If a Government Has a Difficult Time Raising Funds by Borrowing

question 62

True/False

If a government has a difficult time raising funds by borrowing, it must print money, which generates inflation.

---

Definitions:

Face Value

The original cost of a security as stated on the certificate. It is the amount repaid to the holder at maturity but not necessarily its current market value.

Intra-Entity Inventory Transfers

Transactions involving the transfer of inventory between departments or units within the same company.

Consolidation Worksheet

An instrument utilized for compiling consolidated financial reports, which facilitates the integration of financial data from a parent company and its subsidiary entities.

Consolidated Statement

Financial reports that combine the accounting information of a parent company with its subsidiaries to present as a single entity.