In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans…

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:
  1. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 1, 2 and 3

Solution

Non-financial debt comprises credit instruments issued by governments, households and non-financial businesses. It includes housing loans, credit card balances and Treasury bills (issued by government). All three correct. Answer: (d).

Asked in: UPSC Prelims 2020

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