Public debt held by domestic residents and institutions is known as:
Correct answer: A. Internal public debt
- A. Internal public debt
- B. External public debt
- C. Contingent public debt
- D. Unfunded private debt
Explanation
Internal public debt is borrowed within the country from domestic households, firms, banks or other institutions. External public debt is owed to foreign governments, international institutions or overseas lenders.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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