(a) Repayment of public debt 

(b) Borrowing from the public to finance a budget deficit 

(c) Borrowing from the banks to finance a budget deficit 

(d) Creation of new money to finance a budget deficit 

Answer: d

Explanation:

Money financing was earlier called Deficit financing, refers to created Money. The Government borrows from the Central Bank, which is a note-issuing authority. The Central Bank simply issues more notes and gives them to the Government against Government securities i.e., the creation of additional purchasing power in the form of currency notes.

This is referred to as monetisation of fiscal deficit. 

Since Deficit financing involves expansion of the money supply with the Public, it has inflationary potential.

Hence, option d is correct..

Read: Solved Economy PYQs With Explanation 2021 UPSC Prelims