Retiring an internally held debt and externally held debt
Contrast the influence of retiring an internally held debt and externally held debt.
Expert
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.
Normal 0 false false
1. Assume the following (all rates are stated annually with semiannual compounding):
Administration: It refers to the Governor's Office and those individuals, subdivisions, and offices reporting to it (example, the Department of Finance).
Sunset Clause: The language contained in a law which states the expiration (termination) date for that statute.
Performance Budget: A budget in which proposed expenditures are prepared and tracked mainly by measurable performance objectives for actions or work programs. The performance budget might also incorporate other bases of expenditure categorization, lik
Under what condition would the U.S. dollar and the Canadian dollar said to be have achieved purchasing power parity? The U.S. dollar and the Canadian dollar would be assumed to have achieved purchasing power parity while the exchange rate reflec
All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?Most of bonds issued in the United States pay interest semiannually (twice per year). Alo
18,76,764
1959599 Asked
3,689
Active Tutors
1457638
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!