Public Debt
ICSE · Class 10 · Economics
Practice quiz for Public Debt — ICSE Class 10 Economics. MCQs and questions with answers to test your preparation.
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What is public debt?
Which type of debt is used for projects that yield income to the government?
Which type of debt has its principal amount never returned by the government?
Funded debts are typically:
Sample Questions
Which of the following are characteristics of public debt compared to private debt?
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Government can force people to lend, Lower interest rates due to high creditworthiness, Can be raised from abroad
Public debt has several unique features: government can compel lending, enjoys lower interest rates due to creditworthiness, and can borrow internationally. Unlike private debt, it's often long-term and repaid through taxation.
Internal debt is raised from sources within the country.
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True
Internal debt is indeed raised by the government from individuals and institutions within the country, as opposed to external debt which is borrowed from foreign sources.
Examples of productive debt include:
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Construction of railways, Power projects, Iron and steel industries
Railways, power projects, and industries generate revenue for the government, making them productive investments. War financing and budget deficits don't generate income, making them unproductive.
Redeemable debt is repayable after a fixed period of time.
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True
Redeemable debt is indeed repayable by the government after a fixed period of time, with regular interest payments during the loan period. It is terminable debt.
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