With reference to the external debt, consider the following statements:1. A country can pay external debt in its domestic currency as well.2. It can only be borrowed from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).3. As per the RBI Indiaandrsquo;s external debt has risen up during the financial year 2023.How many statements given above is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?

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With reference to the external debt, consider the following statements:

1. A country can pay external debt in its domestic currency as well.

2. It can only be borrowed from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).

3. As per the RBI India’s external debt has risen up during the financial year 2023.

How many statements given above is/are correct?

a)
Only one
b)
Only two
c)
All three
d)
None

Correct answer is option 'A'. Can you explain this answer?

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With reference to the external debt, consider the following statements...

Statement 1 and 2 are not correct:

What is the External Debt of a country?

It refers to money borrowed from a source outside the country. External debt has to be paid back in the currency in which it is borrowed.
Sources External debt can be obtained from foreign commercial banks, international financial institutions like International Monetay Fund (IMF), World Bank, Asian Development Bank (ADB) etc and from the government of foreign nations. Normally these types of debts are in the form of tied loans, meaning that these have to be used for a predefined purpose as determined by a consensus of the borrower and the lender.
Governments and corporations are eligible to raise loans from abroad. These are in the form of external commercial borrowings. The interest rate on foreign loans is linked to LIBOR (London Interbank Offer rate) and the actual rate will be LIBOR plus applicable spread, depending upon the credit rating of the borrower. Statement 3 is correct: As per the RBI India’s external debt has risen up to $624.7 billion during the financial year 2023. India’s external debt at end-March 2023 rose by $5.6 billion to $624.7 billion from the year-earlier period but the external debt-to-GDP ratio slid to 18.9% at end-March from 20% a year earlier.

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With reference to the external debt, consider the following statements:1. A country can pay external debt in its domestic currency as well.2. It can only be borrowed from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).3. As per the RBI India’s external debt has risen up during the financial year 2023.How many statements given above is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the external debt, consider the following statements:1. A country can pay external debt in its domestic currency as well.2. It can only be borrowed from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).3. As per the RBI India’s external debt has risen up during the financial year 2023.How many statements given above is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the external debt, consider the following statements:1. A country can pay external debt in its domestic currency as well.2. It can only be borrowed from the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB).3. As per the RBI India’s external debt has risen up during the financial year 2023.How many statements given above is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?.

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