Public debt refers to:
A) Money borrowed by individuals
B) Money borrowed by the government
C) Money printed by the central bank
D) Money loaned by commercial banks
Which of the following is NOT a type of public debt?
A) Internal debt
B) External debt
C) Household debt
D) Short-term debt
Public debt is often used to finance:
A) Government projects and expenditures
B) Private business expansions
C) Stock market investments
D) Currency exchanges
Which of the following is an internal debt?
A) Loan from the IMF
B) Loan from local commercial banks
C) Loan from the World Bank
D) Foreign direct investment
External public debt is debt borrowed from:
A) Domestic banks
B) Foreign sources
C) Private corporations
D) Local investors
A major risk of excessive public debt is:
A) Increased foreign investment
B) Higher inflation and interest rates
C) Greater currency appreciation
D) Reduction in government spending
Which institution often provides loans to developing countries?
A) NASA
B) World Bank
C) UNICEF
D) Red Cross
What is a major consequence of excessive government borrowing?
A) Decreased economic growth
B) Higher productivity
C) Reduced public spending
D) Strengthened national currency
What is the term for interest payments on public debt?
A) Debt servicing
B) Debt cancellation
C) Debt restructuring
D) Debt financing
Which of the following is NOT a method of managing public debt?
A) Debt restructuring
B) Increasing tax revenue
C) Printing excessive money
D) Seeking foreign aid
Which country has one of the highest public debt levels?
A) Japan
B) Switzerland
C) Bangladesh
D) UAE
A high public debt-to-GDP ratio indicates:
A) Strong economic growth
B) Financial instability
C) Higher tax revenue
D) A balanced budget
Which of the following is a common method of reducing public debt?
A) Increasing government spending
B) Implementing austerity measures
C) Lowering taxes
D) Expanding the deficit
Sovereign debt refers to:
A) The debt of corporations
B) The debt of local businesses
C) The debt of a nation’s government
D) The debt of individuals
Which of the following is NOT a consequence of high public debt?
A) Increased government spending
B) Reduced economic growth
C) Higher tax burden
D) Inflationary pressure
Debt-to-GDP ratio is used to measure:
A) The total private debt of a country
B) The financial health of a nation
C) The amount of money in circulation
D) The trade balance of a country
Which organization provides short-term financial assistance to countries facing economic crises?
A) United Nations
B) International Monetary Fund (IMF)
C) Greenpeace
D) World Health Organization
A primary reason governments accumulate public debt is:
A) To finance budget deficits
B) To increase inflation
C) To eliminate taxes
D) To reduce interest rates
Public debt can lead to a financial crisis if:
A) The government repays all debts on time
B) The debt grows faster than the economy
C) The economy expands rapidly
D) The country receives foreign aid
A debt default occurs when a country:
A) Pays back its debt early
B) Fails to meet its debt obligations
C) Receives new foreign loans
D) Reduces its fiscal deficit
Which of the following is a short-term public debt instrument?
A) Treasury bills
B) Long-term bonds
C) Equity shares
D) Mutual funds
Which country has historically relied on borrowing to fund its fiscal deficits?
A) Norway
B) Pakistan
C) Singapore
D) Switzerland
Public debt is sustainable when:
A) The economy is growing faster than debt
B) The government borrows excessively
C) Tax revenues decline significantly
D) The inflation rate is high
Which sector is directly affected by rising public debt?
A) Healthcare
B) Education
C) Financial sector
D) All of the above
Excessive public borrowing can lead to:
A) Lower inflation
B) Economic recession
C) Higher employment
D) Reduced interest rates
What happens when a government borrows excessively?
A) The economy grows faster
B) Debt burden increases
C) Budget surplus is achieved
D) Tax rates decrease
Which of the following is NOT a way to reduce public debt?
A) Increasing exports
B) Increasing government spending
C) Raising tax revenue
D) Economic growth
Why do developing countries take on external debt?
A) To finance infrastructure projects
B) To reduce economic growth
C) To increase inflation
D) To weaken their currency
Austerity measures are policies aimed at:
A) Increasing public debt
B) Reducing government spending
C) Lowering tax revenues
D) Expanding fiscal deficits
Which of the following can help a country manage its public debt effectively?
A) Reducing exports
B) Expanding the budget deficit
C) Implementing fiscal discipline
D) Printing excessive money
