Domestic public debt differs from external public debt mainly because domestic public debt is:
Correct answer: A. Borrowed mainly from lenders within the country
- A. Borrowed mainly from lenders within the country
- B. Always denominated in foreign currency
- C. Borrowed only from international institutions
- D. Excluded from the government's debt servicing costs
Explanation
Domestic public debt is raised mainly from residents and institutions within Pakistan, commonly in Pakistani rupees. It still creates repayment and interest obligations, whereas external debt is owed mainly to foreign lenders and international institutions.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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