What is the term for money owed by a country to lenders?

What is the term for money owed by a country to lenders?

• A. Debt
• B. Debt Outstanding
• C. Debt Service
• D. HIPC Initiative

Answer: (A)

Debt is the money a country owes to lenders. It covers all borrowings by the government, including domestic and foreign loans and bonds, and represents the overall obligation outstanding. Debt service refers to the actual payments made to cover that borrowing, such as interest and principal repayments, shown as a flow rather than a stock. The debt outstanding is the current balance still owed at a point in time, which is essentially the amount left to repay. The HIPC Initiative is a debt-relief program for the poorest countries, not the term for money owed.

Debt is the money a country owes to lenders. It covers all borrowings by the government, including domestic and foreign loans and bonds, and represents the overall obligation outstanding. Debt service refers to the actual payments made to cover that borrowing, such as interest and principal repayments, shown as a flow rather than a stock. The debt outstanding is the current balance still owed at a point in time, which is essentially the amount left to repay. The HIPC Initiative is a debt-relief program for the poorest countries, not the term for money owed.