In the context of the Indian economy, non-financial debt includes which of the following?
- Housing loans owed by households
- Amounts outstanding on credit cards
- Treasury bills
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 4 — 1, 2 and 3
Non-financial debt encompasses all debt obligations incurred by non-financial sectors of the economy, including households, businesses, and government. All three statements represent legitimate components of non-financial debt.
✅ Statement 1 – Correct: Housing loans owed by households are credit obligations of the non-financial sector and constitute non-financial debt.
✅ Statement 2 – Correct: Credit card outstanding amounts represent consumer debt owed by households (non-financial sector) to financial institutions and are included in non-financial debt.
✅ Statement 3 – Correct: Treasury bills issued by the Government of India represent government borrowing; since government is part of the non-financial sector, T-bills and similar government securities are classified as non-financial debt.
Question 9 of 10 Bonds and Securities
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