In the context of the Indian economy non financial debt includes which of the following Housing loan...........

Economic and Social Issues Nature of Indian economy

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In the context of the Indian economy, non-financial debt includes which of the following ?

Housing loans owed by households
Amounts outstanding on credit cards
Treasury hills

Select the correct answer using the code given below.

1 only

1 and 2 only

3 only

1, 2 and 3

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Explanation:

"Non-Financial debt” excludes the debt of Financial Institutions i.e. those institutions that borrow solely to re-lend and the money.

In other words if, NABARD, ILFS etc had borrowed money to re-lend it, then it’d be financial debt. And all other type of debt will be “non-Financial debt”

So, In above options, all three loans are taken by persons or entities who’ll not ‘re-lend’ it, but They will use the funds for their own purpose. Therefore, Answer should be “D”

Non-financial debt consists of credit instruments issued by governmental entities, households and businesses that are not included in the financial sector (NABARD,ILFS etc...)

Non- financial debt includes industrial or commercial loans, Treasury bills and credit card balances.

Hence all statements are correct.