Q.

Which of the following is not viewed as national debt?

A. Life Insurance Policies
B. Long-term Government Bonds
C. National Savings Certificates
D. Provident Fund
Answer» A. Life Insurance Policies
Explanation: Government debt (also known as public debt, national debt) is the debt owed by a central government. Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interestcosts rather than truly canceling government debt. Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.
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