In the context of the Indian economy, non-financial debt includes which of the following?

  1. Housing loans owed by households
  2. Amounts outstanding on credit cards
  3. Treasury bills

Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2020 Prelims]

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 1, 2 and 3


Answer: (d)        

Explanation:

Debt Financing mainly includes two types of debts-

Public Debt-

It is the total amount borrowed by the government of a country.

  • It is further divided into two types-
    • Internal Public Debt
    • External Public Debt

Non-Financial Debt-

  • ​It consists of credit instruments issued by government entities, households, and business which are not covered in the financial sector.
  • Housing loans owed by households, Amounts outstanding on credit cards, Treasury bills, Credit Card balance etc. are types of nonfinancial debts. Hence 1 2 and 3 are correct.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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