Question
Internal debt and External debt.
| Internal Debt | External 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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