Question

Loans taken by the government for the purpose of war,earthquakes, for covering the budget deficit are ______/अर्थसंकल्पातील तूट भरून काढण्यासाठी सरकारने युद्ध, भूकंप, उद्दीष्टांसाठी घेतलेली कर्जे ______ आहेत

a) productive debt/उत्पादक कर्ज
b) unproductive debt/अनुत्पादक कर्ज
c) voluntary debt/ऐच्छिक कर्ज
d) none of the above/वरीलपैकी कोणतेही नाही
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Answer 1

Unproductive-debt/अनुत्पादक कर्ज

Explanation:

There are two types of loan: Productive Loans and Unproductive Loans.

Productive Loans: If a loan is financed for a project that will generate revenue to the government. That loan is known as Productive Loans. They are self-liquidating in nature. It means the principle amount and interest are generally paid out of revenue generated. For Eg.: loan is taken for projects like power and irrigation.  

Unproductive Loans: If a loan is financed for war or other operations like in case of emergency/ natural calamity. That loan is known as Unproductive Loans. These loans are a net burden on the government.