When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?

Question

Quizplus · Accepted Answer

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected governments arrange short term borrowing using the taxing power of the government as security. The loan is called a tax anticipation note.

When Payrolls and Other Liabilities Are Incurred and Must Be