Q.Method of Repayment of Public Debt is ________.

Sinking fund, terminal annuity and conversion of loans are all methods of public-debt repayment, so option (d) All of the above is correct.

In the public-debt topic of the Tamil Nadu HSC Commerce syllabus, the important methods of redemption (repayment) of public debt include:

• Sinking fund: a fund into which the government sets aside a fixed sum each year so that the accumulated amount repays the debt at maturity.
• Terminal annuity: the government repays the debt in equal annual instalments (part principal + part interest), so the debt is fully cleared over a fixed period. …