Question

What are the methods of redemption of public debt.

Answer 1

Methods that are adopted for redemption of public debt are: 1. Refunding 2. Conversion 3. Surplus budgets 4. Sinking fund 5. Terminable annuities 6. Additional Taxation 7. Capital Levy 8. Surplus Balance of Payments.

Redemption is a way of escape from the burden of public debt. Redemption means repayment of a loan.

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