- 15 Marks
PSAF – Nov 2023 – L2 – Q6 – Fiscal Policy and Public Finance
Explains debt refinancing, project financing, and the forms of debt refinancing.
Question
The merits and demerits of debt and tax finance for deficit financing are often debated. The choice of one method depends on the objective and overall long-term implications for the economy.
Required:
a. Explain the following:
i. Debt refinancing (1 Mark)
ii. Why debt refinancing may be of interest to a federal authority (4 Marks)
iii. Project financing (2 Marks)
b. Explain FOUR forms of debt refinancing. (8 Marks)
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