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Sources of Public Debt: Internal and External

Learn about the different sources of public debt, including internal debt instruments (Treasury Bills, Government Bonds, Small Savings Schemes) and external debt instruments (Eurobonds, Samurai Bonds, Yankee Bonds), their advantages, disadvantages, and key differences.

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Which of the following is an example of internal public debt?

  1. Treasury Bills
  2. Foreign Currency Bonds
  3. Eurobonds
  4. Samurai Bonds
Question 2 Multiple Choice (Single Answer)

What is the primary source of external public debt?

  1. Borrowing from the World Bank
  2. Borrowing from the International Monetary Fund
  3. Issuing Sovereign Bonds in Foreign Markets
  4. All of the above
Question 3 Multiple Choice (Single Answer)

Which of the following is not a type of internal public debt?

  1. Treasury Bills
  2. Government Bonds
  3. Small Savings Schemes
  4. Foreign Currency Bonds
Question 4 Multiple Choice (Single Answer)

What is the main purpose of issuing sovereign bonds?

  1. To raise funds for government spending
  2. To manage the government's debt portfolio
  3. To stabilize the economy
  4. All of the above
Question 5 Multiple Choice (Single Answer)

Which of the following is an example of external public debt?

  1. Treasury Bills
  2. Government Bonds
  3. Eurobonds
  4. Small Savings Schemes
Question 6 Multiple Choice (Single Answer)

What is the difference between internal and external public debt?

  1. Internal debt is owed to domestic lenders, while external debt is owed to foreign lenders.
  2. Internal debt is typically short-term, while external debt is typically long-term.
  3. Internal debt is usually less expensive than external debt.
  4. All of the above
Question 7 Multiple Choice (Single Answer)

Which of the following is not a source of internal public debt?

  1. Borrowing from the central bank
  2. Borrowing from commercial banks
  3. Issuing government bonds
  4. Borrowing from foreign governments
Question 8 Multiple Choice (Single Answer)

What is the main advantage of issuing sovereign bonds in foreign markets?

  1. It allows the government to raise funds in a foreign currency.
  2. It helps to diversify the government's debt portfolio.
  3. It can help to stabilize the economy.
  4. All of the above
Question 9 Multiple Choice (Single Answer)

Which of the following is not a type of external public debt?

  1. Eurobonds
  2. Samurai Bonds
  3. Yankee Bonds
  4. Treasury Bills
Question 10 Multiple Choice (Single Answer)

What is the main disadvantage of issuing sovereign bonds in foreign markets?

  1. It can increase the government's exposure to foreign exchange risk.
  2. It can make it more difficult for the government to manage its debt portfolio.
  3. It can lead to higher interest rates.
  4. All of the above
Question 11 Multiple Choice (Single Answer)

Which of the following is an example of a domestic public debt instrument?

  1. Treasury Bills
  2. Government Bonds
  3. Eurobonds
  4. Samurai Bonds
Question 12 Multiple Choice (Single Answer)

What is the primary source of internal public debt in India?

  1. Borrowing from the Reserve Bank of India
  2. Borrowing from commercial banks
  3. Issuing government bonds
  4. All of the above
Question 13 Multiple Choice (Single Answer)

Which of the following is not a type of external public debt instrument?

  1. Eurobonds
  2. Samurai Bonds
  3. Yankee Bonds
  4. Small Savings Schemes
Question 14 Multiple Choice (Single Answer)

What is the main advantage of issuing sovereign bonds in domestic markets?

  1. It allows the government to raise funds in its own currency.
  2. It helps to diversify the government's debt portfolio.
  3. It can help to stabilize the economy.
  4. All of the above
Question 15 Multiple Choice (Single Answer)

Which of the following is not a type of internal public debt instrument?

  1. Treasury Bills
  2. Government Bonds
  3. Eurobonds
  4. Small Savings Schemes
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