Debt - GS questions based on daily current affairs

1)   Public Debt of India consists of internal debt and external debt. Internal debt comprises of

1) Market Loans
2) Treasury Bills
3) Post office savings deposits
4) Securities issued to international financial Institutions

a. 1, 2, and 4
b. 1, 2, and 3
c. 1, 3 and 4
d. All of the Above
Answer  Explanation 

ANSWER: 1, 2, and 4

Explanation:
Internal Debt includes market loans, securities, treasury bills, etc. Post office savings, provident funds, etc are other liabilities of the government and not included in internal debt.
2)   The currency composition of India’s total external debt is as follows. Arrange them in decreasing order of their percentage in the total external debt.

1) US Dollar
2) Euro
3) Japanese Yen
4) Indian Rupee
5) Special Drawing Rights (SDR)

a. 1 > 2 > 3 > 4 > 5
b. 1 > 4 > 5 > 3 > 2
c. 1 > 2 > 3 > 4 > 5
d. 1 > 3 > 2 > 5 > 4
Answer  Explanation 

ANSWER: 1 > 4 > 5 > 3 > 2

Explanation:
The currency composition of India’s total external debt shows that the share of US dollar-denominated debt in external debt stock continued to be the highest at 60.1 per cent at end-September 2014, followed by Indian rupee (24.2 per cent), special drawing rights (SDR) (6.5 per cent), Japanese yen (4.5 per cent), and euro (3.0 per cent) denominated. The currency composition of government (sovereign) debt indicates predominance of SDR-denominated debt.

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