Gross fiscal deficit of the State Governments is financed by I. Market Borrowings II. Printing of…

States finance deficits through market borrowings and central-government loans. They do not print sovereign currency and do not directly undertake external borrowing in the same manner as the Union. Hence only I and III belong in the intended list. I, II and III are correct. II, III and IV are correct. I and III are correct. II and IV are correct. I, II and III are correct. This alternative fails the selection criterion or distinction explained above. II, III and IV are correct. This alternative fails the selection criterion or distinction explained above. I and III are correct. This is the derived selection under the stated interpretation. II and IV are correct. This alternative fails the selection criterion or distinction explained above.