What Can Local Governments Do to Help Defray the Cost

question 8

Multiple Choice

What can local governments do to help defray the cost of new buildings,industrial parks,and other facilities that might attract new businesses?

• A)Offer legislative-approved loans.
• B)Guarantee state aid.
• C)Offer industrial development revenue bonds.
• D)Guarantee local construction returns.

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Definitions:

U.S. Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing banking services.

Bank of Japan

The central bank of Japan, responsible for issuing currency, implementing monetary policy, and maintaining the stability of the Japanese financial system.

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as an annual percentage.

Monetary Policy

Actions taken by a central bank, currency board, or other regulatory authorities to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.