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Make an Argument for User Charges Being Both Efficient and Equitable.What

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Make an argument for user charges being both efficient and equitable.What information can user charges provide us that free provision can not?


Definitions:

Floating-Rate Bonds

Bonds with variable interest rates that adjust periodically based on a benchmark interest rate or index.

Coupon Rate

The interest payment made annually on a bond, shown in percentage terms of its face value.

Time To Maturity

The duration remaining until the final payment date of a loan, bond, or other financial instrument, at which point the principal (and usually the final interest payment) is due to be paid.

Interest Rate Risk

The risk that the value of an investment will decrease due to a change in interest rates.

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