When the government tries to meet the gap of public expenditure and public revenue through borrowing from the banking system, it is called _______.
  1. Deficit financing.
  2. Debt financing.
  3. Credit financing.
  4. None of them.
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  1. Deficit financing.
Explanation:
When the government tries to meet the gap of public expenditure and public revenue through borrowing from the banking system, it is called deficit financing.
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