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Interest paid by the government on the loans raised is called
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- Debt Servicing
- Deficit Financing
- Discounted Budgeting
- Bridge-loan
- Debt Servicing
Correct Option: C
Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt."
