In the context of the Indian economy, non-financial debt

In the context of the Indian economy, non-financial debt includes which of the following?

1. Housing loans owed by households
2. Amounts outstanding on credit cards
3. Treasury bills

Select the correct answer using the code given below:

1. 1 only
2. 1 and 2 only
3. 3 only
4. 1, 2 and 3

Answer: D

Explanation

Non-financial debt consists of credit instruments issued by governmental entities, households and businesses that are not included in the financial sector.

It shares most of the same characteristics with financial debt, except the issuers are non-financial. It includes industrial or commercial loans, Treasury bills and credit card balances.

• Exam Year: 2020