UPSC Exam > UPSC Questions > Loans raised by the government from the publi...
Start Learning for Free
Loans raised by the government from the public are known as:
- a)Corporate borrowings
- b)Common borrowings
- c)Market borrowings
- d)Private borrowings
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Loans raised by the government from the public are known as:a)Corporat...
The capital receipts are loans raised by the Government from the general public. The loan thus raised is termed as market loans, or borrowings by the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills.
Most Upvoted Answer
Loans raised by the government from the public are known as:a)Corporat...
Market Borrowings by Government
Definition:
Market borrowings refer to the loans raised by the government from the public through the sale of government securities in the open market.
Explanation:
Market borrowings are a significant source of financing for the government's budgetary needs. These loans are raised by the government through the sale of government securities such as bonds, treasury bills, and other securities to the public. The public includes individuals, banks, financial institutions, and other investors.
Features:
1. Interest Payment: The government pays a fixed rate of interest on these securities to the holders until maturity.
2. Maturity Period: The maturity period of these securities can range from a few weeks to several years.
3. Liquidity: These securities are highly liquid, and investors can buy and sell them in the financial markets.
4. Risk: The risk associated with these securities is relatively low as they are issued by the government, which is considered a safe and reliable borrower.
5. Credit Rating: The credit rating of the government also plays a crucial role in determining the interest rates on these securities.
Conclusion:
Market borrowings are an essential source of financing for the government's budgetary needs. These loans help the government in meeting its expenses, investments, and other financial obligations. The interest rates on these securities are determined by various factors such as the credit rating of the government, market conditions, and demand and supply of the securities in the market.
Definition:
Market borrowings refer to the loans raised by the government from the public through the sale of government securities in the open market.
Explanation:
Market borrowings are a significant source of financing for the government's budgetary needs. These loans are raised by the government through the sale of government securities such as bonds, treasury bills, and other securities to the public. The public includes individuals, banks, financial institutions, and other investors.
Features:
1. Interest Payment: The government pays a fixed rate of interest on these securities to the holders until maturity.
2. Maturity Period: The maturity period of these securities can range from a few weeks to several years.
3. Liquidity: These securities are highly liquid, and investors can buy and sell them in the financial markets.
4. Risk: The risk associated with these securities is relatively low as they are issued by the government, which is considered a safe and reliable borrower.
5. Credit Rating: The credit rating of the government also plays a crucial role in determining the interest rates on these securities.
Conclusion:
Market borrowings are an essential source of financing for the government's budgetary needs. These loans help the government in meeting its expenses, investments, and other financial obligations. The interest rates on these securities are determined by various factors such as the credit rating of the government, market conditions, and demand and supply of the securities in the market.
Free Test
FREE
| Start Free Test |
Community Answer
Loans raised by the government from the public are known as:a)Corporat...
The capital receipts are loans raised by the Government from the general public. The loan thus raised is termed as market loans.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer?
Question Description
Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer?.
Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Loans raised by the government from the public are known as:a)Corporate borrowingsb)Common borrowingsc)Market borrowingsd)Private borrowingsCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup