WBCS.LIVE practice question

A part of National Debt known as External Debt is the amount:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Borrowed by its citizen from abroad
  2. Lent by its citizens to foreign governments
  3. Borrowed by its government from abroad
  4. Lent by its government to foreign government

Correct answer and explanation

Correct answer: Borrowed by its government from abroad