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Distinguish between the following concept: Internal debt and External debt - Economics

Distinguish Between

Distinguish between the following concept:

Internal debt and External debt

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Solution

  Internal debt External debt
i) When a government borrows from its citizens, banks, central banks, financial institutions, business houses, etc. within the country, it is known as internal debt. When a government borrows from foreign governments, foreign banks or institutions, international organizations like the International Monetary Fund, World Bank, etc., it is known as external debt.
ii) It is voluntary or compulsory in nature. It is voluntary in nature.
iii) It involves the use of domestic currency. It involves the use of foreign currency.
iv) It is less complex for management. It is more complex for management.
Concept: Structure of Public Finance - Public Debt
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 8 Public Finance in India
Exercise | Q 2. (2) | Page 79
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 8 Public Finance in India
Distinguish Between | Q 4
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