Government bonds are typically purchased by ___ to support public debt.

Individuals and banks.

True or False: Private debt and public debt are completely unrelated and serve different economic functions.

False. Both public and private debts are incurred to bridge the gap between income and expenditure.

Fill in the blank: The government can borrow from international agencies like the ___ and the ___.

International Monetary Fund (IMF), World Bank.

Fill in the blank: Productive debt is taken for projects that generate ___ for the government.

Revenue

True or False: Irredeemable debts have a specified repayment date.

False. Irredeemable debts do not have a specified repayment date.

What are the instruments of internal debt?

The instruments of internal debt include market loans, bonds, treasury bills, and ways and means advances.

Fill in the blank: Unproductive debt is incurred for purposes like ___ or emergency relief.

War

What is redeemable debt?

Redeemable debt is a type of debt that is repaid by the government after a fixed period, with interest paid at regular intervals.

Multiple Choice: Which of the following is an example of external debt
A) Treasury bills 
B) Loans from the World Bank 
C) Market loans 
D) Bonds

B) Loans from the World Bank

Voluntary debt occurs when the government raises public debt without ___ to purchase government bonds.

Compelling buyers

True or False: Unfunded debt is typically long-term and requires a separate fund for repayment.

False. Unfunded debt is short-term and does not have a separate fund for repayment.

Gross debt refers to the total sum of all debts, while net debt is the amount remaining after excluding ___ and other assets meant for loan repayment.

The sinking fund

Fill in the blank: Compulsory debt involves lenders purchasing government bonds under ___, similar to a tax.

Obligation