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Question
Government borrows from its citizens, banks, central bank etc. is known as ______.
Options
internal debt
public debt
external debt
government debt
Solution
Government borrows from its citizens, banks, central bank etc. is known as internal debt.
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RELATED QUESTIONS
Assertion (A): Raising debt is the most common activity of any government.
Reasoning (R): Government expenditure generally exceeds government revenue.
Identify & explain the concept from the given illustration
Reserve Bank of India helps to raise loans for both the Central and State Governments by selling government bonds, securities etc.
The primary purpose of deficit financing is ______.
What do you mean by public debt?
Mention any three methods of redemption of public debt.
Explain the methods of debt redemption.
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- Reasoning (R): The Government of India may take loans from International Monetary Fund for Mumbai Metro Train.
Give an economic term:
Debt is raised by the government from borrowings from its citizens.
