Interest paid on externally held debt does not pose a burden on our economy.

Name: Interest paid on externally held debt does not pose a burden on our economy.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest paid on externally held debt does pose a burden on our economy as it requires the outflow of foreign exchange which can impact the balance of payments and weaken the currency. It also diverts resources that could have been used for domestic development towards debt servicing.

Interest Paid on Externally Held Debt Does Not Pose a Burden