Exam Flashcards
Obligation of government particularly evidence by securities
Public debt
Public spending are raised each year it is a year for any modern budget to balance in any one year
Taxation
Capital spending to a policy of economic stabilization
Accelerate
Government may choose to raise some of their resources
Borrowing
Possible for a government to run
Inflation
Without actually increasing the real burden of debt
Deficit
On average over the period of 1960 to 73 only Belgium Ireland Italy Nederland UK run a deficit
European economic community
Deficit budget has lead to develop of various forms of public debt
Finance
Public debt make classified according to various criteria
Criteria
Held outside of the issuing jurisdiction
External debt
Held within jurisdiction
Internal debt
Maturity downward from Infinity to periods of a month or days
Maturity period
Debt instruments without maturity date merrily payment of inherit
Consoles
Great Britain first import intermittent period debt issue
Consolidated
Large portion of government specific maturities of 5 years to 99 years more
Also known as long-term or funded debt
Bond
Debt of less than 5 years
Floating debt
The length of the maturity periods effects
Liquidity of the Debt
Solely upon the interprises
Revenues
US latter type of obligation
Revenue bond
Negotiable and are sold freely
Market
Interest in principles are usually payable in fixed monetary units
Monetary
Budget surplus has effects opposite from those of borrowing
Government debt
Balance Federal Budget
Amendment
Subject to debt limitations
Dominion
Increase in the capacity of an economy
Economic growth
Economic growth in countries is measured by GDP
Gross domestic product