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Consider the following statements regarding the Sovereign External Debt:
It is the debt owed by the central government to external agencies.
  • Borrowings from IMF and Fil investment in government securities are both included in it.
  • It is always issued in a domestic currency.
    Q. Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      2 and 3 only
    • c)
      1 and 2 only
    • d)
      1, 2 and 3
    Correct answer is option 'C'. Can you explain this answer?
    Most Upvoted Answer
    Consider the following statements regarding the Sovereign External De...
    • Sovereign debt is a central government's debt. Sovereign debt is also called government debt, public debt, and national debt.
    • It is debt issued by the national government in a foreign currency to finance the issuing country's growth and development. So, statement 3 is not correct.
    • Sovereign debt can either be internal debt or external debt. If categorized as internal debt, it is debt owed to lenders who are within the country. If categorized as externai debt, it is debt owed to lenders in foreign areas. So, statement 1 is correct.
    • Sovereign debt is usually created by borrowing government bonds and bills and issuing securities. Countries that are less creditworthy than others directly borrow from world organizations like The World Bank, the IMF, and other international financial institutions. So, statement 2 is correct.
    Therefore the correct answer is (c).
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    Consider the following statements regarding the Sovereign External Debt: It is the debt owed by the central government to external agencies. Borrowings from IMF and Fil investment in government securities are both included in it. It is always issued in a domestic currency. Q. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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    Consider the following statements regarding the Sovereign External Debt: It is the debt owed by the central government to external agencies. Borrowings from IMF and Fil investment in government securities are both included in it. It is always issued in a domestic currency. Q. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct 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 Consider the following statements regarding the Sovereign External Debt: It is the debt owed by the central government to external agencies. Borrowings from IMF and Fil investment in government securities are both included in it. It is always issued in a domestic currency. Q. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct 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 Consider the following statements regarding the Sovereign External Debt: It is the debt owed by the central government to external agencies. Borrowings from IMF and Fil investment in government securities are both included in it. It is always issued in a domestic currency. Q. Which of the statements given above is/are correct?a)1 onlyb)2 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
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