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    Question

    How does the rise in external commercial borrowings in

    India affect the country's external debt?
    A Increase Correct Answer Incorrect Answer
    B Decrease Correct Answer Incorrect Answer
    C Remain unaffected Correct Answer Incorrect Answer
    D Either increase or decrease Correct Answer Incorrect Answer

    Solution

    Any money that has been borrowed from foreign sources for financing the commercial activities in India are called External Commercial Borrowings. An increase in the external commercial borrowings would lead to an increase in the external debt of the country.

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