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प्रश्न
Distinguish between internal debt and external debt.
Differentiate between internal and external public debt.
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उत्तर
| Internal Debt | External Debt | |
| 1. | When the government borrows from its citizens, banks, central banks, financial institutions, business houses, etc., within the country. It is known as internal debt. | When the government borrows from foreign governments, foreign banks or institutions, and international organizations like the International Monetary Fund, the World Bank, etc., it is known as external debt. |
| 2. | It is voluntary or compulsory in nature. | It is voluntary in nature. |
| 3. | It involves the use of domestic currency. | It involves the use of foreign currency. |
| 4. | It is less complex for management. | It is more complex for management. |
| 5. | Example: Borrowing from RBI or commercial banks in India. | Example: Loan from the World Bank or Government of Japan. |
APPEARS IN
संबंधित प्रश्न
Government borrows from its citizens, banks, central bank etc. is known as ______.
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.
- Assertion (A): Debt raised by the government from borrowings from the International Monetary Fund is an external debt.
- 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.
