{"id":1711,"date":"2024-03-28T22:51:51","date_gmt":"2024-03-28T17:21:51","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1711"},"modified":"2024-04-03T07:16:16","modified_gmt":"2024-04-03T01:46:16","slug":"q-in-the-context-of-the-indian-economy-non-financial-debt-includes-which-of-the-following","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-in-the-context-of-the-indian-economy-non-financial-debt-includes-which-of-the-following","title":{"rendered":"Q. In the context of the Indian economy, non-financial debt includes which of the following?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">(1) Housing loans owed by households<br>(2) Amounts outstanding on credit cards<br>(3) Treasury bills<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Select the correct answer using the code given below :<\/p>\n\n\n\n<ul class=\"mcq wp-block-list\">\n<li>1 only<\/li>\n\n\n\n<li>1 and 2 only<\/li>\n\n\n\n<li>3 only<\/li>\n\n\n\n<li>1, 2 and 3<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (d) 1, 2 and 3<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-660526c180324\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debts are contractual obligations&nbsp;<strong>to repay monetary loans<\/strong>, often with related interest expenses.<\/li>\n\n\n\n<li><strong>Financial debt<\/strong>\u00a0refers to the\u00a0<strong>borrowing of money from financial institutions<\/strong>, such as\u00a0<strong>banks or bondholders<\/strong>, with the aim of raising capital\u00a0<strong>to finance business activities<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Financial debt typically involves the&nbsp;<strong>payment of interest and principal&nbsp;<\/strong>over a specific period, with the expectation that the borrower will generate sufficient cash flows to cover the payments.<\/li>\n\n\n\n<li>Examples of financial debt include<strong>&nbsp;loans, bonds, and other forms of debt securities<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>On the other hand,\u00a0<strong>non-financial debt<\/strong>\u00a0refers to debts that arise from non-financial transactions, such as\u00a0<strong>trade credit, deferred payments, and leasing arrangements<\/strong>. Non-financial debt is typically\u00a0<strong>used to finance purchases of goods and services<\/strong>, rather than to raise capital for business activities. Non-financial debt may or may not involve the payment of interest and principal over a specific period, depending on the terms of the transaction.\n<ul class=\"wp-block-list\">\n<li>It consists of credit instruments issued by&nbsp;<strong>governmental entities, households and businesses<\/strong>&nbsp;that are&nbsp;<strong>not included in the financial sector.<\/strong><\/li>\n\n\n\n<li>It includes&nbsp;<strong>industrial or commercial loans, Treasury bills and credit card balances<\/strong>.<\/li>\n\n\n\n<li>They share most of the same characteristics with financial debt, except the&nbsp;<strong>issuers are non-financial.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>(1) Housing loans owed by households(2) Amounts outstanding on credit cards(3) Treasury bills Select the correct answer using the code given below : Answer: (d) 1, 2 and 3 Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[53],"class_list":["post-1711","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-53"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":53,"label":"2020"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1711"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1711\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1711"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}