Internal and External Debt — MCQ Practice
Interactive MCQ Practice
Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.
Consider the following statements about India's public debt management: 1. Internal debt eliminates foreign exchange risk but may crowd out private investment 2. External debt provides access to larger capital pools but creates currency risk 3. The RBI acts as debt manager for both Union and State governments 4. Overseas sovereign bonds can only be issued in foreign currencies Which of the statements given above are correct?
Which of the following best explains why India maintains a higher proportion of internal debt compared to external debt?
The term 'debt sustainability' in the context of government borrowing primarily refers to:
Consider the following about External Commercial Borrowings (ECBs): 1. They are raised by Indian companies from foreign sources 2. They form part of India's external debt statistics 3. They require RBI approval under current guidelines 4. They can only be used for capital expenditure purposes Which of the statements given above are correct?
The concept of 'financial repression' in the context of government debt management refers to: