Match the following:
| List I | List II |
| a) Fixed interest rates | i.) Issuance of central government |
| b) Derived interest rates | ii.) Dated securities |
| c) Risk-free | iii.) Treasury bills |
a-ii,b-iii,c-i
a-i,b-ii,c-iii
a-iii,b-ii,c-i
a-I,b-iii,c-ii
Identify the FALSE statement.
a) Large government borrowings crowd out private investment which otherwise would have arrived in the economy.
b) Large borrowings would add pressure on interest rates as large borrowing would necessitate higher interest rates.
c) Interest payment is the number one expenditure head accounting for over 25 percent of the total expenditure in the economy.
