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To Minimize the Disruptions That Its Financing Operations Can Cause

Question 92

Multiple Choice

To minimize the disruptions that its financing operations can cause in the market, the Treasury has "regularized" a large part of its financing activity. By regularized, we mean that


A) new borrowing must occur to refinance that part of the debt that is coming due.
B) previously issued past debt is maturing, and the government is not in a position to pay it off.
C) the Treasury announces its borrowing intentions well in advance and tends to borrow at routine intervals.
D) government borrowing represents an increase in the government's demand for funds.

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