To Make Up for a Shortfall in Its Annual Budget

question 215

Multiple Choice

To make up for a shortfall in its annual budget, the government must borrow money by

• A) issuing government (Treasury) bonds.
• B) buying government (Treasury) bonds.
• C) reducing its total public debt.
• D) selling government stock.

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Definitions:

Transactions

Financial activities involving the exchange of assets, services, or financial instruments between parties.

Transactions

The financial events that affect the financial statements of a business, involving transfers or exchanges of value between two parties.

Current Ratio

An indicator of a business's capacity to meet its obligations due in the next twelve months.

Calculated

Determined by mathematical methods; involving the process of using mathematical or logical techniques to derive a result.