Internal Ownership of the National Debt Occurs When U

question 128

Multiple Choice

Internal ownership of the national debt occurs when U.S.Treasury bonds are purchased by all of the following except

• A)Foreign countries that we trade with.
• B)State banks.
• C)The Federal Reserve System.
• D)Individual U.S.citizens.

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Definitions:

Repurchase Shares

involves a company buying back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Borrow

The act of receiving funds from a lender under the agreement to return the principal amount plus interest or other charges.

Indifference EBIT

The earnings before interest and taxes level at which a company will have no preference between two or more financial actions due to equivalent financial outcomes.

Capital Structure

The combination of borrowing and ownership investment utilized by a business to finance its activities and expansion.