Correct answer: (c) Both 1 and 2
Explanation
- A
1 only
1 only. Dated securities at auction are also the bulk of internal debt.
- B
2 only
2 only. Household financial saving finances a share of government borrowing (SIH / G-secs).
- C
Both 1 and 2
Both. Household financial saving recycles into G-secs; dated securities at market rates dominate internal debt.
- D
Neither 1 nor 2
Neither. Both are standard public-debt facts.
Summary. Official key is (c) both. A slice of household financial saving is intermediated into government borrowing. Internal debt is mostly dated G-secs issued at auction at market-related rates, not only small savings.
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