Implicit liabilities of a government are:

Question

Quizplus · Accepted Answer

Implicit liabilities refer to those obligations that a government has but are not recorded in their official accounts. Option B specifies that these are spending promises that are effectively debt. These promises refer to social insurance benefits, such as pensions or healthcare, that a government has committed to providing to its citizens. Although they are not associated with a bond, they still represent a liability for the government as they are legally obligated to pay them in the future. Therefore, option B is the best choice for implicit liabilities.

Implicit Liabilities of a Government Are