Question
Internal debt and External debt.

Answer

Internal DebtExternal Debt
(a) It refers to borrowings of the government to raise fund within the economy.(a) It refers to borrowings of the government to raise fund outside the economy.
(b) In case of internal debt, domestic currency is used.(b) In case of external debt, foreign currency is used.
(c) It is less complex to manage internal debt.(c) It is more complex to manage external debt.
(d) E.g. borrowings from RBI, nationalized banks and business organisations within a country.(d) E.g. borrowings from foreign government and international organisation like IMF, World Bank, etc.

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