Discussion
As per the statistics on foreign debt at the end of March 2010, the ratio of long term debt and short term debt stands at
Answer: A
The ratio stood at about 80 : 20.
Long-term debt made up roughly four-fifths of India's external debt and short-term the remaining fifth. A high short-term share is the danger sign in an external debt profile, since it must be rolled over frequently - it was the immediate trigger of the crisis of 1991.
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