- 10 Marks
PSA&F – Nov 2019 – L2 – Q4b – Fiscal Policy and Public Finance
Discusses circumstances under which debt financing is appropriate and identifies four documents needed for the issuance of bonds.
Question
Public projects can be financed through debt, taxation, and other related revenue. The choice of any one method depends on the objective and the overall long-term implications for the economy.
Required:
- Discuss TWO circumstances under which debt financing is appropriate.
- Identify FOUR documents required for the issuance of bonds to a state or local government.
Find Related Questions by Tags, levels, etc.
- Tags: Bonds, Debt Financing, Public Projects, Public Sector, Revenue Generation
- Level: Level 2
- Topic: Fiscal Policy and Public Finance
- Series: NOV 2019