The government of Canada pays lower rates of interest than Canadian corporations when each of them borrows from the public because

Question

Quizplus · Accepted Answer

The government of Canada pays lower rates of interest than Canadian corporations when each of them borrows from the public because the government is considered to be virtually risk-free, meaning there is a low likelihood of default on the loan. Therefore, the government only pays the risk-free rate for the loan it borrows.

The Government of Canada Pays Lower Rates of Interest Than