Which of the Following Statements Is True of Public Debt

question 5

Multiple Choice

Which of the following statements is true of public debt?

• A) Public debt is also known as fiscal debt.
• B) The net public debt includes sums that the government owes to itself.
• C) The Department of Commerce sells IOUs on behalf of the U.S. government.
• D) The interest on treasuries is paid by federal taxes.
• E) The net public debt does not include funds held by the Federal Reserve System.

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Definitions:

Employment and Labor Law

The body of laws, regulations, and administrative rulings that govern employment relationships, workplace rights, and labor practices.

Negligence

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances.

Carelessness

The lack of attention or consideration leading to mistakes or accidents.

Contract Law

The body of law that governs the formation, enforcement, and interpretation of agreements between parties.