When a sovereign country wants to borrow money directly from the public, it can
A-Sell bonds.
B-Sell shares of stock.
C-Go to a bank for a loan.
D-All of the above are correct.
Which of the following is correct?
A-The maturity of a bond refers to the amount to be paid back.
B-the principal of the bond refers to the person selling the bond.
C-A bond buyer cannot sell a bond before it matures.
D-None of the above is correct.
a) When a country wants to borrow money for the public they can float the bonds or sell the bonds in the market. It will decrease the money supply and the government will get money. The answer is "A".
b) The maturity refers to the time period and the principal refers to the amount and the bonds can be sold and resold in the secondary market. The answer is "D", none of the above is correct.
When a sovereign country wants to borrow money directly from the public, it can A-Sell bonds....
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