ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest rate
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Discount rate
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Reserve requirement
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Government securities
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Detailed explanation-1: -A government security is a bond or other type of debt obligation issued by the government with the promise of repayment at the maturity date.
Detailed explanation-2: -We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures.
Detailed explanation-3: -Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders.
Detailed explanation-4: -Internal and External Debt. The government’s borrowing within the country is known as internal debt. Productive And Unproductive Debt. Compulsory And Voluntary Debt. Redeemable And Irredeemable Debt. Implicit Debt.
Detailed explanation-5: -Treasury Securities. Bonds, bills, and notes issued by the U.S. government are generally called “Treasuries” and are the highest-quality securities available. Municipal Bonds. Corporate Bonds. Zero-Coupon Bonds.