Practice Internal Debt (5.5.1) - Chapter 5: Public Finance - ICSE 12 Economics
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Internal Debt

Practice - Internal Debt

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Practice Questions

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Question 1 Easy

What is internal debt?

💡 Hint: Focus on what it means when the government borrows within its own country.

Question 2 Easy

List two sources of internal debt.

💡 Hint: Think of where the government can get funds domestically.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is internal debt?

Total debt owed externally
Debt owed to domestic creditors
Debt owed by foreign governments

💡 Hint: Think about who the creditors are.

Question 2

True or False: Internal debt is always a bad sign for an economy.

True
False

💡 Hint: Consider its impact on financing projects.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Assess how Japan's management of internal debt can inform fiscal policy in other countries struggling with high public debt.

💡 Hint: Think about how impactful domestic borrowers can be.

Challenge 2 Hard

Critically evaluate the potential effects of increasing internal debt on inflation within an economy using specific examples.

💡 Hint: Consider historical economic scenarios.

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