Which of the following statements in relation to the Commonwealth Government's borrowing programs is incorrect?

Question

Quizplus · Accepted Answer

A) is incorrect because the government issues longer-term securities, such as bonds, to fund its budget deficit, not surplus. When the government has a surplus, it means it is collecting more in revenues than it is spending, and thus, it would not need to issue debt to fund itself. Treasury notes and other debt instruments are indeed used for managing liquidity and financing deficits, and the statement about the decrease in debt issuance would depend on specific fiscal policies and economic conditions at the time.

Which of the Following Statements in Relation to the Commonwealth