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Interest on the money

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Q: When the government borrows money it must pay this?
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How do governments borrow money?

Governments raise most their funds through taxes and other revenue, and occasionally tax revenue is not enough for pay for the government taxes so as a result the government must borrow money by issuing bonds. A bond is a certificate stating that the government has borrowed a certain sum of money from the owner.


What is monetized deficit?

Monetized deficit is when the government prints money to pay down the deficit.


The money price one must pay for one more of something is its?

marginal cost


What is an excise subsidy?

This can help a business to save money on any excises that they have. The government will pay a portion of it.


Does the Philippine government needs to borrow money in order to finance educational services?

yes, because our government needs a lot of money in order to improve the educations of every filipino and the government needs to pay the salaries of the teachers who will teach the students. although the education of the Filipinos are not the same with the other countries, still, our government needs to ensure that the people should or let's say must be educated especially when they are at their young ages.

Related questions

What does the government pay when it borrows money?

It repays the borrowed amount plus an agreed upon rate of interest.


When a country borrows money to pay yearly debt they are involved in this type of spending?

Deficit spending is the amount of spending is exceeding the amount of revenue. Government deficit is when a country borrows money to pay a yearly debt. This could be a good or bad thing depending on each situation.


When a country or a person borrows money to pay yearly debt they are involved in this type of spending?

deficit spending


What are the advantages of borrowing?

If someone borrows your money, you can charge them interest depending on how much they borrowed, and how long it takes them to pay it back.


How does the government raise money if they don't have enough money to pay for the programs allowed?

It depends on the level of government and the country you're dealing with. Most governments are primarily supported by taxes, so they may increase one or more tax rates in order to take in more money. The most common way of raising money to cover unexpected expenses, though, is issuing bonds--basically, the government asks for a loan from the people and offers to pay interest on the money it borrows. Individuals can choose to invest in these bonds (loan money to the government) and will later get their money back with interest. EDIT: The U.S. Government often borrows from other countries in order to pay for various things. ANOTHER EDIT: The US Government does not often borrow from other countries' governments. Individuals in other countries can buy US Savings Bonds just as US citizens can. In particular, a significant number of Chinese investors have bought large amounts of US bonds, so in that sense the US Government has borrowed from those individuals, but not from the Chinese government.


How much more interest will William pay if he borrows the money at 5 for a 3 year term?

The answer depends on how much more compared to WHAT!


In One Tree Hill how does Nathan pay the money back?

Nathan borrows money from a guy named dante who is like loan shark. this causes a lot of issues.


How to file for your children?

First you must go to the government so that they will give you a slip. But you must be a American. And you must pay amount of money. After that you must send it back to them and they will accept or not accept.


How does Congress go about borrowing money?

Bonds. When people buy bonds, they are essentially giving the government a loan which the government promises to repay. This is the primary mechanism through which the government borrows money.


I do know that to get adlc in video games you must pay to get but must I pay real money and do I pay to the company directly?

Yes, to get ADLC in video games you must pay and yes, you do pay real money and pay the company directly.


Where does the money to pay postal workers come from?

The money to pay postal workers come from the taxes collected by the government. This is part of the government expenditure.


Where does USOC get money to pay medalists?

government