What is called interest payments plus repayments of principal to creditors ?
Correct answer: C. Debt service
- A. Debt retirement
- B. Debt relief
- C. Debt service
- D. PaybackCredit & Lending
Explanation
Debt service is the regular payment burden on debt, including both interest and repayment of principal. Debt retirement refers more specifically to extinguishing the principal obligation.
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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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