Multiple choice

Consider the following:

  1. Market borrowing
  2. Treasury bills
  3. Special securities borrowed from RBI

Which of these is/are component(s) of internal debt?

  1. 1 only

  2. 1 and 2

  3. 2 only

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Treasury bills are money market instruments to finance the short term financial requirements of the Government of India. These are discounted securities and are issued at a discount to face value. All three are the components of internal debt of a country.

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