ECONOMICS
PUBLIC DEBT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Currency and money deposits
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Internal and government securities
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External Loans incurred by the government
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All of the above
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Detailed explanation-1: -Internal debt and external debt constitute Public Debt of India and are secured under the Consolidated Fund of India.
Detailed explanation-2: -Answer» D. Borrowing by a Government from within the country or from abroad, from private individuals or association of individuals or from banking and non-banking institutions.
Detailed explanation-3: -Public debt is the total amount of debt borrowed by a government. It is when total liabilities of the Union Government needs to be paid from the Consolidated Fund of India (CFI).
Detailed explanation-4: -The public debt or the sovereign debt helps a government-run, build, and develop the country. For example, governments take loans to cover budget deficits, infrastructure projects, wars, nuclear programs, public welfare schemes, or for the operation of public corporations.