In the context of public debt management, 'Debt Sustainability Analysis' typically examines:
A. Only the maturity structure
B. Only the currency composition
C. Whether the projected path of the debt-to-GDP ratio remains stable or declines under plausible assumptions about growth, interest rates and primary balances
D. Only the absolute level of debt
Answer: Option C
Solution (By JKSSB Mock Tests)
Debt sustainability analysis assesses whether a country’s debt trajectory is consistent with intertemporal solvency, usually by examining the evolution of the debt-to-GDP ratio under baseline and stress scenarios.
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