If the Government's Expenditures Exceeded Its Receipts, What Would It

question 17

Multiple Choice

If the government's expenditures exceeded its receipts, what would it most likely do?

• A) It would lend money to a bank or other financial intermediary.
• B) It would borrow money from a bank or other financial intermediary.
• C) It would directly buy bonds from the public.
• D) It would directly sell bonds to the public.

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Definitions:

SEC

The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

Limited Liability Company

A business structure in the United States that provides its owners with limited liability while allowing them to enjoy the tax and operational flexibility of a partnership.

Business Organizations

Formal entities set up for the purpose of conducting trade or providing services, following a particular operating structure and goals.