What does it mean for the government to "roll over" its debt?
A) Buying bonds from the public to pay off old bonds
B) Continuing to pay interest on old bonds
C) Issuing new bonds to pay off old bonds
D) Running a budget surplus to pay off old bonds
E) Printing money to pay off old bonds.

Question

Quizplus · Accepted Answer

Rolling over debt refers to the process of issuing new debt in order to pay off old debt as it matures. This is a common practice for governments and allows them to continue borrowing while keeping their overall debt level relatively stable. Option A refers to a different process called "buying back" debt, while option B describes a component of paying off debt but not the process of rolling it over. Option D describes a way in which old debt could be paid off but not through rolling it over. Option E refers to a different practice altogether, where a government may attempt to print money to pay off debt but doing so would likely result in inflation.

What Does It Mean for the Government to "Roll Over