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Questions
How is public debt different from private debt?
State three points of difference between public debt and private debt.
Distinguish Between
Solution
| Public Debt | Private Debt | ||
| (i) | The government can take loans within and outside the country. | (i) | A private borrower generally can borrow only within the country. |
| (ii) | The government generally borrows to spend for the welfare of the society. | (ii) | The aim of private debt is profit making. |
| (iii) | The government may force the people or institutions in the country to lend money to it. | (iii) | No private individual can force another individual to lend him money. |
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