GyanGramWith reference to the Indian economy, consider the following statements : 1. A share of the household financi…
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With reference to the Indian economy, consider the following statements :
1. A share of the household financial savings goes towards government borrowings.
2. Dated securities issued at market-related rates in auctions form a large component of internal debt;
Which of the above statements is/are correct ?
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• Correct Answer: C
• Household savings (bank deposits, insurance, PF) are major buyers of government securities, channeling funds into government borrowings.
• Dated securities issued via auctions at market rates form the largest component of internal debt.
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