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Credit Creation

Which of the ...

Question

Which of the following forms a part of India's external debt?

A

Loans from RBI

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B

Loans from multilateral banks

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C

Foreign Direct investment

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D

Loans advanced to foreign banks

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Solution

The correct option is C Loans from multilateral banks
The components of India's external debt include multilateral, bilateral, IMF, trade credit, commercial borrowings, NRI deposits and rupee debt. Commercial borrowings form the bulk of India's external debt.

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