Is interest received on debentures included/excluded in national income?
Is interest received on debentures included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
Yes,
interest received on debentures will be included in the national income as such interest received is a factor income because debenture is a sort of loan taken by a production unit.
Explanation:-
Debenture is a kind of public loan taken by a firm (production unit)
Such a loan is used for productive purposes.
It adds to the current flow of goods and services.
The interest paid on loans taken for productive purposes is included in the national income.
Anurag Pathak Changed status to publish December 9, 2023
