Final answer:
In the Indian economy, non-financial debt includes housing loans and credit card debts owed by households, but not Treasury bills, which are financial debts of the government. The correct answer is b. 1 and 2 only.
Step-by-step explanation:
In the context of the Indian economy, non-financial debt encompasses different types of obligations that do not involve financial instruments like stocks or bonds. Considering the options given:
- Housing loans owed by households.
- Amounts outstanding on credit cards.
- Treasury bills issued by the government.
Housing loans and credit card debts are forms in which households incur non-financial debt. Housing loans specifically are often long-term commitments and a significant part of an average individual's debt. The amounts outstanding on credit cards similarly represent a form of non-financial debt that comes from households consuming goods and services on credit.
On the other hand, Treasury bills are short-term government securities that are considered financial debts of the government rather than non-financial debt. Treasury bills are a tool for managing government's financial needs and public debt, not a form of non-financial debt held by households or businesses.
Therefore, the correct answer to which elements constitute non-financial debt in the Indian economy is b. 1 and 2 only, which refers to housing loans and amounts outstanding on credit cards.