Multiple choice

External debt (or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be (1) the government (2) corporations (3) private households

  1. All 1, 2 and 3

  2. Only 1

  3. Only 2

  4. Only 3

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

External debt includes liabilities owed by the government, private corporations, and households to non-residents, regardless of the borrower's sector.

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