Spending promises made by governments that are effectively a debt, despite the fact that they are not included in the usual debt statistics, are known as:
A)implicit liabilities.
B)explicit liabilities.
C)implicit assets.
D)explicit assets.

Question

Quizplus · Accepted Answer

Implicit liabilities are spending promises made by the government that are effectively a debt, even though they are not included in the usual debt statistics. This can include promises related to future social security payments or pension obligations. Explicit liabilities, on the other hand, are debt obligations that are already recognized and recorded. Implicit assets and explicit assets refer to assets that are recognized and recorded, rather than liabilities.

Spending Promises Made by Governments That Are Effectively a Debt