--%>
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 : Why is replacement value of assets

    Why is the replacement value of assets method not used generally to value complete businesses?The replacement value of assets method is not frequently applied to complete business valuations since it is frequently very hard to locate similar ass

    		•
  • Q : Define Obligations Obligations : The

    Obligations: The amounts that a governmental unit might legally be needed to pay out of its resources. Budgetary authority should be obtainable before obligations can be formed. For budgetary aims, obligations comprise payables for goods or services r

    		•
  • Q : Slope of the budget line and the

    Consider someone won $15 on a Lotto Canada ticket at the local 7-Eleven & decided to spend all the winnings on bags of peanuts and candy bars. The cost of candy bars is estimated as $.75 and the cost of peanuts is $1.50. Plot the data in this table as a budget li

    		•
  • Q : Why coefficient of variation is better

    Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

    		•
  • Q : Describe EU Normal 0 false false false

    Normal 0 false false

  • Q : What is Special Fund for Economic

    Special Fund for Economic Uncertainties: It is a fund in the General Fund (that is, a similar reserve is involved in each special fund) authorized by the statute and Budget Act Control Section 12.30 to offer for emergency situations.

    		•
  • Q : What do you mean by Without Regard To

    What do you mean by Without Regard To Fiscal Year (WRTFY): Where an appropriation has no period of restriction on its accessibility.

    		•
  • Q : Impotence of distinction Normal 0 false

    Normal 0 false false

  • Q : Define Expenditure Expenditure : The

    Expenditure: The expenditures reported on a department’s annual financial reports and “past year” budget documents comprises of amounts paid and accruals (comprising encumbrances and payables) for obligations made for the fiscal year

    		•
  • 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.

    		•