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UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Fiscal and Monetary Policy

  • question_answer
          Consider the following:
    1. Market borrowing       
    2. Treasury bills
    3. Special securities issued to RBI
    Which of these is/are components(s) of internal debt?

    A) 1 only                

    B)        1 and 2

    C) 2 only            

    D)        1, 2 and 3

    Correct Answer: D

    Solution :

    Treasury Bills are money market instruments of finance the short term financial requirements of the Government of India. These are discounted securities and are issued at a discount to face value.


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