External Sources of Public Debt

Q. Which of the following are sources of external borrowing?

1. International Monetary Fund
2. State Bank of India
3. World Bank
   
4. Securities and Exchange Board of India

Q. Choose the correct option.

Assertion: The external debt of India has been showing a decreasing trend over the past decade.

Reason: Increase in population and expenditure for development and social welfare activities have decreased the external debt.

1. Both the Assertion and the Reason are correct, and the Reason is the correct explanation of the Assertion.
2. Both the Assertion and the Reason are correct, but the Reason is not the correct explanation of the Assertion.
3. The Assertion is false, but the Reason is true.
4. Both the statements are false.