(a) What is public borrowing? (b) Discuss the various kinds of public borrowing?

      

(a) What is public borrowing? (b) Discuss the various kinds of public borrowing?

  

Answers


Benjamin
a)Public borrowing means public or national debt

b)Various kinds of public borrowing include;

1:Internal and external-the government can borrow money from the individuals of the country and it is called internal debt.External debts are those amounts which are borrowed by the government from other countries or international institutions like World Bank.

2:Productive and unproductive-productive debts are those which are obtained for development projects like irrigation and industrial projects.Unproductive public debts are those that which are spent for unproductive purposes like family planning,education and health schemes.These are known as unproductive because these schemes do not result in increase in production directly.

3:Short period and long period-public debts may be for short period e.g treasury bill or it may be for a long period e.g loan taken for twenty or thirty years.
Bom answered the question on March 24, 2018 at 10:11


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