To Minimize the Disruptions That Its Financing Operations Can Cause

question 14

Multiple Choice

To minimize the disruptions that its financing operations can cause in the market, the Treasury has "regularized" a large part of its financing activity. By regularized, we mean that

• A)new borrowing must occur to refinance that part of the debt that is coming due.
• B)previously issued past debt is maturing, and the government is not in a position to pay it off.
• C)the Treasury announces its borrowing intentions well in advance and tends to borrow at routine intervals.
• D)government borrowing represents an increase in the government's demand for funds.

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Definitions:

Autonomic Arousal

Refers to the automatic activation of the nervous system, including physiological responses like increased heart rate and sweating, typically in response to stress or emotional stimuli.

Subjective Thoughts

Personal ideas, opinions, or beliefs that are based on individual feelings or perspectives rather than facts or evidence.

Polygraph

A device used in lie detection that measures and records several physiological indicators such as blood pressure, pulse, and skin conductivity while the subject is asked questions.

Electrocardiograph

A medical device used to measure the electrical activity of the heart and diagnose various heart conditions.