Most of the National debts is "dead weight" in the sense that is____

Analyzing the question

The question asks what it means for most national debt to be called "dead weight." This is a public finance concept.

The concept

A dead weight debt is government borrowing that did not create any productive, income-yielding asset. Such debts are usually incurred to finance things like wars, recurrent expenditure, or consumption. Because there is no asset behind the debt, the government has no revenue stream coming from the borrowing itself. It must repay from taxes or other revenue.

In contrast, an active (productive) debt is borrowing used for capital projects such as railways, power plants, or refineries. These create assets that generate income to help repay the loan.

Working through the options

• A. Bound to increase from year to year: This describes debt growth through interest and new borrowing, not the meaning of "dead weight."
• B. Accumulated as the result of past capital investment: This describes productive debt, the opposite of dead weight.
• C. The responsibility of the treasury: This is about who manages the debt, not its nature.
• D. Not covered by any real asset: This matches the definition exactly. Dead weight debt has no tangible asset backing it.

Tip: Think of "dead weight" as "dead money." The money was spent, nothing was created, and you still owe it. Remember: Dead weight = No asset. Active = Asset-backed.