National debt is defined as:
A) total public and private debt owed to foreign institutions.
B) the value of outstanding notes and coins issued by the RBA.
C) the value of outstanding government securities.
D) total private debt owed domestically and internationally.
E) total private debt owed domestically.

Question

Quizplus · Accepted Answer

National debt refers to the total amount of outstanding government securities, such as treasury bills, notes, and bonds, that are held by individuals, firms, and foreign governments. It is not the same as private debt, which refers to the borrowing by individuals and firms from domestic or international sources. It is also not the same as the money supply, which includes notes and coins issued by the Reserve Bank of Australia. Option A and D are incorrect because they refer to private debt, and option B is incorrect because it only includes the value of outstanding notes and coins which is a very small component of the overall debt.

National Debt Is Defined As