WBCS.LIVE practice question

The Primary Deficit is zero in which of the following situations? I. Fiscal Deficit is zero. II. Interest payment is equal to Fiscal Deficit.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Neither I nor II
  2. Both I and II
  3. Only I
  4. Only II

Correct answer and explanation

Correct answer: Only II