JAMB UTME - Economics - 2000 | Green Bridge CBT

Question 1 Report

Public debt is composed of?

internal debts and World Bank loans

money owed to local and foreign contractors

internal and external debts Correct answer

loans granted by IMF and ADB

Answer Details

Public debt is composed of internal and external debts. Internal debt refers to the amount of money that a government owes to individuals or organizations within its own country, while external debt refers to the amount of money that a government owes to individuals or organizations outside of its own country. Examples of internal debt include government bonds, treasury bills, and loans from local banks. Examples of external debt include loans from foreign governments, international financial institutions such as the World Bank and the IMF, and bonds sold to foreign investors. Money owed to local and foreign contractors or loans granted by IMF and ADB are specific types of external debt and are included in the overall composition of a country's public debt.






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