GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the money a country owes another country
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Gross Domestic Product; total market value of all goods and services which are produced within a country during a given period
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also called buying power; the value of money measured by the quality and quantity of products and services the money can by
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a risk related to the influence of a defect in the documentation on cash flow or dept service
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a risk of politically motivated interference of a foreign government
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Detailed explanation-1: -Key Takeaways. External debt is the portion of a country’s debt that is borrowed from foreign lenders, including commercial banks, governments, or international financial institutions. If a country cannot repay its external debt, it is said to be in sovereign debt and faces a debt crisis.
Detailed explanation-2: -Total foreign debt can be a combination of short-term and long-term liabilities. Foreign debt, also known as external debt, has been rising steadily in recent decades, with unwelcome side-effects in some borrowing countries.
Detailed explanation-3: -The composition pattern of India’s external debt is noted below. Long-term borrowings (more than a year to maturity) dominate India’s external debt. India classifies its long-term external debt into seven heads. The external debt column notes the value of external debt stock outstanding at the end of March 2021.
Detailed explanation-4: -Excessive amounts of foreign debt will hinder countries’ capacity to invest in their financial prospects, whether through education, infrastructure, or health care, because their small income is spent on repayment of loans. It is a challenge to economic development in the long term.
Detailed explanation-5: -Is foreign debt the amount of money that other countries owe the United States? No, the foreign debt is the amount a country owes to other countries. If a country imports more than it exports, does it have a trade deficit?