ECONOMICS
PUBLIC DEBT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Terms of new bonds
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Maturity
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Proportion of different components of public debt
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None of the above
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Detailed explanation-1: -The main objective of public debt management is to ensure that the government’s financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk.
Detailed explanation-2: -The sources of public debt are dated government securities (G-Secs), treasury bills, external assistance, and short-term borrowings. According to the Reserve Bank of India Act, 1934, the RBI is both the banker and public debt manager for the government.
Detailed explanation-3: -Public Debt is the total amount that includes external debt, internal debt and also total liabilities, borrowed by the government to meet its development expenses.
Detailed explanation-4: -Public debt meaning: It is the total amount of money that is owed to the public by the government to meet the development funds. In public finance, it is also known as public interest, government debt, national debt and sovereign debt. The public debt can also be owed to lenders within the country.