In the context of public debt, 'Internal Debt' refers to:
A. Only short-term external borrowings
B. Debt owed to domestic creditors
C. Debt owed to foreign creditors
D. Only IMF loans
Answer: Option B
Solution (By JKSSB Mock Tests)
Internal debt is the portion of public debt that is owed to lenders within the country, such as market borrowings, treasury bills and other domestic liabilities.
Explanation:
Because high-risk individuals have a greater incentive to buy insurance at any given premium, the insured pool tends to be riskier than the population average, driving up premiums and potentially causing market unraveling.
Explanation:
India has achieved current account convertibility but maintains a managed and partial capital account convertibility with prudential controls on certain flows.
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