Economics · Public Finance & Foreign Debt
External sovereign debt is generally considered more critical and difficult to manage than internal domestic debt primarily because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Interest rates on external loans are always significantly higher
- 2It involves foreign exchange risk and balance of payments constraints✓
- 3External debt cannot be restructured under any circumstances
- 4External foreign creditors are less patient
Correct answer
It involves foreign exchange risk and balance of payments constraints
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Public Finance & Foreign Debt MCQs →Want more practice questions on Public Finance & Foreign Debt?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Public Finance & Foreign Debt