The debt ceiling is:
A)a limit on the total amount of money the Fed can borrow from the government.
B)the minimum amount of money the Fed can borrow from other commercial banks.
C)a limit on the total amount of money the federal government can legally borrow.
D)the maximum amount of money the state governments are allowed to use for public outlays.
E)the maximum amount of money the state governments can borrow from the Fed.

Question

Quizplus · Accepted Answer

The debt ceiling is a limit imposed by Congress on the total amount of money that the federal government can legally borrow. It is meant to control government spending and prevent excessive borrowing that could lead to a default on the national debt. When Congress raises the debt ceiling, it allows the government to borrow more money to fund its programs and meet its financial obligations.

The Debt Ceiling Is