The debt ceiling is _____
A) a limit on the total amount of money the Federal Reserve System can borrow from the government.
B) the minimum amount of money the Federal Reserve System 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 on the total amount of money the federal government can legally borrow. Once the debt ceiling is reached, the government cannot borrow any more money unless Congress votes to raise the debt limit. This is an important mechanism to prevent the government from spending beyond its means and accumulating too much debt.

The Debt Ceiling Is _____