Deficit Financing by Farid

Of a country or an organization suppose you have 2500 feet you have hundreds in your pocket you go to a shop but you like a thing that is worth 120 rupees so what do you do you you want to buy the stuff but you have only 100 in your pocket you go and borrow 20 feet or you go and find candidates not anyway if you want to do it you you get the money you go to

The shop you buy your thing so you get 125 which is with me you have to spend 20 more rupees all you have to return the 20 borrowing means if you have borrowed from someone now this 20 degrees is your deficit like you have spent money according to the definition of energy you spent an extended amount of money from your income you have drinks in your topic you

Are single to fit in your pocket you spent 110 rupees so what did he do it spent 20 rupees are you getting me yeah okay what’s up now what is financing as we studied before in the previous place 20 the financing means the art of managing monetary reported according to this example you have borrowed 20 more rupees which means you have a better set of 20 rupees

What would you do with these trends you know how do you manage to defend these trends if you’re financing are you getting it what is the 20 rupees this is the deadline you had 100 rupees you spent 120 you have a shortfall of 20 rupees you spent excessive amounts of 20 rupees so your debt is expensive now how do you how do you determine these twenties if you’re

Not financing so in simple words in the context of this example this is how and in what way do you is how do you manage to use your deficit as you get the financing okay as we all know that we are living in parmigiana pakistan is not a very good economic country it has been an economic development almost lost in history changes classes this dismantling thing

In pakistan has never been amazing but has always been invested and we can get to know this when pakistan’s world champs continue to become they reduced the money they did not expect the capital or the important things that we needed to to be a good economic country beneficiary showed that pakistan had to deal with the deficit problems thing with pakistan it

Had no money no resources remember only three big funds were presented compared to india that is pakistan was good in question so pakistan was always in deficit it needed money to take its bill to kick over the government it borrowed money from international communities from iowa world bank and split into difficult drive from the first year which in 1947 they

Established a difference their spending has already been more than 5 million they have no revenue they were spending they were borrowing money they spend it and when they would do their advantage because they were short they were before they had no good living new plans bank of england state banks are also called government banks because they are related to

Government the second point is oh but they don’t have money they are independent remember remember the example of treatment you do not have you did not have 20 rupees so you borrowed it but how humanity is government is short of money it goes to the central bank borrow the money from the central bank they exist who doesn’t pay you of course the funds of course

That places where they have a question might come into your life that how inflation comes from from the central bank it means that the supply of money includes installation it just drives inflation straight away and national bank happy they are not related to government but there are not government plans like this electric of the commercial banks decreases

Because government borrowed money from them are you getting my money are you getting healthy all right commercial banks are left with less reserve they want more results because they need money they go to the central bank and they borrow money from the central bank however the difference between borrowings from commercial banks the amount is my objective of

This assignment was to make you understand a little bit of things of course i’m not a teacher i cannot go there teaching i just wanted you to know what is different financing so there should be questions there wishing the government used to use the message in their current affairs of course the central bank is responsible for monitoring the economic activities

In the country we all know them unnecessarily this is another way of getting reducing the dividend now when you have less money you would not want to spend your less money on unnecessary things you would want it to spend on the right places on the right thing so central bank thank you very much

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Deficit Financing by Farid By 8849565