Debt Sustainability — MCQ Practice
Interactive MCQ Practice
Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.
Which of the following factors are considered crucial for assessing a country's debt sustainability? 1. Nominal GDP growth rate 2. Average nominal interest rate on government debt 3. Primary balance of the government 4. Foreign exchange reserves Select the correct answer using the code given below:
Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act in India: 1. The N.K. Singh Committee recommended replacing the revenue deficit target with a debt-to-GDP ratio target as the primary fiscal anchor. 2. The FRBM Act mandates the presentation of a Medium Term Fiscal Policy Statement in Parliament. 3. Article 293 of the Constitution empowers the Union government to set limits on state government borrowing. Which of the statements given above is/are correct?
Which of the following is NOT a direct measure to improve a government's primary balance?
Consider the following statements regarding India's public debt: 1. The majority of India's public debt is external, denominated in foreign currency. 2. The 'snowball effect' on debt dynamics occurs when the nominal interest rate on debt is lower than the nominal GDP growth rate. 3. Off-budget borrowings are a concern for debt sustainability due to lack of transparency. Which of the statements given above is/are correct?
Which of the following bodies/reports has/have expressed concerns about the rising debt levels of Indian states and suggested measures for fiscal prudence? 1. Reserve Bank of India (RBI) reports 2. Economic Survey 3. Finance Commission reports Select the correct answer using the code given below: