UPSC PRELIMS · ECONOMICS · PUBLIC DEBT AND HOUSEHOLD SAVINGS
With reference to the Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?
Take a breath. Choose one. Press A–D on your keyboard if you like.
EXPLANATION
Household financial savings finance government borrowing, while market-borrowed dated government securities form a major part of internal debt.
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