Correct Option
Non-financial debt encompasses the total debt accumulated by households, non-financial corporations, and the government sector. It specifically excludes debt held by financial institutions, which are involved in financial intermediation.
- Statement 1: Housing loans owed by households are a primary form of household debt. Households borrow for consumption and investment in real assets like housing, which classifies these loans as non-financial debt.
- Statement 2: Amounts outstanding on credit cards represent consumer credit, which constitutes personal liabilities of households. This type of debt is also categorized as non-financial debt.
- Statement 3: Treasury bills are short-term debt instruments issued by the government to finance its expenditure. This constitutes public sector debt, which is a component of non-financial debt.
Since all three statements represent components of non-financial debt, option (d) is the correct answer.
Incorrect Options
Options (a), (b), and (c) are incorrect because they do not include all the components of non-financial debt mentioned in statements 1, 2, and 3. As housing loans, credit card balances, and Treasury bills all fall under the purview of non-financial debt, any option that omits one or more of these valid components is incomplete.