In the context of the Indian economy, non-financial debt includes which of the following ?
- 1.Housing loans owed by households
- 2.Amounts outstanding on credit cards
- 3.Treasury bills
Select the correct answer using the code given below :
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Answer: D. In global statistics (for example the Bank for International Settlements), non-financial debt means debt owed by households, non-financial companies and the government. Housing loans and credit card dues are household debt, and Treasury bills are government debt. So all three.
Watch for: Treasury bills sound like a financial instrument, but the borrower (government) is a non-financial sector.
Why the other options are wrong
- A. Wrong because credit card dues and Treasury bills are also non-financial sector debt.
- B. Wrong because Treasury bills, as government debt, also count.
- C. Wrong because household loans also count.
Source to check: Bank for International Settlements (bis.org), credit to the non-financial sector statistics; RBI Financial Stability Report
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.