In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit cards 3. Treasury bills. Select the correct answer using the code given below:

1. Housing loans owed by households — Correct. Household borrowing is part of the non-financial sector debt; housing loans are a standard component of household debt.

2. Amounts outstanding on credit cards — Correct. Credit card dues are liabilities of households and are included in household/non-financial debt.

3. Treasury bills — Correct. Non-financial debt covers debt of non-financial sectors, including general government debt. Treasury bills are short-term liabilities of the government, so they are included in non-financial debt.

Therefore, 1, 2 and 3 are included. My earlier error was treating Treasury bills only as financial assets for holders; in debt classification, they are also government liabilities, hence part of non-financial debt.