State Governments in the U

question 84

Multiple Choice

State governments in the U.S.can borrow at lower interest rates than corporations because:

• A)corporations borrow money by issuing short-term debt securities.
• B)the government's investment need calls for smaller loans.
• C)the cost of administering loans to the government is low.
• D)the interest on bonds issued by the government is not subject to tax.

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Definitions:

Commodity Money

Anything that serves both as money and as a commodity; money that has intrinsic value such as gold or silver coins.

Double Coincidence

A situation in a barter system where two parties each hold an item the other wants, necessitating an exact match to complete an exchange.

Trade

The exchange of goods, services, or both between countries or individuals, allowing for the specialization and efficiency benefits.

Relative Values

A measure of the worth or importance of one thing in comparison to another, often used in economics to compare the value of different commodities or services.