Government can obtain funds ________.

Question

Quizplus · Accepted Answer

The government can obtain funds by selling debt securities such as treasury bills, bonds, and notes to investors. This is a common way for governments to finance their operations and to manage their cash flows. The investors who purchase these securities are essentially loaning money to the government in return for interest payments and the return of their principal investment at the end of the security’s term. Trading in equity market, issuing financial instruments such as futures and options, and Forex market are not typically used by governments to obtain funds.

Government Can Obtain Funds ________