JAMB Economics 2000 Question 46

Question 46

Public Finance

Public debt is composed of

  1. A.internal debts and World Bank loans
  2. B.money owed to local and foreign contractors
  3. C.internal and external debts
  4. D.loans granted by IMF and ADB.
Show the answer and explanation

Answer: C (internal and external debts)

Explanation

Public debt is all that the government owes, both to lenders at home (internal) and abroad (external).