UPSC Prelims 2020 – Question 54

Q54. In the context of the Indian economy, nonfinancial debt includes which of the following?

1. Housing loans owned by household
2. Amounts outstanding on credit cards
3. Treasury Bills

Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 1, 2 and 3

Answer: D

• Debts are contractual obligations to repay monetary loans, often with related interest expenses. Non-financial debt: It consists of credit instruments issued by governmental entities, households, and businesses that are not included in the financial sector.It includes industrial or commercial loans, Treasury bills, and credit card balances.They share most of the same characteristics with financial debt, except the issuers are nonfinancial.

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