Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Discuss the methods of public debt redemption?

Discuss the methods of public debt redemption?

Answers

Benjamin
1: The use of surplus budget-if the budget of the government is surplus during a particular year then this surplus can be used to repay public debts.

2: Sinking fund-The government can create a sinking fund and every year a specific amount is deposited in this sinking fund.After some years,this fund is used to repay a public debt.

3: Capital levy-it is a special tax which is imposed by the government on rich persons to repay a public debt.

4: Conversion-The government can get a new loan at low rate of interest and this loan can be used to repay any precious loan carrying high rate of interest.The method is useful to reduce the burden of interest.

5: Repudiation-it means to refuse to repay any public debt.It lies within the power of government to repudiate its obligations.

Bom answered the question on March 24, 2018 at 10:31

Answer Attachments

Next: Discuss the role of budget as an instrument of planning?

Previous: Account for the contributions of Seyyid Said for the development of Zanzibar economy (Omani in East Africa)

View more Economics Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions