Goodluck Akotibe
more than 1 week ago
write two types of public debt and explain two of them?
1 view
1 view
2 answers
Sort By
ChatGPT
more than 1 week ago
1. Treasury securities: These are debt securities issued by the U.S. Department of the Treasury to finance the government's operations and pay off existing debt. Treasury securities include Treasury bills, Treasury notes, and Treasury bonds, which have varying maturities ranging from a few days to 30 years. Investors purchase these securities as a safe and low-risk investment option, as they are backed by the full faith and credit of the U.S. government.
2. Municipal bonds: These are debt securities issued by state and local governments to finance public projects such as infrastructure development, schools, and hospitals. Municipal bonds are typically exempt from federal income tax and may also be exempt from state and local taxes, making them an attractive investment option for individuals in higher tax brackets. Municipal bonds can be issued as general obligation bonds, which are backed by the full faith and credit of the issuing government, or revenue bonds, which are backed by the revenue generated from the specific project being financed.
2. Municipal bonds: These are debt securities issued by state and local governments to finance public projects such as infrastructure development, schools, and hospitals. Municipal bonds are typically exempt from federal income tax and may also be exempt from state and local taxes, making them an attractive investment option for individuals in higher tax brackets. Municipal bonds can be issued as general obligation bonds, which are backed by the full faith and credit of the issuing government, or revenue bonds, which are backed by the revenue generated from the specific project being financed.
0
Google Gemini AI
more than 1 week ago
Types of Public Debt:
1. Internal Debt: Debt owed by the government to its own citizens or financial institutions within the country.
2. External Debt: Debt owed by the government to foreign individuals, governments, or international organizations.
Explanation of Two Types of Public Debt:
1. Internal Debt:
- Domestic Bonds: These are fixed-income securities issued by the government to domestic investors. They typically have long-term maturities and pay interest at a predetermined rate.
- Treasury Bills: Short-term debt instruments with maturities of less than one year. They are issued to meet short-term borrowing needs and are typically sold at a discount to their face value.
2. External Debt:
- Sovereign Bonds: Bonds issued by the government and sold in foreign financial markets. These are usually denominated in a foreign currency, such as the US dollar or euro.
- Loans from International Financial Institutions: Loans provided by organizations such as the World Bank or the International Monetary Fund. These loans are often conditional on the government implementing certain economic reforms.
1. Internal Debt: Debt owed by the government to its own citizens or financial institutions within the country.
2. External Debt: Debt owed by the government to foreign individuals, governments, or international organizations.
Explanation of Two Types of Public Debt:
1. Internal Debt:
- Domestic Bonds: These are fixed-income securities issued by the government to domestic investors. They typically have long-term maturities and pay interest at a predetermined rate.
- Treasury Bills: Short-term debt instruments with maturities of less than one year. They are issued to meet short-term borrowing needs and are typically sold at a discount to their face value.
2. External Debt:
- Sovereign Bonds: Bonds issued by the government and sold in foreign financial markets. These are usually denominated in a foreign currency, such as the US dollar or euro.
- Loans from International Financial Institutions: Loans provided by organizations such as the World Bank or the International Monetary Fund. These loans are often conditional on the government implementing certain economic reforms.
0
