Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

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.

Short-Term Loans Which Are Backed by the Taxing Power of the Governmental