The Primary Deficit Is Equal to

question 29

Multiple Choice

The primary deficit is equal to

• A)the total deficit minus interest payments on the government debt
• B)the total government deficit minus all outstanding government securities held by foreign financial investors
• C)all government revenues minus all government outlays including interest payments on the national debt
• D)the federal government's deficit minus the deficit of state and local governments
• E)mandatory government outlays minus discretionary government outlays

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Definitions:

Equity Carve-Outs

The process by which a parent company sells a portion of the equity in a subsidiary to public investors.

IPO

Initial Public Offering is the process by which a private company becomes publicly traded by offering its shares for sale to the general public for the first time.

Shelf Prospectus System

A regulatory provision allowing issuers to pre-register a new issue of securities, which can be sold at any time within a specified period.

Underwriting Expenses

Costs associated with assessing and accepting risk, such as those incurred by insurers or investment banks during the offering process of securities.