B. A situation where existing debt is so large that it discourages new investment
C. A situation of low public debt
D. Only household debt
Answer: Option B
Solution (By JKSSB Mock Tests)
Debt overhang occurs when a high level of existing debt reduces the incentive for new investment because a large part of the returns would accrue to existing creditors rather than to the investor.
Which of the following is a characteristic of the 'Just Energy Transition Partnerships'?
A.International partnerships that provide financial and technical support to developing countries for a just and equitable transition away from coal and other fossil fuels
B.Only private-sector initiatives without public finance
C.Only domestic energy policies without international support
Explanation:
Just Energy Transition Partnerships are collaborative arrangements in which developed countries and international institutions mobilise finance and expertise to support developing countries in transitioning away from coal while protecting affected workers and communities.
Explanation:
First-generation models (Krugman, Flood-Garber) show that a steadily deteriorating fiscal position financed by credit expansion leads to a speculative attack that exhausts reserves and forces the abandonment of the fixed exchange rate.
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