover the deficit.
| 2. What is the structure of the Money Market in India? | |
Ans. The Money Market in India is a platform where short-term funds are traded. It comprises various instruments such as Treasury Bills, Commercial Papers, Certificates of Deposit, and Repurchase Agreements. The Reserve Bank of India (RBI) regulates and supervises the Money Market in India to ensure its smooth functioning.
| 3. What is the structure of the Capital Market in India? | |
Ans. The Capital Market in India is a platform where long-term funds are raised and invested. It consists of two segments - the primary market and the secondary market. The primary market facilitates the issuance of new securities through initial public offerings (IPOs) and rights issues. The secondary market, on the other hand, enables the trading of existing securities such as shares and debentures.
| 4. How does deficit financing impact the Indian economy? | |
Ans. Deficit financing can have both positive and negative impacts on the Indian economy. On the positive side, it allows the government to fund developmental projects, infrastructure investments, and welfare programs. This can stimulate economic growth, create employment opportunities, and improve living standards. However, excessive deficit financing can lead to inflation, increased interest rates, and a burden of debt on future generations.
| 5. What are the consequences of excessive deficit financing in India? | |
Ans. Excessive deficit financing in India can have several consequences. It can lead to inflation as the increased money supply exceeds the production capacity of the economy. This, in turn, erodes the purchasing power of individuals and reduces the value of savings. Additionally, excessive borrowing can lead to a higher interest burden, crowding out private investments, and increasing the cost of borrowing for businesses and individuals. It also poses a risk to fiscal stability and may result in a higher debt-to-GDP ratio, affecting the country's creditworthiness.
Related Exams
About this Video
|
4.84/5 Rating |
|
Nov 08, 2024 Last updated |
Video Description: Deficit financing - Money Market and Capital Market structure in India, Indian Economy for CA Foundation 2024 is part of Business Economics for CA Foundation preparation.
The notes and questions for Deficit financing - Money Market and Capital Market structure in India, Indian Economy have been prepared according to the CA Foundation exam syllabus.
Information about Deficit financing - Money Market and Capital Market structure in India, Indian Economy covers all important topics for CA Foundation 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Deficit financing - Money Market and Capital Market structure in India, Indian Economy.
Introduction of Deficit financing - Money Market and Capital Market structure in India, Indian Economy in English is available as part of our Business Economics for CA Foundation for CA Foundation & Deficit financing - Money Market and Capital Market structure in India, Indian Economy in
Hindi for Business Economics for CA Foundation course. Download more important topics related with notes, lectures and mock test series for
CA Foundation Exam by signing up for free.
Description
Video Lecture & Questions for Deficit financing - Money Market and Capital Market structure in India, Indian Economy Video Lecture | Business Economics for CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Business Economics for CA Foundation.
Information about Deficit financing - Money Market and Capital Market structure in India, Indian Economy
Here you can find the meaning of Deficit financing - Money Market and Capital Market structure in India, Indian Economy defined & explained in the simplest way possible.
Besides explaining types of Deficit financing - Money Market and Capital Market structure in India, Indian Economy theory, EduRev gives you an ample number of questions to practice Deficit financing - Money Market and Capital Market structure in India, Indian Economy tests,
examples and also practice CA Foundation tests.
|
135 videos|190 docs|88 tests
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
shortcuts and tricks
,video lectures
,Indian Economy Video Lecture | Business Economics for CA Foundation
,MCQs
,practice quizzes
,past year papers
,Exam
,ppt
,Deficit financing - Money Market and Capital Market structure in India
,Deficit financing - Money Market and Capital Market structure in India
,Important questions
,study material
,Free
,Indian Economy Video Lecture | Business Economics for CA Foundation
,Semester Notes
,Objective type Questions
,mock tests for examination
,Sample Paper
,Deficit financing - Money Market and Capital Market structure in India
,Extra Questions
,Viva Questions
,Summary
,Indian Economy Video Lecture | Business Economics for CA Foundation
,Previous Year Questions with Solutions
;
Study Deficit financing - Money Market and Capital Market structure in India, Indian Economy on the App
Students of CA Foundation can study Deficit financing - Money Market and Capital Market structure in India, Indian Economy alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Deficit financing - Money Market and Capital Market structure in India, Indian Economy,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Deficit financing - Money Market and Capital Market structure in India, Indian Economy is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup