Which of the Following Statements Best Describes the Concept of "Two

question 28

Multiple Choice

Which of the following statements best describes the concept of "two faces of debt"?

• A)Government debt requires higher taxation in the future to repay the principal and interests of the debt.
• B)Intermediaries issue financial claims to SSUs and own financial claims issued by DSUs.
• C)Every financial asset is someone else's liability/equity.
• D)DSUs in one period can be SSUs in another one.

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Definitions:

U.S. Attorneys General

The chief legal officers of the federal government of the United States, heading the U.S. Department of Justice and responsible for overseeing federal prosecutions.

Fortune 500

An annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue.

De Facto Racial Segregation

Racial segregation occurring in practice through individuals' behaviors and decisions rather than by legal requirement.

Brown V. Board

The 1954 Supreme Court case, Brown v. Board of Education, that declared state laws establishing separate public schools for black and white students unconstitutional.