Internal Sources of Public Debt

Q. What does the government do if it does not have enough public revenue to meet its public expenditures?

Q. Which of the following instruments does the government use while borrowing money from the general public or the RBI?

1. Tax exemption certificate
2. Savings certificate
3. Government securities or bonds.
4. Public deposit certificate

Q.

What is the full form of DICGC?

Q. What are loans availed by the government from sources within the country called?

1. Domestic debt
2. Internal debt
3. International debt
4. External debt

Q.

Are debentures high risk?

Q. Choose the correct option.

Assertion: In India, the external debt is less than the internal debt.

Reason: No country or international organisation is willing to lend money to India.

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 true, but the Reason is false.
4. Both the statements are false.

Q. Which among the following terms can be used for the loans availed by the Government of India from the RBI?

1. Internal debt
2. International debt
3. External debt
4. Capital debt

Q. The loans availed by the Government of India from the RBI can be termed as .

1. external debt
2. internal debt
3. foreign debt
4. bank debt