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प्रश्न
Statement (1): Interest rates are higher for public debt.
Statement (2): Interest rates are lower for private debt.
पर्याय
Both statements are true.
Both statements are false.
Statement 1 is true but Statement 2 is false.
Statement 2 is true but Statement 1 is false.
MCQ
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उत्तर
Both statements are false.
Explanation:
- Statement (1): This statement is false because the government is the most secure borrower in an economy, allowing it to issue public debt at much a lower interest rate.
- Statement (2): This statement is false because private borrowers have a significantly higher risk of default, requiring commercial banks and investors to charge them higher interest rates.
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