Teaching MPPSC Assistant Professor Mock Test Series 2025 General Knowledge Economy Money and Banking
Consider the following statements:
Statement-I: If the Government of India were to default on its external sovereign debt, holders of Indian Sovereign Bonds will not be able to enforce any claims to secure repayment.
Statement-II: The Government of India’s external debt is backed by its foreign exchange reserves and the nation’s overall economic stability, rather than by tangible assets.
Which one of the following is correct in respect of the above statements?
1
Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I
2
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
3
Statement-I is correct, but Statement-II is incorrect
4
Statement-I is incorrect, but Statement-II is correct