Debt Measurement

Question 1

Government spending > taxation

Answer 1

Budget deficit

Question 2

Government spending < Taxation

Answer 2

Budget Surplus

Question 3

How can you measure debt

Answer 3

as a number or a percentage

Question 4

What is a bond yield?

Answer 4

Bond yield is like the interest you get from a bond. It’s shown as a percentage and tells you how much money you can make from the bond compared to its current price. This helps investors understand if the bond is a good investment and how much risk is involved. There are different types of bond yields, each giving information about different aspects of the bond’s performance.

Question 5

What is a bond?

Answer 5

A bond is like a loan that you give to a company or government. When you buy a bond, you’re lending money for a set period, and in return, the borrower (the company or government) promises to pay you back the amount borrowed, known as the principal, at the end of the loan term

Question 6

What is a negative of a high bond yield?

Answer 6

Limiting the amount that a government can borrow