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Question

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

A
Domestic debt
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B
Internal debt
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C
International debt
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D
External debt
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Solution

The correct option is B Internal debt
The loans availed by the government from sources within the country are called internal debt. In case of internal debt, the government borrows money from the public and financial institutions within the country, such as the Reserve Bank of India.

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