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A part of National Debt known as External Debt is the amount
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- borrowed by its citizens from abroad
- lent by its citizens to foreign governments
- borrowed by its government from abroad
- lent by its government to foreign government
- borrowed by its citizens from abroad
Correct Option: C
External debt (or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.
