--%>
Assignment Help - homework help

Retiring an internally held debt and externally held debt

Contrast the influence of retiring an internally held debt and externally held debt.

E

Expert

Verified

Paying off an internally held debt would include buying back government bonds.  It could present a difficulty of income distribution since holders of the government bonds normally have higher incomes than the average taxpayer.  However paying off an internally held debt would not burden the economy like a whole—the money utilized to pay off the debt would keep on within the domestic economy.  In paying off an externally held debt, people abroad could utilize the proceeds of the bonds sales to buy products or other assets from the Canada.  However, the dollars gained could be simply exchanged for foreign currency & brought back to their home country.  It decrease Canada’s foreign reserves holdings & may lower dollar exchange rate.

   Related Questions in Finance Basics

  • Q : Explain accepting or rejecting of

    For a specified IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject? For a specified IOS and MCC, all independent projects that plot on the IOS above the MCC are accepted. Those

    		•
  • Q : Describe equilibrium price and quantity

    Assume the market for widgets can be described by the given equations:                     Demand: P = 10 - Q             &

    		•
  • Q : Three examples of mutually exclusive

    Provide three examples of mutually exclusive projects. Mutually exclusive projects are projects which compete against each other for our selection. If firm were considering the purchase of new computer, requiring only one computer, then the pro

    		•
  • Q : Describe accumulated depreciation

    Describe accumulated depreciation?Depreciation is the allocation of an asset's primary cost over time. Accumulated depreciation is the sum of all the depreciation cost that has been identified to date.

    		•
  • Q : Difference among proforma financial

    Describe difference among pro forma financial statements and a cash budget? Depict why pro forma financial statements are not utilized to forecast cash needs. Pro forma income statements deal along with revenues and expenses which are not alway

    		•
  • Q : Define Augmentation Augmentation : An

    Augmentation: An authorized raise to a formerly authorized appropriation or allotment. This augment can be authorized by the Budget Act provisional language, control sections, or other legislation. Generally a Budget Revision or an Ex

    		•
  • Q : Influence of mergers and acquisitions

    What influence has mergers and acquisitions had on a customer's access to branches?A branch closing that has resulted from a merger require not necessarily mean a lost relationship. The cause a branch closes is usually the presence of a nearby b

    		•
  • Q : Multiplier effect Normal 0 false false

    Normal 0 false false

    		•
  • Q : Demand for French euros or a supply of

    Normal 0 false false

    		•
  • Q : What are Governmental Cost Funds

    Governmental Cost Funds: For lawful basis accounting and budgeting aims, funds which derive revenue from the taxes, licenses, and fees.

    		•