Government Stocks and Bonds

What is the primary purpose of issuing development stocks?

To finance development projects or plans

Who are the principal investors in development stocks?

Insurance companies, commercial banks, and Central Bank

What is the primary source of repayment for revenue bonds?

Revenue generated from the project being financed

What is a major cause of the rapid increase in domestic debt?

Need to finance government budget deficit Signup and view all the answers

What is a common use of government stocks?

To finance economic development projects Signup and view all the answers

Which of the following is a characteristic of development stocks?

Long-term maturity with yields increasing with maturity Signup and view all the answers

What has become a rare phenomenon in recent times due to increasing public expenditure?

Surplus budget Signup and view all the answers

How does the government redeem debt?

By buying up loans from the market Signup and view all the answers

What type of internal public debt is contracted through financial instruments?

Internal debts contracted through financial instruments Signup and view all the answers

What is the purpose of government borrowing from the economy?

To alter the position of economic variables Signup and view all the answers

What is reflected in the rapid increase in domestic debts?

The rapidity of debt procurement to finance projects Signup and view all the answers

What arises when payments to contractors and suppliers are delayed or remain unpaid by the government due to lack of funds?

Trade-related debts Signup and view all the answers

What happens when a government's revenue exceeds its spending in a financial year?

A budget surplus occurs Signup and view all the answers

What is one of the objectives of public debt in relation to economic conditions?

To fight against depression Signup and view all the answers

What is deficit financing used for?

To bridge the budget deficit Signup and view all the answers

What is one of the sources of public debt?

External borrowing Signup and view all the answers

What is one of the objectives of public debt in relation to economic development?

To finance economic development Signup and view all the answers

What is one of the areas where public debt can be used?

Financing public enterprises Signup and view all the answers