Will the national debt have to be paid off (i.e., reduced to zero) in the future?
a. No, it can continually be refinanced.
b. Yes, if it is not paid off, the U.S. Treasury will have to file for bankruptcy.
c. No, technically, it is not a contractual obligation of the federal government.
d. Yes, but since most of the debt is held by Federal Reserve Bank, its re-payment would merely involve an accounting transaction between the Fed and the Treasury.
Question 2
Which of the following is a function of the Fed?
a. Printing foreign currency
b. Determining the level of government spending
c. Distributing welfare benefits
d. Administrating the Social Security fund
e. Ensuring that banks operate in a sound and prudent manner
Grevy's zebras in Samburu National Reserve.
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...